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Canceling Hurricane Insurance in Texas

In Texas, you can cancel hurricane insurance policies for various reasons, such as the high cost of the policy and the lack of use or if the policies no longer serve their intended purpose. If the insured makes an application to cancel their flood and windstorm insurance policy, the insurer must make a refund, regardless of the method of funding the premium.

If you consider canceling your storm insurance policy, it is important to understand the consequences of doing so thoroughly. Speak to a licensed insurance agent about the possible penalties and alternatives for canceling your policy.

How Do I Cancel Hurricane Insurance in Texas?

To cancel hurricane insurance, you need to cancel your windstorm and flood insurance coverages under your hurricane insurance policy with your insurance provider. When canceling a windstorm insurance policy under TWIA, you must do the following:

  • Inform the TWIA of the intent to cancel

  • Fill out and submit the accord cancellation form

  • You must submit all documents relevant to the policy, such as the declaration page and policy certificate

You can also request to cancel a flood insurance policy with FEMA by:

After submitting it, the insurer will notify the interested parties, such as the creditors and loss payees. A flood insurance policy can be canceled either mid-term or when you are about to renew your policy. If you cancel a windstorm or flood insurance policy, you may be entitled to a refund or a partial refund.

Meanwhile, if you purchased your windstorm or flood insurance policies from a private insurance carrier, you can contact the insurer to cancel your policy. This may require you to submit a formal request to cancel or fill out a cancellation form provided by the insurer. Also, you may be required to provide documents like your policy declaration page. To learn more about the cancellation process of your hurricane coverages, contact your Texas-licensed P&C insurance agent.

When Should I Cancel my Hurricane Insurance Policy?

There are factors you need to consider when deciding whether or not to cancel your hurricane insurance policy, such as:

  • Type of insured property

  • Location of the property

  • Value of the property

If you decide to cancel your insurance policy, it is advisable to cancel before the policy’s renewal. However, if you choose to cancel mid-way through the policy, you may be subject to a cancellation fee from the insurance provider. Also, you may receive the remaining premium at a percentage, depending on your insurer and whether you were on an annual plan.

An alternative to canceling your insurance is to lower the cost by increasing your deductibles, mitigating the risk of your property being damaged by a hurricane, and raising your building's elevation. Aside from protecting your home after being damaged by a hurricane, having hurricane insurance (consisting of flood and windstorm insurance coverage) also provides you with peace of mind. You can avoid paying for expensive repairs if a hurricane hits. If you cannot afford to maintain your hurricane insurance, speak to a Texas-licensed P&C insurance agent to advise you on your best possible options.

Is it Bad to Cancel Hurricane Insurance Policy?

It is not ideal to cancel coverages protecting your home or commercial property in Texas against hurricane damages. If a hurricane occurs, you will have to bear the costs associated with the damages caused by hurricane-related floods and storms, especially if you live within the high-risk hurricane zone. For instance, a hurricane claim is typically as high as $90,000 in Texas. Even if you earn a relatively high income in Texas, it will take you a long time to gather the necessary expenses to afford the needed repairs of the hurricane damage. If you still have insurance policies covering such claims, it will be easy to avoid this issue.

If you are considering getting rid of your hurricane policies but you still have the need for the coverage, speak with a knowledgeable agent who can assess your needs and help you understand what happens next.

Can I Cancel Hurricane Insurance without Penalty?

Yes. You can cancel your hurricane insurance (flood and windstorm coverages), protecting against hurricane disasters without penalty if you cancel your policy before the renewal at the end of your policy's term. However, if your mortgage provider requires that you keep it, you might not be able to cancel without incurring a cancellation penalty. Also, if you cancel your insurance policy midway into the policy, you may incur certain cancellation fees subject to the particular insurance provider.

Do I Get a Refund of Unused Premiums if I Cancel Hurricane Insurance Coverage?

After canceling your flood insurance policy, you will be required to calculate the premium refund for the terms left on the policy and submit the necessary documentation to FEMA. If you purchased your policies from a private insurance company, you might be entitled to a refund subject to the contract with the insurer.

How Can I Reinstate Canceled Hurricane Insurance?

After you have canceled your flood and windstorm insurance policy with a private insurance company or the NFIP and TWIA, you will be required to apply for a new one. This process will require you to submit a new application with full payment. You may be exempted if the cancellation was carried out during your policy grace period. If you have a claim within the specified waiting period, the loss resulting from the hurricane will not be compensated. If you are planning on reinstating your windstorm or flood insurance policy in Texas, talk to a Texas-licensed P&C insurance agent about the details of the policy.