Texas will enforce new insurance protections intended to lower property insurance costs, Governor Greg Abbott announced on Wednesday, citing a 79 percent increase in average homeowners' insurance premiums over six years.
The Texas Department of Insurance will take several actions under existing authority: enforce a rule requiring insurers to account for reinforced FORTIFIED roofs in rate-setting; clarify that insurers cannot refuse coverage based on the age of individual property components; enforce a prohibition on price optimization already in state law; create an Insurance Fraud Task Force with law enforcement and consumer representatives; and produce a study by the end of 2026 on what drives claim costs in commercial auto, personal auto, and homeowner markets.
The department said it also identified other steps within current law, including reviewing insurer use of artificial intelligence in claims and underwriting, creating plain-language coverage tools, and reducing barriers for new market participants.
Abbott said he will work with the legislature next session to advance additional protections, including a Texas Roof Fortification Program and a measure allowing all auto insurers to rate drivers on their driving records. The legislature previously passed laws requiring notice when policies are declined or canceled, banning forced bundling of home and auto policies, and eliminating the so-called widow penalty.