Texas homeowners are facing skyrocketing insurance costs, with policies becoming harder to find and more expensive because of natural disasters’ increasing severity, reported KHOU 11 News.
What’s happening?
New homeowner Jonathan Leopold discovered this harsh reality while trying to secure insurance for his Houston home.
“You have to have home insurance that qualifies with the mortgage company. It was a little frustrating that I had to shop multiple insurance agencies,” he shared.
Insurance broker Melody Fontenot confirmed this trend is widespread. “I’m going to say about 10 to 15% higher. Definitely. Yes. And in some areas even more,” she explained.
The situation has become dire for many Texans. “A lot of people are just being priced out,” Fontenot noted.
Insurance companies are increasingly pulling out of flood-prone areas that have experienced multiple flooding events. When fewer companies serve a region, remaining insurers can raise rates even higher.
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Attorney John Black, who represents homeowners against insurance companies, highlighted the growing tension: “Insurance companies are charging more and giving less, covering less.”
Why is rising home insurance important?
This insurance crisis is a result of our changing climate. As warming temperatures drive more severe weather events across Texas, from hurricanes to floods, insurance companies face mounting claims and financial pressure.
When smaller companies can’t handle the rising costs of climate-related disasters, they’re forced to merge with larger firms or go out of business entirely. Consolidation reduces competition, allowing remaining companies to charge higher premiums.
Without adequate coverage, homeowners face devastating personal and financial losses when disasters strike. Many families may need to compromise on protection, leaving them vulnerable during increasingly unpredictable weather events.
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The situation also disproportionately affects people in particularly vulnerable communities. For instance, if you live in an area that’s already experienced flooding, you may find it nearly impossible to secure affordable coverage.
What’s being done about rising insurance costs?
Despite these challenges, homeowners have options to help manage insurance costs. Fontenot recommends shopping around for new rates each year to find better deals as the market changes.
You can also work on improving your credit score, which can lower your premium costs over time. Many people don’t realize how much their credit rating affects their insurance rates.
Using an insurance broker rather than contacting companies directly can save you time and money. Brokers work with multiple companies and can find options you might miss on your own.
For his part, Leopold persevered through the difficult process. “I just continued to shop and did not get discouraged,” he said.
Industry experts also suggest considering higher deductibles to lower monthly costs, bundling home and auto insurance for discounts, and installing protective features like storm shutters or reinforced roofing that can qualify you for premium reductions.
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Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.