As if Texans weren't already facing enough sticker shock, from grocery prices, to energy costs, to property taxes...now they're getting soaked on home insurance. In the aftermath of Hurricane Beryl and last spring's severe derecho storm in Houston, some insurance companies are scaling back coverage or leaving the state altogether, while others are raising rates. What that means is an explosion in home insurance premiums, with the average rate in Texas up 21% in the last year, according to the Insurance Council of Texas (ICT). "Because of the weather events, the frequency and severity we're seeing, there's more of a risk insurance companies are taking on," says Richard Johnson, ICT spokesman. "And then you couple that with inflation and the cost of real estate going up...the cost of our homes is going up, therefore it's more to insure."
"It's all kind of a ripple effect we've seen over the last four years."
If you lose your home insurance or can't get coverage, there is a backstop. The Texas Fair Plan Association is a state-run entity similar to the Texas Windstorm Insurance Association, which provides coverage as a last resort for those who can't get it through the private market. Fair Plan coverage is available to homeowners who have been turned down by at least two companies.
While there's no easy solution to high home insurance costs, Johnson recommends shopping around as much as possible and taking care of your home to avoid expensive claims. "There's two things that are most expensive for insurance companies, your roof and water damage not related to flooding---broken, busted pipes, leaky washing machines---if you can take care of those things and talk to your insurance company about it, they may work with you a little bit on cost," says Johnson.
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