Texas Insurance Regulation: Homeowners' Rights Strengthened

The Texas Department of Insurance (TDI) has clarified that insurers cannot refuse or nonrenew homeowners insurance policies based solely on the age of a property's components, such as roofs and electrical systems.

In an effort to promote fairness, TDI's regulatory clarification via Tex. Admin. Code § 21.1006 ensures decisions are not made exclusively on the property's age. Commissioner Amanda Crawford highlighted this in her statement, "Texans deserve fair access to home insurance, no matter the age of their home." This move comes as a response to heightened concerns over rising insurance costs, with Governor Greg Abbott noting a 79% increase in premiums over the past six years. Abbott has tasked the TDI with prioritizing consumer interests to make insurance more affordable across the state.

Implications for Insurers and Homeowners

This reminder from the TDI offers homeowners facing denials or nonrenewals due to property age a stronger position to contest such decisions. It emphasizes that blanket refusals based mainly on age are noncompliant with current regulations. Insurers are encouraged to reassess their underwriting strategies and ensure they incorporate comprehensive risk evaluations that go beyond just the age of the home.

Despite these regulatory efforts, insurance challenges persist nationwide as premiums continue to rise and policy nonrenewals become more common. Companies like Farmers Insurance are limiting coverage in places like California, pointing to broader industry trends. Severe weather incidents in states such as Oklahoma further complicate the situation, leading to increased rates and reduced willingness from insurers to assume risk. These shifts are transforming the landscape of property insurance and impacting consumer experiences across the country.

Rising Insurance Costs in Texas

With this guidance from TDI, insurance agents, brokers, and other professionals in the industry must stay informed and adapt. They should actively communicate these changes to clients, reinforcing both transparency and fairness in their offerings. This regulatory commitment is designed not only to protect consumers but also to stabilize the insurance market in Texas amid challenging conditions.