Texas storms are blowing up homeowners’ insurance premiums

FORT WORTH – The Fort Worth Star-Telegram reports that it’s getting more expensive to protect your home in North Texas. Homeowners insurance premiums increased 22% in 2024, according to the Texas Department of Insurance, and insurance companies have had to pay out more claims because there have been more severe storms. The state has had more disasters causing $1 billion in damages in the last five years than the previous decade, according the National Atmospheric and Oceanographic Administration. While legislators in Austin are working to lower residential property taxes, insurance brokers, Realtors, and industry experts say not much can be done when it comes to insurance — the other major cost of a monthly mortgage payment. More storms and inflation have pushed rates higher. It’s making housing more expensive, and causing some to fear losing their homes.

The biggest cost driver in North Texas has been wind and hail, said Chandler Crouch, a Realtor known for helping his clients lower their property tax bills. Crouch even tried his hand at offering homeowners insurance a few years ago, but found many carriers were avoiding new business in North Texas because of storm losses. “I’ve been in the business since 2002 and I’ve seen a lot of market changes, and I’ve never seen insurance rates this bad,” he said. “It’s pretty bleak out there.” Texas ranks at or near the top of states that experience weather catastrophes, including hurricanes, hail, flooding, fire, wind, and tornadoes, said Richard Johnson, a spokesperson for the Insurance Council of Texas. The cost of materials is also going up, said Frank McArthur, a Tarrant County roofing contractor who primarily works on insurance claims. It’s not unusual to get a notice from suppliers twice a year that materials are going up 2% or 3%, but about a month ago, McArthur said one of his suppliers told him prices were going up 10%. He used to not think much of it, because insurance companies were always going to pay, but now McArthur is seeing how rising prices are having an impact on the broader market.