Texas Insurance Companies Required to Provide An Explanation for Canceled Policies
New Automatic Explanation Law
Yes, as of January 1, 2026, Texas insurance companies are now required to automatically provide written explanations for canceled policies. Previously, Texas law only required insurers to give a written explanation for a denial or cancellation if the consumer formally requested it. Insurers are now required to provide these reasons automatically.
What House Bill 2067 Changed
House Bill 2067 represents a major shift toward transparency in the Texas insurance industry. The law applies to all insurance decisions made after January 1, 2026, so homeowners and drivers can identify and fix specific issues. This means you no longer need to request an explanation—the insurer must proactively send it to you in writing.
What Types of Policies Are Covered
The automatic explanation requirement applies to both home and auto insurance policies when they are declined, canceled, or not renewed. The law gives consumers the information they need to understand what factors led to the adverse decision and potentially correct issues to maintain insurability in the future.
State Tracking and Public Data
Beyond individual notifications, insurers must also report their reasons to state regulators. Under House Bill 2067, the Texas Department of Insurance states that companies will start giving reports to the TDI that summarize their reasons for declining, canceling, or not renewing policies. The state plans to compile and post this information online, providing unprecedented visibility into industry practices.
Commercial Insurance Differs
For commercial property and liability policies, while no showing of good cause is required, an insurance carrier canceling or refusing to renew a Texas commercial policy must state the reason in a notice letter to the policyholder. The reason can be "any reason at all," but it must still be stated.
What To Do If You Don't Receive An Explanation
If your insurer fails to provide the required written explanation, you have recourse. TDI reminds Texans that individuals can file a complaint with TDI if they do not get a written explanation from their insurance company. You can contact the TDI Help Line at 800-252-3439 or visit their website to file a complaint.
