Texas Windstorm Insurance Association

Hurricane Season Tip of the Week: Recoverable Depreciation

In some claims, "recoverable depreciation" may be paid after repairs are completed and documentation is submitted. When making repairs, keep copies of:

• repair contracts
• invoices
• receipts
• photos of completed work

Good documentation can help the claims process move more smoothly after repairs are finished! Learn more about factors that may impact the claim payment amount here: twia.org/claims/factors-impacting-payments/
R2R Images Recoverable Depreciation.png

One of the simplest hurricane prep steps is also one of the most overlooked: tree maintenance. Weak or overhanging branches can become dangerous projectiles during high winds and are costly to remove when they fall after a storm.
Before hurricane season peaks:
✔ Trim dead limbs
✔ Remove weak branches
✔ Clear areas near roofs and power lines
Preparation now can help reduce storm damage later! And, money spent from your claim payment on tree removal means less money spent repairing your home. It can be much more cost effective to maintain trees than to remove them after a hurricane.

The Texas Windstorm Insurance Association's board met at the Tremont House on Mechanic Street and voted unanimously after an actuarial analysis found the insurer's current rates were high enough to cover expected costs for residential and commercial policies.

Why an ICC Endorsement May Make Sense

After a major storm, rebuilding may require upgrades to meet current building codes. An Increased Cost of Construction (ICC) endorsement can help with certain additional costs associated with required code upgrades after a covered loss.

Building standards change over time. Understanding your coverage can help you plan ahead. Review your policy and talk with your agent about what coverages and endorsements may be right for you.

💼 Meeting Alert 💼

Public Invited to Comment as TWIA Board Considers Annual Rate Filing at August 4 Meeting

TWIA's Board of Directors will meet at the Tremont House in Galveston on Tuesday, August 4 at 9:00 a.m. CT. The Board is expected to consider the Association's statutorily required annual rate filing for 2027 policies. To learn more about this meeting, see the agenda, and find out how to register to attend, follow this link: https://bit.ly/45l3iF0

All meetings of the TWIA Board of Directors are open to the public. Members of the public are invited to provide public comment in person at the Tremont House in Galveston, virtually via Zoom: https://bit.ly/4gRT6uV, or by submitting written comments via email at [email protected]. Interested parties are encouraged to submit comments by noon on Friday, July 31, to enable the Board to receive and review them before the August 4 meeting. All written comments will be provided to the Board regardless of when they are received.

The meeting will also be livestreamed on YouTube: https://www.youtube.com/live/XDNQETmHdtA

WPI-8 Certificates Matter.

Making repairs or improvements to your home along the Texas coast? Windstorm certificates (WPI-8s) may be required for certain work to verify compliance with applicable building standards.

Before starting repairs or upgrades, make sure you understand the inspection and certification requirements. Learn more before the next storm arrives at twia.org, and if you’re in the Galveston area on July 18, bring your storm preparation questions to TWIA at our Coastal Preparedness Expo. Find out more at twia.org/expo.

Do You Need ALE Coverage?

If a covered loss makes your home temporarily unlivable, Additional Living Expense (ALE) coverage may help with temporary housing and certain extra living costs.

ALE coverage is available through an endorsement to your policy. Review your policy and talk with your agent about what coverages and endorsements may be right for you.

After a storm, some claim payments may include depreciation. Here’s the simple version:

Actual Cash Value (ACV) = Replacement Cost minus depreciation for age and wear.
If your policy includes replacement cost coverage, “recoverable depreciation” may be paid later after repairs are completed and documentation is submitted.

Understanding the process ahead of time can help reduce confusion during recovery.

Contact your agent today, or if you are in the Galveston area on July 18, bring your storm preparation questions to TWIA at our Coastal Preparedness Expo. Find out more at twia.org/expo.