Austin — Some property owners in Texas’ coastal areas will see a 5 percent increase on their insurance bills next year.

The Texas Windstorm Insurance Association’s board of directors approved the increase Tuesday. The board also delayed a decision on whether to enact an additional increase that would depend on how far a property is from the shore. That decision will be discussed at an  Aug. 7 meeting in Galveston,

The 5 percent increase for residential and commercial properties insured under the association is set to take effect Jan. 1, 2013. The association is a quasi-government agency that is the primary property insurer for residents and businesses in 14 coastal counties and parts of Harris County.

Many property owners in those areas cannot get regular insurance, so the state requires insurance companies in Texas to contribute to the windstorm association, which then writes the policies.

“We need more rate than we’re getting today to pay projected future losses,” said John Polak, general manager of the association. He noted that there was also a 5 percent increase in 2011 and 2012.

Texas Department of Insurance spokesman Jerry Hagins said that since the increase is part of the windstorm association’s annual rate filing and doesn’t exceed 5 percent, it could go into effect without being approved by the insurance commissioner if filed properly.

For the possible rate increase to be discussed in August, a committee with the windstorm association has recommended a rate change with an overall increase of 4.7 percent for residences and 1.7 percent for commercial properties.

That increase would be achieved by applying the differing rates to different territories, and could be as much as 10 percent for policyholders nearest the coast.

“We’re trying to fund future losses. We’re growing, our (number of properties covered) are growing and we need the money to pay those projected claims, expenses and replenish” a fund that can be used in case there’s a large event and the current premiums are not enough to cover it, Polak said.

Polak said that fund was exhausted after Hurricane lke in 2008, a particularly devastating storm