What’s new in the Texas insurance industry that Corpus Christi real estate investors need to prepare for?
A few things, actually.
Many owners have recently found themselves working with rising premiums, new deductibles, and shifts in coverage. Let’s take a look at some of the insurance updates that are most relevant to you, and how you can navigate a rental market and insurance landscape that’s ever-evolving.
Quick Summary:
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Insurers are Facing Higher Claims from Texas Property Owners
As more claims are being filed in Corpus Christi and across Texas, insurers are keeping up with higher costs. Extreme weather has become a regular feature rather than a rare exception in recent years, especially in coastal areas like Corpus Christi, where hurricanes and tropical storms are constant threats. The likelihood that Texas property owners will face a significant insurance claim continues to climb.
For rental property owners, this means carrying full replacement cost coverage is essential. Otherwise, you’re exposed to serious financial risk.
That coverage is not only getting more expensive; it’s becoming harder to find.
According to a report by Texas Public Radio last summer (2025), property insurance carriers are pulling back in Texas in a few ways. They’re limiting coverage, increasing rates significantly, and some insurers are exiting markets entirely due to financial losses from frequent severe weather, inflation, and rising claim costs.
This has led to some challenges when it comes to coverage availability and affordability.
Wind and Hail Claims in Texas
Texas leads the nation in hail-related property losses.
Severe storms account for the overwhelming share of insured property losses across the state year after year, and traditional dwelling and property policies may not include sufficient windstorm or hail coverage. Private insurers in Texas sometimes exclude or severely restrict wind and hail risk because of the high exposure, meaning landlords need separate or supplemental plans.
For property owners in Corpus Christi, which lies in one of Texas’ designated coastal catastrophe areas, many lenders will require windstorm coverage before issuing or refinancing a mortgage on coastal properties, even though Texas law doesn’t mandate it statewide.
When private coverage isn’t available to rental property owners in Corpus Christi, the Texas Windstorm Insurance Association (TWIA) often becomes the insurer of last resort for wind and hail coverage. TWIA serves property owners in the first-tier coastal counties, including Nueces, San Patricio, and Kleberg, where Corpus Christi properties typically sit.
In 2026, there are new deductibles in place for wind and hail coverage.
Historically, you might have had a flat $1,000 or $2,500 deductible, but Texas carriers have largely shifted to Percentage-Based Deductibles, which means that instead of a fixed dollar amount, your deductible depends on the home’s dwelling coverage limit. An increase has gone into effect from 1% to 2% for many property owners in Texas, raising the amount you’ll pay out of pocket for a wind or hail claim.
That’s a pretty significant jump. If your home is worth $400,000, that 1% deductible was a $4,000 bill. Now, with a 2% deductible, it would be $8,000.
Flood Insurance in Texas
Whether you own a duplex, a multi-unit, or a single-family rental, remember that windstorm and flood insurance are separate products. Standard property insurance does not cover flooding due to storm surge or heavy rain.
Many investors assume that living outside FEMA’s designated flood plains means they’re safe, but recent studies show that flood risk extends well beyond official maps, and millions of Texas properties remain uninsured despite significant exposure.
This makes federal flood insurance through the National Flood Insurance Program (NFIP) or private flood policies an essential component of risk management for Corpus Christi landlords.
Flood insurance is not only a great idea in a coastal area like ours, it’s often mandatory when seeking a loan to buy an investment property or a home.
Flood insurance is required by law if the following conditions are met:
- The property is located in a Special Flood Hazard Area (SFHA), such as an AE or VE flood zone, as designated by the Federal Emergency Management Agency (FEMA).
- The property has a federally-backed mortgage (e.g., FHA, VA loans, or loans from a federally regulated lender).
Flooding in Texas is not uncommon, and disasters are memorable. Yet statistics show that only 7% of Texas property owners have flood insurance provided by the federal government, and the numbers actually decreased over the last year, even with torrential rains like those we saw in central Texas in July of 2025, where hundreds of people across six counties died.
To make flood insurance more available to residents and investors, Corpus Christi have introduced ordinances that regulate development in the most flood-prone areas.
- Floodplain Development Permits. Any development, construction, or land alteration in an area of flood hazard requires a Floodplain Development Permit.
- The 50% Rule. If a non-conforming structure (for example, a home built below the Base Flood Elevation) is substantially damaged, meaning the cost of repairs equals or exceeds 50% of market value or substantially improved, it must be brought into compliance with current floodplain regulations, which usually means elevating the lowest floor to or above the BFE (Base Flood Elevation) plus at least one foot of freeboard.
- New Building Standards. New construction in high-risk zones must meet specific elevation requirements (e.g., using piers or pilings in V zones) and use flood-damage-resistant materials below the required elevation.
- Community Rating System. Because the city exceeds the NFIP’s minimum standards, residents qualify for a discount on flood insurance premiums (typically 5% to 10%).
There is generally a 30-day waiting period for a new flood insurance policy to become effective, so get this protection in place before the next major rain event.
Insurance is complicated in Texas, thanks to extreme weather and rising costs. It’s essential to protect your investment, however, so let’s talk about the best way to ensure you have the necessary coverage. Talk to your insurance agent. And contact us, at ACP Select Management. We’re leasing, managing, and maintaining investment properties in the Corpus Christi area, including Aransas Pass, Bishop, Driscoll, Ingleside, Kingsville, Odem, Port Aransas, Portland, and Sinton.
