As of September 2024, Progressive, one of the largest insurance providers in the United States, has stopped offering new homeowners insurance policies in Texas. This decision impacts thousands of potential homebuyers and business owners across the state who rely on Progressive’s competitive rates and comprehensive coverage. If you’re a homeowner, business owner, or prospective buyer in Texas, here’s what you need to know about this sudden shift.
Why Did Progressive Stop Offering New Policies?
Progressive’s decision to halt new homeowners insurance policies comes in response to increasing risks and costs associated with insuring properties in Texas. The state’s growing number of natural disasters, from hurricanes and hailstorms to widespread flooding, has significantly raised the cost of claims for insurers.
According to Progressive, the rising costs of covering property damage due to these extreme weather events have made it difficult to maintain affordable rates for policyholders. As a result, they’ve chosen to pause offering new policies in Texas to mitigate financial losses and reassess their approach to underwriting risks in the state.
How Does This Affect Homebuyers and Property Owners?
For homebuyers in Texas, this decision is causing a significant headache. Many people who were relying on Progressive for their homeowners insurance are now left scrambling to find alternative coverage. Without a proper homeowners insurance policy, mortgage lenders are less likely to approve financing, potentially delaying or derailing the home-buying process.
Business owners in Texas are also feeling the impact, especially those who need commercial property insurance. While Progressive hasn’t completely pulled out of the market, the suspension of new policies limits options, making it harder for business owners to find suitable and affordable coverage.
What Homeowners and Business Owners Should Do
If you’re in the market for a new homeowners insurance policy or need to renew your existing one, it’s essential to explore other insurance providers. Texas has many insurers offering various coverage options. However, it’s critical to ensure that your new policy offers comprehensive protection for the unique risks your property faces, especially in disaster-prone areas.
At Crossroads Insurance Recovery Advocates, we specialize in helping homeowners and business owners navigate the insurance landscape. As experienced public adjusters in Texas, we can provide guidance on choosing the right insurance policies, filing claims, and maximizing your settlements when disaster strikes.
What to Look for in a Homeowners’ Insurance Policy
When shopping for a new homeowners insurance policy, consider the following factors:
- Comprehensive Coverage: Ensure the policy covers the structure of your home, personal belongings, liability protection, and additional living expenses in case you need to temporarily relocate due to a covered loss.
- Disaster Coverage: Standard homeowners insurance policies do not cover flood damage. If you live in a flood-prone area, you will need to purchase a separate flood insurance policy, typically through the National Flood Insurance Program (NFIP) or a private insurer. Additionally, some areas prone to hurricanes or windstorms may require a separate windstorm policy or endorsement. Ensure you understand the available coverage options for disasters like floods, hurricanes, and hailstorms.
- Replacement Cost vs. Actual Cash Value: Replacement cost policies will pay the amount it takes to rebuild or repair your home to its original condition, while actual cash value policies account for depreciation. A replacement cost policy is often better because it provides more coverage for repairs or rebuilding.
- Deductibles: Higher deductibles can lower your premium, but be sure to choose a deductible amount that you can afford to pay out-of-pocket in the event of a claim.
The Role of Public Insurance Adjusters
If you’re dealing with an insurance claim—whether it’s from a storm, fire, or another disaster—working with a public insurance adjuster can make a significant difference in the outcome. Public adjusters work for you, not the insurance company, to ensure you receive the maximum settlement for your claim. They handle the entire process, from documenting damage to negotiating with insurers, allowing you to focus on getting your life back on track.
At Crossroads Insurance Recovery Advocates, we’re committed to helping Texas homeowners and business owners protect their investments and recover from losses. If you’ve been affected by Progressive’s decision to halt new policies or need assistance with an insurance claim, don’t hesitate to reach out to our team of experts.
Final Thoughts
While Progressive’s exit from the Texas homeowners insurance market may seem alarming, there are still options available to ensure your property is adequately protected. Whether you’re a homebuyer, business owner, or current policyholder, taking proactive steps to secure the right coverage is essential.
If you need help finding the right insurance or have questions about your existing policy, contact Crossroads Insurance Recovery Advocates today. We’re here to guide you through the process and advocate for your best interests when it comes to your insurance needs.
Contact Us Today
For more information on homeowners and commercial insurance options in Texas, or to speak with a public adjuster about your claim, visit Crossroads Insurance Recovery Advocates. You can also give us a call at 713 369 4300 or send us an email jterry@crossroadsira.com. We’re here to help you protect your property and your peace of mind.