Texas Insurance Companies Must Disclose Cancellation Reasons Under New Transparency Law
HB 2067 eliminates vague excuses as homeowners face wave of policy drops and soaring premiums

Inside Woodlands
Jan 5, 2026
Texas homeowners will finally understand why insurance companies drop them thanks to new transparency rules taking effect in 2026.
House Bill 2067 forces insurers to provide written explanations for every cancellation, denial, or non-renewal — ending years of mysterious policy rejections.
The law creates powerful data tracking for consumers and regulators monitoring coverage patterns statewide.
Insurers must file quarterly reports by ZIP code detailing their reasons for policy actions, with summaries published online.
The timing is crucial as nearly half of homeowners claims were closed without payment in 2024, up dramatically from 35% in 2016.
Nonrenewal complaints more than doubled this year while major carriers like Progressive and Farmers Insurance retreat from Texas.
Previously, insurers could cancel with minimal explanation.
Now they must specify exact reasons — storm exposure, claims history, or property issues.
The rules apply to policies made after January 1, 2026, as homeowners face insurance rates that climbed 19% in 2024 alone.
Some residents now pay $10,000-$15,000 annually from lesser-known carriers as the state's insurance crisis deepens.

























