Texas Residents Fear Looming Home Insurance Rises

The vast majority of Texas homeowners fear their insurance premiums might shoot up in the future as the risk of extreme weather events is exacerbated by climate change, according to an exclusive poll conducted by Redfield & Wilton Strategies on behalf of Newsweek.

A total of 89 percent of survey respondents were either "very concerned" (37 percent), "fairly concerned" (34 percent) or "slightly concerned" (18 percent) about the extent that the increased risk of natural disasters, such as hurricanes and floods, could increase their home insurance rates in the years ahead.

The poll was conducted among a sample size of 814 eligible voters in Texas between February 1 and 3.

According to Insurance.com, the average cost of home insurance in Texas is currently $4,142 a year, much higher than the national average of $2,777. That makes Texas the state with the fifth-highest home insurance premiums in the entire country.

House prices in the state remain high despite having dropped by 1.2 percent between December 2022 and December 2023, with the average home value being $293,824 as of December 31.

A majority of 63 percent of respondents to the survey said house prices in Texas are increasing, while 14 percent thought they were stable and 7 percent believed they were going down.

The home insurance market in the U.S. is undergoing a shift as it tries to catch up with the increased risk posed by climate change, which scientists said will make natural disasters more frequent and more severe. Florida, which currently has the highest home insurance premiums in the country, has faced an exodus of major insurers. California, where premiums have also risen, has seen several private insurers announcing they won't offer new policies in the state over the increased risk of wildfires.

In both states, the number of residents who sought coverage with insurers of last resort, Florida's Citizens Property Insurance and California's FAIR Plan (which only cover fire damage), has risen in the past couple of years.

While in Texas the situation hasn't reached the level of apparent crisis like in Florida and California, residents are concerned about things getting worse in the near future.

Some 56 percent of respondents to the poll said they currently own a house and have home insurance, while 39 percent don't own a property or pay for coverage on it. And 72 percent among those who have a home and pay to insure it said their premiums have risen in the past year.

Are you a Texas homeowner and you pay for home insurance? Let us know if your premiums have increased and if you fear they'll rise in the coming years. Contact g.carbonaro@newsweek.com