The Average Cost of Texas Home Insurance Explained
The average cost of Texas home insurance in 2009 was $1409 which is 58 percent higher than it was in 2008. Further, it is 58 percent higher than the next highest state which is Florida. In fact, the national average for homeowners insurance is only $804.
There are several reasons that Texas' homeowners insurance is so much higher than in other states. One is that there are a lot of claims for hail, tornado and wind damage. But there is another reason as well. In 2003, the Texas state legislature passed a law requiring companies to pay for mold damage in homes.
On its face, the high price of insurance may seem unfair because Texas' insurance claims tend to have much less monetary payout compared to states with hurricanes, earthquakes and floods. But there's a difference. These things are NOT covered under the normal homeowners insurance. In Florida, for instance, homeowners are required to purchase separate hurricane insurance.
Texas also has catastrophe funds included in the insurance which states like Florida and California don't have.
But Texans don't see any relief in these cold hard facts. In fact, what they do see is that their insurance rates have been rising by double digits year after year.
Elected officials are aware of the discontent among the population. They are currently exploring ways to lower insurance rates or at least keep them in check. One proposal circulating will require larger insurers get the permission of the Department of Insurance to raise rates.
Still, as long as the Lone Star State continues to have weather related home damage, you can expect the average cost of Texas Home insurance to increase every year.
There are several reasons that Texas' homeowners insurance is so much higher than in other states. One is that there are a lot of claims for hail, tornado and wind damage. But there is another reason as well. In 2003, the Texas state legislature passed a law requiring companies to pay for mold damage in homes.
On its face, the high price of insurance may seem unfair because Texas' insurance claims tend to have much less monetary payout compared to states with hurricanes, earthquakes and floods. But there's a difference. These things are NOT covered under the normal homeowners insurance. In Florida, for instance, homeowners are required to purchase separate hurricane insurance.
Texas also has catastrophe funds included in the insurance which states like Florida and California don't have.
But Texans don't see any relief in these cold hard facts. In fact, what they do see is that their insurance rates have been rising by double digits year after year.
Elected officials are aware of the discontent among the population. They are currently exploring ways to lower insurance rates or at least keep them in check. One proposal circulating will require larger insurers get the permission of the Department of Insurance to raise rates.
Still, as long as the Lone Star State continues to have weather related home damage, you can expect the average cost of Texas Home insurance to increase every year.
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