MALVERN, PA — A new analysis from the Insurance Information Institute (Triple-I) highlights the mounting pressure facing Texas homeowners, as extreme weather and infrastructure vulnerabilities continue to drive up insurance costs. The state now ranks as the sixth-least-affordable in the nation for homeowners insurance.
The report arrives just weeks after devastating flooding struck the Texas Hill Country over the Fourth of July holiday weekend. Fueled by lingering moisture from Tropical Storm Barry, the flood underscored a growing trend: tropical systems are increasingly triggering destructive inland flooding far from coastal landfall zones.
Triple-I’s Texas Issues Brief draws attention to the multiple, overlapping risks contributing to this affordability crisis. “The catastrophic flooding in Central Texas exemplifies a troubling trend we have seen with events like hurricanes Harvey, Ida, Ian and Helene – devastating flood damage occurring far from storm landfall,” said Patrick Schmid, the organization’s chief insurance officer. He noted that in Kerr County—one of the hardest-hit areas during the recent floods—just 2.5% of homeowners carry flood insurance through the National Flood Insurance Program.
The analysis outlines a confluence of natural threats that have made Texas one of the most expensive places in the country to insure a home:
- Severe convective storms regularly batter the state, with Texas experiencing more tornadoes than any other—over 100 annually. In 2024 alone, the state recorded 878 large hail events.
- Lightning and hail-related damages are also climbing. Last year, Texas logged 4,369 lightning-related insurance claims, second only to Florida, but with a much higher average payout of $38,558 per claim.
- Wildfires remain a looming threat, with nearly 245,000 homes across Texas considered at extreme risk—third highest in the nation behind California and Colorado.
- Energy grid instability, made painfully clear during the 2021 winter storm that triggered widespread blackouts, continues to impact the state’s risk profile. Texas alone accounted for 80% of insured losses from that event.
These compounding hazards are translating into significantly higher premiums for homeowners. On average, Texans spend 3.13% of their median household income on homeowners insurance—placing the state among the least affordable markets in the U.S. By contrast, auto insurance remains relatively affordable, consuming 1.65% of household income and ranking 14th nationally.
“All insurance pricing needs to reflect the risk inherent in the coverage provided,” Schmid said. “For Texas homeowners, their poor affordability reflects the high levels of natural catastrophe risk – most notably, severe convective storms and hurricanes.”
To combat the trend, Triple-I stresses the importance of enhancing structural resilience at every level—from homes and businesses to broader community infrastructure. The goal: mitigate future damage, reduce premiums, and ultimately save lives.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.