Premiums are still climbing across North Texas. Here's what's driving the market and how DFW homeowners can protect their coverage and their budget.
At McKnight Insurance Services, we work with dozens of carriers and talk to homeowners every week who are frustrated by the market. Here is a straightforward look at what is happening and what your options are.
Why Texas Home Insurance Rates Keep Rising
Texas has always been a challenging state for property insurers. We sit in the middle of some of the most severe weather patterns in the country — hail, tornadoes, hurricanes, flooding, and extreme heat. But several factors have pushed rates even higher in recent years.
Catastrophic Weather Losses
The 2024 and 2025 hail seasons were brutal for North Texas. Several major storm systems produced baseball-sized hail across Tarrant, Dallas, Collin, and Denton counties, generating billions in insured losses. When carriers pay out that much in claims, they adjust their pricing — and Texas policyholders feel it at renewal.
Reinsurance Costs Are Up Nationwide
Carriers don't absorb all the risk themselves. They buy reinsurance — essentially insurance for insurance companies — to protect against catastrophic loss years. Reinsurance costs have surged globally, and those increases get passed down to consumers through higher premiums.
Construction and Labor Costs
Even when a claim is straightforward, it costs more to settle it than it did three years ago. Roofing materials, lumber, and skilled labor are all more expensive. A roof replacement that cost $12,000 in 2021 may cost $18,000 or more today. Carriers price policies to cover what it actually costs to rebuild — and those costs are still elevated.
Carrier Exits and Reduced Capacity
Several national carriers have reduced their appetite for Texas homeowners business or exited the state entirely. When fewer carriers compete for your policy, there is less downward pressure on pricing. This is especially true in coastal areas and parts of North Texas with high hail frequency.
What This Means for DFW Homeowners
If you own a home in the DFW area, here is the practical reality heading into the second half of 2026:
- Expect renewal increases of 10–25% for many policyholders, particularly those who have not shopped their coverage recently
- Older roofs are a major pricing factor — carriers are scrutinizing roof age more closely and some are declining to renew policies on roofs over 15 years old
- Deductibles are changing — wind and hail deductibles are often now calculated as a percentage of your home's insured value rather than a flat dollar amount, which can significantly affect your out-of-pocket exposure
- Coverage gaps are common — many homeowners discover at claim time that their dwelling coverage limit has not kept pace with actual replacement costs
What You Can Do Right Now
The good news is that working with an independent agent gives you real options. Here is what we recommend for DFW homeowners in the current market.
Shop Your Policy Before Renewal
Do not wait until your renewal notice arrives to start the process. Give yourself 45 to 60 days. An independent agent like McKnight Insurance can quote your home with multiple carriers simultaneously and find the best combination of price, coverage, and carrier stability.
Review Your Dwelling Coverage Limit
Your home should be insured for what it would cost to rebuild it today — not what you paid for it or what it is worth on the market. These numbers are often very different. We can help you run a replacement cost estimate to make sure you are not underinsured.
Understand Your Deductibles
Read your policy declarations page carefully. If you have a 2% wind and hail deductible on a $400,000 home, you are responsible for the first $8,000 of any wind or hail claim. Knowing this upfront helps you plan and compare policies accurately.
Consider Bundling
If your auto and home are with different carriers, bundling them can produce meaningful discounts — often 10 to 20%. In a market where every dollar counts, this is one of the easiest ways to reduce your total insurance spend.
Ask About Mitigation Credits
Some carriers offer discounts for impact-resistant roofing, storm shutters, whole-home generators, and monitored security systems. If you have made improvements to your home, make sure your agent knows about them.
The McKnight Approach
We are an independent agency based in the DFW area. That means we work for you — not for any single insurance company. When the market shifts, we can move with it and find you the best available option across our carrier network.
If your renewal is coming up or you have not reviewed your homeowners coverage in the past year, now is a good time to have a conversation. We will take a close look at your current policy, identify any gaps, and make sure you are getting the best value available in today's market.
Reach out to our team at 817-277-6166 or visit our website to start the process. Protecting your home is too important to leave on autopilot.