Proposed Amendments to Texas Property Insurance Regulations

The Texas Department of Insurance has proposed amendments to clarify regulations preventing the denial of residential property insurance based solely on the age of the property or its components.

On September 29, 2026, the Texas Department of Insurance (TDI) put forward changes to the administrative code, specifically 28 Tex. Admin. Code § 21.1006, aimed at improving the transparency and application of guidelines that prohibit insurance companies from declining coverage or non-renewing policies due to a property's age. These proposed adjustments are part of broader efforts by TDI to balance the accessibility and cost of homeowners' insurance in Texas, following Governor Greg Abbott's directive.

Governor Abbott’s Directive and TDI Initiatives

Governor Abbott instructed TDI to focus on the accessibility and affordability of homeowners' insurance across Texas. In response, TDI Commissioner Amanda Crawford has introduced multiple measures, including the current amendment proposal. Among these efforts, TDI also released Bulletin B-0007-26 to enforce compliance with Texas laws against price optimization in rate setting. The introduction of a transparency tool that displays insurance declination data by ZIP code marks another stride toward consumer protection and fairness.

Understanding the Proposed Amendments

The current Section 21.1006 is restrictive concerning insurers refusing coverage due to just the age or value of a property or its parts, allowing refusal only based on physical condition concerns. Under the proposed rule clarification, the amendment emphasizes that age cannot be a standalone factor for denial, making its language clearer for insurers and consumers. This rule covers a spectrum of policies, including homeowners’ and residential fire and allied lines policies, asserting that factors like the age of wiring and plumbing should not lead to coverage denial.

Stakeholder Participation and Hearing

A public hearing will enable stakeholders, including insurance professionals and consumers, to voice their opinions. Scheduled for November 3, 2026, at the Barbara Jordan State Office Building in Austin with remote access, the event ensures widespread participation. Comments are welcomed until November 9, 2026, either via email or postal mail to TDI’s Chief Clerk.

Implications for Insurance Professionals

Insurance agents, underwriters, and claims professionals should note these regulatory intentions as they may influence underwriting guidelines and claims processes. A greater emphasis on factors beyond age in risk assessment may become necessary, encouraging innovations in evaluating property conditions. Insurers might need to invest in better appraisal technologies and adopt more comprehensive inspection criteria to comply with the updated regulations effectively.

This initiative from TDI strives to make insurance practices more transparent and equitable, which could prompt insurers to reassess policy offerings and enhance consumer confidence. Insurance professionals can benefit from understanding these changes as they adapt to a potentially evolving regulatory environment in Texas.