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What Homeowners of America Changed, and What It Means for Your Policy
Three years of rate increases and contract changes, then a turn toward lower rates. Here is what to check on the policy you have, and what is new if you are shopping.
The answer
Homeowners of America filed three Texas home rate increases for 2024 and 2025 and tightened its contract. Since September 2025 it has filed decreases, including a 4.8 percent average cut. If you have a policy, check four lines, the wind and hail deductible, how the roof is paid, the dwelling limit, and the water limit. For shoppers, it fits best on homes 20 years or newer, where its 10,000 dollar water cap does not apply. The rate decrease arrives at renewal. The contract fixes arrive when you ask.
Three years, two directions
Texas home insurers file their rates with the Texas Department of Insurance, and the filings are public. Homeowners of America's filings tell the story in one chart. Three increases between 14.1 and 18.1 percent for 2024 and 2025, then a run of decreases that started in September 2025 and is still going. TDI reported on October 8 that homeowners rate filings over the prior 90 days averaged a 4.3 percent decrease, the sign of a softer market. The hard market raised the price. The softer market is bringing it back down.
Homeowners of America's Texas home rate filings, by the date each began for new policies
When the hard market hit Houston, Homeowners of America was one of the first carriers to change its contract and take rate, and the speed of those changes bothered me. We gave our clients a heads up by mail and email, and to be blunt, we moved many of our coverage-focused clients away. Seeing the company reverse course is something I am thankful to witness as we go into 2027. There are only two ways to survive as a carrier in Texas. Cap or cut what the contract pays, or write better risk with fewer claims. I hope they stay focused on the better risk.
Charles McDade, LUTCF
What changed on the policy you already have
Most of these changes reached existing policies between late 2023 and 2025, and most of them stay put until someone asks. Here is each one, where it sits on your declarations page, and what you can do about it. Set this year's page beside last year's, the way we read every renewal. Every one of these changes shows up on a declarations page.
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01Wind and hail deductibleWhat changedRaised to 3 or 4 percent on some policies, late 2023 through 2025Where to lookThe deductibles block, written as a percent of the dwelling limitWhat you can doAsk to lower it at your next renewal
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02How the roof is paidWhat changedReplacement cost taken off roofs across much of the Houston area, whatever their age, 2023 through 2025Where to lookThe roof's loss settlement wording, or a roof endorsementWhat you can doRoof ten years old or newer? Ask about replacement cost
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03Dwelling limitWhat changedA new replacement cost estimator, a 100 percent insurance to value rule, and recalculations requested on the policies we placeWhere to lookCoverage A, beside last year's numberWhat you can doAsk what the estimate used, and whether it fits the house
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04Water capWhat changedA 10,000 dollar total cap on water damage for homes over 20 years oldWhere to lookThe Limited Water Damage Coverage formWhat you can doOn an HO-3 or HO-B, ask to buy the cap off
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05Who owns the companyWhat changedOwned since January 2025 by a policyholder-owned reciprocal that Porch Group runsWhere to lookThe company named on your next renewalWhat you can doRead a Porch Insurance offer as a new contract
Your wind and hail deductible
A wind and hail deductible written as a percent is a percent of your dwelling limit, so it grows when Coverage A grows. Between late 2023 and 2025, some Homeowners of America policies renewed with that number raised to 3 or 4 percent. You can ask to bring it down. The company's guidelines allow a deductible change only at renewal, after a new roof inspection, and a lower deductible costs more each year. With the decreases now filed, it is worth pricing again. Read your deductible in dollars. It is the first check you write on every storm claim.
One percent at a time, on a 400,000 dollar dwelling limit
Your roof, at replacement cost or actual cash value
TDI puts the difference simply. A replacement cost policy pays the same amount for a storm-damaged roof no matter how old it is, and an actual cash value policy pays based on the roof's age. From 2023 through 2025, Homeowners of America took replacement cost off roofs across much of the Houston area, whatever their age. Today a broker can choose replacement cost or actual cash value on a roof ten years old or newer, and after year ten the roof moves to actual cash value automatically. A policy written in those years could carry either, and your declarations page tells you which. Three ways a Texas policy pays for one roof shows what that difference is worth. Before year ten, you choose. After year ten, the roof is paid by its age.
A roof on a Homeowners of America policy written today, by its age
Replacement cost or actual cash value is a choice through year ten. After that, the roof is paid at actual cash value. A policy written from 2023 through 2025 could carry either, at any roof age.
The water cap, and why we question older homes
On a home over 20 years old, the Limited Water Damage Coverage form caps water damage to covered property at 10,000 dollars in total. On an HO-3 or HO-B you can buy the coverage without that cap, and on an HO-A you cannot. A slab leak or a burst supply line in an older house is the kind of claim that cap limits, and who pays for which water is its own question. Flood is a separate policy either way. If your home was built before 2006, it is already past the 20 year line. The specific reason we question older homes with this carrier is the cap on water.
Water coverage on a Homeowners of America policy, by the home's age
Through year 20, water damage to covered property follows the policy's normal terms. Over 20, the Limited Water Damage Coverage form caps it at 10,000 dollars in total, unless an HO-3 or HO-B buys the cap off. An HO-A cannot.
What is new if you are shopping
Homeowners of America filed a 4.8 percent average decrease on its Texas HO-A, HO-B, and HO-3, for new policies from September 18, 2026 and renewals from December 17. Homes 11 years and older get the bigger share, homes 10 and younger a smaller one, and the company writes homes up to 100 years old, with proof of updates past 50. Individual changes still vary with the home, the discounts, and the surcharges.
What changed in the discounts for 2026
- Companion product, 20 percent, up from 10, when you have other insurance through the same agency.
- Mortgage free, 15 percent, up from 10, for a home with no mortgage.
- Advanced shopper, up to 14 percent off the first year, for a quote made at least four days before you buy.
- Education, 5 percent and new, for a bachelor's degree or higher.
- HOA, 5 percent and new, for a primary home in a qualifying HOA.
- New roof, now for roofs up to 8 years old on homes 10 and older, with a paid, dated roofing receipt.
- Accredited builder, up to 7.5 percent, now for homes up to 10 years old, up from under 6.
Where it fits, and where we look twice
Now that its coverage sits closer to what most Houstonians expect, we are open to offering it again. Our read is that, for homeowners comfortable with the company's history and willing to stay vigilant at every renewal, it will be one of the lowest-cost options in Houston over the next year. With a carrier that moves this fast, the work starts after you bind. Weighing more than one carrier? The Texas Insurance Decision Guide walks the whole decision. The best fit is new construction, or a home 20 years or newer with a roof 10 years or newer. Twenty for the water, ten for the roof.
Where it fits best
- New construction, with up to 7.5 percent for an accredited builder.
- A home 20 years old or newer, before the water cap starts.
- A roof 10 years old or newer, while replacement cost is still your choice.
- A paid-off home, for the 15 percent mortgage free discount.
- Other policies with us, for the 20 percent companion discount.
Where we look twice
- A home over 20 years old, because of the 10,000 dollar water cap.
- An HO-A quote, which cannot buy the water cap off.
- A roof past 10 years, which is paid at actual cash value.
- A home over 50, which needs proof of updates from the last 10 years.
- A deductible you may want to change later, since changes wait for renewal.
What happens when you send it
Whether you hold a Homeowners of America policy or a quote for one, the read is the same, and it costs you nothing. It is the same read our clients get before they sign for another year.
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Free
Send your declarations page
Through Home Renewal Review, or by email to contact@mcdadeins.com. Shopping? Send the policy you have now. We use what you send only to work with you, and we never sell it or pass it along.
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On our desk
We read it against every change here
The deductible in dollars, how the roof is paid, the dwelling limit, the water cap, and the discounts you qualify for. Shopping? We price Homeowners of America beside the other carriers that fit the house, from 50+ top Texas carriers we know well.
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Your call
You get the answer in writing
Stay, adjust, or switch, with the reason. Staying is a real answer here, and we will tell you when it is the right one.
If another agency wrote your Homeowners of America policy, we can still read it and tell you what we see. Moving it to us would mean a new policy, because the company keeps a policy with the agency that wrote it, and we would time the switch so there is no gap. Your declarations page, our read, and your decision, in writing.
Homeowners of America questions, sorted by where you stand
Four questions about the company come first. Then open the set that fits you, the policy you have or the one you are shopping for.
About the company
Who is the Homeowners of America insurance company?
Homeowners of America Insurance Company is a Texas home insurer that writes HO-A, HO-B, and HO-3 policies here, along with condo, renters, and dwelling fire programs. Porch Group owned it until January 2025, when Porch sold it to Porch Insurance Reciprocal Exchange, a Texas reciprocal that Porch manages. It is now a wholly owned subsidiary of that reciprocal, and it still files its Texas rates under its own name.
Is Homeowners of America a good insurance company?
It can be, if you are comfortable with its history and willing to stay vigilant at every renewal. The company's own site lists an A, Exceptional, Financial Stability Rating from Demotech, and its contract has changed quickly in both directions since 2023, so read the roof terms and the water cap before you buy. Five public checks work on any carrier, this one included.
Is Homeowners of America a standard insurance company?
Yes, in the sense most people mean. It is a licensed, admitted Texas insurer, not a surplus lines company, and it files its home rates with the Texas Department of Insurance, where anyone can read them. That keeps it inside the protections admitted policies carry. It also writes homes up to 100 years old, with proof of updates on homes past 50.
What is a reciprocal insurance exchange?
A reciprocal is an insurer owned by its policyholders. Texas Insurance Code Chapter 942 calls them subscribers, who insure one another through an attorney in fact that issues the contracts. Porch Insurance Reciprocal Exchange, which TDI approved in October 2024, owns Homeowners of America. Porch Group is its attorney in fact and earns commissions and fees for running it.
Your policy, or your next one
Current policyholdersI already have a Homeowners of America policySix questions
Can I lower my wind and hail deductible with Homeowners of America?
Yes, at renewal. If yours was raised to 3 or 4 percent between late 2023 and 2025, you can ask to bring it down. The company's guidelines allow a deductible change only at renewal and after a new roof inspection, and a lower deductible raises the premium. With this year's decreases, it is worth pricing both before the renewal date.
Why is my roof paid at actual cash value now?
From 2023 through 2025, Homeowners of America took replacement cost off roofs across much of the Houston area, whatever their age. Today a broker can choose replacement cost or actual cash value on a roof ten years old or newer, and after year ten the roof moves to actual cash value automatically. If your roof is ten or newer and on actual cash value, ask about replacement cost.
Why did my dwelling limit change?
Homeowners of America rolled out a new replacement cost estimator and asked us to recalculate dwelling limits on the policies we place. Its guidelines require a home insured at 100 percent of full replacement cost, and every policy takes an inflation guard increase at renewal. If your Coverage A moved, ask what the estimate used and whether it matches your house. Coinsurance and your deductible explains why that number matters at claim time.
Does Homeowners of America limit water damage?
On homes over 20 years old, yes. The Limited Water Damage Coverage form sets a 10,000 dollar total cap on water damage to covered property. On an HO-3 or HO-B you can buy the coverage without that cap, and on an HO-A you cannot. That cap is the specific reason we question older homes with this carrier. If your home was built before 2006, ask which you have.
Can I change agents and keep my Homeowners of America policy?
No. A Homeowners of America policy stays with the agency that wrote it, so the only way to move to a new broker is a new policy. Many carriers let a broker of record letter move the policy instead. If you are thinking about a move, time the new policy to your renewal date, and we will compare first.
Will my policy become a Porch Insurance policy?
Possibly, in time. Porch's 2025 annual report says it plans to convert policyholders from its existing carrier business into policyholders of the reciprocal, which launched its own Porch Insurance brand in Texas in January 2026. It also warns that pricing on its new product may rise for some policyholders and fall for others. If you are offered a move, read it as a new contract and compare before you accept.
New policy shoppersI'm shopping for a new policyFour questions
Did Homeowners of America lower its rates in Texas?
Yes. It filed a 4.8 percent average decrease on its Texas HO-A, HO-B, and HO-3, for new policies from September 18, 2026 and renewals from December 17. Homes 11 years and older get the bigger decrease. It follows decreases that began in September 2025, after three increases for 2024 and 2025. Individual prices still vary with the home and the discounts.
Will Homeowners of America insure an older home?
Yes, up to 100 years old. A home over 50 needs proof of updates made in the last 10 years to the electrical, heating, plumbing, and roof, through a 4-point inspection or receipts and photos. Homes over 20 carry the 10,000 dollar water cap unless an HO-3 or HO-B buys it off, and that cap is the specific reason we question older homes with this carrier.
What discounts does Homeowners of America offer in Texas?
The 2026 changes include companion product at 20 percent, mortgage free at 15 percent, advanced shopper up to 14 percent when you quote at least four days before you buy, education at 5 percent, HOA at 5 percent, new roof for roofs up to 8 years old on homes 10 and older, and accredited builder up to 7.5 percent on homes up to 10 years old. Combined discounts cap at 66 percent. Its guideline list also names new purchase, claim free renewal, security features, and VA loan discounts.
Should I switch to Homeowners of America?
Start with the fit. It works best on new construction, or a home 20 years or newer with a roof 10 years or newer, which keeps it clear of the water cap and the roof rules. Then compare it with the policy you have, contract-to-contract, the deductible in dollars, how the roof is paid, the water cap, and the dwelling limit, before the price. About 40 percent of the time we tell homeowners to stay with their current carrier, and sometimes even with their current agent, because that is the right answer for the family. When a switch is right, time it to your renewal.
Sources worth opening before you decide
- Home and auto rate filings, Texas Open Data Portal, the Homeowners of America Texas Homeowners Program filings, read October 30, 2026
- Home and auto insurance rates trending down for many Texans, Texas Department of Insurance, October 8, 2026, the 4.3 percent average filed decrease over 90 days
- Home policies, replacement cost or actual cash value?, Texas Department of Insurance, updated January 24, 2024
- Insurance and your roof, Texas Department of Insurance, updated April 1, 2026, roof coverage that can change at renewal
- Homeowners of America's Texas Homeowners guidelines, Limited Water Damage Coverage, Deductibles, Insurance to Value, Age of Dwelling, Discounts, New Roof Discount, and Companion Product
- Did You Know, the Homeowners of America Texas discounts and rates sheet for 2026, the 4.8 percent decrease and the discount changes, from the carrier
- About us, Homeowners of America, the Demotech Financial Stability Rating in the company's words
- Porch Group announces reciprocal exchange regulatory approval, Porch Group, October 28, 2024, filed with the SEC
- Porch Group completes formation of Porch Insurance Reciprocal Exchange, Porch Group, January 7, 2025
- Annual report on Form 10-K for 2025, Porch Group, the reciprocal's ownership, Porch Insurance in Texas, and the plan to convert policyholders
- Texas Insurance Code, Chapter 942, reciprocal and interinsurance exchanges, Section 942.001 definitions
The purpose is to help the reader ask better questions before claim time.
Let's read your policy before it renews
You worked hard for this home. Its contract deserves the same care.
Rates came down. Your deductible, roof terms, and water cap did not move on their own. Send your declarations page, and a licensed Texas agent reads it against every change here and tells you in writing to stay, adjust, or switch. Our clients care how the claim pays. That is why we moved many of them to other carriers when this contract tightened, and why we recommend it again where it fits. Already a McDade client with Homeowners of America? Schedule a service meeting and we will check yours before renewal. We translate the contract before you sign for another year.
The review is free. The decision is yours. No broker fees for personal lines clients.
