August 24, 2026 – AUSTIN, Texas — Texas Governor Greg Abbott issued a direct order to the Texas Department of Insurance (TDI) on Monday targeting the state’s skyrocketing property insurance rates, instructing regulators to implement consumer-first measures to lower costs for homeowners.
With average homeowners’ insurance premiums in Texas surging 79 percent over the past six years, Abbott instructed TDI Commissioner Amanda Crawford to take immediate administrative action to curb rate hikes and curb predatory practices across the industry.
Mandated Reforms for Homeowners Insurance
The Governor’s directive outlines several key policy shifts aimed at reducing premiums and eliminating administrative barriers for policyholders:
- FORTIFIED Roof Discounts: TDI must require insurers to factor a home’s FORTIFIED roof status into rate calculations, rewarding homeowners who invest in severe-weather-resistant roofing with lower premium rates.
- Prohibition on Age-Based Denials: Insurance companies are now barred from refusing to write or renew residential policies based solely on the age of a home or individual components, such as older roofs.
- Ban on “Price Optimization”: TDI will issue a state-wide bulletin outlawing price optimization—a controversial practice where insurers utilize non-risk personal data to set higher premiums based on a consumer’s willingness to pay.
- Insurance Fraud Task Force: State regulators will launch a dedicated task force to crack down on fraudulent claims, which officials cite as a major contributor to rising systemic costs.
- Comprehensive Claims Cost Study: TDI will conduct a formal study analyzing how excessive, inflated, or unnecessary claims impact Texas’s homeowner, personal auto, and commercial auto insurance markets.
Deadlines and Legislative Goals
The Governor directed TDI to identify additional administrative tools that can be implemented immediately, alongside any necessary statutory adjustments. The department’s full report and policy recommendations must be submitted to the Office of the Governor by Monday, September 14, 2026.
Abbott indicated that these administrative directives are a precursor to broader legislative efforts, promising to partner with the Texas Legislature in the upcoming session to pass stricter statutory protections and rein in unmanageable premium growth for Texas residents.
