Why is Home Insurance In Texas Expensive?
By now, you should know Texas doesn't do small.
Even the perils in Texas which can affect your homeowners' insurance come in large sizes. For instance:
- Hail stones the size of softballs
- Wildfires growing into earth-scorching smoke spreaders
- Hurricane forced winds traveling into the Gulf of Mexico and across all of Texas
Still, the Texas you know is the Texas you love and you wouldn't live anywhere else. Even if your homeowners' insurance costs a bit more because of the risks associated with staking your tent here, you embrace the Lone Star state of mind.
At Insurance For Texans, we like to give you peace of mind to go with it in the form of getting the best value for your dollars, i.e., the best protection in the form of coverage for what you pay.
Hail
As any resident of North Texas knows, hail storms can cause significant property damage.
Hail stones can plummet from the sky at high speeds, shattering windows, denting cars, and causing other damage.
While hail storms can occur anywhere in North Texas, they often seem to target certain areas more than others.
For example, hailstone activity is often heavier in the northern part of the state, where thunderstorms are more common.
However, this does not mean that southern parts of North Texas are immune to hail storms.
In fact, hail storms can and do occur throughout the entire state. As a result, it is important for everyone in North Texas to be prepared for
the possibility of hail damage.
In the spring of 2017, Texas was hit by a hail storm that caused billions of dollars in damage to homes and businesses.
The hail stones were so large that they broke windows and damaged roofs.
Many people had to file claims with their insurance companies, and the companies had to pay out a lot of money.
As a result of the hail damage, insurance premiums in the state have gone up significantly.
Hurricanes
After a hurricane hits, insurance companies are usually left with a lot of work to do, including raising premiums for their customers.
This is because hurricanes can cause a lot of damage, and insurance companies have to pay for that damage and recoup the cost
somewhere.
If you live in Texas, you may have noticed your insurance premiums going up after Hurricane Harvey.
The devastation caused by Hurricane Harvey has led to an increase in insurance premiums for many homeowners in the affected areas.
According to a report from the Insurance Information Institute, premiums for wind and hail coverage in Texas have increased by an average
of 25 percent since the hurricane struck in August 2017.
If you live in an area that is prone to hurricanes, you know the need for solid coverage. If you don't, you can see how a major issue with one
section of the large state can have repercussions on other areas.
Wildfires
Wildfires can happen at any time and place, which makes it difficult to prepare for them. The Texas terrain creates a variety of fire risks that
need coverage from insurance policies and recent wildfires have led to a higher amount of claims (see a pattern?) resulting in a rise in
premiums to cover those claim payout costs on behalf of the insurance carriers.
Wildfires are just that. Wild. They can start as a result of lightning strikes, but often they are caused by humans.
Arson is the leading cause of wildfires, accounting for about half of all wildfires each year.
Additionally, as fires become more common in the state due to drought conditions, it's important for residents to make sure they have
comprehensive coverage in case their home or business is damaged.
Fraud
Texans are some of the most honest people in America. Although they may not like cheaters or frauds, many don't realize they have cheaters
in their midst, especially when it comes to roofing company agents telling them they will "eat their deductible".
What does this mean? It means that the roofing contractor promises to absorb, rebate, or offset roof replacement/repair expenses in
exchange for their services, trusting the insurance carrier will just write a check to cover all the costs.
The problem is that the deductible is what the homeowner is responsible for before the insurance company pays anything.
Law HB 2102 requires roofers to state in their contracts the necessity of homeowners to pay the deductible according to their
homeowners' property insurance policy.
You, as the homeowner, are obligated by the contract you signed with your carrier to pay the deductible. If you don't, the insurance
company can cancel your policy.
Unfortunately, too many roofers and customers (known or unknown to them) have skirted this policy and caused carriers to increase their
rates as a response to these losses.
Hail, Hurricanes, Wildfires, and Fraud make Texas homeowners' insurance more expensive.
That doesn't nullify the many benefits of living in the state and calling yourself a Texan.
Regardless of playing at a larger level, Insurance For Texans loves the Lone Star state.
We'd like to get to know you better and understand what has kept you here or led you here.
Fill out the form at the top to help us provide us you with options for True Texas Insurance!