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Bill

SB 2571

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

89th Legislature (2025) Introduced by Brandon Creighton and 2 co-sponsors

SB 2571 allows Texas Windstorm Insurance Association to assess policyholders for excess losses, increasing insurance costs for coastal property owners and potentially statewide residents.

Left pending in committee
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Bill Summary · SB 2571

Legislative bill overview

SB 2571 authorizes the Texas Windstorm Insurance Association (TWIA) to assess policyholders to cover excess losses and operating expenses. The bill enables TWIA to recover funding shortfalls through additional charges on insurance premiums when the association's reserves are insufficient to pay claims from catastrophic windstorms or hurricanes.

Why is this important

TWIA is the insurer of last resort for coastal and near-coastal Texas properties that cannot obtain windstorm coverage from private insurers. When major hurricanes or windstorms cause losses exceeding TWIA's reserves, assessments directly increase insurance costs for policyholders statewide, affecting property owners' affordability and the state's disaster resilience financing.

Potential points of contention

  • Cost burden on policyholders: Assessments translate to higher insurance premiums for TWIA members, potentially pricing out lower-income property owners or making coastal properties less affordable
  • Fairness and risk distribution: Policyholders across Texas pay assessments for coastal losses, raising questions about whether inland residents should subsidize coastal risk
  • Alternative funding mechanisms: Debate over whether the state should use general revenue, bonds, or other financing methods instead of shifting costs to insurance consumers

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

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