The Texas Department of Insurance (TDI) is clarifying its rule that insurance companies cannot decline or not renew a home insurance policy based on the age of a house or its roof, the agency said in a Sept. 29 news release.
Under the rule, insurers may base decisions on the physical conditions of a home or its components, such as roofing, wiring, heating, air conditioning, plumbing, or siding, according to TDI. But the rule makes clear that companies cannot deny or not renew a policy simply because the house or any of those materials are older, the agency said.
“Texans deserve fair access to home insurance, no matter the age of their home,” Insurance Commissioner Amanda Crawford said in the release. “By strengthening clarity and accountability, we’re building a more transparent insurance market that supports Texans.”
TDI said it developed the rule in response to Gov. Greg Abbott’s directive for the agency to support Texas homeowners, including prohibiting insurance companies from rejecting policies based solely on the age of a house or its components. The clarification is one of several actions Crawford outlined to carry out the directive and help make auto and home insurance more affordable, the agency said.
The distinction the agency drew is between a home’s condition and its age. Under the rule as TDI described it, an insurer may weigh the physical state of a roof or other components, but may not treat an older house or older materials as a reason to decline or not renew coverage on their own.
Texans with questions about insurance can call the TDI Help Line at 800-252-3439 or visit the agency’s website, the release said. TDI also pointed consumers to resources explaining how auto and homeowners insurance costs are calculated, how companies underwrite policies, and how to lower home insurance costs.