The Governor Just Told Texas Insurance Regulators to Fix Home Insurance Costs.

Here’s What That Actually Means for You.

Gov. Greg Abbott sent a letter to Texas Insurance Commissioner Amanda Crawford on Aug. 24, directing the Texas Department of Insurance to take action on rising home insurance costs. The number that anchored the letter: the average annual homeowner’s insurance premium in Texas increased 79% in six years, from under $2,000 in 2020 to over $3,500 in 2026. (Source: Abbott’s Aug. 24 letter to TDI Commissioner Amanda Crawford, via Community Impact.) communityimpact

That tracks with TDI’s own public data. The department’s market overview shows the average annual homeowners premium rose from $1,782 in 2015 to $3,291 in 2024, with the steepest single-year jumps in 2023 and 2024 — 21.1% and 18.7% respectively — before cooling to a 4.3% average increase in 2025. (Source: TDI, “Auto and Home Insurance Rate Changes.”) texas + 2

What the letter actually asks TDI to do

This isn’t a vague “fix it” memo. Abbott’s letter asks the department to:

• Stop insurers from denying or refusing to renew a policy based purely on a home’s age
• Ban “price optimization” — setting your rate based on personal data rather than actual risk
• Stand up a task force on insurance fraud
• Study how inflated claims are affecting the broader market
• Require insurers to factor in roof fortification program participation when setting rates
• Recommend legislative fixes by Sept. 14

Worth knowing: Texas runs on a “file and use” system, meaning insurers can put new rates into effect immediately while TDI is still reviewing them. That’s part of why consumer advocacy group Texas Watch has been pushing for change. Executive director Ware Wendell put it plainly earlier this year: “We’re paying more and more for less and less coverage.” (Source: Community Impact, citing an April interview with Texas Watch.)

What homeowners have actually been saying

Set the press release language aside for a second. Real homeowner forums and reporting tell a more textured story:

Non-renewals are landing without warning for some people. NPR reported that insurers are increasingly using aerial imagery and satellite data — not an inspector who’s set foot on the property — to decide whether to renew Texas homeowners. If your roof looks a little rough from a drone photo, that can be enough. (Source: NPR/KUT.) NPR

Long-term loyalty isn’t buying protection. One widely discussed Reddit account described a homeowner dropped by their insurer after 30 years with the same company, following a single water-damage claim — and then struggling to find anyone else willing to write a new policy. (Source: The Motley Fool, “Reddit’s Best Advice When It Comes to Home Insurance,” summarizing Reddit discussion.) fool

The consistent advice from people who’ve been through it: shop every year, don’t wait for a nonrenewal notice, and consider an independent broker who can compare multiple carriers instead of quoting just one. That advice lines up with what TDI itself recommends. (Sources: Motley Fool; TDI, “Home Insurance Not Renewed? You Have Options.”)

One new protection actually already in effect

As of Jan. 1, 2026, Texas law (House Bill 2067) requires insurers to give you a written reason if they decline, cancel, or don’t renew your home or auto policy. (Source: TDI, “Know why your auto or home policy was declined, canceled, not renewed.”) That’s a real, tangible change — not a proposal. If your policy gets nonrenewed going forward, you’re now legally entitled to know why, which means you can actually fix the underlying issue before it costs you coverage again.

What you can control while the state sorts out the rest

• Shop your policy every renewal cycle, not just when something goes wrong
• Ask your current agent directly whether a rate hike is already in the pipeline for your renewal
• If you’re in a roof fortification program or considering one, ask how that affects your rate under the new directive
• Keep documentation on home condition and repairs — it’s your best defense if a nonrenewal notice shows up

None of this replaces reading your actual policy declarations page line by line. If you want a second set of eyes on what your current coverage really protects — and where it doesn’t — that’s a conversation worth having before your next renewal, not after a claim.