Home Insurance Providers Are Pulling Out of High-Risk States Is Texas Next?

Collin County News

June 20, 2025 Maverick Tax Guardians

A growing number of major insurance companies are pulling out of disaster-prone states like California, Florida, and Louisiana leaving homeowners scrambling for coverage or facing steep premium hikes. While Texas isn’t at the center of the storm yet, the warning signs are impossible to ignore.

Why Are Insurers Withdrawing?
From wildfires and hurricanes to soaring repair costs, home insurance providers are rethinking their risk exposure. Major players like State Farm and Allstate have already stopped writing new policies in some high-risk states. Insurers say that a mix of extreme weather events, rising construction expenses, and tough regulatory environments are making it financially unsustainable to offer coverage in certain areas.

What This Means for Texas
Texas is no stranger to natural disasters. With frequent hurricanes along the Gulf Coast, hailstorms across the state, and a rising number of costly weather events, many experts warn that insurance companies could start scaling back here, too. Some already have by tightening underwriting criteria or raising premiums dramatically.

What Homeowners Should Do Now
Even if your insurer hasn’t pulled out, now is the time to be proactive:

Review your current policy to understand what’s covered and what’s not.
Shop around to compare rates and options, especially if your renewal quote jumps.
Explore home upgrades (like roof reinforcements or storm shutters) that may reduce your risk and qualify you for discounts.
Stay informed about your region’s climate risks and changing insurance trends.

Conclusion:
The U.S. home insurance market is shifting fast, and the changes aren’t just happening in coastal states. Texas homeowners should stay alert, review their coverage regularly, and prepare for a future where insurance may be more selective and more expensive.

Source
This news article is based on information from
Realtor.com- “When Home Insurance Dries Up: The Surprising Way Climate Risk Is Forcing Homeowners To Rethink Where They Live”( June 18,2025). Retrieved from:https://www.realtor.com/advice/finance/where-home-insurance-is-withdrawing/