What is the Average Cost of Texas Home Insurance?

According to the National Association of Insurance Commissioners (NAIC), the average cost of Texas home insurance in 2009 was $1409 which was a 28 percent increase over 2008. The next highest state was Florida and Texas was 28 percent higher. The national average is just $804 for home insurance.

The reason the average cost of Texas home insurance is so high is because of the number of claims due to hail, tornado and wind damage. There also is the issue of mold. In 2003, the state legislature passed a law requiring companies to pay out for mold treatment. This increased the overall cost of homeowners insurance as well. While both mold and weather damage are low-ticket items, there are a lot of them so it adds up.

You may think that this is unfair because other states have hurricanes, earthquakes and floods. But, these are not covered under normal homeowners insurance policies. People who live in areas where these natural disasters occur must buy separate insurance whereas the Texas problems are covered under the normal policy.

Additionally, Texas includes catastrophe funds which other states such as Florida and California exclude.

This, however, comes as no relief to Texans who constantly see their insurance rates rise by double digits each year.

The state legislature is considering what they can do to lower the insurance rates. One proposal will require the largest insurers to get permission from the state to increase their rates. However, if they make their requirements too stringent, insurers may just up and leave the state so they have to be careful about the policies they make.

Still, as long as the Lone Star State continues to have weather related home damage, you can expect the average cost of Texas Home insurance to increase every year.

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