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HB 3689

Relating to funding of excess losses and operating expenses of the Texas Windstorm Insurance Association; authorizing an assessment; authorizing a surcharge.

89th Legislature (2025) Introduced by Greg Bonnen and 24 co-sponsors

Authorizes Texas Windstorm Insurance Association to assess policyholders and impose surcharges to cover hurricane losses and operating costs.

See remarks for effective date
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Bill Summary · HB 3689

Legislative bill overview

HB 3689 authorizes the Texas Windstorm Insurance Association (TWIA) to assess policyholders and impose surcharges to cover excess losses and operating expenses. This mechanism allows TWIA—the insurer of last resort for coastal windstorm coverage—to recover financial shortfalls from its customer base rather than relying solely on reinsurance or state general revenue.

Why is this important

TWIA covers high-risk coastal properties that private insurers won't cover, making it essential for homeowners in vulnerable areas. When hurricane losses exceed reserves, the authorization to assess policyholders directly shifts costs to current customers rather than spreading them across state taxpayers or delaying claims. This affects millions of Texans with coastal exposure, particularly in hurricane-prone areas like the Gulf Coast.

Potential points of contention

  • Policyholder burden: Assessments and surcharges directly increase insurance costs for consumers already paying premiums for high-risk properties, potentially making coastal homeownership less affordable
  • Regressive impact: Coastal residents, who are disproportionately responsible for TWIA's losses, bear the assessment burden rather than broader risk distribution across the state
  • Moral hazard: Assessments may incentivize continued building in high-risk areas by avoiding full market-rate pricing that reflects true catastrophic risk

Compiled from official sources — confirm details with the bill’s official record.

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