Insurance Companies Required By Texas Law to Give a Reason for Cancellation
Texas homeowners have more rights than many realize when it comes to insurance cancellations — and those rights just got stronger. Here is what the law requires.
You Have the Right to a Written Explanation
Under current Texas law, insurance companies don't have to give you their reasons, but you can ask for them. If you ask, Texas law says you can get a written answer from your insurance company about why they decided to cancel or not renew your policy. The written statement needs to fully explain the choice, naming the specific events, situations, or risks that made you ineligible. This means the insurance company doesn't have to tell you the reason, but they can't legally refuse to if you ask.
Cancellation Is Tightly Restricted After 60 Days
Once your policy has been in effect for a certain amount of time, Texas law limits when your insurance company can cancel it. If your policy has been in effect for at least 60 days, your insurance company can't cancel it unless you don't pay your premium when it's due, you file a false claim, the risk covered by the policy changes in a way that you can control, which causes the premium rate to go up, or the Texas Department of Insurance decides that keeping the policy in effect would be against the law. Legally, you can't stop in the middle of the term for any reason other than these few.
Non-Renewal Is a Different Story
When it comes to non-renewal at the end of a policy term, insurers have broader flexibility. Under Texas law, the reason for non-renewal can be "any reason at all," which gives companies wide latitude to simply decline to continue coverage. However, if you do not receive a notice of non-renewal at least 30 days before your policy expires, you have the right to require your insurance carrier to renew your policy.
A New 2026 Law Adds Transparency
Texas took a significant step forward with new legislation that took effect this year. Under House Bill 2067, insurance companies are now required to give reports to the Texas Department of Insurance summarizing their reasons for declining, canceling, or not renewing policies, with quarterly reporting requirements applying to decisions made after January 1, 2026. The law gives homeowners and drivers the knowledge to fix issues in an effort to keep their property and vehicles insurable.
What To Do If You Receive a Cancellation Notice
You have the right to contact the Texas Department of Insurance for help with complaints or questions about your coverage, and you have the right to hire an attorney or public adjuster to help with your claim — and insurance companies cannot penalize you for seeking professional help. You can also reach the TDI directly at 1-800-252-3439.
