TX| The Texas Commissioner of Insurance’s Official Order No. 2025-9553 (dated October 15, 2025), designates a specific area near Clear Lake in Harris County as an underserved area for Property Owners Association (POA) insurance under the Texas FAIR Plan.
Following petitions from five property owners associations, the Commissioner reviewed market data, held a public hearing, and determined that POA insurance coverage is not reasonably available from admitted insurers in certain parts of Harris County. This order, issued under Insurance Code Sections 2211.051(b) and 2211.1515, directs the Texas FAIR Plan Association to begin offering POA insurance to eligible property owners within the defined underserved area, effective immediately.
Main Points:
- Petitions and Jurisdiction: Five POAs along Clear Lake’s north shore petitioned for underserved area status, citing repeated declinations from admitted carriers and reliance on surplus lines coverage.
- Public Hearing: The Texas Department of Insurance (TDI) held a hearing on June 6, 2025, with public input from POAs, consumer advocates, and an insurance trade association; most commenters supported the underserved designation.
- Market Findings: From 2021–2023, admitted carriers issued only 2–4 relevant policies in ZIP codes 77058 and 77586, while surplus lines carriers issued 17–27 annually, showing limited admitted market access.
- Commissioner’s Determination: The Commissioner concluded that POA insurance is not reasonably available in the voluntary market for a substantial number of insurable risks in the proposed area.
- Order and Implementation: The FAIR Plan must begin accepting applications from eligible associations within the designated boundaries, requiring evidence of at least two declinations from admitted insurers; coverage will remain valid until renewal, even if boundaries later change.