Insurance Companies Leaving TexasÂ
Not a Full Exodus, But Strategic Retreats
Unlike California and Florida, where insurers have completely exited, Texas has not experienced a full-scale insurance company exodus heading into 2026. However, several major carriers have pulled back significantly. Progressive Insurance is no longer writing new homeowner insurance policies in Texas, following the trend of strategic market withdrawals rather than complete abandonment of the state.
Texas is among the states experiencing significant changes in the homeowners' insurance market, with insurance companies leaving or limiting policies primarily due to increased storm activity and rising construction costs. The key distinction is that most insurers are reducing exposure rather than leaving entirely.
Major Carriers Scaling Back Operations
Several prominent insurers have curtailed their Texas presence:
Progressive: Stopped writing new homeowner policies but continues auto insurance operations.
Foremost (Farmers subsidiary): Foremost is not renewing certain homeowners' insurance policies in Texas in order to mitigate its risk exposure, though it is not completely pulling out of the state.
State Farm, Allstate, and Liberty Mutual: These insurers have scaled back certain types of coverage in high-risk areas, particularly those prone to natural disasters, with Liberty Mutual reducing its footprint, especially in areas susceptible to frequent claims from severe weather events such as Dallas-Fort Worth, Coastal Texas, and Houston.
AAA and Chubb: Both have withdrawn certain coverage types or non-renewed policies in high-risk areas, particularly coastal regions.
Health Insurance Withdrawals
On the health insurance front, Aetna is exiting the individual market in Texas and 16 other states (including Innovation Health), affecting over 200,000 Texas enrollees who will need to find new coverage for 2026.
Why Texas Remains More Stable Than Florida or California
Texas benefits from a more insurer-friendly regulatory environment that allows companies to raise rates without extensive approval delays. While insurance companies are reducing the number of policies they offer, in some cases withdrawing from states entirely, Texas has avoided the complete market collapses seen elsewhere.
What This Means for Homeowners
The trend for 2026 is selective underwriting rather than mass departures. Insurers are focusing on profitable segments while avoiding coastal areas, older homes, and properties with significant claims history. As larger players leave the market, fewer options remain, often driving up premiums across the board, with less competition meaning existing insurers may have more pricing power.
Homeowners facing non-renewals should shop early, consider the Texas FAIR Plan as a last resort, and document home improvements that reduce risk to attract remaining carriers.
