Texas FAIR Plan changes from July 1, 2026
The Texas FAIR Plan Association says that on or after July 1, 2026 the 1% wind and hail deductible option is eliminated for its homeowners policies, and current policies with a 1% wind and hail deductible change to 2% at renewal. Wind and hail deductible options are 2%, 3%, 4% and 5%, split deductibles are permitted, and the changes were approved by the Texas Department of Insurance.
TWIA covers wind and hail only
The Texas Windstorm Insurance Association says its policies cover only windstorm and hail damage, for coastal residents whose insurers exclude those perils. The deductible is chosen by the policyholder and applies per loss.
How percentage deductibles are calculated
The Texas Office of Public Insurance Counsel explains that a percentage deductible is calculated on the amount of insurance on the home, not the amount of the claim, and that a named storm deductible is typically triggered when the National Weather Service names a storm and may apply once a season rather than each storm, depending on the policy.
What a 2% deductible costs
A percentage deductible is applied to the dwelling coverage limit (Coverage A), not to the damage. On $300,000 of dwelling coverage a 2% deductible is $6,000; on $500,000 it is $10,000. Covered storm damage below that amount is paid by the homeowner.
Read your own declarations page and deductible endorsement: the policy wording, together with state law, decides which deductible applies to a loss. This page summarises the official state guidance only.