Texas is Seeing Major Increases in the Cost of Homeowners Insurance

07 May

Like much of the rest of the country, Texas is seeing major increases in the cost of homeowners insurance. According to an article in Austin American-Stateman, residents of Texas have seen their insurance rates go up 50.9% on average which is the largest increase in the country for that time period. Unfortunately, experts are predicting rates will be headed even higher this year. 

Homeowner rates have been headed up for a variety of reasons, including climate change and the more severe weather that is related to it. Severe weather events have become more frequent and are taking place even during the winter, which increases the risk that Texas homeowners face which is leading to higher rates.

In 2023, the average annual cost to insure a home in Texas hit $3,875 which is a shocking 113% more than the nationwide average of $1,820 according to the Austin American-Stateman article. Currently, Texas ranks number four when it comes to fastest-rising homeowner insurance rates. The top five is made up entirely of southern coastal states, according to Bankrate data these are the top five states with highest homeowner insurance rates for a policy with $300,000 in coverage:

Insurance rates are increasing for a number of reasons but a higher number of claims in recent years has led insurers to increase premiums to offset their claim costs. 

Government weather data reveals that 2023 was a record-breaking year when it came to climate events and severe weather with 28 weather events that caused at least $1 billion of damages, the previous high of 22 climate events set in 2020.

Hail has proven to be a major factor in claims as well as hurricanes and other coastal weather threats which has led to many insurers pulling out of certain states altogether.

Regardless of whether you live in Texas or another state, here are a few tips to help save some money when it comes to homeowners insurance:

  • Shop your coverage: This is one of the best ways to lower you premium, insurers rate risk differently which can lead to dramatically different premium quotes. Gather quotes from at least five insurance companies and make sure you are comparing apples to apples regarding coverage levels as well as deductibles. 
  • Raise your deductible: Pushing up your deductible can help lower your premium. Doubling your deductible can result in a significant discount but make sure you can easily afford the deductible you choose in case you have to make a claim on the policy. 
  • Property Upgrades: If you live in an area that has frequent severe weather, flooding, earthquakes or other natural disasters, consider upgrading your home to make it more storm proof. Check with your insurer to see which upgrades will result in a discount. 

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