Texas Insurance Gets More Expensive For Homeowners

Did you know that the average premium for homeowner’s insurance policies in Texas climbed more than 26% between 2010 and 2014.

Texas is currently the third most expensive state for homeowners insurance in the nation. Annual premiums average roughly $1,745 a year. Unfortunately those costs are set to climb even higher in the near future.

Statistics released from The Texas Department of Insurance shows that the average premium for homeowner’s insurance policy climbed more than 26% between 2010 and 2014. Currently, only Louisiana and Florida ranked higher than the Lone Star State when it comes to expensive homeowners insurance.

State officials blame the high rates on the fact that Texas is home to lots of violent weather, which brings massive amounts of damage, leaving insurance companies to raise their rates to cover the cost of claims.

Texas has been home to just about every type of weather catastrophe that can happen. Droughts, wildfires, severe storms with strong winds, hail and flood damage are all common events in Texas.

Damage from hailstorms and high winds have become an extremely common occurrence especially in North Texas. Just three years ago the Dallas-Fort Worth area was home to two of the costliest hailstorms on record. Damages total over $1.6 billion and thousands of homeowners required a roof replacement.

Industry representatives claim that higher roof repair costs combined with an increased number of lawsuits filed by homeowners is driving the need for higher premiums.

A report that was issued by the Texas Department of Insurance highlights the fact that in just the first half of 2015 insurance companies have paid out nearly $1.8 billion in homeowner’s insurance claims. While a single weather event will usually not impact insurance rates a string of severe weather events will often lead to an increase.

While it is impossible to predict what insurance rates will look like next year there is a good chance they will be headed up due to continued severe weather. The good news is that The Department of Insurance must approve any rate increases requested by local insurers.

According to experts, insurance companies look back over the past 10 to 20 years to help determine the average of their insured losses. The average cost of past claims combined with the projected cost of future disasters are all factored into premium prices.

How You Can Minimize the Pain of Price Hikes

Despite the fact that insurance rates will probably be headed up in the future, there are steps you can take to help minimize the pain. Here are a few tips to help keep your annual premium affordable:

Shop Your Coverage: The best way to keep your premiums affordable is to shop your Texas home insurance coverage on an annual basis. Insurers rate risk differently so the trick is to find an insurance company that likes the look of your risk. Experts recommend getting at least eight quotes when shopping your coverage.

Raise Your Deductible: Putting your deductible up can shave 10% to 20% off of your premium. Obviously, it is important that you can afford the deductible you choose. It is highly recommended that you put your deductible amount in an interest-bearing account and leave it there in the event of a claim.

Ask For Discounts: Insurers offer numerous discounts, be sure you are getting all of the discounts you are eligible to receive. Installing storm shutters, a security system, or a sprinkler system will all result in a hefty discount. Contact your insurer or agent to make sure all available discounts have been applied to your policy.

For immediate help on reviewing your insurance policy or estimates, you can request multiple Texas home insurance quotes now or give us a call today. We look forward to working with you.