Texans Losing Home Insurance Due to Hail Risk
The Growing Crisis
Yes, many Texas homeowners are losing coverage due to hail risk. According to data from the Texas Department of Insurance, the number of nonrenewal complaints more than doubled in 2024. Texas had the most hail events and tornadoes of any state in 2024, according to an analysis by the Insurance Information Institute. Homeowners are receiving nonrenewal notices citing "high wind and hail exposure" even when they've never filed a claim.
Why Insurers Are Pulling Out
Texas was the #1 state for hail events with 1,123 occurrences in 2023, with hail of at least one inch in diameter battering two million homes. Storms in the Dallas-Fort Worth area in June 2023 alone caused an estimated $7 billion to $10 billion in insured losses, with 95% of the loss caused by hail. Insurance companies are managing risk by reducing their concentration of policies in vulnerable geographic areas, as one major hailstorm could generate thousands of claims simultaneously.
Rising Costs and Market Changes
From 2022 to October 2023, Texas homeowners experienced a more than 28% increase in insurance rates, the highest increase in the country. Last year, Progressive Insurance temporarily restricted new homeowners' business in certain parts of Texas, citing the need to reduce "the impact from weather-related volatility." Some homeowners now face premiums between $10,000 and $15,000 annually from lesser-known carriers.
The Last Resort Options
Texas has two insurers of last resort—the Texas FAIR Plan and the Texas Windstorm Insurance Association—and they are both growing, with projections showing nearly 285,000 policies by the end of 2025, more than at any point in history. These high-risk pools typically offer more expensive coverage with limited options.
What Homeowners Can Do
Experts recommend home hardening measures like upgrading to impact-resistant shingles to reduce vulnerability. The crisis has forced many homeowners to accept higher deductibles, reduce coverage, or join state insurance pools designed for high-risk properties—transforming what was once an affordable market into one of the nation's most expensive.
