Home Insurance Rates Set to Jump 10% for Texans on State’s FAIR Plan

The increase applies to new and renewing homeowners, condominium, dwelling, and renters policies.

Chris Schafer
Written byChris Schafer
Chris Schafer
Chris SchaferSenior Editor
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

Featured in

media logomedia logomedia logomedia logo
Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
  • 10+ years in insurance and personal finance content

  • 30+ years in media, PR, and content creation

Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

Featured in

media logomedia logomedia logo
John Leach
Reviewed byJohn Leach
Photo of an Insurify author
John LeachSenior Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 8+ years editing experience

John leads Insurify’s copy desk, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.

Featured in

media logo

Published May 29, 2024 at 5:00 AM PDT | Reading time: 2 minutes

Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

Texans who get their homeowners insurance through the state’s insurer of last resort will see their premiums increase this year. Texas Commissioner of Insurance Cassie Brown’s office approved a 10% increase for the Texas’s Fair Access to Insurance Requirements (FAIR) Plan. The rate increase will take effect on Aug. 1 and affect all new policies and the renewal of existing policies.

The increase affects homeowners, condominium, tenant, and dwelling policies. The FAIR Plan Governing Committee has historically limited rate increases to 10%. Here are the statewide increases:

Policy CategoryPercentage Increase
Tenant8.4%
Dwelling - Fire10%
Dwelling - Extended Coverage9.5%
Homeowners10%
Condominium10%

Increases can vary based on location. For example, tenants with a FAIR Plan policy in the Dallas-Fort Worth area will see a 10% rate increase upon plan renewal, while tenants living in north or northwest Texas will only see an increase of 2.1%.

Important Information

To qualify for a FAIR Plan policy, Texans must have been denied coverage by at least two insurers licensed to do business in the state and meet other requirements. Policyholders must reapply every two years.

The path to an increase

The FAIR Plan filed the request for an increase on Dec. 28, 2023, and the Texas Department of Insurance (TDI) had 60 days to review the plan with the option to extend that review period by 30 days.

TDI extended that deadline at the end of February and approved the increase at the end of March, to take effect Aug. 1.

“FAIR Plan generally files new rates for approval with the Texas Department of Insurance each year,” Aaron Taylor, senior legislative and external affairs specialist with the Texas FAIR Plan Association, told Insurify. “Texas FAIR Plan’s goal is to set rates in an amount sufficient to carry all claims to maturity and to meet all expenses incurred in the writing and servicing of the business.”

What’s next? Costs continue to rise

FAIR Plans began in the 1960s as a way for property owners to purchase insurance coverage in markets where they had few options. And as the insurance market continues to evolve in the face of severe weather disasters, the plan’s role may become more important.

Because of the legally mandated cap on increases, FAIR Plan administrators couldn’t request the percentage increases they said the current market conditions in Texas indicate. Statewide indicated changes, included in the December request for a rate increase, show that the approved adjustments to FAIR Plan rates are falling behind market conditions.

Policy CategoryStatewide Indicated Change
Tenant21.9%
Dwelling - Fire38.5%
Dwelling - Extended Coverage12%
Homeowners15.5%
Condominium49.5%

And as the gap between indicated changes and the plan changes widens, consumers can expect to face new, more expensive rates to fill the gap.

Chris Schafer
Chris SchaferSenior Editor

Chris is Insurify’s Senior Editor for home insurance. He’s a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more. He is passionate about breaking down complex subject material to make important information accessible to everyone. 

Chris began his career as a journalist, managing two weekly newspapers, then moving into marketing and content marketing roles. Before joining Insurify, Chris served as the content strategy manager at Siteimprove and as the content manager at Brandpoint, where he managed a team of content creators. 

Away from work, Chris is an active hockey player and proud father of two rambunctious little girls. Chris holds a Bachelor’s degree in English with a minor in mass communications from the University of Minnesota. 

Evelyn Pimplaskar
Edited byEvelyn PimplaskarEditor-in-Chief, Director of Content
Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
  • 10+ years in insurance and personal finance content

  • 30+ years in media, PR, and content creation

Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

Featured in

media logomedia logomedia logo
John Leach
Reviewed byJohn LeachSenior Insurance Copy Editor
Photo of an Insurify author
John LeachSenior Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 8+ years editing experience

John leads Insurify’s copy desk, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.

Featured in

media logo