In efforts to make homeowners insurance more affordable, Texas must take action to promote market competition and “prohibit excessive or unfairly discriminatory rate setting,” Gov. Greg Abbott said Aug. 24.
The big picture
The governor directed the Texas Department of Insurance to enact several policies and provide recommendations for other affordability-focused measures.
Abbott’s order comes as Texans are paying the fourth-highest home insurance premiums in the nation, according to the insurance price comparison firm Insurify. State data shows that the average Texas home insurance premium—the amount paid to an insurance company—was $3,506 in 2025, nearly doubling from $1,791 in 2016.
Abbott, who was elected governor in 2014, noted that insurance premiums grew substantially in recent years.
“Rising homeowner’s insurance premiums continue to squeeze Texas family budgets,” Abbott said in an Aug. 24 letter to Texas Insurance Commissioner Amanda Crawford. “For example, the average annual homeowner’s insurance premium in Texas has increased 79% in six years, from under $2,000 in 2020 to over $3,500 in 2026.”
Texas’ consistently high insurance costs can be attributed to the state’s propensity for natural disasters, rising home values and inflationary pressures, according to previous Community Impact reporting. Some consumer advocates have also blamed Texas’ “file and use” system, which allows insurance companies to immediately implement new insurance rates while they await review and approval from the TDI.
“We're paying more and more for less and less coverage,” said Ware Wendell, the executive director of the citizen advocacy group Texas Watch, in an April interview. “We need to make sure that the Department of Insurance can stop overcharges before they start, before they are charged to the policyholder.”
The details
Abbott asked the TDI to:
- Prohibit insurers from denying or refusing to renew home insurance policies based on a property’s age
- Ban the use of personal data in setting insurance prices, known as “price optimization”
- Create a task force aimed at preventing insurance fraud
- Study the impact of “excessive, unnecessary and inflated claims” on Texas insurance markets
- Require insurers to consider a homeowner’s participation in a roof fortification program when setting rates
- Identify other actions that the department can immediately take to reduce insurance costs
Abbott also asked officials to recommend legislative changes to better protect consumers and submit those proposals by Sept. 14.
More context
Abbott, who is running for a fourth term this fall, has campaigned heavily on affordability in recent months, promoting policy proposals that he said will reduce energy, healthcare, insurance and property tax costs. In his official capacity, the governor recently directed state energy officials to audit data center proposals and shield customers from rising electricity rates, while he asked the state comptroller to inspect how public school districts are spending their money.
If reelected, Abbott would need to work with state lawmakers to get his proposals passed after the next state legislative session begins in January. Lt. Gov. Dan Patrick, who leads the Texas Senate, tasked senators with studying how to reduce property taxes, make property insurance more affordable and remove barriers to housing affordability before the session, while House Speaker Dustin Burrows directed state representatives to look at what’s driving high property insurance costs, how to protect consumers in the insurance market, how to improve housing affordability and ways to increase property tax relief.
“I will continue to work with the Legislature next session to enhance consumer protections for insurance policyholders and curb premium increases,” Abbott wrote in his Aug. 24 letter.
Gina Hinojosa, an Austin state representative who is challenging Abbott in the Nov. 3 election, called Abbott’s Aug. 24 directive an attempt to “distract that life has gotten more expensive under him.”
“Under Greg Abbott, Texas has been one of the most expensive states in the country to own and maintain a home,” Hinojosa said in a statement to Community Impact. “If Abbott really wanted to lower costs, he would have done it in the last 12 years he has been governor.”
