Texas Real Estate 2026: What Agents Need to Know About the Insurance Crisis

Texas real estate agents are facing a new challenge in 2026 — and it has nothing to do with interest rates or inventory. It is homeowners insurance. A growing number of Texas properties are becoming difficult or impossible to insure, and that is reshaping how transactions work.

Here is what every Texas real estate agent needs to know.

Quick Summary

• Texas home insurance non-renewals surged 269% in one year
  
• New TREC rule (July 1, 2026): Sellers must disclose if they have been unable to obtain coverage
  
• Carriers are exiting DFW hail zones and limiting coverage in high-risk areas
  
• Buyers are walking away from deals when properties are uninsurable
  
• Agents who address insurability early protect their clients and their commissions

The New Disclosure Rule

Starting July 1, 2026, TREC Form 55-0 (Seller‘s Disclosure Notice) added a new insurance disclosure requirement. Sellers must now disclose on the form whether they have been unable to obtain homeowners insurance on the property.

This is a material fact that buyers now see before they go under contract. If a seller has been dropped by their carrier, received a non-renewal notice, or has been insuring through the FAIR Plan, that information goes on the form.

Why this matters: What used to be a behind-the-scenes problem is now a written disclosure that buyers see upfront. Agents need to understand this rule and help sellers complete the form accurately.

Why Texas Properties Are Becoming Uninsurable

Texas homeowners insurance non-renewals surged 269% in one year. Carriers are quietly exiting high-risk areas, particularly DFW hail zones.

Key factors driving this trend:

Hail zone exits. A catastrophic hailstorm swept through the Dallas-Fort Worth area in April 2024, generating $9 billion in insured losses. Carriers are now non-renewing policies in high-risk zip codes like Frisco, McKinney, Allen, and Plano.

Roof age restrictions. Many carriers in 2026 refuse to bind new policies on roofs older than 15 years, regardless of physical condition.

Progressive and other carriers pulling back. Progressive stopped writing new homeowners policies in Texas in 2024 and has been non-renewing existing policyholders in certain areas. Lemonade stopped selling homeowners and condo policies in multiple Texas counties.

FAIR Plan growth. More than 120,000 Texas homeowners are now on the Texas FAIR Plan — the state’s insurer of last resort — and that number keeps growing.

How This Affects Transactions

For sellers: If your listing has been non-renewed or is on the FAIR Plan, that is now a disclosure item. Buyers will see it. Some may walk away. Others may negotiate harder. The best move is to address insurability before listing — get quotes, explore options, and understand what coverage is available.

For buyers: Discovering a property is not insurable at standard rates during your option period can kill the deal or cost you thousands more per year than you budgeted. Smart buyers now check insurability early — during the option period, not the week before closing.

For agents: This is a new area of expertise. Agents who understand insurability, know which carriers are writing in their market, and can guide clients through the process will win more deals and avoid E&O claims.

What Agents Should Do Now

1. Discuss insurability at listing appointments. Ask sellers about their current insurance situation. Have they been non-renewed? Are they on the FAIR Plan? What is their roof age?

2. Help buyers check insurability during the option period. Don‘t wait until the week before closing. Buyers should contact an insurance agent early to get quotes.

3. Know the disclosure requirements. TREC Form 55-0 now requires sellers to disclose insurance non-renewal or inability to obtain coverage.

4. Build your referral network. Connect with insurance agents who specialize in high-risk properties and FAIR Plan coverage. Your clients will need them.

5. Understand the 60-day notice rule. Under HB 2067 (effective January 1, 2026), carriers must give at least 60 days’ notice before non-renewal, up from 30 days on older policies.

Frequently Asked Questions

What is the new TREC disclosure requirement?
As of July 1, 2026, TREC Form 55-0 requires sellers to disclose on the Seller‘s Disclosure Notice whether they have been unable to obtain homeowners insurance on the property.

Why are so many Texas homes becoming uninsurable?
Carriers are exiting high-risk areas due to hail losses, roof age restrictions, and rising reinsurance costs. Non-renewals surged 269% in one year.

What should buyers do if a property is uninsurable?
Buyers should check insurability during the option period. They can explore FAIR Plan coverage, negotiate repairs, or walk away if the cost is prohibitive.

How can agents protect themselves?
Document all conversations about insurance. Use the TREC disclosure form correctly. Recommend clients consult an insurance professional early in the transaction.

Is this a temporary problem?
Industry analysts expect continued tightening in high-risk areas. Agents who adapt now will be better positioned for the future.

Stay Informed with Time2Renew

The Texas real estate market is changing — from insurance challenges to new disclosure requirements. Staying current is essential for real estate professionals.

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