Builders Risk Insurance in Texas: Coastal Wind, Hail and Renovations

Builders risk in Texas insures a building while it is being built or renovated, from the day work starts until the structure is finished. The Texas twist is wind and hail. Inland, they are normally part of the builders risk policy with their own deductible. On the coast, a private policy may exclude them or need underwriter approval, and the Texas Windstorm Insurance Association (TWIA) writes wind and hail builders risk only for projects that will be certified to the windstorm building code by the Texas Department of Insurance (TDI).^[1][2][7]

This guide is for a Texas owner, builder or contractor preparing for a new home, an addition or a remodel. It explains how the coastal rules work, which of TWIA's two builders risk forms fits your project, why a renovation is insured differently from a new build, and what you should have ready. Our builders risk page explains the coverage itself and the questions we ask about a project.

Does a Texas builders risk policy cover wind and hail?

Inland, usually yes. TDI's consumer guidance says that anywhere in Texas except the coast, a home policy normally includes wind and hail, sometimes with a different deductible.^[8] Builders risk follows the same pattern. The Florida and Texas builders risk card that Alchemy publishes allows wind and hail deductibles from $1,000 to $50,000, or 1%, 2%, 5% or 10% of the value, next to a separate all-other-perils deductible.^[7]

On the coast, the answer depends on the policy. The same card shows "X-Wind" as a deductible choice, which means the policy excludes wind, and it states that "Wind & Hail requires underwriting approval in wind pool", meaning the coastal counties TWIA serves.^[7] So a coastal builder may end up with a private builders risk policy for perils such as fire, theft and vandalism, and a separate wind and hail policy from TWIA. Check your declarations page, the front of your policy, for a windstorm exclusion before you assume a storm loss is covered.

Where does TWIA write builders risk?

TWIA writes only in its designated area. The area includes Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio and Willacy counties, as well as the part of Harris County east of Highway 146.^[2] To qualify, the applicant must have been turned down for wind and hail by at least one insurer actively writing it in that area, the structure must be certified to the windstorm code, and the property must be in insurable condition.^[2]

Two other rules affect builders. A property in flood zones V, VE or V1-30 that was built, altered, remodeled or enlarged on or after September 1, 2009 must show proof of flood insurance when NFIP coverage is available.^[2] And TWIA won't issue a new policy while a hurricane is in the Gulf of Mexico, so buy before the season rather than waiting until a storm is forecast.^[1][8]

How do TWIA's builders risk forms work?

TWIA has two wind-and-hail-only builders risk forms, and the manual tells you which one to use.^[3] Here is the choice in one table:

Both forms cover materials, supplies, temporary structures and builders' machinery and tools that become part of the building or are within 100 feet of it, including property in the open next to the site.^[4][5] TWIA's manual says construction "officially begins when materials are delivered to the building site, exclusive of fill dirt and the grading of land", so a TWIA-21 policy has to be in place before the first delivery.^[3]

Along with the start date, the application asks for a photograph of the structure (or of the vacant land if work hasn't begun), whether the job is repairs or improvements, and whether an addition exceeds 10% of the original ground floor area.^[3] Each location needs its own TWIA policy, so a builder with three lots buys three policies.^[3]

TWIA's current maximum is $1,773,000 for a dwelling and $4,424,000 for a commercial structure with its contents.^[6] A custom home whose completed cost is above the dwelling limit goes on TWIA-18.^[3] TWIA still won't insure more than its limit, so the value above it needs wind and hail from another market.

What windstorm inspections does a coastal project need?

Most new construction, roof replacements, major repairs and other alterations in the coastal area need an inspection and a certificate of compliance to be eligible for TWIA.^[1] TDI issues two kinds:

• WPI-8, for work in progress. An engineer appointed by TDI or a TDI windstorm inspector inspects while the work is underway.^[1]
• WPI-8-E, for completed work. A Texas licensed professional engineer inspects the finished structure. TDI warns this can cost more, because code compliance is harder to check once walls are closed.^[1]

Small jobs don't need this. TDI's examples include roof repairs under 100 square feet that don't involve decking, painting, cabinets, fences and gutters, plumbing and electrical repairs, and replacing glass.^[1] Ask your contractor before work starts how they plan to get the inspections done and the certificate issued. A project finished without inspections can still be certified through the WPI-8-E route, which is slower and more expensive, and until a certificate exists the building may not qualify for TWIA.^[1][2]

How is a renovation insured differently from a new build?

A new build has one value, the finished building. A renovation has two, the work being done and the building that was already there, and Texas policies treat them differently.

In practice, the existing house is what matters. If it already has a homeowners or dwelling policy, ask that insurer whether the policy stays in force during the work and whether it covers the renovation. If it doesn't, the builders risk policy has to pick up the old structure, and on the coast that means TWIA-18 rather than TWIA-21.^[3] Actual cash value on the existing structure means depreciation is subtracted from a claim on the old part of the building.^[7]

What will the application ask for?

Expect questions about the project, the builder and the site. Alchemy's Florida and Texas card is typical of what a private market asks for:^[7]

• The signed application, with the insured's and the agent's signatures.
• Currently valued builders risk loss runs for the builder, or a dated no-loss statement for the prior 3 years.
• A detailed resume if the builder has been in business less than 3 years.
• No bankruptcies in the past 5 years and no licensing-board discipline in the past 5 years. A property loss in the past 3 years needs home-office approval.

A coastal project adds the TWIA items: the site photo, the start date, the scope of any renovation or addition and, before the policy can continue, the windstorm certificate.^[3][2]

For what a builders risk policy covers in general, read our builders risk guide. For how TWIA and the Texas FAIR Plan fit with a finished home's insurance, see our Texas windstorm and FAIR Plan guide.

This guide is for educational purposes. It summarizes TDI consumer guidance, TWIA's forms, manual and fact book, and one carrier program card dated 2025, all as of September 2026. Rules, limits and programs change, and your policy's terms, conditions and endorsements control. Menlo Insurance Services is a licensed property and casualty broker in Texas and California that may earn a commission on a placement. Naming a program here doesn't mean we place it in Texas or that any coverage or price will be available.

The Bottom Line

A Texas builders risk policy covers the project until it is finished, and inland it normally includes wind and hail. On the coast, check whether the private policy excludes wind, and plan for TWIA: bind TWIA-21 before the first delivery if you can, use TWIA-18 once work has started or when the old building is covered, and get the WPI-8 inspections done while the walls are still open.^[1][3][7]