As home insurance rates skyrocket nationwide, Texas saw one of the smallest increases in average rates last year, according to a new study.
Over the past five years, home insurance rates in the United States rose by 46.8%. Rates in Texas rose an even higher 55.9% between 2020 and 2025, giving the state the 12th-largest increase, according to the study by LendingTree.
But rate increases in the Lone Star State have slowed recently. In 2025, when rates increased 6% on average and by as much as 15% in some states, rates in Texas increased just 0.6% — the third-smallest increase nationwide.
Still, even with home insurance costs in Texas now increasing more slowly than in other states, Texas’ average annual cost of $3,969 for home insurance is far higher than the national average of $2,395. It has the fifth-highest average annual home insurance cost, according to the study.
Lindsey Bishop, a home insurance expert for LendingTree, said the combination of severe weather and increases in the cost of labor and materials has led to the spike over the past five years.
“Between 2020 and 2024, the U.S. experienced around 23 disasters per year that caused at least $1 billion in damage each,” she said. “That’s a major increase from the previous five-year period, when there were only an average of 15 billion-dollar disasters per year.”
The number of severe storms increased from nine per year between 2015 and 2019 to more than 14 per year between 2020 and 2024, she said.
Colorado has perhaps borne the biggest brunt of these rising home insurance prices. Home insurance rates there have doubled since 2020 and increased by more than 18% last year alone.
Bishop advised homeowners that they shouldn’t expect these price increases to last forever.
“Homeowners will probably continue to see increases, especially in high-risk states, but unless there’s a busy hurricane season or large wildfire outbreak, the extreme jumps we saw in 2023 and 2024 are less likely,” she said.
She recommended that people looking for home insurance cast a wide net for offers, including from smaller regional insurers, which often have lower rates than national companies. She added that upgrading your home to replace an aging roof or add impact-resistant windows can prevent you from having to file claims if a storm hits, which, in turn, can make insurance rates rise faster over time.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.