Why is the average cost of Texas home insurance so much more than in other states? There are several reasons for this situation.
First of all, you should know the average insurance policy in Texas is $1409 compared to $808 average across the country.
Even Florida, with all of its hurricane troubles, has lower premiums.
And, therein lies the first clue.
Florida doesn't require homeowners insurance companies to cover hurricanes - home owners have to buy separate insurance for that.
Texas, however, requires insurance companies to cover the most likely causes of home damage including wind, hail, and tornadoes.
And, as you know, Texas has a surfeit of all three of these naturally occurring disasters.
While hail doesn't cause the extent of the damage that a hurricane does, the claims can still add up.
As a result, because Texans have particularly good coverage, their insurance rates are significantly higher than in other states.
Additionally, there have been recent laws which require the insurance companies to cover mold damage.
This has resulted in millions of dollars in claims for the insurance companies.
The legislature in the Lone Star State is trying to remedy things by putting limits on the amount the companies are allowed to raise their rates each year and offering state based insurance.
But they have to be careful to not become anti-competitive and risk having the insurance companies decide not to cover anyone in the state at all.
And that's why the average cost of Texas home insurance so much more than in other states.