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By Shian Munro, Realtor® | Coldwell Banker Realty
Opening your mailbox and finding out your homeowners insurance won’t be renewed can be worrying.
You’re not alone.
Insurance rates have risen across Texas, and many companies are reducing the number of homes they insure in higher-risk areas. Some homeowners are also finding it harder to get new cover before hurricane season.
If you’re buying, selling or simply renewing your policy, here’s what you need to know.
Why Are More Policies Being Non-Renewed?
Several factors are affecting the market.
Insurance companies are still paying claims from recent hurricanes, severe storms and the 2024 derecho. Repair costs have also increased, making claims much more expensive.
To manage that risk, some insurers have tightened their rules or stopped writing new policies in certain parts of Texas.
Common reasons for a non-renewal include:
- Several recent claims.
- An older or damaged roof.
- Concerns about the condition of the home.
- The insurer reducing the number of policies it writes in your area.
Receiving a non-renewal notice doesn’t automatically mean you’ve done anything wrong. In many cases, it’s simply a business decision made by the insurance company.
Know Your Rights
Texas law now gives homeowners more protection.
If your insurer declines, cancels or decides not to renew your policy, it must provide a written explanation. You no longer need to ask for one.
It’s also worth knowing that:
- Many homeowners now receive 60 days’ notice before a policy ends, depending on when it was issued or renewed.
- The notice should clearly explain why the policy isn’t being renewed.
- If two private insurers decline to cover your home, you may qualify for the Texas FAIR Plan Association.
- You can contact the Texas Department of Insurance if you believe your insurer hasn’t followed the rules.
These changes won’t stop a non-renewal, but they do give you more time to find a new policy.
Selling Your Home?
Don’t wait until you’re under contract to deal with insurance.
If you’ve already received a non-renewal notice, start looking for replacement cover straight away. Homes with older roofs or previous claims often take longer to insure.
Should your policy change during a sale, let your real estate agent and title company know immediately. The buyer’s lender will want confirmation that the property remains insurable before closing.
Sorting it out early can help keep your closing on track.
Buying a Home?
Many relocating buyers don’t realise they’re responsible for arranging homeowners insurance before closing.
Your lender won’t release mortgage funds until a policy is in place.
If you’re buying in Katy, Cypress, The Woodlands, Memorial or Sugar Land, ask for an insurance quote during your option period. It’s much easier to adjust your budget early than discover higher premiums just before closing.
What Should You Do Next?
Start by reading the non-renewal letter carefully.
The reason for the decision should be clearly explained.
Next, begin shopping for new cover as soon as possible. An independent insurance broker can often compare several companies and find options you may not see yourself.
If roof condition is the issue, ask whether repairs or a replacement could improve your chances of getting another policy.
When two private insurers have declined your application, ask whether the Texas FAIR Plan is available.
Buying or selling at the same time? Tell your real estate agent immediately so everyone can work together to avoid delays.
My Advice
Insurance has become a much bigger part of buying and selling a home than it was a few years ago.
Planning ahead makes a real difference.
Speak with your insurance agent before you list your home or make an offer. A short conversation now could save a great deal of stress later.
If you’re relocating to Houston, working with local professionals who understand today’s insurance market can also help you avoid unexpected surprises.
Frequently Asked Questions
How much notice should I receive before my homeowners insurance is not renewed?
Many Texas homeowners now receive 60 days’ notice before a non-renewal takes effect, although this depends on when the policy was issued or renewed.
Will my insurer explain why my policy isn’t being renewed?
Yes. Texas law requires insurers to provide a written explanation when they decline, cancel or choose not to renew a homeowners policy.
What happens if no insurance company will cover my home?
If two private insurers decline your application, you may qualify for coverage through the Texas FAIR Plan Association.
Can insurance delay my home closing?
Yes. Your lender needs proof of active homeowners insurance before releasing mortgage funds.
Should I get an insurance quote before buying a home?
Absolutely. Knowing the likely premium before closing gives you a much clearer picture of the true cost of owning the property.
About Shian Munro
I’m Shian Munro, a British Realtor® with Coldwell Banker Realty, based in Katy, Texas. Having relocated internationally myself, I understand that moving home is about much more than buying a property.
I specialise in relocation and luxury homes, helping clients moving locally, nationally and internationally make informed decisions with confidence.
A global perspective, tailored locally.
