How long must a Texas policy be in force before it can’t be canceled?

Texas has more than one “60-day rule.” Besides the 60-day claim payment deadline in §542.058, the Insurance Code limits when an insurer can cancel your homeowners policy — and the line is drawn at 60 days in force. Here is how it works.

The first 60 days

A new homeowners policy that has been in effect less than 60 days can be canceled if (§551.104(g)):

• the insurer identifies a condition that creates an increased risk of hazard, wasn’t disclosed in the application, and isn’t the subject of a prior claim; or
• before the policy’s effective date, the insurer doesn’t accept a copy of a required inspection report from a TREC-licensed or otherwise authorized inspector, dated within 90 days before the effective date. (An inspection report is considered accepted if the insurer doesn’t reject it within 10 days of receiving it, §551.104(h).)

Personal auto policies in effect less than 60 days, and other policies (not auto or homeowners) in effect less than 90 days, can be canceled more freely under the same subsection.

After 60 days: the only reasons to cancel

Once past the initial period, an insurer may cancel only if (§551.104(b)–(c)):

1. the named insured doesn’t pay any part of the premium when due;
2. the insured submits a fraudulent claim;
3. the Texas Department of Insurance determines that continuing the policy would violate the Insurance Code or other insurance law; or
4. (for policies other than personal auto) there is an increase in the hazard, within the insured’s control, that would raise the premium rate.

Filing a legitimate claim is not on the list. Under §551.103, “cancellation” also includes refusing coverage you’re entitled to or reducing coverage by endorsement mid-term without your consent.

Nonrenewal is different

An insurer can decline to renew at the end of the term, but it must mail written notice of nonrenewal at least 60 days before the policy expires; otherwise it must renew at your request (§551.105).

The three-claims rule

For standard fire, homeowners and farm and ranch owners policies, an insurer may refuse to renew if you filed three or more claims in a three-year period — but only if it warned you in writing after the second claim (§551.107). Claims caused by natural causes, claims filed but not paid, and certain properly remediated appliance-related water claims don’t count. The insurer may also add an actuarially based surcharge at renewal after two or more claims in three policy years.

Why this matters for claims

Fear of losing coverage keeps some policyholders from reporting legitimate losses or pushing back on underpayments. The cancellation rules mean a policy in force more than 60 days can’t be canceled mid-term for filing a claim, and weather claims don’t count toward the three-claims nonrenewal rule. Report losses promptly and document them well.

And if your claim was paid late, the other 60-day rule may owe you interest. Check whether your claim qualifies.

Frequently asked questions