TWIA vs TDI: What You Need To Know
Find the Answers to Your Concerns for Windstorm Certification
It can sometimes be confusing for homeowners and contractors as they wade through the waters of getting their new home or alteration certified to obtain a windstorm and hail insurance policy through TWIA or your insurance company. Will you need a certificate from TDI or TWIA? What’s the difference between a WPI-8 and a WPI-8-C?
TDI (Texas Department of Insurance) regulates the state’s insurance industry, oversees the administration of the Texas workers’ compensation system, performs the duties of the State Fire Marshal’s Office, and provides administrative support to the Office of Injured Employee Counsel – a separate agency (tdi.texas.gov). TWIA (Texas Windstorm Insurance Agency) is a residual market property insurance company and is not a state agency. TWIA is one of 36 residual market property insurers in the United States. These residual markets are created by state law to provide consumers with another alternative for insurance when coverage is unavailable through traditional private sector insurance carriers. When the private sector determines the risk of loss is too great and is unwilling to write coverage voluntarily, applicants can seek coverage through the residual market mechanism.
Before 2015, TDI was the only entity that was capable of issuing certificates of compliance (WPI-8) for completed improvements. These certificates were used by insurance companies and TWIA to verify that the structure conformed to the applicable building code. The only individuals allowed to declare that a structure conformed to the building code for TDI certificate of compliance were professional engineers on the TDI appointed qualified inspectors list and TDI inspectors.
In 2015, Texas Legislation authorized TWIA to issue certificates of compliance (WPI-8-C) that can be used (just like TDI issued WPI-8) by insurance companies and TWIA to verify that the structure conformed to the applicable building code. Any Texas licensed engineer is allowed to declare that a structure conformed to the building code for TWIA certificate of compliance. TDI continues to issue certificates.
What’s the difference between the WPI-8 and WPI-8-C? A WPI-8 is issued from TDI and is used for new and ongoing construction. A WPI-8-C is issued by TWIA and is used for completed construction.
It is allowed for new and ongoing construction, once completed, to receive a certificate of compliance, WPI-8-C, from TWIA.
Lynn Engineering is experienced and confident working with both entities on certifications and inspections. Our friendly staff can help you through the process. Contact us with any questions – we’re ready to get started!
TWIA vs. TDI Information
When dealing with insurance and windstorm specifically, two acronyms show up: TWIA (Texas Windstorm Insurance Association) and TDI (Texas Department of Insurance).
We’d like to share some information with you on this page that clarifies these entities’ roles in your windstorm project.
The Texas Windstorm Insurance Association (TWIA) was established by the Texas Legislature in 1971 in response to regional market conditions following Hurricane Celia in August 1970. Our purpose is to provide windstorm and hail insurance in the Texas seacoast. TWIA is governed by Chapter 2210 of the Insurance Code (Chapter 2210).
The Texas Department of Insurance regulates the state’s insurance industry, oversees the administration of the Texas workers’ compensation system, performs the duties of the State Fire Marshal’s Office, and provides administrative support to the Office of Injured Employee Counsel – a separate agency.
The Texas Department of Insurance (TDI) administers the Windstorm Inspection Program and issues Certificates of Compliance (WPI-8) for ongoing improvements.