A new Texas law requires insurance companies to inform the policy owner in writing why they declined, canceled, or didn’t renew auto or home insurance.
According to the Texas Department of Insurance (TDI), HB 2067 applies to all decisions companies made after Jan. 1 and assists homeowners and drivers with knowledge to fix issues if they can.
The primary reason a home insurance policy might not be renewed or canceled is non-payment of premiums, along with lack of property condition and maintenance, filing too many claims, misrepresentation or fraud, increased liability risk or vacant property.
Auto insurance may also be canceled for non-payment of premiums, serious driving infractions such as a DUI/ DWI, reckless driving or accumulating multiple moving violations and atfault accidents.
Other reasons beyond the policyholder’s control include insurer business decisions such as canceling coverage in specific geographic areas or states due to natural disasters or high crime rates, leading to non-renewables for policyholders even with clean records. Also market conditions and broad changes in the insurance market, such as a company becoming insolvent or adjusting risk tolerance.
In any case, the policy owner should receive a written notice stating the reason and the time frame which provides an opportunity address the issue or shop for new coverage.
Later in 2026, companies will start giving the Texas Department of Insurance (TDI) reports summarizing their reasons for declining, canceling, or not renewing policies. TDI will combine the information and post it online.
For more information or to file a complaint, call the TDI Help Line at 800-2523439 or visit www.tdi.texas.gov.