Laura Crain, president of Crain Insurance Group<\/a>, which serves the Spring and Klein communities, said the problem is not only a Texas issue, but one that plagues homeowners nationwide.<\/p>\n Zooming out<\/strong><\/p>\n Texas uses a file-and-use system for home insurance, which allows companies to issue higher rates without state approval as long as they notify the state, per the Texas Department of Insurance<\/a>.<\/p>\n \u201cThey could just slide an envelope across the desk at [the TDI] and tell them, \u2018This is what we\u2019re charging,\u2019 and then put that into practice immediately,\u201d said Ware Wendell, executive director of Texas Watch<\/a>, which monitors insurance practices in the state.<\/p>\n It\u2019s incumbent upon the TDI to challenge hikes that don\u2019t comply with state law, Wendell said. Of the more than 2,300 rate filings the TDI reviewed in 2024, none were disapproved, according to the TDI.<\/p>\n From 2022 to 2023, insurance premiums in Texas spiked 23%, compared to the U.S. average increase of 11%, according to S&P Global<\/a>, which specializes in information and analytics around finance and business.<\/p>\n John Cobarruvias, a state consumer advocate, said he feels price increases from contractors are a cause for rising insurance costs for policyholders. Costs of repairing items such as roofs have risen over the past decade, he said, which in turn drives up the costs of insurance.<\/p>\n To help solve the issue, Gov. Greg Abbott signed House Bill 2067<\/a> into law on June 20, which will require insurers to provide a reason for when they decline, cancel or don\u2019t renew a policy.<\/p>\n In Texas, 160 companies offer homeowners insurance policies, which is a 20% increase compared to a decade ago, according to the TDI. In 2023, insurance companies sold more than 8.7 million policies in Texas, up 35% from 2013.<\/p>\n Still, insurers are struggling in Texas, according to filings from multiple companies. In 2022, the San Antonio-based United States Army Automobile Association<\/a>, or USAA, reported the first loss in its 102-year history. Other companies are limiting the policies they write in Texas, filings show.<\/p>\n How it works<\/strong><\/p>\n Insurance companies have recently reported they\u2019re facing risks, such as natural disasters and the lingering impact of the COVID-19 pandemic on lumber and building costs.<\/p>\n Carriers have increased the premiums of their policyholders nationwide; however, the Houston area has experienced dramatic increases as analysts deem the area \u201chigh risk,\u201d Crain said.<\/p>\n \u201cWe are in what we would consider more of a high-risk [area], because we see a lot of natural disasters, you know, we have the wind and hail, we have the hurricane, we have the flooding, we have all of these different events that do impact our insurance,\u201d Crain said. \u201cSo we are seeing rate increases.\u201d<\/p>\n Like its predecessors, such as Winter Storm Uri in 2021 and Hurricane Harvey in 2017, Hurricane Beryl caused billions of dollars in damage last summer, according to property analytics firm CoreLogic.<\/p>\n In December, the U.S. Senate Committee on the Budget published nonrenewal rates, confirming areas most vulnerable to climate-related risks have the highest nonrenewal rates and the most significant rate increases.<\/p>\n At the Capitol<\/strong><\/p>\n Gov. Greg Abbott signed HB 2067 into law on June 20, effective Jan. 1. Paul said he hopes the legislation will hold insurance companies accountable while also assisting the state in determining why companies are dropping customers.<\/p>\n Some, including Cobarruvias, said they don\u2019t feel this approach will help because it doesn\u2019t directly deal with rate increases. However, Paul said the state is limited in its ability to address the issue. Paul said he feels the state needs to incentivize competition to attract more insurance companies to spread out the risk and potentially lower rates. He said he believes the state setting direct rates or limiting increases could cause companies to leave.<\/p>\n \u201cHaving government interference come in and set a rate is a total disaster,\u201d he said.<\/p>\n Looking ahead<\/strong><\/p>\n According to a June 17 report<\/a> from Rice University\u2019s Kinder Institute of Urban Research<\/a>, home insurance increases brought on by extreme weather events<\/a> could add more than $15,000 to home costs.<\/p>\n Experts in the report recommend data-driven infrastructure planning and accurate flood risk mapping to address climate risks across Harris County, where more than 20% of all housing units are in major flood areas.<\/p>\n![\"\"](\"https:\/\/communityimpact.com\/uploads\/images\/2025\/07\/09\/375039.jpg\")
The conditions<\/strong><\/p>\n