By Kelly Conway, CIC, CRM
Owner, Conway Insurance Agency
With everything happening in the Texas insurance market, many homeowners policies now look different than they did just a few years ago. Things like Roof coverage and Wind and hail deductibles have evolved over time as carriers adjusted to rising claims costs, severe weather, and higher rebuilding expenses. Most homeowners never notice because the declarations page still looks mostly the same, just with a smaller number at the bottom.
Texas Homeowners Insurance Has Changed Fast
If it feels like homeowners insurance in Texas exploded over the last few years, you are not imagining it. Texas has seen some of the steepest insurance increases in the country. Between hailstorms, rising construction costs, inflation, labor shortages, and insurance companies taking heavy losses, premiums climbed quickly from 2022 through 2024.
According to the Texas Department of Insurance, average statewide homeowner rate increases were:
- 10.8% in 2022
- 21.1% in 2023
- 18.7% in 2024
- 4.3% in 2025
The Federal Reserve Bank of Dallas reported that Texas homeowners were paying roughly 60% more for home insurance in 2024 than they were in 2019. By the end of 2025, Texas had some of the highest homeowners insurance premiums in the country. So yes, rates really did go crazy for a while there.
Now that things are stabilizing a bit, carriers are looking for ways to stay competitive while managing risk in a very different environment than they were a few years ago. That is where many of these coverage changes started appearing.
One of the Biggest Changes We Are Seeing: Roof Coverage
Until recently, many Texas homeowners policies automatically included full Replacement Cost Value (RCV) coverage on roofs. That meant if your roof was damaged by hail, the insurance company would pay to replace it with new materials, minus your deductible.
Now, many policies are shifting to:
- Actual Cash Value (ACV)
- Roof payment schedules
- Percentage-based roof settlements
Basically, the older your roof gets, the less the insurance company pays after a hail claim.
A Roof Replacement Schedule (sometimes called a Roof Payment Schedule and named differently by different carriers) pays a percentage of replacement cost based on the roof’s age. A simplified example might look like:
- 0 to 5 years old: 100%
- 6 to 10 years old: 80%
- 11 to 15 years old: 60%
- 16 to 20 years old: 40%
- 20+ years old: 20% or ACV
Same hailstorm. Same roof.
Whether your insurance company pays for a full roof replacement or only a portion of it can come down to a few lines of policy language most homeowners never read.
Now for some good news. If you’ve replaced your roof in the last few years, make sure your insurance company knows about it. Newer roofs often qualify for discounts, and impact-resistant roofs may qualify for even more savings. Don’t assume the discount was automatically applied. Sometimes it is, sometimes it isn’t. A quick call to your agent could save you money.
Why Did My Homeowners Insurance Premium Go Down?
Sometimes the decrease is legitimate. Not every lower premium is bad news. But in many cases, we are seeing homeowners save money because:
- The roof coverage changed
- The wind and hail deductible increased
One of the biggest things we are seeing right now is higher wind and hail deductibles. For years, 1% deductibles were very common in Texas. Today, more carriers are moving to 2%, and in some cases even 5%, especially in higher-risk areas. For example:
- A 1% deductible on a $400,000 home = $4,00
- 0 out of pocket
- A 2% deductible on a $400,000 home = $8,000 out of pocket
- A 5% deductible on a $400,000 home = $20,000 out of pocket
That is a major difference that many homeowners do not realize until they file a claim.
Why This Matters in Central Texas
Hail is not hypothetical here. Texas has led the country in major hail events for years, and Central Texas gets hit regularly. Recent storms have included:
- September 2023: Baseball- and softball-sized hail in Austin and Round Rock, causing an estimated $600 million in insured losses.
- May 2024: Hail up to 3.25 inches across the Austin metro area.
- May 2025: Another round of baseball-sized hail across Central Texas.
While spring is typically our busiest hail season in Central Texas, severe weather can happen any time of year. This is why reviewing your policy every year matters so much. Once a claim happens, it’s too late to make changes.
Four Things Texas Homeowners Should Check Right Now
You don’t need to call your agent tomorrow. But sometime this week, pull out your most recent renewal declarations page and look at these four things:
1. Roof Settlement Type
Look for terms such as:
- Replacement Cost
- Actual Cash Value
- Roof Payment Schedule
- Roof Surfacing Schedule
If you see anything other than straightforward Replacement Cost coverage, ask questions.
2. Wind and Hail Deductible
Is it 1%, 2%, or even 5%? Multiply it out and make sure you’re comfortable writing that check if a hailstorm damages your roof tomorrow.
3. Roof Age
Your premium and coverage terms are often tied to the roof age your carrier has on file. If the age is wrong, ask them to correct it.
4. Understand What Changed at Renewal
The declarations page is only a summary. If your premium changed significantly, ask what else changed along with it. Understanding the reason behind the change is just as important as the price itself.
If you don’t understand what you’re looking at, that is exactly what we are here for. Bring us your declarations page and we’ll walk through it with you. No pressure to switch. No sales pitch.
I’d rather you understand the policy you have than buy a new one you also don’t understand.
The Bottom Line
The Texas insurance market has changed dramatically over the last few years, and many homeowners are discovering their policies look different than they used to.
A lower premium can absolutely be a win, but it can also mean your coverage changed along the way.
The goal is not just to have insurance. The goal is to understand what you actually have before you need to use it. If you’d like a second set of eyes on your homeowners policy, my team and I are always happy to help. The best time to understand your coverage is before you need to use it.
Kelly Conway, CIC, CRM
Conway Insurance Agency
conwayagencytx.com | 512-345-0005