When it comes to home insurance, there are several factors that make it so expensive in the Lone Star State. Homeowners in Texas face unique risks, including hurricanes, flooding, and wind damage. Insuring against these risks requires home insurance with a higher premium. But does home insurance actually cost more in Texas?
Texas home insurance is because of the increased risk of damage to homes from hail, hurricanes, wildfires, and tornadoes. Fraud is another issue that Texas homeowners experience that impacts high insurance rates.
You might think that because we are a state with so many oil and gas billionaires, we would be able to afford the most expensive home insurance, but that’s not the case at all. In fact, home insurance in the Lone Star State costs incredibly high.
5 Things That Raise Texas Home Insurance Rates
The Lone Star State is home to some of the most dangerous natural disasters in the United States. It’s a big state that covers a lot of areas, so there’s a variety of natural disasters that can potentially occur.
The top natural disasters that occur throughout the state of Texas are:
- High winds
- Hail storms
Texas was hit by a record-breaking number of hurricanes in 2017. Hurricane Harvey alone caused billions of dollars in damage, which was the costliest hurricane ever recorded in the United States. In 2016, Texas experienced over seventy-three thousand wildfires and had more than one hundred tornadoes.
If you are thinking about buying home insurance for your property in Texas, you must understand how these natural disasters can affect your policy and premiums.
Hurricanes are one of the most destructive natural disasters that can occur along Texas’ coastlines and the Gulf Coast region. The Lone Star State is particularly prone to hurricanes due to its location along the Gulf of Mexico and its proximity to other tropical storm hotspots like Florida and Mexico’s Yucatan Peninsula.
Hurricanes can cause property damage, flooding, loss of life, downed power lines, and other issues that can result in significant losses for homeowners. Homeowners insurance can help you recover from hurricane damage. Most standard policies have coverage for wind damage and flooding from hurricanes.
If you have a mortgage, your lender may require that you purchase flood insurance if your home is located in a low-lying area or has a history of flooding.
However, it is important to note that flood insurance does not cover wind damage or other storm-related damages like downed power lines. If your home is located in an area with frequent hurricanes, it may be in your best interest to purchase separate hurricane insurance.
Tornadoes are another common natural disaster that occurs across Texas’ landscape every year. The state has experienced more tornadoes than any other state in the nation, with an average of 148 twisters occurring each year since 1953.
A tornado’s destructive path through Texas can result in serious injuries or fatalities and cause major property damage to homes and businesses. Fortunately, most Texas homeowners and businesses are insured against this type of damage through standard homeowners insurance.
Tornadoes can cause significant property damage and cause serious injuries or fatalities.
Hail is another natural disaster that a Texas homeowner can experience. Although hail is not as common as other types of disasters, it can still cause significant damage to a home’s exterior or interior.
If you have a homeowners policy, your coverage may include coverage for hail damage to your home’s exterior. However, if the hail damages your roof or causes more extensive interior damage, you may need separate insurance coverage to repair the damages.
Wind storms are another common natural disaster that occurs across the state every year. These storms often result in downed power lines, fallen trees, and other property damage across the state. It is important to note that wind storms are not covered under a standard homeowners policy. If you want to be protected against wind damage, you need to purchase separate coverage for such an event.
Wind storms can cause significant property damage and leave you without power for an extended period of time.
Like tornadoes and windstorms, wildfires are another natural disaster that many homeowners may not consider when purchasing insurance. If a wildfire occurs in your area, it can quickly spread to your home and cause significant property damage.
However, the good news is that most homeowners’ policies cover fires that occur on your property and off-site fires caused by lightning strikes or other causes.
Is Homeowner’s Insurance Texas the Most Expensive in the U.S.?
Depending on where you are in Texas, the housing prices can be on either end of the spectrum- either really affordable or really expensive, in comparison to the rest of the U.S. So how do insurance rates compare to those across the U.S.?
Texas homeowners’ insurance is amongst some of the most expensive in the country. Homeowners in New York typically pay the most, but Texas, California, and Florida are close behind.
Home insurance in the Lone Star State is expensive. That is not a shocker coming from a state with one of the country’s highest home insurance rates. It is important to shop around and compare rates from different providers to find the best deal.
But when you go with the lowest quote, you will likely get hit with a ton of different coverage options and pricing tiers. This can cause confusion, especially if you have a specific insurance need. It is best to stick to a specific provider to find the coverage you require.