Insurance not renewed or cancelled in Texas?

Short answer. Nonrenewal means your insurance company won't offer another term; cancellation ends the policy before its end date. For a house or duplex insured by a Texas-licensed company, the law generally requires 60 days' notice of nonrenewal, 10 days for most cancellations, and a written reason without your asking. Surplus-lines policies follow their own terms.

Either way, the job is the same: find out exactly why, fix anything that is wrong, and have a new policy in force the day the old one ends. If a lender is named on the policy, the insurance company tells it too. Send the lender your new declarations page before the old policy ends.

Cancellation or nonrenewal: which letter did you get?

You can also end a policy yourself at any time; that is a switch, not a cancellation by the insurer. See How to switch rental insurance in Texas.

Which Texas rules apply to your policy

Most of the Texas rules on notice and reasons sit in one part of the Insurance Code, chapter 551, subchapter C. This guide calls them the Texas notice rules. They are narrower than people expect. They apply only to authorized (Texas-licensed) insurers (§551.101), and only to certain policies, including "a homeowners or farm or ranch owners insurance policy" and "a standard fire insurance policy insuring … a one-family dwelling or a duplex" (§551.102). "Standard fire policy" is Texas law's term for what is sold today as a dwelling (landlord) policy; that is how we read it, and TDI's standard dwelling form (TDP-3) carries the same cancellation reasons.

A surplus-lines insurer is an out-of-state company allowed to insure risks that Texas-licensed companies won't take, after an agent has tried and failed to find a Texas-licensed company that will (§981.004). The Texas Department of Insurance (TDI) says surplus lines insurance "has fewer consumer protections than typical home insurance" (TDI). If your declarations page carries a surplus-lines notice, read the policy's cancellation and nonrenewal conditions: they, not chapter 551, set the notice you are owed.

Nonrenewal: 60 days' notice, and the reasons

Under the Texas notice rules, the insurer must renew your policy at your request unless it mailed you written notice of nonrenewal, or a renewal with written notice of the change in coverage, "not later than the 60th day before the date on which the insurance policy expires" (§551.105). The 60 days apply to a policy bought or renewed on or after January 1, 2024 (before that it was 30 days) (HB 1900, section 3). A change on renewal that reduces coverage must be shown conspicuously, in plain language, no later than the 30th day before renewal (§551.1055).

TDI lists the usual reasons a company may not renew (TDI; home insurance guide):

• The house's condition. TDI says a company "might say you have six months to make repairs or it won't renew your policy."
• Three or more claims in three years, not counting the kinds below. After a second claim the company may warn you in writing that a third could lead to nonrenewal; if it doesn't warn you, it can't refuse to renew because of claims (§551.107).
• Vacancy of 60 days or more. See Vacant rental property insurance in Texas.
• The company limiting what it sells in your area.

What the law keeps off that list:

• Claims for losses from natural causes, such as a hailstorm, claims filed but not paid, and certain appliance-related water claims the law bars insurers from using do not count as claims for nonrenewal under the Texas notice rules (§551.107(b)).
• A question is not a claim. Under the Texas notice rules, an insurer may not use a "customer inquiry", including a question about "whether a policy will cover a loss," to cancel or refuse to renew, unless the question is about specific damage that leads to an investigation or claim (§551.113).
• The age of the house or roof, by itself. 28 TAC §21.1006 dates from 1997 (last amended in 2021), and it now says an insurer "may not decline to write residential property insurance based on the age of the property" (current rule). TDI reads it as covering renewals and the roof too: companies "can't decline or not renew a home insurance policy based on the age of a house or its roof," though they may base decisions on physical condition (TDI, September 29, 2026). The rule's definition includes a "residential fire and allied lines policy", so on its wording it appears to reach a dwelling policy from a Texas-licensed insurer; whether it reaches surplus-lines insurers is not settled. Ask the insurance company whether it applies to your policy. More in How old can a roof be to insure in Texas?

A move to another company in the same insurance group is not a refusal to renew (§551.004), so read a "transfer" letter as closely as a nonrenewal: the new policy's form, deductibles and roof terms may differ.

Cancellation: 10 days' notice, limited reasons

Under the Texas notice rules, an insurer may cancel mid-term only if (§551.104):

• any part of the premium is not paid when due;
• you submit a fraudulent claim;
• TDI determines that continuing the policy would violate the law; or
• there is "an increase in the hazard covered by the policy that is within the control of the insured and that would produce an increase in the premium rate."

Those cancellations do not take effect "until the 10th day after the date the insurer mails notice." There is one wider window: an insurer may cancel a policy other than a homeowners or auto policy, without one of those reasons, "if the policy has been in effect less than 90 days" (§551.104(g)), which reaches a new dwelling policy. (On a homeowners policy the window is 60 days, for narrower reasons.) TDI's standard dwelling form (TDP-3, last revised in 2002; many insurers now use their own forms) gives 30 days' notice for such a cancellation, other than for non-payment (TDP-3, Conditions). A cancellation that breaks the Texas notice rules "has no effect" (§551.111).

If the reason is non-payment, call the insurance company or your agent the day the notice arrives; the notice period is short.

Ask for the reason in writing

Since January 1, 2026, a Texas-licensed insurer that turns down your application, cancels your policy or doesn't renew it must give you a written statement of why, without your asking. This applies to an application made, or a policy bought or renewed, on or after that date (§551.109, §551.002; HB 2067; TDI: "your company must give you a written statement telling you why"). The rule on what the statement says is older: it must "state the precise incident, circumstance, or risk factors" and "the source of information on which the insurer relied" (§551.002(c)). For a house or duplex, the duty comes from the Texas notice rules (§551.109). Section 551.002 also covers other policies from Texas-licensed insurers, such as a dwelling policy on a triplex, though it works through TDI rules, and we found no TDI rule yet that applies it to one. We found no Texas law that requires a surplus-lines insurer to give a statement. Ask for one either way: an insurer can always explain its decision.

The statement is useful because it is specific:

• Check the facts. A wrong roof year, a claim that belongs to a previous owner, a vacancy that ended months ago: correct it in writing, with proof.
• Ask what would change the answer. If the reason is condition, ask whether a repair before the end date would keep the policy.
• Ask for the claims list. On written request, an insurer must give you "a list of claims charged against the policy and payments made on each claim" within 30 days (§542.102–.103).
• Complain if it looks wrong. You "may file a complaint with TDI if you think a company nonrenewed or canceled your policy unfairly" (TDI; how to file).

Find a replacement without a gap

TDI's advice is to "Have a new policy in place before your current policy expires" (TDI). In practice:

• Start the day the notice arrives. Sixty days goes quickly once a new insurance company asks for photos, an inspection or a roof certificate.
• Match the dates exactly. The new policy should start on the day the old one ends, or on the cancellation date. Insurers may ask whether you had any days without coverage.
• Don't let go of the old policy first. TDI: "Never cancel a policy until you get your new policy or a written statement of coverage" (TDI, shopping tips).
• Compare form to form. A replacement on a narrower form, with no liability, or with the roof settled at actual cash value is a different product. See Texas landlord insurance: what a DP-3 covers.
• Tell the new insurer the truth about the old one. Applications often ask about prior cancellations, nonrenewals and claims. An inaccurate answer can give the insurer grounds to deny a claim or rescind the policy (treat it as if it never existed), if the fact was material (Ins. Code §705.004).

Where replacement coverage can come from. Start with Texas-licensed insurers; a surplus-lines insurer may write a property they won't (see above). The Texas FAIR Plan Association is the state's insurer of last resort. TDI says: "If at least two companies refuse to insure your home, you may buy a policy through" it (TDI). TDI's overview of the FAIR Plan says it also provides "limited coverage" for "one and two family rental dwellings", on a dwelling form that pays actual cash value. To qualify, you need declinations from at least two Texas-licensed insurers; an offer from a surplus-lines insurer doesn't count against you (TDI, FAIR Plan overview, June 8, 2026). The FAIR Plan may turn down vacant property, a property in disrepair and "any residential dwelling occupied for business use", and policyholders must reapply in the regular market every two years (Texas FAIR Plan). Compare what it covers with your old policy before you rely on it.

On the coast, wind and hail coverage may come from the Texas Windstorm Insurance Association (TWIA) alongside another policy for everything else; see Texas wind and hail deductibles, explained.

Tell your lender before the old policy ends

If a lender is named on the declarations page, it is usually told too. On TDI's standard dwelling form, a mortgagee named on the declarations page gets written notice of cancellation, and "30 days written notice of the non-renewal" (TDP-3, Mortgage Clause).

Send the lender the new declarations page as soon as the new policy is issued, and say who pays it: escrow or you. If your loan documents allow it, Texas law lets a lender buy coverage to protect its interest if you don't give it a replacement policy "on or before the 15th day before the termination date" of the existing one (§549.056(d)). That lender-placed coverage protects the lender, not you; see Force-placed insurance on a Texas rental and Texas rental insurance: mortgage and escrow.

Your claims history (CLUE), and how Texas limits its use

The next insurance company will likely look at the property's claims history. TDI: "Most insurance companies get a report from the Comprehensive Loss Underwriting Exchange (CLUE) to learn your claims history" (TDI). A CLUE report "shows the claims filed for any house or car for the past seven years," even claims from before you owned it, with the date of loss, the loss type and the amount paid (TDI, CLUE).

• Questions shouldn't appear. "Companies aren't supposed to report any questions you ask about your policy or deductible." When you call, be clear whether you are filing a claim or asking a question.
• Check it and correct it. TDI says you can get a free copy of your report each year "by contacting LexisNexis," and dispute wrong information or add an explanation (TDI, CLUE).
• Some claims can't be held against you on a home policy. TDI says home companies can't charge you more for claims they didn't pay, for calls asking questions, for "damage from natural causes, including weather," or for certain inspected appliance-related water claims (TDI). For nonrenewal, the Texas notice rules set the same limits: §551.107 for claims and §551.113 for questions.

TDI's pages speak of home insurance. Surplus-lines insurers set their own underwriting rules, so a landlord policy from one may weigh past claims differently. More on filing a storm claim in Texas storm and hail claims on a rental.

A short checklist

• Is it a cancellation or a nonrenewal, and what is the exact end date?
• Is the insurer Texas-licensed or surplus lines, and is the property a house or duplex?
• Written statement of the reason in hand, with the facts checked
• Anything fixable (a repair, a wrong fact) raised before the end date
• New policy starting the day the old one ends, with nothing in between
• Lender sent the new declarations page, and told who pays
• CLUE report checked if the reason involves claims

AIV Insurance is an independent insurance agency in Texas. We are not an insurance company: the decision to cancel or renew belongs to the insurance company that wrote the policy. If you've received a notice, email hello@aivinsurance.com, or reach us through the contact page and we'll tell you how to share it securely. We can read it with you and look at what replacement coverage may be available for the property.

C.L.U.E. is a trademark of its owner. AIV Insurance is not affiliated with it.