AUSTIN, Texas — New data shows Texas home insurance premiums are up 27% over the past three years.
According to a study from the Consumer Federation of America, the average homeowners’ insurance premium in Texas is nearly $5,000 – the sixth highest in the country.
Since 2021, premiums have increased by more than $1,000 a year in Texas.
Data from the Texas Department of Insurance shows the average homeowner’s insurance rate jumped just over 21% in 2023. That’s more than double the yearly increases during the previous decade.
One of the biggest reasons is the rise in extreme weather events like hail and tornados. The rising costs of construction and building materials are also behind the insurance spike.
In 2023, insurance companies chose not to renew policies for about 138,000 home insurance customers and about 101,500 auto insurance customers.
Three insurance companies have left Texas entirely. Five other companies have stopped writing home insurance policies only, while six other companies have stopped writing just auto policies.
Texas House Speaker Dade Phelan and Lt. Gov. Dan Patrick have each directed members of their chambers to look into the rising cost of premiums as part of the 89th legislative session.
Senate Bill 1006, which has passed the Senate and is under consideration by the House, would require insurance companies to disclose why they decline or refuse to renew a homeowner’s policy.
House Bill 1603 would force home insurers to get approval from regulators for rate increases above 10%. That bill is still in committee in the House.
Another bill, HB 1576 would create a grant program to retrofit eligible homes to resist hurricane and windstorm losses. Texas is the only Gulf Coast state without incentives such as insurance discounts for building more resilient homes. HB 1576 is in committee in the House.