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Bill

HB 2518

Relating to the use of installment premium payment plans on Texas Windstorm Insurance Association policies.

89th Legislature (2025) Introduced by Jeff Barry and 4 co-sponsors

HB 2518 allows Texas Windstorm Insurance Association policyholders to pay premiums through installment plans instead of lump-sum payments, effective September 1, 2025.

Effective on 9/1/25
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Bill Summary · HB 2518

Legislative bill overview

HB 2518 allows policyholders of the Texas Windstorm Insurance Association (TWIA) to pay their premiums through installment payment plans rather than requiring full upfront payment. The bill modifies existing insurance regulations to provide more flexible payment options for windstorm coverage, which is a mandatory insurance product for coastal property owners in Texas.

Why is this important

Windstorm insurance is often expensive for coastal Texas residents and is frequently the only available coverage option in high-risk areas. Allowing installment payments reduces the upfront financial burden on homeowners and renters, potentially increasing insurance accessibility and compliance rates. This affects hundreds of thousands of policyholders along the Texas coast who rely on TWIA coverage.

Potential points of contention

  • Administrative costs: Implementing installment billing systems increases TWIA's operational expenses, which could ultimately be passed to policyholders through higher premiums or administrative fees
  • Payment default risk: Installment plans create potential for non-payment and coverage lapses, which could leave properties uninsured and complicate claims processing after weather events
  • Equity concerns: Installment options may not address affordability for lowest-income coastal residents if fees are attached, and could benefit those with better credit access disproportionately

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

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