For families already juggling mortgage payments, property taxes, repairs and everyday household expenses, the cost of protecting a home has become another growing pressure point. Now, Texas officials are directing the state’s insurance regulator to take a closer look at some of the practices that can affect what homeowners pay — and whether they can keep their coverage at all.

Governor Greg Abbott on Aug. 24 directed the Texas Department of Insurance, commonly known as TDI, to pursue a series of actions intended to make property and casualty insurance more affordable. The directive could be particularly significant for homeowners in Memorial Parkway, where insurance premiums are part of the larger cost of owning and maintaining a home.

“The average annual homeowners’ insurance premium in Texas has risen 79 percent in six years,” Abbott said in announcing the directive. “High insurance costs hit Texas families hard. Today I direct the Texas Department of Insurance to put consumers first and take action that makes property and casualty insurance more affordable.”

In his written directive to Texas Insurance Commissioner Amanda Crawford, Abbott said the average annual homeowners insurance premium in Texas increased from less than $2,000 in 2020 to more than $3,500 in 2026.

The actions do not mean homeowners should expect an immediate across-the-board reduction in their insurance bills. Some measures will require TDI to develop or issue regulatory guidance, while others involve research and recommendations that could shape future legislation. Still, the directive signals a broader state effort to address rising Texas homeowners insurance rates and the availability of property coverage.

What Texas is asking insurers to change

Abbott directed TDI to take five specific actions.

First, the agency is being asked to require insurers to consider a home’s FORTIFIED roof status when calculating rates, with the goal of lowering premiums for homeowners who have invested in stronger roofs.

FORTIFIED is a voluntary construction and re-roofing program developed by the Insurance Institute for Business & Home Safety. Its standards are designed to make homes and other buildings more resistant to severe weather, including high winds, hail, hurricanes and tornadoes.

For Texas homeowners accustomed to hail, wind and severe thunderstorms, the proposal could create a clearer financial incentive for investing in storm-resistant improvements.

Abbott also directed TDI to prohibit insurers from refusing to write or renew residential property insurance solely because of the age of a home or individual components, including the roof.

That could matter to owners of older homes in Memorial Parkway, particularly those who have maintained or upgraded their properties but encounter insurance underwriting rules tied primarily to a roof’s age rather than its condition.

Another directive calls on TDI to issue a bulletin prohibiting “price optimization” for products regulated by the agency. The governor’s directive describes the practice as insurers using personal data unrelated to the risk being insured to determine prices.

TDI was also ordered to create an Insurance Fraud Task Force and study the effect of excessive, unnecessary and inflated claims costs on Texas homeowners, personal auto and commercial auto insurance markets.

The governor’s office said insurance fraud ultimately increases costs across the market because those losses can contribute to higher expenses for insurers and policyholders.

Why the directive matters for Texas homeowners

Property insurance is not simply another household subscription that can easily be dropped when prices climb. Mortgage lenders generally require homeowners to maintain adequate property insurance, leaving many families with limited flexibility when premiums rise.

That is one reason the affordability issue can ripple far beyond an annual renewal notice. Higher insurance costs can affect the overall monthly cost of homeownership and, over time, influence household budgets and housing affordability.

Abbott's letter also points to insurance-related measures approved during the previous legislative session. According to the directive, those changes included requiring consumers to be told why an insurance policy was declined or canceled, prohibiting insurers from requiring residential and personal auto coverage to be bundled, eliminating what the governor described as a “widow penalty,” and requiring insurers to use updated credit scores when credit is considered in calculating premiums.

Abbott has also proposed establishing a Texas Roof Fortification Program and allowing auto insurers to consider good driving habits when setting rates during the next legislative session.

The new directive indicates the governor wants TDI to pursue actions that can be taken administratively while lawmakers are out of session.

A proposed $400 million program could help homeowners strengthen roofs

The governor's latest insurance directive also connects to a broader proposal Abbott announced in July aimed at reducing homeowners insurance costs by helping Texans make their homes more resistant to severe weather.

Under Abbott's Keep Texas Affordable plan, the state would establish a proposed $400 million Texas Roof Fortification Program to help homeowners install roofs designed to better withstand wind and hail — two hazards that can generate costly property insurance claims across Texas.

The proposal would provide up to $10,000 per participating homeowner toward a fortified roof. Abbott's affordability plan estimates that qualifying fortified roofs could save homeowners up to 8% on insurance premiums and potentially nearly $16,000 over the life of a roof, although individual savings would depend on factors including the home, insurer, coverage and final program rules.

“Extreme weather events are a devastating reality in our great state,” Abbott said when announcing the proposal July 16. “That’s why we will establish a Texas roof fortification program.”

That earlier proposal provides important context for the governor's Aug. 24 directive to TDI requiring insurers to include a home's FORTIFIED roof status when setting rates. Together, the two initiatives reflect a two-part approach: helping homeowners pay for stronger roofs while also directing insurers to recognize that investment when calculating premiums.

For homeowners in Memorial Parkway, the combination could eventually make storm-resistant improvements more financially practical. A homeowner who qualifies for assistance toward a fortified roof could potentially receive help with the upfront construction cost while also benefiting from insurance pricing that takes the stronger roof into account.

However, the proposed Texas Roof Fortification Program is not yet the same thing as an available statewide homeowner grant. Details such as eligibility requirements, application procedures, funding rules and implementation would depend on future legislative action and development of the program.

TDI has been regulating Texas insurance for 150 years

The agency now being asked to carry out those changes has roots stretching back to the 19th century.

Texas' system of insurance regulation dates to 1876, when the 15th Texas Legislature created the Department of Insurance, Statistics, and History. TDI is marking its 150th anniversary in 2026. In the 1870s, only four of the 61 insurance companies doing business in Texas were based in the state. Today, TDI says it regulates more than 3,400 companies in a Texas insurance market valued at approximately $293.9 billion.

Its responsibilities now reach well beyond homeowners insurance.

TDI regulates Texas insurance companies and agents, oversees the state workers' compensation system, carries out the duties of the State Fire Marshal's Office and provides administrative support to the separate Office of Injured Employee Counsel. State law charges the department with protecting consumers, promoting fair competition and making sure insurance laws are followed.

For individual Texans, that mission can become especially important when something goes wrong.

TDI answers consumer insurance questions, accepts complaints involving insurers and agents, investigates suspected insurance fraud, reviews insurance rates and financial conditions, licenses companies and insurance professionals and can take enforcement action when state laws are violated. The agency says its consumer assistance work helps Texans recover millions of dollars in additional claim payments and refunds each year.

That makes TDI both the regulator overseeing the insurance marketplace and a place consumers can turn when they are trying to understand a policy, claim, premium or dispute.

What happens next

TDI has also been instructed to identify any additional administrative actions that could be taken immediately to protect consumers and improve insurance affordability.

The department must also determine whether changes to state law are needed.

Those recommendations are due to the governor’s office by Monday, Sept. 14, 2026. Abbott said he intends to work with the Texas Legislature during its next session on additional protections for insurance policyholders and measures aimed at curbing premium increases.

For Memorial Parkway homeowners, that means the Aug. 24 announcement is better viewed as the beginning of a regulatory and legislative process rather than an immediate promise of cheaper insurance.

Whether the measures ultimately lower premiums — and by how much — will depend on how TDI implements the directives, how insurers respond and what additional changes state lawmakers consider.

For families watching renewal notices climb year after year, however, the issue has moved squarely onto the state’s policy agenda.

How Texans can contact the Texas Department of Insurance

Residents with questions about homeowners insurance, an insurance company, a claim or a potential complaint can contact the Texas Department of Insurance Consumer Protection Help Line at 800-252-3439, available from 8 a.m. to 5 p.m. Central time, Monday through Friday.

TDI’s main number is 800-578-4677. Its Austin office is located at 1601 Congress Avenue, Austin, TX 78701, and correspondence may be mailed to P.O. Box 12030, Austin, TX 78711-2030. The agency also provides online resources for comparing home and auto rates, reviewing insurance company filings, filing complaints and reporting suspected fraud.

Stay tuned to My Neighborhood News for updates as TDI responds to the governor’s directive and additional details emerge about what the proposed Texas insurance changes could mean for local homeowners.

By Tiffany Krenek, My Neighborhood News 

Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.