Insurance Companies That No Longer Insure Texas
Major Market Withdrawals
Several prominent national insurers have significantly reduced their Texas presence or withdrawn entirely from specific market segments. Farmers Insurance announced in 2023 a substantial reduction in new homeowners policies across Texas, though it continues to service existing customers. A little over two weeks before Beryl struck, Foremost Insurance, a Farmers Insurance business, ceased writing and renewing new policies. Nationwide substantially decreased its Texas home insurance footprint beginning in 2020, now writing policies primarily through independent agents rather than direct channels. Liberty Mutual has implemented restrictive underwriting in coastal counties, effectively ceasing new property policy issuance in many hurricane-exposed regions while maintaining existing business. Progressive Home significantly reduced its Texas property insurance presence, now limiting new policies to bundled customers with auto coverage. These major carrier reductions have restricted consumer options, particularly in coastal and wildfire-prone regions.
Regional Insurer Exits
Several regional insurance companies previously active in Texas have completely withdrawn from the market. Germania Insurance, once a significant Texas-focused homeowners insurer, substantially restricted new business throughout the Central and East Texas regions following significant storm losses. American National Property and Casualty Company ceased writing new homeowners policies in multiple Texas counties, citing catastrophic loss concerns. Lighthouse Property Insurance Corporation entered receivership and stopped all Texas operations after substantial hurricane-related losses. These regional carrier departures have particularly impacted rural and smaller communities where national insurers maintain a limited presence.
Coverage-Specific Restrictions
Beyond complete market withdrawals, many insurers have implemented coverage-specific restrictions, creating effective non-renewal situations for certain policyholders. Most major insurers no longer offer stand-alone flood insurance outside the National Flood Insurance Program. Many companies have ceased writing mobile home coverage throughout the state, regardless of location. Older homes with outdated electrical, plumbing, or roofing systems face increasingly limited carrier options as underwriting requirements tighten. Homes with previous water damage claims have experienced non-renewal from multiple carriers simultaneously, creating significant reinsurance challenges. These coverage-specific withdrawals create protection gaps even where carriers technically maintain market presence.
Geographic Concentration Patterns
Insurance withdrawals demonstrate clear geographic patterns reflecting risk concentration concerns. Coastal counties from Galveston to Cameron County have experienced the most significant carrier departures, with some areas seeing five or more major insurers cease new business. The I-35 corridor from Dallas to San Antonio has faced increased restrictions following severe hail events in recent years. Western Texas counties with wildfire exposure have seen reduced carrier options, though less dramatically than coastal regions. Urban centers generally retain more carrier options than rural communities, creating particular challenges for remote property owners seeking coverage.
Market Replacement Trends
As traditional insurers restrict coverage, alternative market solutions have emerged to fill protection gaps. The Texas Fair Access to Insurance Requirements (FAIR) Plan has expanded substantially, now serving as the insurer of last resort for many properties unable to secure standard coverage. Surplus lines carriers like Lloyd's of London syndicates have increased Texas market share, offering coverage at premium rates typically 40-100% above standard market pricing. Managing General Agencies (MGAs) writing on behalf of specialized risk carriers have created new options in underserved regions. These replacement options typically involve higher premiums, reduced coverage breadth, and less financial stability than traditional insurance providers.