Texas Insurance Nonrenewal: Your Right to a Written Reason

If a Texas insurance company declines your application, cancels your policy, or decides not to renew it, you may now have something consumers did not always receive automatically: a written explanation of why.

House Bill 2067 took effect January 1, 2026. The Texas Department of Insurance (TDI) says the law requires insurers to give written reasons for certain decisions involving auto and home insurance after that date. That explanation can matter because “declined,” “canceled,” and “not renewed” describe different situations, and the reason can affect what you should do next.

The new requirement does not guarantee that an insurer must reverse its decision. It does give consumers more information to check for errors, fix problems when possible, shop for replacement coverage, and decide whether a complaint to TDI makes sense.

Quick answer: what changed in 2026?

Texas HB 2067 changed notice requirements so insurers must provide a written statement explaining the reason for certain insurance declinations, cancellations, or nonrenewals. The enrolled law took effect January 1, 2026, and TDI’s consumer guidance says the new requirement applies to decisions companies make after that date.

For Texas drivers and homeowners, the practical change is simple: if your insurer turns down your application, cancels an existing policy, or refuses to renew it, do not assume you have to guess why. Look for the written explanation and keep it with your insurance records.

Declined, canceled, and nonrenewed are not the same thing

A declination usually means an insurer decides not to issue the policy you applied for.

A cancellation means an insurer ends a policy before the scheduled end of the policy term. Cancellation rules can depend on the type of insurance, how long the policy has been in force, and the reason involved.

A nonrenewal means the company allows the current policy term to end but does not offer to continue coverage for another term.

Those differences matter. A person who is declined while shopping for a new policy has a different problem from a homeowner whose current insurer refuses to renew coverage at the end of the term.

What can the written reason tell you?

The explanation may point to something you can verify or correct.

TDI gives examples such as unrepaired home damage or a driving history that includes multiple at-fault accidents or reckless driving. Other decisions can involve underwriting information, property conditions, claims history, or other factors allowed under the policy and Texas law.

The important part is not to assume that every stated reason is automatically correct. Compare the explanation with your own records.

If the insurer says your home has unrepaired damage, check whether that damage was repaired and whether the company has current documentation. If the reason involves driving history, review the incidents being attributed to you. If the explanation appears to rely on inaccurate application information, ask the insurer or agent how to correct it.

A written reason is information — not an automatic appeal win

HB 2067 improves transparency, but it does not mean every declination, cancellation, or nonrenewal is prohibited.

Insurance companies can make underwriting decisions based on lawful factors. A written explanation helps you understand the decision, but it does not by itself force the company to offer or continue coverage.

It also does not mean every premium increase is a cancellation or nonrenewal. If your policy is being renewed at a higher price, that is a different issue. Texas has separate rules governing insurance rates and discriminatory pricing. For more on that topic, see our guide to the Texas insurance price optimization ban.

What to do if you receive a nonrenewal or cancellation notice

1. Save the notice and the written reason

Keep the letter, email, or electronic notice with your policy documents. If you later need to dispute a factual error or file a complaint, the exact wording and date can matter.

2. Confirm which company actually made the decision

The insurance company is not always the same business as the agency or agent who sold the policy. Check your declarations page, billing statement, or policy documents for the insurer’s legal name.

3. Compare the reason with your records

Check whether the reason is factually accurate. Look at repair receipts, inspection reports, claims records, driving records, or other documents relevant to the explanation.

4. Ask the insurer to explain anything that is unclear

If the wording is vague, contact the insurer or agent and ask what information the company relied on. Keep notes of the date, the person you spoke with, and what was said.

5. Start shopping early if coverage will end

Do not wait until the final day of coverage. A lapse can create financial and legal problems, especially for auto insurance or a mortgaged home.

For auto coverage, also verify that any agent or policy you are considering is legitimate before paying. Our Texas fake auto insurance guide explains how to check a seller and policy before sending money.

6. File a complaint if you do not receive the required explanation or believe the process was improper

TDI says consumers can file a complaint if they do not receive a written explanation when the law requires one. TDI can also help with complaints involving insurers, agents, and adjusters it regulates.

TDI generally recommends first trying to resolve the problem directly with the insurance company. If that does not work, consumers can use TDI’s complaint process or call the agency’s Help Line.

What TDI can and cannot do

The Texas Department of Insurance can review complaints against companies, agents, and adjusters it regulates and can help explain insurance rules and complaint procedures.

But a complaint is not the same as a court case, and TDI does not automatically force an insurer to issue a policy or pay money simply because a consumer disagrees with a decision. TDI says it cannot make a company pay a claim unless failing to pay would violate the law or the policy terms.

That is why the written reason is useful: it gives you a specific decision to examine rather than forcing you to argue against an unexplained result.

What if the insurer’s explanation is wrong?

Start with the insurer and identify the specific factual error. Provide documents that support your position and ask the company to review the decision.

If the company does not correct the issue and you believe the decision violates Texas insurance rules, you can contact TDI or file a complaint. Keep copies of the policy, notice, written reason, correspondence, and supporting records.

What if you simply cannot find replacement coverage?

Begin shopping as soon as you know the current policy will end. Compare more than one insurer, and make sure you are comparing similar limits and deductibles rather than looking only at the premium.

For homeowners, your mortgage company may require continuous insurance. For drivers, Texas financial-responsibility requirements make a lapse particularly risky.

If you have trouble finding coverage, TDI’s consumer resources and Help Line can explain available options and direct you to relevant programs.

Frequently asked questions

Does Texas law require an insurer to tell me why it did not renew my policy?

For covered decisions after January 1, 2026, TDI says insurers must provide a written explanation for declinations, cancellations, and nonrenewals involving auto and home insurance. HB 2067 established the written-reason requirement.

Does the law mean my insurer cannot nonrenew me?

No. The law improves notice and transparency. It does not eliminate lawful underwriting decisions or guarantee renewal.

Is a premium increase the same as a nonrenewal?

No. A renewal at a higher premium is still a renewal. Rate increases and pricing practices are governed by separate rules.

What should I do if I never got a written reason?

Contact the insurer first and request the explanation. If the company does not provide what Texas law requires, TDI says you can file a complaint.

Should I wait for a complaint decision before shopping for another policy?

Usually not. If your existing coverage is ending, start shopping immediately so you do not risk a lapse while a dispute is being reviewed.

Bottom line

Texas consumers now have a clearer right to know why an insurer made certain decisions to decline, cancel, or not renew coverage. The written explanation will not solve every insurance problem, but it gives you something concrete to verify, correct, and use when deciding whether to shop elsewhere or ask TDI for help.

If you receive one of these notices, focus first on the exact reason, the effective date of the decision, and whether the insurer’s information is accurate. Then act early enough to avoid a gap in coverage.