By DIANTÉ MARIGNY
editor@portisabelsouthpadre.com
A proposal that could have eliminated Texas Windstorm Insurance Association coverage for certain secondary homes along the Texas coast has been rejected following overwhelming opposition from coastal communities, including South Padre Island.
The proposal was considered by TWIA’s Legislative and External Affairs Committee as the association develops recommendations for its upcoming biennial report to the Texas Legislature.
The proposal would have recommended limiting residential TWIA coverage to primary residences, potentially removing secondary homes from eligibility.
The issue carried particular significance for communities such as South Padre Island, where vacation homes, condominiums and investment properties make up a significant portion of the local real estate market.
Opposition was substantial.
TWIA received 295 written public comments concerning the Sept. 1 committee meeting. According to reporting from the meeting, only four supported the proposal.
Among those opposing the change were the South Padre Island Board of Realtors and South Padre Island Mayor Patrick McNulty, along with elected officials and organizations representing other Texas coastal communities.
Opponents argued that eliminating coverage for secondary residences could hurt coastal real estate markets, interfere with mortgage financing and make it more difficult for communities dependent on tourism and vacation properties to recover following hurricanes.
The proposal ultimately failed on a 2-1 committee vote, with members indicating they did not intend to bring the proposal back for reconsideration.
The debate comes as TWIA’s financial outlook has improved considerably.
TWIA’s 2026 actuarial analysis found its current rates to be 9% adequate for residential coverage and 4% adequate for commercial coverage. By comparison, residential rates were considered 38% inadequate as recently as 2024.