Progressive Joins Four Other Insurance Companies in Limiting Texas Homeowner Coverage

AUSTIN, TX — Progressive Insurance has become the latest company to limit homeowner coverage in parts of Texas, citing increased weather-related disasters as the primary reason.

According to the Texas Department of Insurance, four other companies have exited the Texas market this year, impacting approximately 11,000 homeowners.

Texas Insurance Commissioner Cassie Brown testified before the state legislature, confirming that several companies are opting not to expand in Texas due to increased claims and losses from weather events.

“This is an area where we’ve seen a lot of losses,” Brown said, noting that companies are making adjustments, such as raising deductibles or halting growth.

Progressive’s second-quarter report shows that 40% of its storm-related losses occurred in Texas. In 2023 alone, the state experienced $28 billion in weather-related claims. 

Insurance companies leaving Texas are leading to price hikes for remaining customers. Some are seeing renewal rates increase by up to five times.

Despite the current exodus, it's being predicted that insurance companies will eventually return to Texas once the market stabilizes.

The Texas Department of Insurance has already approved eight new companies to enter the market this year. Homeowners are advised to shop around for better deals, explore coverage options, and review their deductibles to mitigate the impact of these rising insurance costs.