The Texas Department of Insurance has clarified that insurers cannot deny or refuse to renew a homeowners insurance policy solely because of the age of a house, roof or other property component. Insurers remain allowed to consider the actual physical condition of the property when making underwriting decisions.
Texans deserve fair access to home insurance, no matter the age of their home. The clarification is intended to provide more transparency around how insurers evaluate residential properties.
Insurance Commissioner Amanda Crawford
The rule covers roofing, electrical wiring, heating and air conditioning systems, plumbing and siding. An insurer can therefore consider whether an older roof is damaged or in poor condition, but age by itself cannot serve as the reason for declining coverage or issuing a nonrenewal.
Texas clarifies homeowners insurance underwriting rules
The Department of Insurance developed the rule after Gov. Greg Abbott directed the agency to take steps addressing home and auto insurance affordability. His directive included prohibiting insurers from rejecting homeowners policies based solely on the age of a property or its components.
The change does not prevent insurers from inspecting or evaluating older homes. Companies still have the option to assess the condition of roofs, plumbing, wiring, HVAC systems and siding when deciding whether to write or renew a policy.
For homeowners with older properties, the distinction is between age and condition. A roof that has been in place for many years remains subject to underwriting review, but an insurer must base a denial or nonrenewal on factors beyond its age alone.
TDI said the rule is one of several measures Commissioner Crawford has outlined in response to Abbott’s insurance directive. The agency also provides information on homeowners insurance pricing, underwriting practices and steps consumers can take to reduce insurance costs.
