Rising Home Insurance Costs in Texas
Texas homeowners are facing a harsh reality as insurance costs skyrocket due to the increasing severity of natural disasters. According to a report by KHOU 11 News, policies are becoming both harder to find and more expensive. New homeowner Jonathan Leopold experienced this firsthand 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 that this trend is widespread, stating, “I’m going to say about 10 to 15% higher. Definitely. Yes. And in some areas even more.” The situation has become dire for many Texans, with Fontenot noting, “A lot of people are just being priced out.”
The Role of Climate Change
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. Attorney John Black, who represents homeowners against insurance companies, highlighted the growing tension: “Insurance companies are charging more and giving less, covering less.”
This insurance crisis is a direct 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.
Consequences for Homeowners
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. The situation disproportionately affects people in particularly vulnerable communities. For instance, those living in areas that have already experienced flooding may find it nearly impossible to secure affordable coverage.
Managing 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. Improving your credit score can also lower premium costs over time, as 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 time and money, as brokers work with multiple companies and can find options that might be missed otherwise.
Leopold persevered through the difficult process, saying, “I just continued to shop and did not get discouraged.” 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 for premium reductions.
