Climate Change Drives Soaring Home Insurance Costs in Texas
A growing number of Texas residents are struggling to afford or obtain home insurance as intensifying weather and economic pressures drive premiums to record highs. According to Anna Phillips’ report for The Washington Post, homeowners across Texas are seeing property insurance premiums rise sharply due to more frequent and severe weather events, with some annual rates now exceeding $10,000.
The state’s “file and use” policy allows insurance companies to raise rates without prior regulatory approval, while insurers are limiting coverage and pulling out of risk-prone areas. State-backed insurers of last resort are expanding rapidly as more Texans are either dropped by private insurers or can no longer afford them. This raises concerns about long-term financial stability.
“Consumers can choose completely unaffordable insurance versus the only affordable option, which is a hollowed-out policy,” said Birny Birnbaum, executive director of the Center for Economic Justice. Texas experiences nearly every type of natural disaster, including hurricanes, tornadoes, wildfires, and hail, which are becoming more frequent and costly.
As insurers grapple with billions in claims, they’re hiking rates and shrinking coverage, forcing many residents to either underinsure their homes or drop coverage entirely. This growing instability in the insurance market could have far-reaching consequences, affecting rental prices, tax rates, and public infrastructure costs. It also raises broader questions about where Americans can safely and affordably live as the climate crisis accelerates.
The shift in affordability could reshape migration patterns and political priorities, particularly as Texas is often promoted as a low-cost refuge from pricey coastal cities. However, the state resists stronger insurance regulations, leaving many homeowners vulnerable to the impacts of climate change.
