Texas homeowner loses insurance due to hail risk. How can you protect your coverage?
A Fort Worth homeowner said he was blindsided when his insurance told him it wouldn’t renew his policy. The reason? The potential for future hail damage.
Read on to learn why this happens and how consumers can take proactive steps to protect their coverage.
High wind and hail area?
When Gary Logan’s insurance company sent him a letter saying it would not renew the policy on his house, he had questions.
“We are nonrenewing your policy because the insured property is located in an area with high wind and hail exposure,” Logan said, reading from the notice of nonrenewal.
Logan said his immediate reaction was, “Our property is located in an area with high wind and hail? No, it’s not. Everybody is located in high wind and hail.”
“It’s not like there’s a cloud over our house,” Logan added.
Logan said he had two homes insured by Travelers. The home he lives in and another home where a family member lives. The homes are both in Fort Worth and located six miles apart. Insurance was willing to renew the policy on one, but not the other.
Logan said he hadn’t filed any claims on the house.
“Roof is in perfect shape. There are no issues to it,” Logan said of the house.
NBC 5 Responds asked Travelers about Logan’s nonrenewal. In an email, Travelers wrote, “Over the past several years, the industry has experienced an increase in frequency and severity of extreme weather events, as well as elevated costs for labor and materials.”
Travelers added, “We regularly monitor evolving risks and make thoughtful adjustments to our underwriting guidelines so we’re able to better manage these challenges and continue operating in certain catastrophe-prone markets, especially those with heavy concentrations of wind and hail damage. We remain committed to finding innovative solutions to meet the needs of our customers.”
Risk balancing act
“It may not necessarily mean they’re trying to reduce that individual hail risk on that one single house, but maybe a general area,” said Rich Johnson, with the Insurance Council of Texas, a trade group representing Texas insurers.
In general, Johnson said insurance tries to spread out its risk. If insurance determines it has a cluster of customers in a geographic area, one hailstorm could flood a company with claims.
“With roofs running $20,000 to $30,000 each right now, that’s the primary risk, especially in North Texas, that insurance companies are taking on right now,” said Johnson.
According to an analysis by the Insurance Information Institute, which represents the insurance industry, Texas had the most hail events and tornadoes of any state in 2024.
According to data from the Texas Department of Insurance, the number of nonrenewal complaints more than doubled in 2024. The agency counted 79 complaints in 2023 and 190 in 2024. So far this year, TDI said it has received 75 consumer complaints about nonrenewal.
Industry belt-tightening
“In 2024, we suffered 20 $1 billion disasters. Twenty disasters amounting to a billion or more dollars. We were hit really hard in the state of Texas,” said Ware Wendell, with the nonpartisan consumer group Texas Watch.
Wendell said insurance companies are tightening their belts.
“These big storms aren’t going away. They seem to be coming faster and more frequently,” Wendell added.
“We need to take steps to prepare ourselves against that risk and do what you can to harden your home against that risk,” said Wendell.
Home hardening includes steps like upgrading to impact-resistant shingles. In Alabama, the state provided grants to homeowners to help offset the expense. Insurers in Alabama also sold policies with a “fortified endorsement.” Consumers could purchase extra coverage that would pay more to install a fortified roof in the event of a claim.
Wendell said building and repairing homes to make them more storm-resistant would reduce overall insurance claims and insurance costs for consumers.
Consumer advocates: Shop around now
Wendell said consumers should regularly shop around for home insurance.
“Be proactive, as a consumer, to shop the market,” said Wendell.
Generally, consumers in Texas can shop around for private insurance options. Wendell said Texans aren’t in the same boat as consumers in other states, where consumers may struggle to find private insurance.
“We’re not in a Florida or California situation here in Texas,” Wendell said.
The states shaded in dark blue in this 2024 U.S. Senate Budget Committee report saw the highest rates of nonrenewals in 2023. Texas didn’t have the lowest rates of nonrenewals, but it was hit as hard as states like California, Oklahoma, Louisiana or Florida.
Next steps for consumers
Logan’s nonrenewal letter gave him a little more than two months to find another policy.
”If you advise anybody that’s going to go through this, you might tell them to reserve a couple, three or four days to sit on the phone and make calls,” Logan said. “Or, surfing around and be prepared to get hung up on and disconnected.”
After a few nos, Logan said he found comparable coverage.
“I’m actually saving a little bit of money,” Logan said.
According to Texas law, companies must give home and auto policyholders at least 60 days’ notice of a nonrenewal for policies bought or renewed in 2024. The notice requirement is 30 days for older policies, bought or renewed in 2023. The Texas Department of Insurance said if you receive notice of nonrenewal, start shopping right away.
You can read this guide from NBC 5 Responds on how to shop around. Start by reading up on your coverage and what you pay. The declarations page, the first page or two of the policy, summarizes coverage and deductibles.
The state has a comparison tool at helpinsure.com. It asks about your property location, claim history, credit score and the estimated cost to rebuild your home. It searches sample policies along with company ratings. Consumers would still have to contact the specific insurer to get an exact quote.
NBC 5 Responds is committed to researching your concerns and recovering your money. Our goal is to get you answers and, if possible, solutions and a resolution. Call us at 844-5RESPND (844-573-7763) or fill out our customer complaint form.
Get top local stories in DFW delivered to you every morning. Sign up for NBC DFW’s News Headlines newsletter.
A Fort Worth homeowner said he was blindsided when his insurance told him it wouldn’t renew his policy. The reason? The potential for future hail damage.
Read on to learn why this happens and how consumers can take proactive steps to protect their coverage.
High wind and hail area?
When Gary Logan’s insurance company sent him a letter saying it would not renew the policy on his house, he had questions.
“We are nonrenewing your policy because the insured property is located in an area with high wind and hail exposure,” Logan said, reading from the notice of nonrenewal.
Logan said his immediate reaction was, “Our property is located in an area with high wind and hail? No, it’s not. Everybody is located in high wind and hail.”
“It’s not like there’s a cloud over our house,” Logan added.
Logan said he had two homes insured by Travelers. The home he lives in and another home where a family member lives. The homes are both in Fort Worth and located six miles apart. Insurance was willing to renew the policy on one, but not the other.
Logan said he hadn’t filed any claims on the house.
“Roof is in perfect shape. There are no issues to it,” Logan said of the house.
NBC 5 Responds asked Travelers about Logan’s nonrenewal. In an email, Travelers wrote, “Over the past several years, the industry has experienced an increase in frequency and severity of extreme weather events, as well as elevated costs for labor and materials.”
Travelers added, “We regularly monitor evolving risks and make thoughtful adjustments to our underwriting guidelines so we’re able to better manage these challenges and continue operating in certain catastrophe-prone markets, especially those with heavy concentrations of wind and hail damage. We remain committed to finding innovative solutions to meet the needs of our customers.”
Risk balancing act
“It may not necessarily mean they’re trying to reduce that individual hail risk on that one single house, but maybe a general area,” said Rich Johnson, with the Insurance Council of Texas, a trade group representing Texas insurers.
In general, Johnson said insurance tries to spread out its risk. If insurance determines it has a cluster of customers in a geographic area, one hailstorm could flood a company with claims.
“With roofs running $20,000 to $30,000 each right now, that’s the primary risk, especially in North Texas, that insurance companies are taking on right now,” said Johnson.
According to an analysis by the Insurance Information Institute, which represents the insurance industry, Texas had the most hail events and tornadoes of any state in 2024.
According to data from the Texas Department of Insurance, the number of nonrenewal complaints more than doubled in 2024. The agency counted 79 complaints in 2023 and 190 in 2024. So far this year, TDI said it has received 75 consumer complaints about nonrenewal.
Industry belt-tightening
“In 2024, we suffered 20 $1 billion disasters. Twenty disasters amounting to a billion or more dollars. We were hit really hard in the state of Texas,” said Ware Wendell, with the nonpartisan consumer group Texas Watch.
Wendell said insurance companies are tightening their belts.
“These big storms aren’t going away. They seem to be coming faster and more frequently,” Wendell added.
“We need to take steps to prepare ourselves against that risk and do what you can to harden your home against that risk,” said Wendell.
Home hardening includes steps like upgrading to impact-resistant shingles. In Alabama, the state provided grants to homeowners to help offset the expense. Insurers in Alabama also sold policies with a “fortified endorsement.” Consumers could purchase extra coverage that would pay more to install a fortified roof in the event of a claim.
Wendell said building and repairing homes to make them more storm-resistant would reduce overall insurance claims and insurance costs for consumers.
Consumer advocates: Shop around now
Wendell said consumers should regularly shop around for home insurance.
“Be proactive, as a consumer, to shop the market,” said Wendell.
Generally, consumers in Texas can shop around for private insurance options. Wendell said Texans aren’t in the same boat as consumers in other states, where consumers may struggle to find private insurance.
“We’re not in a Florida or California situation here in Texas,” Wendell said.
The states shaded in dark blue in this 2024 U.S. Senate Budget Committee report saw the highest rates of nonrenewals in 2023. Texas didn’t have the lowest rates of nonrenewals, but it was hit as hard as states like California, Oklahoma, Louisiana or Florida.
Next steps for consumers
Logan’s nonrenewal letter gave him a little more than two months to find another policy.
”If you advise anybody that’s going to go through this, you might tell them to reserve a couple, three or four days to sit on the phone and make calls,” Logan said. “Or, surfing around and be prepared to get hung up on and disconnected.”
After a few nos, Logan said he found comparable coverage.
“I’m actually saving a little bit of money,” Logan said.
According to Texas law, companies must give home and auto policyholders at least 60 days’ notice of a nonrenewal for policies bought or renewed in 2024. The notice requirement is 30 days for older policies, bought or renewed in 2023. The Texas Department of Insurance said if you receive notice of nonrenewal, start shopping right away.
You can read this guide from NBC 5 Responds on how to shop around. Start by reading up on your coverage and what you pay. The declarations page, the first page or two of the policy, summarizes coverage and deductibles.
The state has a comparison tool at helpinsure.com. It asks about your property location, claim history, credit score and the estimated cost to rebuild your home. It searches sample policies along with company ratings. Consumers would still have to contact the specific insurer to get an exact quote.
NBC 5 Responds is committed to researching your concerns and recovering your money. Our goal is to get you answers and, if possible, solutions and a resolution. Call us at 844-5RESPND (844-573-7763) or fill out our customer complaint form.
Get top local stories in DFW delivered to you every morning. Sign up for NBC DFW’s News Headlines newsletter.