Harris County Residents Being Dropped from Their Home Insurance Policies
The Scope of the Problem
In 2023, approximately 4,192 Harris County policyholders—representing 1% of all policyholders—were told by their insurance companies that they couldn't renew their policies. This number has likely increased following Hurricane Beryl and the devastating derecho windstorm in May 2024, which caused billions in damage.
Rising Claims Drive Carrier Withdrawals
Insurance companies are limiting their risk exposure by pulling back from markets with higher chances of claims, particularly in Texas. The Houston area has experienced an unprecedented frequency of natural disasters in recent years, including hurricanes, derechos, winter freezes, and severe hailstorms. Residents who filed large claims in recent years have been particularly vulnerable to non-renewals.
Geographic Vulnerability
Research from the Kinder Institute shows that U.S. homeowners in areas prone to natural disasters lose homeowners' insurance at nearly twice the rate of those in less vulnerable counties. Harris County's intense Southeast Texas weather patterns, combined with its coastal location and flood risk, make it a high-risk market for insurers.
Consequences for Dropped Homeowners
Homeowners dropped by their providers must shop around for new coverage, and if unsuccessful, their mortgage companies will impose forced insurance policies that are typically expensive and provide minimal coverage. Many affected residents have turned to the Texas FAIR Plan, a state safety net program that has seen dramatic growth, with more than half of its statewide policies concentrated in Harris County.
Market-Wide Crisis
Insurance companies haven't completely abandoned Texas like they have in California and Florida, but they've dramatically raised premiums—often doubling or tripling rates—and become more selective about which properties they'll cover. Some carriers have stopped writing new policies in Harris County altogether, creating a shrinking pool of available options for homeowners in an already stressed market.
