Illustration of a Texas home under an umbrella during a hailstorm next to a green shield with a checkmark, representing homeowners insurance protection

Texas Homeowners Insurance Costs: What Buyers Should Know This Fall

by

If you are buying a home in Texas this fall, plan to put Texas homeowners insurance costs into your budget early, not after you are under contract. On October 5, 2026, the Texas House Insurance Committee held a hearing on why premiums keep climbing. There, Texas Department of Insurance (TDI) Commissioner Amanda Crawford said the average homeowners premium in Texas rose from under $2,000 in 2020 to over $3,500 in 2026.

TL;DR:

  • State lawmakers met on October 5 to study rising home insurance costs, which Governor Abbott says rose 79% in six years.
  • In mid-September, TDI urged insurers to give meaningful discounts for stronger homes, such as FORTIFIED or impact-resistant roofs. It also sent lawmakers ideas such as a 60-day notice before a premium changes.
  • Most of the proposed law changes would need action from the Legislature, which meets in January 2027. Premium growth has slowed, but it is not clear when renewal bills will reflect it.
  • Mortgage lenders generally require homeowners insurance. If your premium is paid through escrow, a change in that premium can change your monthly payment.
  • Get insurance quotes before you make an offer. Ask about roof and mitigation discounts and whether you need flood coverage, and compare coverage as well as price.
TexasFHA
Budget for the Whole Payment
Want to see how taxes and insurance fit into your Texas home budget? Call (281) 801-6965 to talk with a mortgage professional.

Call (281) 801-6965

Table of Contents

Why Are Texas Homeowners Insurance Costs in the News?

The October 5 hearing was an interim hearing, so the committee did not vote on any bills. According to a September 28 preview from The Texas Dispatch, the committee’s findings will inform an interim report and any bills filed when the 90th Legislature convenes in January 2027. The agenda covered what drives property insurance premiums, consumer protections, and how recent insurance laws are working.

Commissioner Crawford said rising home values and rising claim costs were the two main drivers. She said insurers paid $5.8 billion in Texas wind and hail losses in 2025 alone, with a large share in North Texas. She told lawmakers that “what has driven homeowners’ costs even more is the rising cost of repairing and the concentration of risk.”

House under a hail cloud next to a rising bar chart, illustrating higher Texas homeowners insurance premiums

There is some better news. Crawford said rate increases are starting to ease back toward pre-pandemic levels, though FOX 4 noted it is still unclear what that will mean for consumers at renewal time. An April 2026 analysis from the Federal Reserve Bank of Dallas pointed to a similar slowdown. Citing TDI data, it said Texas homeowners insurance growth fell from 18.7% in 2024 to 4.3% in 2025. The same analysis found that the median Texas homeowner paid 60% more for coverage in 2024 than in 2019, compared with 30% nationally.

Even so, cost remains a hurdle for buyers. Trey Summers, COO of Hogan Homes and a member of the Texas Association of Builders, told the committee that insurance “determines if you can afford to buy the house today.”

What Has TDI Proposed to Help Homeowners?

On September 14, Commissioner Crawford sent Governor Abbott a letter in response to his August 24 directive. On September 16, the Governor’s office announced the actions TDI will take. They include:

  • Enforcing a bulletin that directs insurers to account for a home’s FORTIFIED roof status when setting rates.
  • Proposing a rule to clarify that insurers may not use the age of individual parts of a home, such as the roof, as a reason to refuse to write or renew residential property coverage.
  • Creating an Insurance Fraud Task Force.
  • Publishing a study of what drives claim costs by the end of 2026.
  • Updating plain-language coverage tools and HelpInsure.com.

The same day, TDI issued Commissioner’s Bulletin B-0008-26. It encourages insurers to offer “meaningful, actuarially supported premium discounts” to homeowners who build or retrofit to standards such as IBHS FORTIFIED Home, use impact-resistant roofing, or take measures to protect against wildfire. It also encourages insurers to tell policyholders which credits are available. The bulletin encourages discounts but does not set a discount amount, so savings will vary by insurer and by home.

The letter also gave lawmakers a set of ideas. According to Community Impact, these include adding a delay between a rate filing and its use, a grant program to help Texans harden their homes, a 60-day notice when a policy premium is changing, standard deadlines for home insurance claims, and a requirement that all claims be accepted, rejected or denied in writing. These are proposals, not law. The Legislature would have to act on them.

The real estate industry is following the issue closely too. Texas REALTORS® Chairman Jennifer Wauhob said, “Housing affordability is about more than the price of a home.”

Why Does Home Insurance Matter When You Get a Mortgage?

Insurance is not a side cost you can skip when you finance a home. The Consumer Financial Protection Bureau’s Your Home Loan Toolkit (last updated July 2026) says your mortgage lender generally requires your property to be insured. Lenders must generally give this booklet to people who apply for a home purchase loan, and the CFPB’s latest edition adds more information on homeowners insurance.

A few points from the CFPB are worth knowing:

  • Escrow can change your payment. Many lenders require you to pay taxes and insurance through an escrow account. Because premiums and taxes can change from year to year, your escrow payment, and with it your total monthly payment, can change too.
  • Letting coverage lapse is costly. If you do not keep insurance in place, your loan documents may allow the lender to purchase coverage and charge you for it. The CFPB says this force-placed insurance usually protects only the lender, and it can cost up to twice as much as a policy you buy yourself.
  • Your lender will ask for proof. You can shop with your current insurer or others until you find the mix of premium, coverage, and service that fits you, but your lender will ask for proof of a policy on your new home.
  • Flood is separate. Ask whether flood insurance is required. Even if it is not required, the toolkit notes you may still want it. Learn more at FloodSmart.gov.

The Loan Estimate you receive after you apply includes a line for estimated taxes, insurance and assessments. It is worth reviewing closely. The Dallas Fed analysis also notes that some mortgage contracts require replacement cost coverage on the structure, so cutting coverage to lower the premium is not always an option once you have a loan.

How Can Texas Buyers Shop for Homeowners Insurance?

Start with the state’s policy comparison site. After you answer a few questions, it shows policies sold in your area, their rates, and their coverage types. It also links to the Homeowners Consumer Bill of Rights. If you have questions, the TDI Help Line is 800-252-3439.

Two home insurance policy documents side by side with a magnifying glass and checkmark, illustrating a Texas buyer comparing insurance quotes

When you compare quotes, compare the same coverage, not just the bottom-line premium:

  • Replacement cost or actual cash value. The Dallas Fed explains that replacement cost coverage pays to fully replace something, like a roof, while actual cash value pays the often-lower depreciated value.
  • Deductibles. A higher deductible can lower the premium, but it raises what you pay out of pocket after a claim. Check whether wind and hail have a separate deductible.
  • Roof and mitigation credits. Following TDI’s September bulletin, ask each insurer what discounts it offers for FORTIFIED construction or impact-resistant roofing. Ask the seller or builder what roof the home has and whether there is documentation.
  • Location risk. The CFPB suggests checking a home’s weather risks before you choose it. You can use FEMA’s Resilience Analysis and Planning Tool and the USDA’s Wildfire Risk to Communities site.

Along the coast, ask your agent whether windstorm coverage through the Texas Windstorm Insurance Association applies to the home you are considering.

What Is the Fall Market Doing for Buyers?

Activity has slowed in parts of Texas, giving prepared buyers more time to do their homework. In Houston, the Houston Association of REALTORS® weekly snapshot for the week ended September 28 showed pending sales down 23.7% and closings down 21% from the same week a year earlier, while new listings were slightly higher. Weekly numbers can be volatile, and conditions vary by city and neighborhood.

Where fewer buyers are competing, use that breathing room to get insurance quotes on the specific homes you like, so the full housing cost is clear before you commit.

Insurance Checklist Before You Make an Offer

  1. Get quotes on the address, not the ZIP code. Roof age and type, construction, and location can all affect your price.
  2. Ask about discounts in writing. Ask about FORTIFIED construction, impact-resistant roofing and other credits, and get the answers in each quote.
  3. Check flood risk. Ask whether flood insurance is required, and decide whether you want it even if it is not.
  4. Compare coverage and deductibles side by side. A lower premium may mean less coverage.
  5. Review your Loan Estimate. Look at the estimated taxes, insurance, and assessments line item, and ask how escrow will work for your loan.
  6. Plan for renewals. Premiums and taxes can change each year, so leave room in your budget.

For more on budgeting for a purchase, see our guides to FHA income requirements and Texas first-time homebuyer programs.

— Gerry Nicodemus

Get a Personalized Review

Every buyer’s situation is different. If you are weighing an FHA loan or another home loan in Texas and want to understand how taxes, insurance, and escrow fit into your budget, call (281) 801-6965 to talk with a mortgage professional. You can also review our FHA loan requirements to see where you stand today.

Last verified: October 5, 2026. Insurance rules, proposals, premiums, and market data change often. Check each source for the latest details.

This article is general information, not insurance, tax, legal or financial advice. It is not a commitment to lend or an offer of credit. Loan approval and terms are subject to underwriting, program guidelines, and eligibility. The Texas Mortgage Pros does not sell insurance. Consult a licensed insurance agent and a qualified financial professional about your own circumstances before acting on anything here.

The Texas Mortgage Pros is not affiliated with, endorsed by, or sponsored by HUD, FHA, the Texas Department of Insurance, the Office of the Texas Governor, the Texas Legislature, the CFPB, the Federal Reserve Bank of Dallas, Texas REALTORS, the Houston Association of REALTORS, FEMA, the USDA, IBHS, or any other organization named in this article. Third-party names are used only to cite their published information.

Company NMLS #2665861 • NMLS Consumer Access • Equal Housing Opportunity • (281) 801-6965

Sources

Skip to content