For the first time in years, Texas homeowners insurance is getting cheaper for a lot of people. The Texas Department of Insurance said in October 2026 that most carriers filing rate changes since July proposed decreases, averaging about 4 percent, affecting roughly 700,000 policies. After three years in which statewide rates rose by double digits annually, that is a real change. If you own a high-value home and have not looked at your policy since 2023, this is the time.
What happened
From 2022 through 2024, Texas was one of the hardest homeowners markets in the country. Hail, wind, and freeze losses piled up, the cost to rebuild jumped, and the reinsurance carriers buy to protect themselves got expensive. Insurers responded the way they always do in a hard market: they raised rates, tightened what they would write, and in some cases stopped writing new homes in parts of the state altogether. Homeowners with good histories got the same increases as everyone else, because the carriers were pricing the state, not the house.
That has started to reverse. Reinsurance costs came down. 2025 was a better year for losses. Carriers that had pulled back are competing for business again, and competition shows up as lower filed rates and more appetite for homes that were hard to place a year ago.
Why your bill might still go up
The averages hide a lot. TDI’s figure is a simple average of filings, so a small carrier cutting rates counts the same as a large one raising them. At least one of the biggest carriers in the state filed an increase this fall that will touch hundreds of thousands of policies. So the honest summary is: the market is easing, but whether your renewal goes up or down depends entirely on which carrier you are with and how they are pricing your area right now.
That is the point. In a hard market, shopping does not help much, because everyone is raising rates together. In an easing market, the spread between carriers opens up, and that spread is where a good agent earns their keep.
What this means for a high-value home
If your home is well above the typical replacement cost for your area, custom-built, on acreage, near water, or finished with materials that are expensive to replace, you have more to gain than most. Those homes were the first to lose carrier options when the market hardened, and they are the first to get options back when it eases. Carriers that quietly declined Hill Country and lake properties in 2023 are quoting them again. The coverage itself matters as much as the price: extended replacement cost, water backup, scheduled coverage for jewelry and art, and a cash-out option if you would rather not rebuild after a total loss. Those are the things a standard policy skips, and they are easier to get now than they were.
What to do this month
- Find your declarations page and note three things: the dwelling coverage amount, the wind and hail deductible, and the renewal date.
- Ask yourself whether the dwelling amount would actually rebuild the house at 2026 costs. For many homes insured before 2022, it will not.
- If you have made improvements, a new roof, a remodel, or a security system, your carrier may not know. Each of those can change the price.
- Send us the declarations page. We will tell you whether the market has moved for a house like yours, and what the trade-offs look like between carriers. Read about our homeowners coverage, or call or text (512) 488-3586.
Frequently asked questions
Should I switch carriers just because rates are falling?
Not automatically. A lower premium with a thinner policy is not a win. Compare the coverage line by line, especially the roof settlement terms, the wind and hail deductible, and water coverage. Sometimes the right move is to stay and renegotiate; sometimes it is to move. We will tell you which.
My rate went up anyway. Does that mean I am overpaying?
Not necessarily, but it is a reason to check. Some carriers are still catching up on losses from earlier years. If your home has a clean history and your rate rose, there is a reasonable chance another carrier prices it lower today.
Does a claim-free history help more now?
Yes. In a hard market, carriers price the whole state. In an easing market, they compete for the best risks, and a home with no claims, a newer roof, and good maintenance is exactly what they want.
How often should I re-shop my homeowners policy?
Every two to three years in a normal market, and any time the market turns, as it has now. We review our clients’ policies at every renewal regardless.
Nightlight Insurance Agency, LLC is an independent insurance agency serving Austin, San Antonio, and Central Texas. Texas Department of Insurance General Lines Agency License 2803067. This post is general information, not a coverage determination. Your policy language controls. Rate figures are from the Texas Department of Insurance, October 2026.
