Why Is Home Insurance So Expensive in Texas

Why Is Home Insurance So Expensive in Texas

Insurance is vital in financial planning when protecting our homes and properties. However, people in particular states, including Texas, frequently pay greater premiums than residents in other parts of the country. In this blog, we’ll explore the reasons behind the high cost of Texas home insurance rates and shed light on the factors contributing to this situation.

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What’s The Average Homeowners Insurance Cost In Texas?

The cost of homeowners insurance in Texas varies depending on several criteria, but on average, it costs around $2,919 per year for a policy with $300,000 in dwelling coverage. When compared to the national average of $1,899, this is a 54% increase.

Individual premiums can vary significantly depending on several factors, including the property’s location, the home’s age and condition, the coverage limits and options chosen, the deductible amount, the insurance provider, and the homeowner’s claims history.

Why Is Home Insurance In Texas So Expensive?

There are various factors that can contribute to a spike in your home insurance rate, including:

Weather-related claims significantly contribute to the high cost of home insurance in Texas. The state’s diverse geography exposes it to various weather events, leading to potential risks and losses for insurance companies. Historical examples include the Winter Storm of 2021, Hurricane Ike, and Hurricane Harvey, which resulted in billions of dollars in damages and widespread claims. Insurers raise premiums during periods of destructive weather to offset these expenses and maintain financial stability. As a result, homeowners in Texas should expect higher insurance prices due to the increased likelihood of weather-related incidents.

Geographical Considerations

Texas is a large state with a diversified geography. Coastal locations on the Gulf Coast are especially vulnerable to storms, whereas areas in the West are more subject to wildfires. Properties in flood-prone areas or areas prone to other natural disasters are more likely to sustain damage, resulting in higher insurance premiums.

Construction And Labor Costs

Over time, the price of materials and labor in Texas has increased. Higher insurance costs result from several factors, including a growing population, a more robust demand for homes, and rising construction costs. Brick and stone homes, both beautiful and durable, tend to have higher repair and replacement expenses, affecting home insurance premiums.

How Can I Lower My Home Insurance In Texas?

There are a few ways you can lower your homeowner’s insurance premiums in Texas:

Take advantage of discounts: Check with your insurer to see if they offer any discounts that you may qualify for. Some common examples are bundling your home and auto policies together or being eligible for retiree discounts (if you’re over 55).

Opt for a higher deductible: You’ll have to pay more out of pocket when filing a claim before your insurance coverage kicks in. However, it can lead to lower premiums.


The high cost of home insurance in Texas is influenced by weather-related risks, geographical considerations, and construction costs. However, at Pelican Insurance Agency, we are dedicated to helping homeowners lower their insurance premiums while providing comprehensive coverage. Our experienced team can help you in finding available discounts, optimize your coverage, and navigate the complexities of home insurance. Trust us to protect your most valuable asset with tailored solutions and exceptional service. Contact us today to secure reliable and affordable home insurance in Texas.