Your Texas Homeowners Insurance Renewal Arrived. Read Past the Premium.

daniel33876

5 days ago

3 min read

In early October, the Texas Department of Insurance reported that Texas homeowners insurance rates are trending downward, with insurers filing an average decrease of 4.3% since early July. That may sound encouraging, particularly after several years of steep increases. According to Governor Abbott's August letter to the Insurance Commissioner, the average Texas homeowners premium rose 79% between 2020 and 2026, increasing from less than $2,000 to more than $3,500.

However, the statewide average doesn't tell the whole story. ABC13 reported that the 4.3% figure is a simple average of company filings, meaning a small insurer carries the same weight as a large one. The state's largest homeowners insurer, for example, filed a 4% statewide increase for renewals beginning November 1. At the time of the report, regulators were still reviewing that filing.

So, while some homeowners may see a decrease, others may continue to face increases. Whether your premium went up or down this year, the number on the first page of your policy is only part of the story.

At Pivotal Public Adjusters, the problems we see after a storm rarely start on the day of the loss. They usually start at a renewal months earlier, when a deductible, a roof endorsement, or an exclusion quietly changed and nobody noticed because the premium looked reasonable. A renewal is the one moment each year when you can see those terms before you need them, and a few minutes with your declarations page is time well spent.

5 Things to Review on Your Texas Homeowners Insurance Renewal

Start with the wind and hail deductible. Many Texas policies now express it as a percentage of the dwelling limit rather than a flat dollar amount. A 2% deductible on a home insured for $400,000 means the first $8,000 of a hail claim is yours, which can mean that a damaged roof never produces a payment at all. If your renewal shows a percentage, do the math on your own dwelling limit so you know the real figure.

Next, look for how your roof will be paid. Some policies now pay for roofs on an actual cash value basis or on a schedule that reduces payment as the roof ages, rather than paying full replacement cost. Others add a cosmetic damage exclusion that removes coverage for dents and marks, which matters a great deal. These endorsements often appear only as a form number in a list at the bottom of the declarations page, so ask your agent what each form does in plain language.

Then compare your dwelling limit with what it would cost to rebuild today. Construction costs have risen faster than many policy limits, and a limit set years ago may not reflect current labor, materials, or code requirements. Ordinance or law coverage deserves a look as well, because it helps pay for upgrades the building code requires during repairs, and older homes in particular can trigger those requirements.

Finally, ask for the complete policy, not just the declarations page. The declarations page tells you what forms apply, but the forms themselves contain the language that decides how a claim is handled. Keeping a full copy with your important papers means you will have it when you need it rather than requesting it after a loss.

Reviewing your Texas homeowners insurance renewal before a loss can help you understand what your policy actually covers. None of this requires changing carriers or making a quick decision. It simply means knowing what you are buying. If a term on your renewal is unclear and you would like a second set of eyes on how it could affect a future claim, Pivotal is glad to talk it through.