Texas Claims Nine of Ten Top Homeowners Rate Hikes in Q1 2026

Nine of the ten most financially significant homeowners rate increases filed anywhere in the country in Q1 2026 landed in Texas, according to S&P Global Market Intelligence data compiled through May 30, 2026. No other state placed more than one filing in the top ten.

That is not a statement about Texas carriers. It is a statement about Texas Insurance Code Chapter 2251, which lets an insurer charge a new rate on the filing effective date and leaves the Department of Insurance to review it afterward.

Key Takeaways

• $220.4 million of calculated premium impact makes Allstate Vehicle and Property's 8% filing, affecting roughly 852,000 policyholders, the largest single homeowners rate action in the country in Q1.
• 22.7% is what Farmers Insurance Company of Texas filed, for $199.2 million of impact, on top of statewide average changes of 21.1% in 2023 and 18.7% in 2024.
• Zero filings were formally disapproved on actuarial grounds in Texas in 2024, out of 2,343 property and casualty filings TDI reviewed and requested more information on 77% of.
• 305 days was California's median homeowners approval time in 2024, and Colorado's averaged 331. That gap is the whole mechanism.
• A 2% wind and hail deductible is now the Texas standard, 3% in the hail corridor. On a $400,000 dwelling that is $8,000 or $12,000 of retained exposure the rate filings do not measure.

The Q1 Filing Slate

S&P ranks filings by calculated premium impact, the percentage change multiplied by the carrier's in-force premium in the state. That measure separates a large percentage on a small book from a small percentage on a large one.

Carrier	State	Rate Change	Calculated Premium Impact	Policyholders Affected
Allstate Vehicle & Property	Texas	+8.0%	$220.4M	~852,000
Farmers Insurance Co. of Texas	Texas	+22.7%	$199.2M	N/A
Homeowners of America Insurance	Texas	+17.7%	$68.6M	~118,000
Auto Club Exchange	Texas	+18.0%	$59.3M	N/A
Texas Farm Bureau Mutual	Texas	+18.0%	$57.7M	N/A

Behind Allstate and Farmers, Homeowners of America, Auto Club Exchange and Texas Farm Bureau Mutual filed increases between 17.7% and 18%, adding a combined $185.6 million.

The same quarter ran the mechanism in the other direction. Porch Group Insurance Company of Texas filed a 14.8% decrease with a calculated impact of negative $26 million across roughly 250,000 policyholders, the third-largest homeowners rate decrease in the country. Porch Group underwrites on property-specific data, roof condition, materials, distance to fire stations, and when its indications improved it passed the improvement through immediately.

That pairing, a 22.7% increase and a 14.8% decrease in the same state in the same quarter, is what the regulatory structure actually produces. Not higher rates, faster ones, in both directions.

What File-and-Use Does to the Indication

Under Chapter 2251 the rate goes live on the filing effective date and TDI reviews it in market. The department can open disapproval proceedings, but the rate stays in effect unless and until it takes formal action.

The 2024 review record shows how that plays out. TDI examined 2,343 property and casualty filings and requested additional information on 77%. Of those, 2,037 stood or were approved, 174 were withdrawn by insurers, often after TDI raised questions, and 132 were rejected for technical noncompliance. None were formally disapproved on actuarial grounds. TDI reports the process saves consumers an average of $29.2 million a year, most of it through withdrawals and modifications rather than rejections.

The actuarial difference from a prior-approval state is not the level of the rate, it is the width of the uncertainty margin around it. California's median homeowners approval ran 305 days in 2024 and Colorado's averaged 331, so a pricing actuary there is not filing a current indication. They are filing a forecast of loss costs a year out, and if experience deteriorates during review the approved rate is already inadequate on its effective date.

Texas compresses that loop, which is visible in Allstate's own sequencing. The 8% filing took effect for new business on January 26, 2026 and for renewals on March 12. Then March brought $925 million of pretax catastrophe losses from 15 separate wind and hail events, three of which accounted for 80% of the total, inside a Q1 catastrophe load of $1.24 billion pretax. The new rate was already in market carrying those losses, and if 8% proves short, the structure permits another filing rather than another year.

Farmers' 22.7% carries the same reading in reverse. Statewide average changes ran 21.1% in 2023, 18.7% in 2024 and 4.3% in 2025, a deceleration that looked like adequacy arriving. A 22.7% filing on top of that cumulative correction says one carrier's book was still materially underpriced after three years of it.

What the Filings Do Not Measure

Rate is only part of the cost transfer, and the part that gets filed.

A 2% wind and hail deductible is now the dominant Texas standard, with some carriers at 3% across the North and Central hail corridor. On a $400,000 dwelling, 2% is $8,000 and 3% is $12,000. Flat-dollar and 1% deductibles have largely left the state's active hail markets.

A carrier that raises rates 18% while moving a policyholder from a 1% to a 2% deductible has increased total cost exposure by more than 18%, and none of the additional retention appears in the S&P premium impact figures. The NAIC's homeowners data call, with its June 15 deadline, will capture deductible distributions across participating jurisdictions for the first time, which is the first standardized measure of that gap.

The residual market shows where the combined effect lands. Texas FAIR Plan applicants grew from 66,512 in 2021 to 121,658 in Q1 2025, an 83% increase in four years. The Texas Windstorm Insurance Association carries more than 280,000 policies and $121 billion of total insured value. Non-renewal rates nearly doubled, from 0.46% in 2020 to 0.83% in 2023.

That is the constraint on the obvious legislative response. Senate Bill 1643, introduced in the 2025 session, would have required TDI prior approval for any homeowners increase above 10%, which would have caught four of the five largest Q1 filings and cleared only Allstate's 8%. It stalled, and the reason it is a genuine trade-off rather than a clear improvement sits in the loss numbers: the Texas five-year average loss ratio for 2020 through 2024 was 69.8% and the 2024 combined ratio was 98.3%.

Delaying corrections in a market that close to breakeven, against severe convective storm severity that keeps compounding and produced more than $52 billion of national insured losses in 2025, risks the carrier exits and residual-market growth the delay is meant to prevent. The NAIC data call is the first dataset that will let anyone test which regime handles that better, using eight years of identical fields across both.