Approved as filedOrder Texas
Texas approves 10.8% homeowners rate increase for the Texas FAIR Plan
The Texas FAIR Plan Association filed on Jan. 13, 2025 for an average 10.8% increase in its homeowners rates. The Texas Commissioner of Insurance approved the change as filed on April 11, 2025, effective Aug. 1, 2025, for new and renewal policies. Changes by zone range from a 14.9% decrease to a 25.0% increase.
By C. Zakarian, editor. Published
Approved exactly as filed. Overall average increase; changes by zone range from −14.9% to +25.0%.
Who it affects
The change applies to Texas FAIR Plan homeowners policies, new and renewing, from Aug. 1, 2025. The FAIR Plan was established under Texas Insurance Code Section 2211.051 to provide residential property insurance in underserved areas of Texas. The order does not state how many policies are affected. The 10.8% is an overall average; the change for each zone is:
| Zone | Indicated | Approved |
|---|---|---|
| Central North, Greater Dallas/Fort Worth | +25.5% | +25.0% |
| Central North, remainder | +2.9% | +2.9% |
| Central South | +14.9% | +14.9% |
| North/Northwest | +11.7% | +11.7% |
| Seacoast, Tier 1 | −14.9% | −14.9% |
| Seacoast, Tier 2 | +11.9% | +11.9% |
| Overall statewide average | +10.8% | +10.8% |
How the FAIR Plan calculated its rates
- The FAIR Plan built its rate indications with the loss ratio method, using estimated wind and non-wind losses and loss adjustment expenses, reinsurance, commissions, general expenses, and taxes and fees.
- The indications include a provision for the FAIR Plan's Stabilization Fund, which the order describes as meant to build surplus.
- Changes are capped at a 25% increase and a 25% decrease, so the Greater Dallas/Fort Worth zone's indicated 25.5% was limited to 25.0%.
- In response to objections from the Texas Department of Insurance (TDI), the FAIR Plan revised its general expense provision and loss trend method before the rates were approved.
- The same order approved new deductible credits but did not approve proposed changes to the FAIR Plan's deductible options, which TDI directed it to submit in a separate underwriting guidelines filing.
How this compares
This is the earliest Texas FAIR Plan filing FiledRates tracks. The FAIR Plan's next homeowners filing, S736102, cut rates 2.6% on average, effective Sept. 1, 2026, with every zone's change lower than in this filing. Both filings were approved exactly as proposed.
| Filing | Submitted | Approved | Effective |
|---|---|---|---|
| S736102 | Feb. 23, 2026 | −2.6% | Sept. 1, 2026 |
| S726970 (this filing) | Jan. 13, 2025 | +10.8% | Aug. 1, 2025 |
As of Oct. 6, 2026, this is the only 2025 Texas filing FiledRates has published, so there is no Texas average for the year to compare it with yet. Among the five filings FiledRates had published across three states on that date, its approved change ranked second, behind State Farm General's 17.0% increase in California and ahead of Citizens' 6.6% increase in Florida.
What happens next
This filing has been decided; the rates took effect Aug. 1, 2025. Unlike most Texas homeowners insurers, which file rates under a file-and-use system, the FAIR Plan must file proposed rates that the Commissioner of Insurance approves or disapproves under Insurance Code Section 2211.056, within 60 days of filing with one 30-day extension. The FAIR Plan's following filing is covered in our report on its 2026 filing. More on the Texas process, and every Texas filing we track, is on our Texas page.
Timeline
- The FAIR Plan files rates for its Homeowners, Dwelling, Condominium, and Tenants forms. TDI assigns S726970 to the Homeowners filing.
- TDI extends the approval deadline by letter to April 14, 2025.
- The commissioner approves the proposed 10.8% average increase, effective Aug. 1, 2025.
Source documents
- Texas Commissioner of Insurance, Official Order No. 2025-9253 (FAIR Plan 2025 residential rate filings)
- TDI home and auto rate filings dataset, record TWIA-134358890