W. 16 $1 Billion Or Bigger Disasters In 2023, Texas Leads The Nation In Explosive Growth In Insurance Premiums

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Insurance is all about anticipating risks, and Texas’ staggering population growth and weather patterns have added new levels of risk. Decades ago, hail would land in an empty field. Now hail will hit a $500,000 house and $45,000 car, and an insurer will have financial exposure.

This year, Texas encountered 16 weather or climate disaster events with losses of more than $1 billion, the highest yearly count since 1980. As a result, Texas Department of Insurance statistics show that homeowner premiums rose 10.8% in 2022, the highest percentage increase since 12.9% in 2012

To reduce their financial exposure this year, some carriers no longer accept new homeowners insurance business in North Texas, are choosing not to renew existing policies or are linking homeowners insurance with bundled auto policies, according to a recent Dallas Morning News story. Other companies are increasing deductibles or changing coverage terms, potentially leaving unsuspecting homeowners on the wrong side of a claim.

Even with increased weather risks in the hurricane-prone Texas Gulf and other weather risks elsewhere in the state, Texas is a better risk market than California and Florida, where insurers are bailing out. Still, Texas ranks eighth in the U.S. for overall climate vulnerability, according to Environmental Defense Fund and Texas A&M University research. And that’s during this year when hurricanes didn’t queue up on the Texas Coast as they often do.

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https://climatecrocks.com/2023/12/31/texas-is-new-ground-zero-for-skyrocketing-home-insurance-prices/