The saying that everything is bigger in Texas is true—especially when it comes to your home insurance rates. Unfortunately, the cost of home insurance is relatively high in Texas compared to the national average.
The average Texas homeowner will generally pay over $1,000 more than the national average of home insurance in the U.S. This is for a variety of reasons.
Historically Bad Weather
Texas has some of the worst weather in the U.S. from hailstorms and floods to tornadoes and wildfires. As a large state, there are various types of terrain that offer their own dangers and living in one of these areas is a good way to raise your home insurance premiums.
This is because home insurance prices are primarily calculated based on how likely you are to file a claim. Frequent bad weather raises the likelihood that you will file a weather-related claim, meaning your home insurance prices will go up.
Value of the Homes
It is important to keep in mind that Texas is one of the biggest states in the U.S., so the value of a home—as well as insurance rates—can vary widely from one city to the other. The higher value your home, the more coverage you will need. In general, you should carry your home’s entire replacement cost value in home insurance. Obviously, having more home insurance also means paying more in monthly or annual premiums.
Fraud is a commonality in Texas more than many other states, especially when it comes to filing insurance claims. With a high rate of fraud, insurance providers tent to charge more in order to compensate for the possibility of fraud. This also varies per area, so if your city has a high rate of fraud, you could pay even more.
This ties into the value of the homes in regards to home insurance. In Texas, banks are allowed to require homeowners to carry home insurance. Generally, they require enough home insurance to cover the mortgage. As long as a homeowner has a mortgage on the home, they may also have to carry home insurance.
No matter where you live, be sure to shop around and compare quotes between multiple insurers. Your insurance agent can help you save money by recommending upgraded safety measures and telling you about qualifying discounts such as bundling home and auto, loyalty discounts and more.