SAN ANGELO, TX — Lemonade, a tech-focused insurance company, will stop renewing and selling home insurance policies in several Texas counties, including Tom Green County.
The company cited growing climate risks and unpredictable claims costs as reasons for the move. Texas makes up nearly 13% of Lemonade’s total gross written premiums, according to its most recent filing with the Securities and Exchange Commission, second only to California.
This is the second major coverage rollback this year. In May, Lemonade stopped writing new home and condo policies in Angelina, Brazos, Ellis, Grayson, Gregg, Johnson, Potter, Randall, Tom Green, Travis and Williamson counties. Collin, Denton, Abilene and Lubbock have now been added to the list.
Policyholders with active Lemonade home insurance will keep coverage until their policies expire but will not be able to renew. The company advised customers to secure replacement coverage before their policies lapse to avoid gaps in protection.
Texas does not track insurer nonrenewal data by county, so the local impact in Tom Green County is unclear. Statewide, however, nonrenewals nearly doubled from 0.88% in 2022 to 1.66% in 2023.
Lemonade is one of several insurers scaling back coverage in Texas. Farmers and Progressive have also reduced their presence in the state, citing climate-related risks and rising reinsurance costs. Texas has experienced 190 climate disasters causing $1 billion or more in damages since 1980.
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