Guides
Texas homeowners insurance: hail, wind and rates
Why Texas homeowners insurance costs so much, how wind and hail deductibles and TWIA work, and what the 2026 rate filings and new rules mean for you.
Texas homeowners pay some of the highest premiums in the country because the state takes both hail from the plains and hurricanes from the Gulf. The NAIC put the average HO-3 premium at $2,864 for 2023, second only to Louisiana and 65% above the $1,737 national average. In October 2026 the direction has turned: the Texas Department of Insurance (TDI) says most insurers filing since July 1 proposed decreases. Your policy's wind and hail deductible and roof terms still deserve more attention than the headline rate.
The market
Texans paid $20.48 billion in homeowners premiums in 2025, the largest total of any state, according to the NAIC's market share report. State Farm led with 19.66%, followed by Allstate at 16.20%, USAA at 10.83%, Farmers at 7.86% and Liberty Mutual at 5.84%. The top three groups write about 47% of the market and the top 10 about 76% (our sums from NAIC data). SageSure, whose group includes the coastal reciprocals SURE and Elevate, and Texas Farm Bureau Insurance are the next largest. TDI says nearly 160 companies sell home and auto coverage in the state, and groups often write Texas homes through separate companies, such as ASI Lloyds in the Progressive group, so the company named on your declarations page may differ from the brand you bought.
For the national picture of who writes what, see the largest home insurers in every state, 2025.
Why Texas costs so much
Hail first. NOAA's Storm Prediction Center logged 902 major hail events (one inch or larger) in Texas in 2025, more than twice as many as any other state, according to the Insurance Information Institute. Hail damages roofs, siding and windows, and roof replacement is expensive. Aon reported in January 2026 that severe convective storms are now the costliest insured peril of the 21st century; see severe convective storms and rising premiums.
Then hurricanes. Hurricane Beryl in July 2024 brought a federal disaster declaration across 67 counties. The Texas Windstorm Insurance Association (TWIA) alone received more than 33,000 Beryl claims, with losses estimated at $545 million. Storms, tornadoes and flooding from April 26 to June 5, 2024 covered 83 counties, and the July 2025 Hill Country floods affected 23.
Flood is a separate peril. Homeowners and TWIA policies exclude flood and storm surge. FEMA counted 555,569 NFIP policies in Texas on September 30, 2026, down 8% from 603,939 a year earlier, and TDI notes that more than half of the homes flooded by Hurricane Harvey were outside designated flood zones. See NFIP flood insurance explained.
The effect on premiums has been steep. TDI's market data show homeowners premiums, including renters, rose from $10.55 billion in 2020 to $19.75 billion in 2025, and the line's incurred loss ratio topped 100% in 2021.
What is changing in 2026
- Rates are easing. On October 7, 2026, TDI said most insurers filing since July 1 proposed decreases affecting about 700,000 policyholders, and that filings over the prior 90 days averaged a 4.3% cut, including 5.2% for 133,000 Texas Farm Bureau customers. These are filed requests and averages, not your renewal.
- New regulator posture. Commissioner Amanda Crawford took office in February 2026. After Governor Greg Abbott's August 2026 directive, TDI issued Bulletin B-0008-26 urging mitigation discounts, proposed clarifying that insurers cannot decline or nonrenew a home solely because the house or roof is old, and launched a ZIP-code tool showing why policies are declined, canceled or nonrenewed, using data required by House Bill 2067 (2025).
- Longer nonrenewal notice. Insurers must give 60 days' notice of nonrenewal for policies bought or renewed since 2024, up from 30, and must give the reason if you ask (Tex. Ins. Code 551.105).
- TWIA funding. Under HB 3689 (2025), losses after 2025 beyond TWIA's reserves are funded by up to $1 billion in state financing repaid through a statewide surcharge on most property policies, then up to $1 billion of insurer assessments. TWIA says it has $4.3 billion available for the 2026 season.
The deductible that decides a hail claim
Texas has no hurricane-specific deductible law, but many policies have a separate wind/hail deductible that applies to every windstorm or hail loss and may be a percentage of the dwelling limit. TDI's own example: on a home insured for $150,000, a 5% deductible is $7,500, so a $6,500 hail repair pays nothing.
| Dwelling limit | 1% deductible | 2% | 5% |
|---|---|---|---|
| $250,000 | $2,500 | $5,000 | $12,500 |
| $400,000 | $4,000 | $8,000 | $20,000 |
The table is arithmetic on hypothetical limits, not a market quote. Pair the percentage with how the roof is paid. If your policy settles roof losses at actual cash value or on a payment schedule by roof age, an older roof can leave you with a large gap. wind and hail deductibles explained and Roof payment schedules and ACV roof endorsements explain each; the roof claim payout estimator runs your numbers.
On the coast, your homeowners policy may exclude wind and hail entirely, leaving a separate TWIA policy. TWIA deductibles are $100, $250 or 1%, with optional 1.5% to 5%.
Getting coverage when private insurers decline
Texas has two residual market plans, profiled together at Texas FAIR Plan and Texas Windstorm Insurance Association.
- Texas FAIR Plan Association (TFPA). Named-perils homeowners, dwelling, condo and tenant policies statewide for owners turned down by at least two insurers. Dwelling limits go up to $1 million, and claims settle at actual cash value unless you buy the replacement cost option. It insured 118,486 properties on June 30, 2026, up from 61,452 in 2022; Harris County accounts for 58,464.
- Texas Windstorm Insurance Association (TWIA). Wind and hail only, in 14 designated coastal counties and the Harris County cities east of State Highway 146. You need one declination, a windstorm certificate of compliance for the building, and flood coverage for newer homes in V zones. TWIA had 288,676 policies on June 30, 2026. See TWIA and the Texas FAIR Plan: what each covers and when you need them.
Both stop taking new applications when a hurricane enters the Gulf. Surplus lines carriers are the other route; read surplus lines home insurance when standard carriers say no first, because they are not covered by the state guaranty fund.
TDI also runs a Voluntary Inspection Program. A TDI-listed inspector can issue a certificate of insurability good for three years, and an insurer may refuse coverage because of the home's condition only after reinspecting and describing the problems in writing. The 2026 inspection fee is capped at $159.29.
Claims clocks
Under Texas' prompt payment law (Insurance Code chapter 542), the insurer must acknowledge your claim, begin investigating and request what it needs within 15 days, accept or reject within 15 business days of receiving everything (or up to 45 more days if it explains why), and pay within 5 business days after agreeing. After a weather catastrophe declared by the commissioner, the deadlines extend by 15 days. A late payment carries interest. Before suing over storm damage you must give 61 days' written notice, and no policy can give you less than two years to sue. TWIA is different: report within one year, and a denial must be challenged in court within two years. See how long insurers have to pay a home claim.
What to do before the next hail season
- Pull your declarations page and write the wind/hail deductible in dollars.
- Confirm the roof age and material on file are correct, and tell your insurer when you replace it.
- If you replace the roof, ask each insurer what it credits for a Class 4 impact-resistant roof. Texas has no state roof grant program; HB 1576 (2025), which would have created one, passed the House and stalled in a Senate committee. TWIA credits homes built to its windstorm codes 19% to 33%.
- Shop with an independent agent after your renewal notice, comparing the same deductible and roof terms.
- Add flood coverage if your mortgage does not already require it; there is a 30-day wait.
- For problems, call the TDI Help Line at 800-252-3439 or see the Texas state guide.
Key takeaways
- Texas has the largest homeowners market in the country ($20.48 billion in 2025 premiums) and the second-highest average HO-3 premium, $2,864 (NAIC, 2023 data).
- Hail is the driver for most of the state; coastal counties add hurricane and TWIA.
- As of October 7, 2026, TDI reported recent insurer filings averaging a 4.3% decrease, but deductibles and roof terms matter more than the rate.
- Nonrenewal notice is now 60 days, and TDI is pushing to stop declines based solely on roof or home age.