If you’re a homeowner in Texas, you’ve probably noticed your insurance rates climbing in recent years. You’re not alone—across the state, premiums are on the rise, leaving many homeowners frustrated and looking for answers. As a public insurance adjuster, I’ve seen firsthand how these increases impact homeowners and what can be done to keep costs manageable while ensuring you have adequate coverage.
Why Are Home Insurance Rates Rising?
Several factors contribute to the rising cost of homeowners insurance in Texas. Understanding these reasons can help you make informed decisions about your policy and take proactive steps to minimize your expenses.
1. Increase in Natural Disasters
Texas is no stranger to severe weather events, including hurricanes, hailstorms, tornadoes, and flooding. In recent years, the frequency and severity of these events have increased, leading to a higher number of claims. Insurers, in turn, raise premiums to offset these growing losses.
2. Rising Construction Costs
The cost of labor and materials has surged, making home repairs and rebuilds more expensive. When insurers calculate risk and set premiums, they consider how much it would cost to repair or replace a home. As these costs climb, so do insurance rates.
3. Increased Reinsurance Costs
Insurance companies purchase reinsurance (insurance for insurers) to help cover large claims. Due to global increases in severe weather events, reinsurance costs have risen dramatically, and insurance companies pass those costs onto homeowners.
4. Inflation and Economic Conditions
Beyond construction costs, overall inflation impacts insurance premiums. Everything from roofing materials to plumbing repairs costs more than it did just a few years ago, and insurers adjust their pricing accordingly.
5. More Frequent and Costly Lawsuits
Litigation against insurance companies has become more common, especially in cases involving claim disputes. While homeowners deserve fair treatment, excessive litigation drives up costs for insurers, which ultimately affects policyholders through increased premiums.
How Can Homeowners Keep Their Insurance Rates Lower?
Although rising insurance costs may seem inevitable, there are several steps you can take to help keep your premiums as low as possible while ensuring you have the right coverage.
- Review Your Policy Annually – Homeowners often assume their policy remains the best fit year after year, but coverage needs change. Reviewing your policy with a professional can help identify areas where you may be overinsured or underinsured.
- Increase Your Deductible – If you can afford a higher out-of-pocket expense in the event of a claim, raising your deductible can significantly lower your premium.
- Maintain Your Home – Regular maintenance, including roof inspections, plumbing checks, and HVAC servicing, can reduce the likelihood of claims and demonstrate to your insurer that your home is a lower risk.
- Install Protective Features – Adding security systems, storm shutters, impact-resistant roofing, and water leak detection devices can help reduce your premiums.
- Bundle Policies – If you have auto insurance, bundling it with your homeowners policy can often lead to discounts.
- Ask About Discounts – Some insurers offer discounts for things like being claim-free for a certain period, installing fire alarms, or being a loyal customer.
- Work With a Public Adjuster to Evaluate Coverage – A public adjuster (PA) can review your policy to ensure you’re not overpaying for unnecessary coverage while also making sure you’re not exposed to risks that could leave you financially vulnerable.
How a Public Adjuster Can Help
Most homeowners don’t give their insurance policy a second thought until they need to file a claim. Unfortunately, that’s often when they realize they don’t have the right coverage. A public adjuster can help by:
- Evaluating Your Policy – I review policies to identify potential coverage gaps or unnecessary add-ons that could be costing you extra.
- Explaining Coverage Options – Insurance policies can be confusing, and I help homeowners understand what’s covered and what’s not.
- Ensuring Fair Claim Settlements – If you experience property damage, I assist in documenting your claim and negotiating with your insurer to ensure you receive the compensation you’re entitled to.
- Providing Pre-Loss Inspections – Before disaster strikes, a PA can document your home’s condition and assets, which can be crucial for filing a claim later.
When Should You Reach Out to a Public Adjuster?
If your insurance premiums have increased and you’re unsure why, or if you’re concerned that you may not have the right coverage in place, now is the time to act. A proactive approach can save you money and ensure you’re not left financially exposed in the event of a claim.
Additionally, if you’ve recently had a claim denied or underpaid, working with a PA can be invaluable in ensuring you receive a fair settlement.
Final Thoughts
While rising insurance rates are frustrating, homeowners do have options. Understanding why premiums are increasing, taking proactive steps to lower your costs, and ensuring you have the right coverage can help protect both your home and your wallet.
If you have questions about your policy, need a coverage evaluation, or are dealing with a difficult claim, don’t hesitate to reach out. As a public adjuster, I’m here to help Texas homeowners navigate the complexities of insurance and secure the best possible outcome for their policies and claims.
Bridget Baldi - Public Adjuster 