Texas insurance law changes for 2025-2026

Written reasons for declines, cancellations and nonrenewals (HB 2067)

Before this law, Texas insurers generally had to explain a cancellation or nonrenewal when you asked. House Bill 2067 changed Insurance Code Section 551.002 so that an insurer that declines a completed application, cancels or refuses to renew must give you a written statement of the reasons, and the statement must fully explain the decision. Insurers also have to report those reasons to TDI at least quarterly, by ZIP code.

Effective date: January 1, 2026, for applications made and policies issued or renewed on or after that date.

What to do: if you get a nonrenewal, read the stated reason closely. If it's about the condition of the roof or another fixable issue, ask whether a repair or inspection would change the decision, and start shopping at least 60 days out.

A right to appraisal on home and auto claims (SB 458)

Senate Bill 458 created Insurance Code Chapter 1813, requiring personal auto and residential property policies to include an appraisal provision to resolve disputes about the amount of a loss. The amount set by appraisal is binding on both you and the insurer, with narrow exceptions such as fraud or a material mistake. TWIA policies are excluded.

Effective date: the law took effect September 1, 2025 and applies to policies delivered, issued or renewed on or after January 1, 2026. TDI proposed rules on appraiser and umpire qualifications and timelines and held a public hearing on June 2, 2026; check TDI for the final rule.

What to do: appraisal settles how much, not whether something is covered. Before you invoke it, ask what it will cost you (typically your own appraiser plus a share of the umpire).

No forced bundling of home and auto (SB 213)

Senate Bill 213 bars an insurer from making a residential property policy contingent on buying a personal auto policy from the same or an affiliated insurer, or the reverse. TWIA, NFIP and personal umbrella policies are exempt. The bill doesn't address bundle discounts, so a multi-policy discount is a separate question from a requirement to bundle.

Effective date: September 1, 2025.

What to do: if a company tells you it will only renew your home policy if you also move your car insurance, ask for that in writing and contact TDI.

Credit, marital status and your rate (SB 1644, SB 1238)

Senate Bill 1644 requires insurers that use credit to review and update each insured's credit report every three years, reassess the policy's rating and adjust the premium based on the updated score. It took effect September 1, 2025, and applies to policies issued or renewed on or after January 1, 2026. At renewal you or your agent can also ask for a re-rate on a current credit report once every 12 months.

Senate Bill 1238 bars insurers from discriminating based on an insured's marital status after the death of a spouse. Effective September 1, 2025.

What to do: if your credit has improved since your policy started, ask your company how and when it re-rates, and compare new quotes. If your rate rose after a spouse's death and the company points to marital status, raise it with TDI.

How TWIA claims are funded (HB 3689)

House Bill 3689 rebuilt the funding plan for the Texas Windstorm Insurance Association. For catastrophes after December 31, 2025, TWIA pays losses first from its own reserves and the catastrophe reserve trust fund. Beyond that, the bill allows a state financing arrangement (up to $500 million before a storm and up to $1 billion after one), member insurer assessments of up to $1 billion per catastrophe year, and statewide catastrophe surcharges to repay the state financing.

Why it matters inland: those surcharges can be applied as a percentage of premium on residential property, fire and allied lines, farm and ranch owners and the property part of commercial multiple peril policies across Texas, not only on the coast. Effective date: September 1, 2025, with the new funding structure applying from January 1, 2026.

Medicare Supplement for people under 65 with ALS or ESRD (HB 2516)

House Bill 2516 requires Medicare Supplement insurers to offer people under 65 who are on Medicare because of ALS or end-stage renal disease the same coverage offered to people 65 and older. Plans A, B and D must be offered at the same premium rate charged at 65, and premiums for other plans may not exceed 200% of the 65-and-older rate. TDI lists it as effective June 20, 2025.

What to check at your next renewal

• Look for a written reason if your company cancels or doesn't renew you, on any policy issued or renewed since January 1, 2026.
• Find the appraisal clause in your new home or auto policy and note any deadline to request appraisal.
• If your insurer uses credit, ask when your score was last pulled and whether a re-score would help.
• On a property policy, look for any TWIA catastrophe surcharge line if TDI orders one after a major storm.
• If you're shopping because of a nonrenewal, read our nonrenewal guide and compare quotes early.