Politics
Abbott issues directives to make property insurance more affordable
Governor Greg Abbott has ordered the Texas Department of Insurance to take new actions aimed at curbing rising property and casualty insurance premiums.
By Bethany Blankley · 2026-09-02T18:31:30.988Z
The Center Square – Gov. Greg Abbott directed https://links 1.govdelivery.com/CL0/https:%2F%2Fgov.texas.gov%2Fuploads%2Ffiles%2Fpress%2FAmanda Crawford TDI Homeowners Insurance Premiums 082426 .pdf/1/010001a034432287 52ff9c1d 5cd3 4f22 a79d 4d3495960bab 000000/PzuNOHiydpkT7 Q1ethFw9m0zsBqhlMruaVPnxvNZjY=452 the Texas Department of Insurance TDI to take several actions to ensure that property and casualty insurance is more affordable after proposing reforms in July.
“The average annual homeowners’ insurance premium in Texas has risen 79% in six years. High insurance costs hit Texas families hard,” Abbott said.
In response to his directive, on Wednesday, TDI reminded insurers https://links 1.govdelivery.com/CL0/https:%2F%2Fwww.tdi.texas.gov%2Fbulletins%2F2026%2Fcommissioners bulletin b0007 26.html/1/010001a0627a841a db588b2b c81e 4e62 860f b81cc5ae0b05 000000/4x5P mPwoKH 815GXnAGbTFF8DKqIISCRglUOS234 U=452 that the practice of “price optimization” violates state law for all TDI regulated insurance products.
"Price optimization drives up costs for loyal customers,” Abbott said. “Insurance companies must base rates on risk, not on how much extra money they think a customer will pay. TDI will take action against any company that uses this illegal practice.”
One of Abbott’s TDI directives https://gov.texas.gov/news/post/governor abbott directs tdi to take action to make property insurance more affordable requires insurers to include a home’s FORTIFIED roof status in their rate setting calculation to reduce the cost of insurance premiums. This is after he proposed a plan in July for the legislature to establish a Texas roof fortification program, The Center Square reported. https://www.thecentersquare.com/texas/article 94fb7ed9 b2fa 4291 ac68 1dc03b672f8b.html
Other directives prohibit insurers from “refusing to write or renew residential property insurance policies based on the age of the property, including individual components such as the age of the roof” and for TDI to create an Insurance Fraud Task Force to clamp down on insurance fraud.
He also instructed TDI to conduct a study on the impact of excessive, unnecessary and inflated claims costs on the Texas commercial auto, personal auto, and homeowner insurance markets and to identify administrative actions or any statutory changes needed to protect consumers and make insurance products more affordable. TDI was tasked with getting back to the governor's office by Sept. 14 with recommendations.
Abbott also directed https://gov.texas.gov/uploads/files/press/Amanda Crawford TDI Homeowners Insurance Premiums 082426 .pdf TDI Commissioner Amanda Crawford to notify all insurers that the practice of “price optimization” is banned in Texas. The practice occurs when an insurance company varies premiums based on factors unrelated to a policyholder’s risk of loss or the company’s expenses, including whether a customer is likely to shop for a new policy or accept a higher price. In this scenario, two policyholders with the same risk profile receive different premium increases, which state law prohibits.
In response, Crawford issued a TDI Bulletin https://links 1.govdelivery.com/CL0/https:%2F%2Fwww.tdi.texas.gov%2Fbulletins%2F2026%2Fcommissioners bulletin b0007 26.html/2/010001a0627a841a db588b2b c81e 4e62 860f b81cc5ae0b05 000000/hL DGTpUPPD8e8qfwBKHcH9 QiRLvx Gg8oRYArocqo=452 reminding all insurance companies and their agents and representatives that using price optimization in the ratemaking or pricing process, or in a rating plan, is unlawful. Premiums may only legally be based on cost associated with risk. TDI also says it will take enforcement action against companies that don’t comply.
Abbott said he will be working with the legislature next year when it convenes to enhance consumer protections for insurance policyholders and curb premium increases.
Abbott, who is running for his fourth term, has been touring the state on an “affordability tour” announcing ways the state legislature can reduce costs for Texans. They include reducing home and auto insurance costs, reducing https://www.thecentersquare.com/texas/article f339474f f9c9 46dd 997c 026034c20b58.html property taxes, reducing electricity https://www.thecentersquare.com/texas/article 569bedeb 8589 4a41 82ba b4d955311e39.html costs in some regions, lowering housing costs, creating a new https://www.thecentersquare.com/texas/article 1dfa5efa 0f79 49ac a969 6b781d53e433.html health insurance plan, and reducing public higher education institution tuition https://www.thecentersquare.com/texas/article 02dd57a6 f41c 43f8 b0e3 bc75b64a88fe.html , among other proposals.
Under the Biden and Trump administrations, the cost of goods, services and energy have increased while incomes have remained relatively flat. Inflation, the national debt and government spending are at record highs while the average American struggles to make ends meet, critics of both administrations and Congress argue.
Texans are also suffering from extreme weather events, including record flooding, hurricanes and wildfires, which have contributed to increased costs across the board.
State Rep. Gina Hinojosa, D Austin, who is running against Abbott in November, blames Abbott for increased costs. “For over a decade, Greg Abbott has made it easier for billionaires to profit while hardworking Texans struggle to afford groceries, housing, and healthcare. But together, we can make Texas work for Texans again,” she says https://x.com/GinaHinojosaTX/status/1978416812170662064 . Abbott has not responded to her criticisms.
Hinojosa says she plans https://ginafortexas.com/priorities/ to “lower healthcare, grocery, and utility costs, make homeownership a reality, and put $1,500 money in your pocket.” Her plan to send every Texan a $1,500 check would require authorization from the state legislature.
This story originally appeared on thecentersquare.com https://www.thecentersquare.com/texas/article 81dfdaf8 11bb 48de a1e2 55d2c198402e.html .