Your Texas home policy was nonrenewed or canceled. Now what?

Nonrenewal vs cancellation

Nonrenewal means the company won't continue your policy past its end date. Under Insurance Code Section 551.105, the insurer must mail notice at least 60 days before the policy expires or renew it at your request. TDI explains that the 60-day rule applies to policies bought or renewed in 2024 or later; for policies last bought or renewed in 2023 or earlier, 30 days applied.

Cancellation ends the policy before its end date. It takes effect no earlier than 10 days after the insurer mails notice (Section 551.104). A cancellation that violates these rules has no effect (Section 551.111).

Reasons an insurer can use

Cancellation is allowed only for listed reasons: nonpayment, a fraudulent claim, a legal violation, or an increase in hazard within your control that would raise the rate. In a homeowners policy's first 60 days, the insurer can also cancel for an undisclosed hazard that wasn't part of a prior claim, or if it doesn't accept a required inspection report. Nonrenewal reasons TDI lists include:

• The home's condition has worsened (companies usually give about six months to repair first).
• Three or more claims in three years, not counting claims from natural causes, unpaid claims, or the first two qualifying appliance-related water claims that were repaired and inspected.
• The house has been vacant 60 days or more.
• The company is limiting how much it writes in your area.

Reasons an insurer can't use

• A customer inquiry: a call asking about coverage or how to file, which doesn't result in a claim, can't be used to decline, cancel or nonrenew (Section 551.113).
• A claim that wasn't paid or payable under your policy, when counting claims toward nonrenewal (Section 551.107).
• Claims, after you've filed two, unless the insurer sent you the required warning letter; without it, a third claim can't be the reason (Section 551.107).
• Race, color, religion or national origin, or your credit score alone (TDI).
• Your refusal to buy your auto policy from the same insurer: since September 1, 2025, requiring home and auto bundling is an unfair practice (Section 551.254).

New in 2026: a written reason with specifics

House Bill 2067 changed Chapter 551 effective January 1, 2026, for applications made and policies issued or renewed on or after that date. Insurers must give a written statement of the reason for a declination, cancellation or nonrenewal, and it must name the precise incident, circumstance or risk factor, and the source of the information they relied on (Sections 551.002 and 551.109). TDI says this applies when you were declined, canceled or nonrenewed after January 1, 2026. Notices may be delivered electronically.

Read that statement closely. If it rests on something wrong, like a roof age, claim history or property detail, correct it with evidence and ask the company to reconsider, and use it when you shop.

Replace coverage before the end date

TDI's advice: start shopping right away and have a new policy in place before the current one expires. Never cancel a policy until you have the new one or a written statement of coverage.

• Pull your free CLUE report (LexisNexis, 866-312-8076) so you see the claims history insurers will see; you can dispute errors.
• Get sample rates on TDI's HelpInsure.com, then ask an agent for quotes.
• Tell your mortgage company early, since your loan requires you to keep the home insured.
• Fix condition issues named in the notice and keep receipts and photos.

If you think the decision was wrong

Start with the written statement. Ask the insurer, in writing, to correct any factual error and reconsider, and attach proof such as a roof invoice, repair receipts or inspection report. Keep copies and note dates.

If the company won't fix it and you believe the cancellation or nonrenewal broke Texas rules, you can file a complaint with TDI. Complaints must be in writing; TDI's online complaint portal is the fastest route. A complaint doesn't extend your coverage, so keep shopping while it's reviewed.

Fallbacks if no one will write you

If at least two licensed insurers turn you down, the Texas FAIR Plan sells basic coverage through agents. On the coast, wind and hail can come from TWIA. Agents may also suggest surplus lines insurance, which TDI notes has fewer consumer protections. If you believe a nonrenewal or cancellation was improper, you can file a complaint with TDI.