Governor Greg Abbott issued a directive to the Texas Department of Insurance (TDI) on Monday, urging the agency to act quickly to reduce the steep rise in homeowner’s insurance premiums across the state. Abbott noted that the average annual premium for Texas homeowners has jumped 79% over the past six years, a burden that he says hits Texas families hard.
Key actions directed to TDI
The governor’s order outlines several specific measures:
- Fortified‑roof discount: Insurers will be required to consider a home’s fortified roof status when calculating rates. A fortified roof exceeds standard building codes and includes stronger edges, sealed decking, reinforced attachment systems and impact‑resistant shingles, offering better protection against high winds, hail and severe thunderstorms.
- Age‑based discrimination prohibited: Insurers may not refuse to write or renew residential property policies based solely on the age of the home or individual components such as the roof.
- Banning price optimization: TDI must issue a bulletin prohibiting the use of personal data unrelated to insured risk to set prices, a practice the governor called “price optimization.”
- Insurance fraud task force: A new task force will be created to combat fraud, which the governor says drives up costs for all consumers.
- Study of inflated claims: TDI is to examine how excessive or unnecessary claims affect commercial auto, personal auto and homeowner markets.
Abbott also instructed TDI to identify any immediate administrative steps and any statutory changes needed to protect consumers and lower costs. The agency must submit its recommendations to the governor’s office by September 14, 2026.
Legislative collaboration
The governor indicated he will work with the Texas Legislature in the next session to expand consumer protections for policyholders and address the premium surge. The directive was sent to TDI Commissioner Amanda Crawford.
Impact on Texas families
By encouraging insurers to reward homes with fortified roofs, the governor hopes to incentivize stronger construction while giving homeowners a tangible way to lower their premiums. The prohibition on age‑based underwriting aims to keep long‑standing homeowners from being forced out of coverage simply because their houses are older.
Abbott’s focus on eliminating price‑optimization practices reflects a broader concern that insurers may be using data unrelated to actual risk—such as credit scores or shopping habits—to set higher rates. The proposed insurance fraud task force is intended to target fraudulent claims that inflate costs for honest policyholders.
Texas homeowners, many of whom have faced recent severe weather events, are watching the governor’s plan closely. If successful, the measures could provide meaningful relief for families struggling with rapidly rising insurance bills while also promoting more resilient home construction throughout the state.
Original reporting: The Dallas Express — read the source article.
