Who funds the Texas FAIR Plan Association and the Texas Windstorm Insurance Association?
LAST UPDATED · REVIEWED BY ExploreMyInsuranceOptions.com Staff · FACT-CHECKED BY A LICENSED P&C BROKER AGAINST OFFICIAL PLAN DOCUMENTATION AND STATE DOI SOURCES PER OUR EDITORIAL STANDARDS · REPORT AN ERROR
Neither program is funded by general state tax dollars. The Texas FAIR Plan Association is funded by its policyholders' premiums, with shortfalls shared by the insurers licensed to write property insurance in Texas. The Texas Windstorm Insurance Association (TWIA) pays claims from premiums and its catastrophe reserve fund, then from reinsurance, bonds, and assessments on member insurers under a funding structure set by the Texas Legislature. Compare private-market, specialty-market, and residual-market options with a licensed insurance agent.