Approved as filedOrder Texas
Texas approves 2.6% homeowners rate decrease for the Texas FAIR Plan
The Texas FAIR Plan Association filed on Feb. 23, 2026 for an average 2.6% decrease in its homeowners rates. The Texas Commissioner of Insurance approved the change as filed on May 20, 2026, effective Sept. 1, 2026, for new and renewal policies. Changes by zone range from a 21.6% decrease to a 0.3% increase.
By C. Zakarian, editor. Published
Approved exactly as filed. Overall average decrease; changes by zone range from −21.6% to +0.3%.
Who it affects
The change applies to Texas FAIR Plan homeowners policies, new and renewing, from Sept. 1, 2026. 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 −2.6% is an overall average; the change for each zone is:
| Zone | Change |
|---|---|
| Central North, Greater Dallas/Fort Worth | −4.5% |
| Central North, remainder | −1.2% |
| Central South | −4.1% |
| North/Northwest | −2.1% |
| Seacoast, Tier 1 | −21.6% |
| Seacoast, Tier 2 | +0.3% |
| Overall statewide average | −2.6% |
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.
- Proposed changes are capped at a 25% increase and a 25% decrease from the indicated changes.
- In response to objections from the Texas Department of Insurance (TDI), the FAIR Plan updated the in-force premium data used to calculate statewide averages. The order says this did not change the filed rates.
- TDI actuarial staff concluded there is a sound actuarial basis for the revised proposed changes.
How this compares
The FAIR Plan's previous homeowners filing, S726970, raised rates 10.8% on average, effective Aug. 1, 2025. This filing reverses part of that: a 2.6% average decrease, 13.4 percentage points below the previous filing's change. Both filings were approved exactly as proposed.
Every zone's change is lower than in the previous filing. The Greater Dallas/Fort Worth zone went from the largest increase in 2025 (+25.0%, the cap) to a 4.5% decrease. Seacoast Tier 1, which already had a 14.9% decrease in 2025, gets a further 21.6% decrease.
| Zone | 2025 filing | 2026 filing |
|---|---|---|
| Central North, Greater Dallas/Fort Worth | +25.0% | −4.5% |
| Central North, remainder | +2.9% | −1.2% |
| Central South | +14.9% | −4.1% |
| North/Northwest | +11.7% | −2.1% |
| Seacoast, Tier 1 | −14.9% | −21.6% |
| Seacoast, Tier 2 | +11.9% | +0.3% |
| Overall statewide average | +10.8% | −2.6% |
As of Oct. 6, 2026, this is the only 2026 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 fourth, ahead only of Citizens' 8.8% decrease in Florida.
What happens next
The approved rates apply from Sept. 1, 2026. 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. The commissioner has 60 days from filing to act, with one 30-day extension; for this filing, TDI extended the deadline to May 25, 2026. 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 S736102 to the Homeowners filing.
- TDI extends the approval deadline by letter to May 25, 2026.
- The commissioner approves the proposed 2.6% average decrease, effective Sept. 1, 2026.
Source documents
- Texas Commissioner of Insurance, Official Order No. 2026-9939 (FAIR Plan 2026 residential rate filings)
- TDI home and auto rate filings dataset, record TWIA-134850652