Texas Republicans Don’t Have A Plan For Rising Home Insurance Rates

If State Rep. Briscoe Cain (R-Deer Park) is any indication, the Texas legislature has no plans yet to deal with the skyrocketing price of home insurance driven by the increased natural disasters from man-made climate change.

“I’m not sure how we lower them,” Cain recently told WFAA, the Dallas ABC affiliate. “Things have gotten more expensive as well. The cost of replacing things has gotten more expensive. And so, we need to look at whether we can allow people to offer plans that only, maybe, replace certain things. There are some great plans out there for home homeowners’ insurance … we have to look into it and see how we can allow people to get different level plans or how we can allow more people to even come into the marketplace.”

That is a whole lot of nothing.

Cain is not alone. Of the more than 2,000 bills filed for the upcoming Texas legislative session, not a single one deals with the cost of home insurance. The closest thing to it is HB 1576, a bill by State Rep Tom Oliverson (R-Cypress) that would create a grant system for people with single-family homes that are affected by natural disasters. This could theoretically mitigate some of the damage done but does nothing to address the rates.

Rising rates are a severe problem. Some Texans are seeing their annual rates triple within a single year. The problem is largely driven by man-made climate change. As the temperatures rise, storms and other weather events become more severe, numerous, and unpredictable. This has led to freak events like the 2021 Winter Storm Uri as well as hurricanes and a devastating derecho in 2024.

More events means less profit for insurance companies. In states with robust protections against rate increases, some companies pull out all together. Then there is the “solution” favored by the Republican-controlled Gulf Coast states: light regulation to entice companies to stay, but no brakes on the increases.

In Cain’s defense, solving the problem is not simple. Texas cannot force insurance companies to stay in the state for example. Any regulation on rate hikes is likely to involve delicate negotiations with for-profit providers that will still allow them massive profits as homeowners struggle.

Texas is one of the states that does offer its own home insurance coverage, but it is parasitically linked to the for-profit industry. Homeowners are only eligible for the Texas FAIR plans if they have been denied coverage by two for-profit providers, and they must re-apply for for-profit coverage every two years. There is no provision for unaffordability, which is unfortunately standard for state-provided home insurance across the nation.

One thing is certain: States like Texas that don’t scrutinize the insurance companies too closely tend to have higher rates.  Though Republicans may be wary of taking on the insurance industry on rate increases, it’s likely to be the only way to slow the climbing premiums. Previous actions, like incentivizing home improvements, is likely unviable thanks to continued inflation and an apparent huge tariff on imported materials promised with the incoming Trump Administration. Regardless, it’s clear that Texas Republicans are not prioritizing the issue at the moment.