Gov. Greg Abbott directed the Texas Department of Insurance on Monday, Aug. 24, to ban several industry practices that have driven homeowners insurance premiums up 79% statewide since 2020, a move that could bring relief to Katy and Fulshear residents facing some of the state's steepest housing costs.
The governor's written directive to Insurance Commissioner Amanda Crawford orders five specific actions and sets a Sept. 14 deadline for TDI to recommend additional steps it can take without waiting for the Legislature.
"High insurance costs hit Texas families hard … I direct the Texas Department of Insurance to put consumers first and take action that makes property and casualty insurance more affordable," Abbott said in a written statement.
According to the directive, the average annual Texas homeowners premium climbed from under $2,000 in 2020 to more than $3,500 in 2026.
What the directive requires
Abbott ordered TDI to:
- Require insurers to factor in FORTIFIED roof status when setting rates, so homeowners who invest in storm-resistant roofs see lower premiums.
- Ban non-renewals based solely on a home's age or the age of individual components like a roof.
- Prohibit "price optimization" across all TDI-regulated products. The practice uses personal data unrelated to insured risk to set prices.
- Create an Insurance Fraud Task Force.
- Study the impact of excessive and inflated claims costs on homeowners, personal auto and commercial auto insurance markets.
Wind and hail have accounted for 62% of homeowner insurance losses in Texas since 2019, according to TDI data reported by Realtor.com. In 2025, insurers paid $8.74 billion in total losses from wind, hail, water, fire, theft, liability and vandalism combined.
Roof fortification program still needs Legislature
Separately, Abbott on July 16 proposed a $400 million Texas Roof Fortification Program that would offer up to $10,000 per homeowner toward a FORTIFIED-standard roof. The governor's office estimates qualifying roofs could save homeowners up to 8% on premiums and nearly $16,000 over a roof's lifetime.
That program is not yet available. Eligibility rules, application procedures and funding depend on future legislative action.
FORTIFIED is a voluntary standard from the Insurance Institute for Business & Home Safety that makes homes more resistant to high winds, hail, hurricanes and tornadoes.
Katy-area connection
State Rep. Mike Schofield, whose District 132 covers part of the greater Katy area, told the Katy Times in August that homeowners insurance is one of two major issues to watch in the next legislative session. No on-record statement from Schofield specifically on Abbott's Aug. 24 directive was available.
A Rice University Kinder Institute study published in August found that more than 7 million Texas households, roughly 64% of the state, cannot afford the median-priced home in their county once insurance and other housing costs are factored in, Newsweek reported.
What comes next
TDI must deliver its recommendations to the governor's office by Monday, Sept. 14. Abbott said he intends to work with the Legislature during its next session on additional consumer protections and measures to curb premium increases.
Homeowners with questions about their coverage can contact TDI's Consumer Protection Help Line at 800-252-3439, available 8 a.m. to 5 p.m. weekdays.
