Texas Homeowners Face Sudden Insurance Withdrawals: What Lemonade’s Exit Means
By Chad T. Wilson Law Firm Staff — based on reporting by Susan Elizabeth Turek, “Homeowners blindsided over insurance companies’ sudden move in US region: ‘Might be too risky,’” Yahoo News, Sept. 8, 2025. Read the original here.
A Growing Crisis in Texas Coverage
Texas homeowners are facing yet another hurdle in the state’s insurance crisis. In May, Lemonade announced it would no longer sell new home and condo policies in 12 counties. Just two months later, it expanded that list to include several major counties like Collin, Denton, Abilene, and Lubbock (Turek, Yahoo News, 9/8/25).
This move puts Lemonade alongside other insurers like Farmers and Progressive that have scaled back their property insurance coverage across Texas. The reason? Catastrophic weather risk.
For homeowners who rely on their policies to safeguard against hail damage, windstorm claims, and hurricane losses, these sudden exits leave families exposed and scrambling for alternatives.
Why This Matters for Homeowners
Insurance isn’t just another bill. It’s a requirement for mortgages, leases, and—most importantly—a safety net when disasters like roof damage, water leaks, or fire damage occur. When insurers withdraw coverage, families face serious risks:
- Housing instability — mortgage lenders require active insurance policies.
- Limited recovery options — without insurance, repairing structural damage, siding damage, or a roof leak can cost tens of thousands out of pocket.
- Market instability — as more carriers leave Texas, remaining insurers may raise premiums even higher.
Jason Wheeler, a Dallas-area resident, shared a letter from Lemonade informing him his policy would not be renewed. The reason: his address fell outside Lemonade’s “weather exposure guidelines.” Simply put, the insurer decided his home was too risky to cover (Turek, Yahoo News, 9/8/25).
Industry Explanations vs. Policyholder Reality
Lemonade says these moves are designed to protect its remaining customers by ensuring it can “be there when disaster strikes.” But for policyholders losing coverage, the explanation feels hollow. Years of paying premiums mean little when coverage evaporates overnight.
Other companies and startups are exploring new ways to model climate risk or reward homeowners for mitigation efforts like roofing upgrades, gutter repairs, or wildfire-proofing. Still, these strategies don’t change the fact that insurers are withdrawing from high-risk areas at an alarming rate.
What Homeowners Should Do?
If your insurer has dropped coverage or refused renewal, here are proactive steps you can take:
- Request documentation — insist on a written explanation for any non-renewal or cancellation.
- Explore all options — shop around with independent agents; some insurers may still write limited roofing or commercial damage coverage.
- Review the FAIR Plan — Texas FAIR Plan coverage exists as a last resort, but it’s often expensive and limited.
Consult with an insurance attorney — if you’ve experienced a property insurance claim denial or been unfairly non-renewed, legal help may be your strongest protection.
How Chad T. Wilson Law Firm Can Help
At Chad T. Wilson Law Firm, we fight for policyholders when insurance companies deny claims, delay payments, or abruptly pull coverage. Our team has helped thousands of families and businesses secure the compensation they deserve after insurers failed to uphold their promises.
If your coverage has been dropped or your claim unfairly denied, contact us today for a free consultation. Your recovery is our mission.
Practice Areas
- Hail Damage Claims
- Commercial & Large Loss Claims
- Windstorm Claims
- Water Damage & Frozen Pipe Claims
- Fire & Smoke Damage Claims
- Hurricane Damage Claims
Do not lose hope if you have filed an insurance claim and were denied or underpaid. Let the Chad T. Wilson Law Firm get justice for you.
