2026 Home Insurance Changes Every Homeowner Needs to Know

Homeowners in Waco and across Texas are facing significant changes to their insurance policies in 2026. The industry is undergoing a shift driven by increased claims, inflation, and growing repair costs. Premiums are expected to rise again, and policies may now include more restrictions than ever before. Understanding these updates is critical to keeping your home protected and your finances intact.

Expect Higher Premiums and Deductibles

Premium increases are one of the most noticeable changes. Many homeowners are seeing rate hikes regardless of whether they’ve filed a claim. At the same time, standard deductibles are climbing—especially for wind, hail, and hurricane coverage. That means you may pay more upfront before insurance kicks in during a claim. Now is the time to review your deductible levels and prepare for a potentially higher out-of-pocket expense in the event of damage.

Insurance Carriers Are Getting More Selective

Insurance companies are tightening their guidelines for both new policies and renewals. Homes with older roofs, poor maintenance history, or multiple claims may be subject to higher premiums or dropped coverage altogether. Insurers are also paying closer attention to building materials, location risks, and the age of key systems like plumbing and electrical. For homeowners, keeping your home in top shape is no longer just about comfort—it’s about insurability.

Roof Condition Is a Top Priority

Roofs continue to be one of the biggest factors in policy decisions. If your roof is more than 10–15 years old, some carriers may require a replacement before offering coverage. Others may impose special deductibles or reduced protection for roofs in aging condition. It’s essential to keep up with roof maintenance and be ready to show proof of age and recent repairs when requested.

Coverage in High-Risk Zones May Be Limited

Texas is no stranger to hail, windstorms, and severe weather. As a result, some insurers are reducing availability or coverage in areas considered high-risk. If your home falls into one of these zones, you may need to explore alternative providers or specialty carriers. In some cases, policies may be written under excess and surplus lines, which often come with less favorable terms and fewer consumer protections.

Watch Out for Underinsurance

Another big concern for 2026 is underinsurance. Many homeowners haven’t updated their dwelling coverage to match rising rebuild costs. If your home suffers a total loss and your policy doesn’t reflect current labor and material prices, you could be left with a gap that insurance won’t cover. It’s a smart idea to recalculate your replacement value and work with an experienced agent to make sure your coverage is sufficient.

New Rules for Policy Transparency and Cancellations

New regulations may improve communication between insurers and policyholders. Homeowners can expect more detailed notices when a policy is canceled, non-renewed, or changed. There may also be clearer guidelines for disputing rate increases or denied claims. Staying proactive and understanding your rights under these changes can make a significant difference in how you're treated by your carrier.

What Homeowners Should Do Now

With so many updates on the horizon, it’s critical for homeowners to review their insurance annually. Start by checking the age and condition of your roof, updating the dwelling coverage value, and reviewing any exclusions that could affect you. If you’re not sure where your current policy stands—or what options are best for your home—working with a local expert is key.

At Baker & Carey Insurance, we help Waco homeowners stay ahead of these changes. Whether you need a full policy review, help shopping for better coverage, or just want to better understand your risks, our experienced team is here to guide you. Contact us today to make sure you’re ready for 2026.