Big news for homeowners arrived late Wednesday evening, as Progressive Insurance confirmed to WFAA that it would no longer be writing new homeowner’s policies in Texas.
Home insurance rates in the U.S. were predicted to hit record highs this year, with Texas expected to have the fourth-highest rates across the country, averaging $4,437 per home.
A report published by the insurance comparison website Insurify said six of the 10 most expensive cities for homeowners insurance are located in Florida.
Texas, in particular, was highlighted in the report for its vulnerabilities to wildfires, risks of hurricanes, and its location within Tornado Alley — all factors contributing to its high insurance rates.
Earlier this year, The Dallas Express reported that the state is the most disaster-prone in the nation, having accumulated over 360 natural disasters since 1953. The result? Home insurers have become more cautious about the state coverage they provide. It has also helped drive an over 50% surge in home insurance rates in the state since 2022.
Forget about concerns of rising costs, however. Now the concern is about being able to get home insurance at all.
WFAA reports on Progressive’s decision to restrict new homeowners business in Texas and what that means for consumers. Here’s the start of the story:
DALLAS — First came the rumors, and then came a report (without definitive, direct confirmation) that Progressive Insurance was no longer writing new homeowner’s policies in Texas.
If true, that would be big news.
So, I did some digging and repeatedly asked Progressive about it. I specifically sought information about whether they were no longer writing new homeowner’s insurance policies in Texas and whether current homeowners policies in Texas wouldn’t be renewed when they expire.
After initial silence, I got an answer. Well… a partial answer.
Progressive responded: “We are temporarily restricting new homeowners (HO3) business for certain agents in several states. We remain committed to the property business in these states and expect that these actions will better position us to build a stronger, more stable, and more competitive Progressive Home business for consumers and independent agents in the long run. These actions will not impact any other lines of business in the affected states; impacted agents can continue to write Personal Auto, Recreational Lines, and Commercial Lines products. Additionally, property-appointed agents can continue to offer Renters, Condo, Flood, and Umbrella.”