Insurer Exodus: Options for Dropped Texas Policyholders
If your insurer is leaving the Texas market, you're not alone. Thousands of homeowners are facing the same uncertainty, with many wondering what happens next and what options are available to them. Acting quickly is key to securing new coverage and avoiding a lapse in protection. Your current policy will likely remain in effect until its expiration date, but it's essential to start exploring alternatives immediately
Based on federal consumer protection law and HUD/CFPB public guidance · Last reviewed July 2026
The Direct Answer
Your insurer's exit from the Texas market doesn't necessarily mean you'll be left without options. You can start by shopping for new coverage from other insurers still operating in the state, and also explore state assistance programs designed to help homeowners in this situation.
Reach out to the Texas Department of Insurance (TDI) for guidance on available programs and resources, such as the Texas Windstorm Insurance Association (TWIA) or the Texas FAIR Plan Association, which provide coverage to homeowners who cannot find it in the private market
Do not wait until your current policy expires to start looking for new coverage, as this can lead to a lapse in protection and increased premiums or even policy rejection
Understanding Your Options
Shopping for New Coverage
Start by researching and comparing rates from other insurers still operating in Texas. Consider factors such as coverage limits, deductibles, and premium costs. You can also work with an insurance agent or broker to help you navigate the process.
State Assistance Programs
The Texas Department of Insurance (TDI) offers various programs to help homeowners affected by insurer exits, including the Texas Windstorm Insurance Association (TWIA) and the Texas FAIR Plan Association
What to Expect
When shopping for new coverage, be prepared to provide detailed information about your home, including its value, location, and construction type. Insurers may also request additional documentation, such as proof of prior coverage and claims history. Be sure to carefully review policy terms and conditions before signing
Avoiding a Lapse in Coverage
Start exploring new coverage options immediately
Work with an insurance agent or broker if needed
Carefully review policy terms and conditions before signing
Next Steps
If you're having trouble finding new coverage or need help handling the process, consider reaching out to the TDI or a local non-profit housing counseling agency for guidance and support
Find New Coverage Now
Don't wait until it's too late – start exploring new coverage options today to ensure you're protected in case of unexpected events. Reach out to the Texas Department of Insurance or a local insurance agent for help
What happens to my current policy if my insurer leaves the Texas market?
Your current policy will likely remain in effect until its expiration date, but you should start exploring new coverage options immediately to avoid a lapse in protection
Can I still get coverage if I have a high-risk home?
Yes, you may still be able to get coverage through state assistance programs such as the Texas Windstorm Insurance Association (TWIA) or the Texas FAIR Plan Association, which provide coverage to homeowners who cannot find it in the private market
How do I shop for new coverage?
Start by researching and comparing rates from other insurers still operating in Texas, and consider working with an insurance agent or broker to help you navigate the process
What if I'm having trouble finding new coverage?
If you're having trouble finding new coverage, consider reaching out to the Texas Department of Insurance or a local non-profit housing counseling agency for guidance and support