Texas insurance regulation update, October 2026: affordability actions and appraisal rules ahead

1. Affordability directives

On 24 August the Governor directed TDI to act on home and auto insurance affordability [4]. TDI has since:

• issued a bulletin on 2 September reminding insurers that using non-risk factors to set home and auto rates, commonly called price optimization, is unfairly discriminatory under Texas law, citing the example of charging long-term customers more [4];
• issued a bulletin, announced on 16 September, urging home insurers to give premium discounts to homeowners who make their homes more resistant to storm and wildfire damage, such as roofs built to the IBHS FORTIFIED Home standard [5];
• proposed amendments, filed on 29 September, to the rule that bars refusing or nonrenewing home insurance based on the age or value of the property, to make clear it covers the age of components such as roofs (28 TAC 21.1006) [6][7].

What it means. Pricing rules are under scrutiny. Home and auto renewal pricing that uses tenure or other non-risk factors may draw regulatory attention. Home insurers should check how their rates and rules credit mitigation such as stronger roofs.

2. SB 458 appraisal rules adopted

TDI has adopted new rules (28 TAC 5.9800 to 5.9806) to implement Senate Bill 458 (2025), which requires personal auto and residential property policies to include an appraisal provision. The rules were proposed on 23 April 2026 and adopted in Commissioner's Order 2026-10210, issued on 6 November 2026 [2]. They take effect on 24 November 2026 [1]. In response to comments, TDI moved the compliance date from the proposed 1 September 2026 to 1 March 2027, to give insurers time to amend and file their policy forms [2].

Key points from the adopted rules:

• Scope. Personal automobile and residential property policies delivered, issued for delivery or renewed on or after 1 March 2027 [2].
• Claim notices. Insurers must send an appraisal process notice, in plain language, at the same time as the notice accepting or rejecting the claim under Insurance Code 542.056 [2].
• Deadlines. Once appraisal is demanded, each side has 20 days to name an appraiser and the appraisers have 15 days to pick an umpire. For personal auto, the appraisers must try to agree within 40 days and any award with an umpire must issue within 180 days. For residential property the limits are 120 and 240 days [2].
• Umpire selection. Personal auto policies must let either party ask a court to appoint an umpire in the county where the vehicle is principally garaged, as identified in the policy [2].

What it means. The 40-day and 180-day auto clocks are short. Before 1 March 2027, carriers need amended policy forms on file, the appraisal notice in their claim decision letters and a way to track deadlines on every appraisal demand.

3. Transparency data under HB 2067

House Bill 2067 (2025) requires insurers to give written reasons when they decline, cancel or do not renew a home or auto policy, and to report this information to TDI [8]. TDI launched a ZIP code lookup for home insurance on 23 September 2026 and added personal auto data on 15 October 2026 [9][8]. The pages show the reasons given in each area and the counts of nonrenewals, cancellations and declinations [9][8]. TDI has also proposed amending the Texas Commercial Lines Statistical Plan (28 TAC 5.9501) to set how commercial insurers report these reasons [1].

What it means. Nonrenewal and declination reasons are now public and comparable by area. Underwriting rules that produce clusters of declinations in particular ZIP codes are visible to regulators and to the public.

4. Fraud task force launched

TDI held the first meeting of the Texas Insurance Fraud Task Force on 19 October 2026 [10]. The task force was one of the actions the Governor directed TDI to take in August [10]. It has 63 members from law enforcement, the insurance industry, consumer groups and other partners [10]. Its stated aims are to coordinate statewide investigations, share intelligence on fraud trends, write consumer guidance for post-disaster fraud and expand outreach [10].

5. Autonomous vehicles and commercial auto

Since 28 May 2026, companies operating automated vehicles commercially in Texas must hold a TxDMV authorization under SB 2807. Applicants must confirm the vehicle carries a recording device and has liability coverage or self-insurance at least equal to the legal minimum [11]. TxDMV's report of 29 October 2026 listed 17 authorized companies with 3,164 vehicles [12].

At federal level, FMCSA proposed on 10 August 2026 to make English language proficiency an out-of-service criterion for commercial drivers [13].

6. The 2027 session

TDI says it will use its Speak Up, Texas campaign to shape recommendations for the 90th Legislature. Participants named affordability and claims handling as their top problems [14]. TDI also recommends changing state law to require insurers to consider home mitigation against wind, hail and wildfire when setting rates [5]. Senate Bill 30, which would have limited medical damages evidence in injury suits, failed in 2025 [15]. Expect claim cost and litigation proposals to return.

Key dates

Actions for carriers

• Now: review nonrenewal and declination reason codes for consistency. TDI now publishes home and personal auto reasons by ZIP code.
• Before 1 March 2027: file amended appraisal provisions, add the appraisal process notice to claim decision letters and build deadline tracking for appraisal demands.
• Home and auto pricing: review renewal pricing rules against the price optimization bulletin, which covers both lines. Home insurers should also review their mitigation discounts.
• Commercial auto: confirm how policies respond when an insured operates or interacts with authorized automated vehicles.