Texas Home Insurance Costs Have Nearly Doubled. Abbott Wants the State to Bring Them Down

Texas homeowners are paying dramatically more to insure their homes than they were less than a decade ago.

Now Gov. Greg Abbott is directing state insurance regulators to look for ways to bring those costs down.

The question that matters for homeowners:

Will any of it actually lower your insurance bill?

Quick Take (1- minute read)

— The average Texas homeowners insurance premium reached about $3,506 in 2025, up from $1,791 in 2016.

— That’s an increase of roughly 96% in nine years.

— Gov. Greg Abbott has directed the Texas Department of Insurance to pursue several changes aimed at reducing insurance costs.

— Proposed changes include restricting certain pricing practices and requiring insurers to consider qualifying fortified roofs when setting rates.

— Abbott also wants regulators to identify additional reforms that may require action from the Texas Legislature.

— For Texans: Don’t expect your premium to suddenly drop. The real test is whether these changes eventually lower rates — or simply slow how quickly they rise.

What’s Happening

Abbott directed the Texas Department of Insurance to pursue a series of changes targeting the cost of homeowners insurance.

Among the proposals:

— Prevent insurers from refusing to insure or renew a home simply because of its age.

— Prohibit certain forms of price optimization, where insurers use information beyond expected risk and costs when determining what individual customers may be willing to pay.

— Require insurers to consider qualifying roof-fortification programs when determining rates.

— Create a task force focused on insurance fraud.

— Examine how inflated or unnecessary claims contribute to insurance costs.

Abbott also asked the department to identify additional reforms that would require legislative action.

Those recommendations are due September 14.

How Much Have Texas Insurance Costs Increased?

The numbers explain why the issue is getting attention.

The average annual homeowners premium in Texas was:

2016: $1,791

2025: $3,506

That’s an increase of about $1,715 a year.

Spread across 12 months, that’s roughly $143 more per month for the average homeowner.

And insurance isn’t an optional expense for most homeowners with a mortgage.

When premiums rise, monthly mortgage payments can rise too — particularly for homeowners whose insurance is paid through an escrow account.

Why Texas Home Insurance Is So Expensive

Texas has several factors working against homeowners.

Hurricanes and tropical storms threaten the Gulf Coast.

Hailstorms, tornadoes, freezes and severe thunderstorms can cause billions of dollars in property damage across the state.

At the same time, construction materials, labor and home values have become more expensive.

When repairing or rebuilding homes costs more, insurers face larger potential claims.

Those costs can eventually show up in premiums.

One Proposal Homeowners Should Watch: Fortified Roofs

One part of Abbott’s directive could create a more direct financial benefit for some homeowners.

Texas wants insurers to consider qualifying roof-fortification programs when setting rates.

A stronger roof can reduce the likelihood of expensive damage from hail and severe weather.

If insurers are required to recognize those improvements when calculating risk, homeowners who invest in qualifying upgrades could potentially see lower insurance costs.

The details will matter.

Homeowners should watch for which improvements qualify, how insurers calculate any discounts and whether the savings justify the upfront cost.

Will Your Insurance Premium Actually Go Down?

Not necessarily.

That’s the important distinction.

A state directive aimed at reducing insurance costs does not mean insurers will immediately cut everyone’s premiums.

Some changes could be handled through the Texas Department of Insurance.

Others may require lawmakers to change state law.And Texas still faces the underlying problems driving insurance costs: severe weather, expensive construction and increasingly costly claims.

So the first impact homeowners see may not be dramatically cheaper insurance.

It could simply be slower increases.

What Texas Homeowners Can Do Now

While the state works through potential reforms, homeowners don’t have to wait to look for savings.

— Compare quotes from multiple insurers when your policy renews.

— Ask whether your insurer offers discounts for newer or impact-resistant roofs.

— Review your deductible before automatically renewing.

— Check whether you’re paying for coverage you no longer need.

— Ask about discounts for bundling home and auto insurance.

Even a few hundred dollars in annual savings matters when the average Texas premium is now above $3,500.

What to Watch

Two things matter most from here.

First: What can the Texas Department of Insurance change without new legislation?

Those actions could potentially happen faster.

Second: What happens when lawmakers get involved?

Abbott has asked regulators to recommend additional legislative changes by September 14.

That’s when Texans may get a clearer picture of whether the state is considering small regulatory adjustments — or a much broader overhaul of how homeowners insurance works in Texas.