Landlord Insurance Non-Renewing?

Why Are Insurance Companies Non-Renewing Landlord Policies in North Texas?

If you own rental properties in Dallas-Fort Worth, DFW or maybe even in Austin, Texas, you’ve probably seen letters showing up in the mail with words like “non-renewal” or “policy cancelling on the expiration date”.   This leaves you a little high and dry without coverage—especially when you’ve been paying premiums for years without a claim.

So, what’s going on? Why are carriers suddenly ghosting landlords in your area? Here are the main reasons this is happening.

1. Storms, Hail, and Texas Weather

North Texas weather has always been a little extra. One week it’s sunny, the next week baseball-sized hail is knocking holes in roofs from Denton to Plano. Insurance companies don’t like losing money and these days, the DFW area is the epicenter of non-profitable insurance in the U.S.

Claims are stacking up, and carriers are trying to limit their exposure.

2. Rising Repair and Construction Costs

Even when the damage isn’t catastrophic, the cost to fix it sure feels like it. Lumber, roofing, plumbing, labor—you name it, it’s gone up. Carriers are paying more per claim than they did even a few years ago. When that math stops making sense, they start dropping policies to protect their bottom line. We had a client with a one-story 3000 sq.ft. house in Lantana have a $75,000 payout for a new roof due to hail damage.  What the heck?

3. More Tenants = More Risk

From the insurance company’s perspective, landlords carry more risk. Properties occupied by renters are riskier because the people living in the property don’t have a long-term vested interest in maintenance, wear and tear.  With so many claims rolling in from rental properties, landlords are becoming less attractive to keep on the books.

4. Reinsurance Problems Behind the Scenes

Here’s the part most landlords don’t see: your insurance company also buys insurance for themselves (it’s called reinsurance). Those costs have skyrocketed in Texas because reinsurers know how wild the claims situation is here. If it’s costing your insurance company more just to stay covered, they’re going to pass some of that pain along—or simply cut certain policies altogether.

5. It’s Not You, It’s Them (Mostly)

Sure, things like older roofs, poor maintenance, or a bad claims history can put a target on your back. But the truth is, even good landlords with well-kept homes are getting non-renewed. It’s less about you being a “bad risk” and more about your zip code being a bad bet in the eyes of underwriters.

What Can You Do About It?

  • Shop the market early. Don’t wait until 2 weeks before your renewal date. Options are more limited now with fewer companies writing in your area, and the earlier you look, the better your chances. Call our office at 940-268-5112 or fill out a QUOTE REQUEST  and let us know as soon as you receive your notification of non-renewal so we can start researching your options with our large selection of companies.

  • Upgrade what you can. New roof? Updated plumbing? Insurance companies want to know the year of last update for most major systems – Roof, HVAC, Plumbing and Electrical.  Try to recall those years if you can or make a good estimation for the most accurate results. Insuarnce companies see you as a lower risk when you update your properties because there is a smaller probability of one of those systems causing a claim that they’ll pay out.

  • Work with an independent agent like Ryan Everet Insurance.  We have options with multiple companies instead of just one.