Texas home insurance prices could soon become the highest in the country
BY KEN MOLESTINA
NOVEMBER 10, 2022 / 4:58 PM / CBS DFW
NORTH TEXAS (CBSDFW.COM) — A group of research analysts say Texas is on pace to become the nation's leader on a list that could prove painful for homeowners.
The price of home insurance is going up fast, and experts say it could have some serious effects.
"The average cost to ensure a home in Texas has gone up 6% in the last year, making the state the second-most expensive for home insurance in the entire nation," says Nick VinZant.
VinZant is a senior research analyst with Quote Wizard. A study they conducted shows Texas is only behind Oklahoma when it comes to home insurance prices.
"It's getting more expensive, and it's getting more expensive quickly," VinZant says.
In the Lone Star State, the average cost to insure a home is currently north of $3,600. That's up from $3,400 last year.
VinZant says there are three factors fueling this trend: Inflation, home prices going up, and the abundance of natural disasters hitting recently.
"In the last 20 years, we have seen a 163% increase in natural disasters. When natural disasters happen, that obviously affects the insurance industry," he explains.
When prices go up, they hardly ever go back down – and that's exactly what VinZant expects to happen here. "No is basically the short answer."
In fact, he says, not only are prices not coming back down, but his research suggests it won't be long until Texas claims the top spot for the most expensive state to ensure a home.
"I think we could potentially be approaching the days where someone cannot buy a house, cannot live in an area because the cost of insuring a home in that location is just too expensive," VinZant says. "If the math holds out the way it has been, it could be next year."
Experts say that now more than ever, homebuyers need to make sure they are budgeting up front for insurance costs so that they can avoid any surprises down the road.
RAM INSURANCE COMMENT;
For those who own a home, please see the attached report reposted from CBS 11 News. We at RAM Insurance Services have been seeing this trend for several years and with the recent pandemic combined with political issues, we want you to be prepared and
As you review your renewals and purchase your new homes, make sure to speak with an independent agent about your insurance pricing and coverages. A few factors that that drive cost in addition to what CBS reported include but are not limited to;
1) The age of the home, updates on older homes such as electrical, plumbing, HVAC system and the age of the roof.
2) Insurance scoring or (commonly referred to as credit)
3) Frequency of claims on your home and even auto claims have impact with some companies. Some companies will charge a higher rate for homeowners insurance if you have an auto claim. This can happen even if you have a perfect insurance score, fully updated home and no claims to the home. These claims can include at fault, not at fault, even towing and labor claims. It’s always a great idea to contact your agent before you file a claim or a potential claim as it can negatively impact rates just by making the phone call.
There are other factors which can include, deductibles for wind/hail and other perils, endorsements covering foundation water loss, slow/hidden seepage of water, and much more. We often see many companies remove or limit coverages each year at renewal and when you pay for the policy you have accepted these changes whether you have read the new policy or not. Contact us at your next renewal to discuss what may have changed and the many options you may have.
If you have a farm or “hobby farm” you’ll want to ensure liability coverage for farm animals is included, RAM Insurance can help with that.
In the end, your insurance is a legal contract which is a promise to pay by the insurance company for the coverages purchased. If a certain event happens that coverage has not been expressly purchased then you may not be returned to your “pre-loss condition”.
At RAM Insurance Services we’re happy to discuss your options, review your current coverages, provide solutions by shopping our large network of companies. Please feel free to reach out by phone (817) 523-0056, email email@example.com or through our website www.raminstx.com
to speak with our licensed, knowledgeable staff. We always make every effort to help, supporting the “Golden Rule”, treating others as we would want to be treated and making us the “Agency of Choices”.