Featured

Study Finds Almost Half of Texas Home Insurance Claims Closed Without Payment

An analysis by Weiss Ratings identified a rising number of Texas homeowners who found their insurance claims were either denied or left unpaid. In 2023, nearly 47% of homeowner claims were closed without payment, which is a sharp increase from 35% in 2016 and higher than the national average of 42%.

The analysis, based on data from the National Association of Insurance Commissioners, shows what many experts see as a troubling change in the insurance industry.

“Imagine having your TV commercial come on and say, ‘Send us 100% of the premiums we’re asking for, but 50% of the time, your claims are going to get denied,’” said Doug Quinn, director of the American Policyholder Association. “It’s appalling.”

Martin Weiss, founder of Weiss Ratings, called the numbers unprecedented.

“There always has been some percentage of the claims that are not valid... But 40 percent? 50 percent?” Weiss questioned. “No, that’s never been the case.”

Several factors are affecting the trend, including rising deductibles and narrower coverage terms.

Richard Johnson of the Insurance Council of Texas commented that many claims fall below these new deductibles. This forces homeowners to absorb the cost. “Raising the threshold” has effectively priced many homeowners out of using their coverage.

Homeowners like Regina Johnson of Houston are feeling the pressure. After storm damage in May 2024, she learned her deductible was $4,800, which is more than she could afford. “Who has $5,000 laying around?” she asked.

In another case, Danita Mullins in Clear Lake was denied a full roof replacement after Hurricane Beryl, despite multiple contractor estimates. Her insurer approved just $1,500 in repairs, which is far below her $9,300 deductible. She and her husband ultimately paid $17,000 out of their own pocket.

“If my mortgage didn’t require it, I’d drop my insurance,” she said.

Consumer advocates say the industry’s denial strategy is no accident. “This is a shift in insurance,” said Doug Heller of the Consumer Federation of America, “from being a protection product to a compliance product.”

Daniel Molina

Daniel Molina is an award-winning senior reporter based in Miami. He holds a bachelor’s degree in English Literature from Florida International University.

Recent Posts

August Pfluger Slams Biden-Harris Energy Policies, Praises GOP Wins

In an op-ed for The Washington Times, U.S. Representative August Pfluger (R) criticized the Biden-Harris…

3 hours ago

Matt Gaetz Endorses Chip Roy for Texas Attorney General

Heading into the 2026 midterm election, Texas is well on its way to becoming the…

3 hours ago

Greg Abbott Launches Task Force to Target Repeat Offenders

Governor Greg Abbott has announced the formation of the Texas Repeat Offender Program (TxROP). The…

3 hours ago

LONESTAR — 10.2.2025 — Texas Lawmakers React to Government Shutdown — Abbott Highlights Texas HireAbility Campaign — and More...

Texas Lawmakers React to Government Shutdown Amid Partisan Divide Texas lawmakers have responded to the…

3 hours ago

Government Shutdown Raises Concerns for Gulf Coast Projects

As Congress becomes deadlocked over government funding, concerns are growing in Texas about how a…

20 hours ago

Greg Abbott Launches 10th Annual Texas HireAbility Campaign

Governor Greg Abbott (R) has announced the launch of the 10th annual Texas HireAbility campaign,…

21 hours ago