Texas homeowners are finding themselves searching a little harder for insurance coverage, given another company has left Texas. Restrictions are in place, keeping current policyholders from renewing their coverage as well.
Progressive Insurance CEO Tricia Griffith said in a letter to shareholders that the company is "temporarily restricting new homes' business."
The letter further notes that "Reducing the impact from weather-related volatility is strategically important."
Why Are Insurance Companies Leaving?
Only over a month after Hurricane Beryl ripped across Houston, Progressive stopped policyholders' insurance coverage. This is not the only big insurance firm that has responded this way. Foremost Insurance, a Farmers Insurance holding, stopped writing and renewing fresh coverage somewhat more than two weeks before Beryl arrived.
The Texas Department of Insurance claims that the Houston area's exposure to storms increases property owners in coastal Texas, including those in the Houston area, most risk having their premiums skyrocket or their policies dropped. Tornadoes, wildfires, and hail have also been noted by Texas and other state insurance companies as elements driving them to either review their participation in some locations or tighten their underwriting criteria.
Many residents of the Houston area have also seen their premiums climb significantly. Based on a January S&P Global research, the average homeowners insurance premium increased by 23% in Texas—the highest rise in any state—in 2023. At least 10% premium hikes were experienced by half of the states.
Data from the agency shows that firms have not been stamping out of Texas; rather, insurers are obliged by Texas law to notify TDI should they discontinue providing a given line of Insurance anywhere in the state. Since 2022, the count of insurance providers with plans available in Texas has stayed constant.
Explore Alternative Insurance Providers
You will have to start looking for a new carrier if your present insurance company is going out of the state. Certain insurers, especially local or regional businesses specialized in high-risk coverage, could nevertheless be eager to operate in the area. To start looking for suppliers still offering plans in your state, first call insurance brokers or use internet comparison tools. Remember that lower competitiveness may result in higher rates, yet it is imperative to keep enough coverage.
Consider Programs Sponsored By the State
As a last resort, when commercial insurance companies pull out, several states provide government-backed insurance schemes. Often referred to as FAIR (Fair Access to Insurance Requirements) plans, these programs give homeowners who cannot locate Insurance through the private market basic coverage. These plans guarantee some degree of security for your property even though they feature higher rates and less thorough coverage.
Seek Legal Counsel or Public Insurance Adjuster
See a public insurance adjuster or attorney if you are having trouble locating coverage. They can help negotiate with insurance companies, offer guidance on the best line of action, and investigate your rights under state law on insurance availability.