Quick Answer: Texas property insurance renewals are easier this cycle than at any point since 2020. Well-run multifamily accounts are seeing property rates fall 10% to 30%, while liability pricing keeps rising. Carriers still want current valuations, clean claim history and roof detail, so the savings go to owners who start 120 days out.
Texas property insurance renewals have turned in the owner’s favor after four hard years. For owners in Houston, Dallas-Fort Worth, San Antonio and Austin, the underwriter’s questions are sharper than they were in 2021, and the answers decide the price.
What Are Texas Property Insurance Renewals?
Texas property insurance renewals are the yearly process of re-pricing and re-issuing the policy that covers an owner’s buildings against fire, wind, hail and other physical loss. The carrier reviews the property’s values, claims and condition, then offers new terms, changes them or declines to continue.
Why insurance carriers price Texas differently
Weather. NOAA’s billion-dollar disaster record for Texas counts 190 events from 1980 through 2024, and 126 of them were severe storms, the category that includes hail. The state averaged 4.2 such events a year over that period and 13.6 a year from 2020 through 2024.
Hail touches more roofs than any other peril, so insurance carriers ask about roof age before almost anything else.
Commercial property insurance sits in two markets
A commercial property insurance policy in Texas comes from either an admitted carrier, whose rates and forms are filed with the Texas Department of Insurance, or a surplus lines insurer.
The difference matters at renewal. Under Chapter 981 of the Texas Insurance Code, a surplus lines policy must state that the insurer is not a member of the state’s property and casualty guaranty association. Surplus lines premiums also carry a 4.85% state premium tax, which appears on the invoice and belongs in the budget.
What Should Owners Expect From Multifamily Insurance This Cycle?
Multifamily insurance is in a soft property market. The Baldwin Group’s midyear 2026 report put rate reductions at 10% to 30% for well-managed portfolios, the best terms since before the 2020 hard market. The same report warns the cycle may begin reversing in late 2026 or early 2027.
Liability is moving the other way. IMA’s first-quarter 2026 multifamily review showed general liability and umbrella rates rising 2% to 8%, with pricing set down to the county level.
What a softer market does to operating expenses
A Federal Reserve Bank of Minneapolis survey of multifamily owners found premiums roughly doubled between 2021 and 2024. That made insurance one of the hardest lines in operating expenses to forecast.
Budget the savings only after the quote is bound. Good budgeting and owner reporting shows the bound premium, the surplus lines tax and the deductible exposure as separate numbers.
Coverage limits and deductibles are where the fine print moved
Wind and hail deductibles in Texas are often written as a percentage of insured value, not a flat dollar amount. On a modeled community insured for $27 million, a 2% wind and hail deductible is $540,000 per occurrence. A cheaper quote with a higher percentage can cost more the first time a storm crosses the property.
Flood is separate. The National Flood Insurance Program caps building coverage at $500,000 for a residential building of five or more units, according to an FDIC interagency statement on NFIP limits. Anything above that needs excess flood cover.
How Should Owners Prepare for Renewal?
Owners should start 120 days before expiration with three documents: an updated statement of values, five years of claim history and a current record of roof, plumbing and electrical condition. Underwriters price what they can verify. Missing information gets priced as bad news.
Replacement cost is the first number underwriters test
Replacement cost is what it would take to rebuild today, and it rises even when rents don’t. The Texas FAIR Plan raised dwelling limits about 4% for renewals on or after September 1, 2026, after its yearly review of building cost data.
Take a modeled community with a true rebuild value of $30 million and a 90% coinsurance clause, which requires $27 million of coverage. If the owner carries $21.6 million, that’s 80% of the requirement, so a $1 million loss pays $800,000 before the deductible.
Loss runs and property inspections
Loss runs are the carrier-issued claim histories for each policy year. Order them early, because a prior carrier can take weeks to respond.
Property inspections do the same job for physical condition. Carriers often send a loss control inspector after binding and issue recommendations with deadlines. Dated photos, roof reports and a documented preventive maintenance program answer most of those before they’re written.
A property risk assessment before the underwriter’s
A property risk assessment done by the owner’s team finds what the carrier’s inspector will find, with time left to fix it. Typical items are aluminum branch wiring, aged electrical panels, missing smoke detectors and roofs past 15 years.
Some fixes are capital items. A roof replacement scheduled through a capital projects plan can be shown to underwriters as a dated commitment.
| Days before expiration | Task | What the owner should have |
|---|---|---|
| 120 | Update values and order claim histories | Statement of values, five years of claims |
| 90 | Broker sends the submission to market | Inspection photos and roof detail |
| 60 | Nonrenewal notice deadline passes | Written notice, if the carrier is leaving |
| 30 | Compare quotes and deductibles | Side-by-side terms and lender sign-off |
| 0 | Bind coverage | Binder and updated budget |
The 60-day row comes from statute. Chapter 551 of the Texas Insurance Code requires an insurer that won’t renew a commercial property policy to deliver written notice no later than the 60th day before expiration. If the notice is late, coverage continues until the 61st day after it is sent.
Frequently Asked Questions
1. Are Texas property insurance renewals getting cheaper in 2026?
For many owners, yes. The Baldwin Group reported multifamily property rate reductions of 10% to 30% for well-managed portfolios at midyear 2026. Liability rates are still rising, and older assets with open claims or aging roofs see smaller decreases.
2. How much notice must a Texas insurer give before nonrenewing a commercial property policy?
Sixty days. Chapter 551 of the Texas Insurance Code requires written notice to the first-named insured no later than the 60th day before the policy expires. A late notice extends coverage until the 61st day after delivery or mailing. Ask your broker how the rule applies to a surplus lines policy.
3. What do insurance carriers ask for at renewal?
Most renewal submissions for an apartment community include these items:
- Updated statement of values by building
- Five years of loss runs
- Roof age, type and last inspection date
- Plumbing, electrical and HVAC update years
- Occupancy, rent roll summary and security measures
4. What is the difference between replacement cost and actual cash value?
Replacement cost pays to rebuild with new materials of like kind. Actual cash value subtracts depreciation, so a 20-year-old roof pays out at a fraction of what a new one costs. Some carriers move older roofs to actual cash value at renewal, so check the roof valuation clause every year.
5. When should owners start the renewal process?
Start 120 days before expiration. That leaves 30 days to update values and collect claim histories, 30 days for the broker to market the account, and time to compare terms before the 60-day nonrenewal deadline.
Conclusion
Texas property insurance renewals reward preparation this cycle more than they have in years. Rates are down, but the best terms go to owners with current values, clean claim records and a documented building. AAM Living provides third-party property management for multifamily owners.
