If your homeowners renewal came in higher than last year, you're far from alone. The Texas Department of Insurance (TDI) reports that the average homeowners premium in the state went from under $2,000 in 2020 to more than $3,500 in 2026. Most of that climb happened in a short stretch. Statewide rate increases averaged about 11% in 2022, 21% in 2023 and nearly 19% in 2024 before cooling to around 4% in 2025.
So what's behind the jump, and what can you do about it? Here's a plain-English breakdown from our office in San Marcos.
Your Rate and Your Premium Aren't the Same Thing
Your insurance company sets a rate, which is basically its price per unit of coverage, and files it with TDI. Your premium is what you actually pay. It's that rate applied to the amount of coverage your home needs, adjusted for your home's risks and any discounts you qualify for.
This is why your bill can go up even if your carrier didn't raise rates. When it costs more to rebuild your home, your dwelling coverage usually goes up with it. Many policies adjust that limit automatically each year to keep pace with construction costs, and a higher limit means a higher premium.
Hail, Wind and Flooding Keep Texas Expensive to Insure
Few states face as many weather risks as Texas. Hail, high wind, tornadoes, flash floods, and wildfire all show up here, plus hurricanes along the coast. Wind and hail alone accounted for $5.8 billion in insured losses in Texas in 2025, according to TDI.
Central Texas gets its share. San Marcos and much of Hays County sit in the region known as Flash Flood Alley, and spring hailstorms regularly track along the I-35 corridor. When a carrier pays out heavily in an area, it tends to raise prices for every policyholder there. That includes homeowners who never filed a claim.
One thing to keep in mind: a standard homeowners policy doesn't cover flood damage. If you live near the San Marcos or Blanco River, or anywhere water collects during heavy rain, ask about separate flood insurance.
Repairs and Rebuilding Cost More Than They Used To
Lumber, roofing materials, and skilled labor all cost more than they did a few years ago. When a claim comes in, the insurance company pays today's prices, not what it cost to build your house. Roofs matter most here because, after a hailstorm, the roof is usually the single biggest check an insurer writes.
Rising home values add to this. As homes in the area have appreciated, the cost to replace them has gone up too.
Your Roof's Age Matters More Than Ever
Many carriers have tightened their rules for older roofs. Some won't write a new policy on a home whose roof is near the end of its life. Others will still cover it, but only on an actual cash value (ACV) basis. With ACV, a roof claim pays the depreciated value of your old roof instead of the cost of a new one, so you could be left paying a large share of the replacement yourself.
There is some good news on this front. In August 2026, Governor Abbott directed TDI to require insurers to factor a home's FORTIFIED roof status into their rates. FORTIFIED is a building standard designed to help roofs hold up to wind and hail. If you've recently replaced your roof, or you're planning to, ask whether it qualifies for a discount.
Know Your Wind and Hail Deductible
Many Texas policies carry a separate deductible for wind and hail damage, figured as a percentage of your dwelling coverage instead of a flat dollar amount. On a home insured for $400,000, a 2% wind and hail deductible means paying the first $8,000 of a covered storm claim.
Choosing a higher deductible can lower your premium. Just make sure you know the actual dollar figure, and that you could cover it if a storm hits.
Claims History and Your Insurance Score
Insurers look at more than your own claims. They also check the claims history tied to the property itself, which can include claims filed by previous owners. That information comes from a database called CLUE (Comprehensive Loss Underwriting Exchange).
Texas also allows insurers to use a credit-based insurance score as one factor in pricing. Several small claims in a short period can raise your costs more than the claims were worth. For minor damage, it may make sense to talk with your agent before filing.
Is Any Relief on the Way?
Some, yes. Since July 1, 2026, most homeowners insurers that filed rate changes with TDI asked for decreases, averaging 4.3% and affecting about 700,000 Texas policyholders. ASI Lloyds, a Progressive company, filed a 6% decrease. Insurance affordability is also expected to be a major topic when the Legislature meets in January 2027.
None of that guarantees your bill will go down. It does mean the market is shifting, and the carrier that offered the best price two years ago may not be the best fit today.
Simple Ways to Keep Your Premium in Check
- Compare carriers before each renewal instead of auto-renewing
- Bundle your home and auto policies
- Review your deductibles, including wind and hail
- Ask about discounts for impact-resistant or FORTIFIED roofs
- Update your insurer on improvements like a new roof, plumbing or electrical work
- Ask about other discounts, such as security systems or a claim-free history
What If Your Policy Isn't Renewed?
Texas insurers must notify you at least 60 days before your policy ends if they won't renew it. That gives you time to shop for new coverage. If two or more companies turn you down, you can get a policy through the Texas FAIR Plan, the state's insurer of last resort.
How an Independent Agent Can Help
A captive agent can only offer you one company's policies. As an independent agency, we work with several carriers, including Travelers, Progressive, Germania, Foremost, and RVOS. That lets us compare coverage and pricing side by side and show you the trade-offs. Learn more about our home insurance in San Marcos.
Frequently Asked Questions
Why did my premium go up if I never filed a claim? Higher rebuilding costs, an automatic increase in your dwelling coverage, and storm losses in your area can all raise your premium, even with a clean claims record.
Can my insurer raise my rate without state approval? Texas insurers file rate changes with TDI, and they can generally start using new rates while TDI reviews them.
Does homeowners insurance cover flooding? No. Flood damage requires a separate flood policy.
Will a new roof lower my premium? It often helps, especially with impact-resistant or FORTIFIED roofing. How much it saves depends on the carrier.
Is home insurance required in Texas? State law doesn't require it, but nearly every mortgage lender does.
Get Help Understanding Your Premium Increase
You don't have to sort through a higher renewal on your own. Our team at Meadows Insurance Agency can review your current policy, explain what's driving your rate, and compare options from multiple carriers. Call us at 512-392-9000 or contact us online to set up a policy review before your next renewal.
