The Texas FAIR Plan Association eliminated its 1% wind and hail deductible for homeowners policies effective July 1, 2026. If your FAIR Plan policy carried a 1%, it moves to 2% automatically at renewal, which doubles what you pay out of pocket on a wind or hail claim. On a home insured for $300,000, that is $6,000 instead of $3,000.
This guide explains what changed, how percentage deductibles work, what the new 2% floor costs at common coverage amounts, and what homeowners can do before and after renewal. Details are as of October 2026, based on the FAIR Plan’s own announcement. Your agent can confirm exactly how your policy is affected.
What exactly did the Texas FAIR Plan change?
For homeowners policies effective on or after July 1, 2026, the FAIR Plan dropped the 1% wind and hail deductible option. Existing 1% policies switch to 2% at renewal. Wind and hail deductible options are now 2%, 3%, 4% or 5%, and the plan now allows a separate deductible for all other perils.
The key points from the announcement:
- 1% is gone: the 1% wind and hail option is eliminated for FAIR Plan homeowners policies.
- Automatic move to 2%: policies with a 1% wind and hail deductible change to 2% at renewal.
- Split deductibles: wind and hail can carry one deductible while all other perils (AOP), such as fire or theft, carry another.
- AOP options: 1%, 2%, 3%, 4% or 5%.
- No mid-term changes: deductibles cannot be changed on a policy that is currently in force.
The FAIR Plan says it is notifying in-force policyholders by letter and including a notice in renewal packets, and it encourages homeowners to contact their agent.
Who has a Texas FAIR Plan policy?
The Texas FAIR Plan Association is a residual market insurer. It mainly serves homeowners who cannot find coverage in the regular voluntary market, often because of an older roof, claims history or location. If you are not sure which company insures you, the insurer’s name is printed on your declarations page.
The FAIR Plan is separate from the Texas Windstorm Insurance Association (TWIA), which covers wind and hail in designated coastal areas. A deductible change at one does not automatically apply to the other, so coastal homeowners should check both policies if they have both.
How does a percentage deductible work?
A percentage deductible is calculated from your dwelling coverage amount (Coverage A), not from the size of the claim. A 2% deductible on a home insured for $350,000 is $7,000 whether the hail damage is $9,000 or $30,000. The insurer pays nothing until the covered loss exceeds that amount.
That is why the jump from 1% to 2% matters so much for roof claims. A typical Dallas-Fort Worth asphalt reroof runs roughly $6,600 to $18,000 depending on size and material, according to market estimates from Build-Folio and RoofVista. At 2%, a smaller roof claim on a well-insured home may fall entirely under the deductible.
For context, Insurify estimates the average Texas wind and hail deductible at about 2.2% of dwelling coverage, so a 2% floor puts FAIR Plan homeowners close to what many Texans already carry.
What does the 1% to 2% change cost at renewal?
The extra out-of-pocket cost equals 1% of your dwelling coverage. For a $250,000 home that is $2,500 more per wind or hail claim; at $400,000 it is $4,000 more. The table shows common coverage levels. Your premium may change too, so compare the full renewal offer, not just the deductible.
| Dwelling coverage (Coverage A) | Old 1% deductible | New 2% deductible | 3% deductible | Added cost at 2% |
|---|---|---|---|---|
| $200,000 | $2,000 | $4,000 | $6,000 | $2,000 |
| $250,000 | $2,500 | $5,000 | $7,500 | $2,500 |
| $300,000 | $3,000 | $6,000 | $9,000 | $3,000 |
| $400,000 | $4,000 | $8,000 | $12,000 | $4,000 |
| $500,000 | $5,000 | $10,000 | $15,000 | $5,000 |
These are simple percentage calculations for illustration. Your actual deductible depends on your declarations page, and premium differences between 2%, 3% and higher options are something only your agent can quote.
Can a roofer cover the higher deductible for me?
No. Texas law requires you to pay your own deductible. Under Business and Commerce Code §27.02, a contractor cannot offer to waive, rebate or absorb it, and Insurance Code Chapter 707 says the insured must pay it. Contracts of $1,000 or more involving insurance proceeds must include a deductible notice.
TDI explains these rules on its Roofing and insurance: know the law page. A bigger deductible makes “we’ll take care of your deductible” pitches more tempting, but they are illegal in Texas and can put your claim at risk. Insurers may ask for proof that you paid. Report offers like that to the Texas Attorney General at 800-621-0508.
What can homeowners do about a higher wind and hail deductible?
Start with your agent before renewal. Ask what the 2% and higher options cost, whether you now qualify for coverage in the voluntary market, and what discounts apply. Then set aside cash for the deductible, and consider whether a stronger roof could lower both your risk and your premium.
Ask about leaving the FAIR Plan
If you landed on the FAIR Plan years ago because of an old roof, a newer roof may change your options. Ask your agent to shop the voluntary market at renewal and compare deductibles, roof payment terms and premiums side by side.
Ask about impact-resistant roof credits
Many Texas insurers offer discounts for impact-resistant roofs rated under UL 2218, Class 1 through 4, with Class 4 earning the highest credit. The amount is set by each insurer. Ask your agent what your carrier offers before choosing materials. See TDI’s roofing discount page.
To get the credit, the roofer certifies the installation on TDI form PC068. Keep a copy with your policy records and send one to your agent.
Build a deductible fund
With a percentage deductible, your out-of-pocket exposure grows when your home’s insured value rises. Park the deductible amount in a savings account so a hailstorm does not force a rushed decision.
Know your roof’s condition before storm season
A roof inspection before spring tells you whether you are starting from a sound roof. If you are near the end of a roof’s life, planning a roof replacement on your own schedule can be cheaper and less stressful than replacing it after a storm, especially when much of a claim might sit inside a 2% deductible.
Does a higher deductible change when to replace my roof?
It can. With a 1% deductible, many homeowners waited for a hail claim to replace an aging roof. At 2% or more, a modest storm may pay little or nothing. If your roof is already near the end of its life, budgeting a planned replacement and asking about impact-resistant credits may make more sense.
Typical lifespans are estimates: three-tab asphalt around 20 years, architectural shingles roughly 25 to 30 years nominally, and often 15 to 25 years in Texas heat and hail. Standing-seam metal can last 40 years or more. A planned reroof is also a good time to decide whether you want solar panels on the new roof, so the array goes on once.
If your renewal letter just landed and you want a straight answer on your roof’s condition in the Dallas-Fort Worth area, contact our Fort Worth team for an inspection and an honest read on repair versus replacement.
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Frequently Asked Questions
Did the Texas FAIR Plan get rid of the 1% wind and hail deductible?
Yes. For homeowners policies effective on or after July 1, 2026, the FAIR Plan eliminated the 1% wind and hail option. Existing 1% policies change to 2% at renewal. Wind and hail options are now 2%, 3%, 4% or 5%.
How much is a 2% wind and hail deductible?
It is 2% of your dwelling coverage, not of the claim. On a home insured for $300,000, a 2% deductible is $6,000. The insurer pays only the covered loss above that amount, so smaller roof claims may fall under it.
Can I change my FAIR Plan deductible before renewal?
According to the FAIR Plan, deductibles cannot be changed on a policy that is currently in force. Talk to your agent before renewal about the 2% to 5% options, premiums and whether voluntary-market coverage is now available to you.
Can a Texas roofer pay my deductible?
No. Texas Business and Commerce Code §27.02 bars contractors from waiving, rebating or absorbing a deductible, and Insurance Code Chapter 707 requires the insured to pay it. Report deductible offers to the Texas Attorney General at 800-621-0508.