Insurance costs climb as Austin faces frequent weather events From the cover
Climate breakdown
Current situation
Homeowners insurance costs in Austin
National Oceanic and Atmospheric Administra- tion data shows 20 disaster events in Texas that cost a total of about $200 billion in 2024, adjusted for collateral protection insurance. With more frequent weather events, insurers are adjusting rates to maintain profitability.
Households with a mortgage Households without a mortgage
Home insurance costs in Texas remain among the highest in the U.S., in part given the state’s prevalence of natural disasters. Mark Friedlander, Insurance Information Institute senior media relations director, said Texas has led the nation in billion-dollar loss events with more than 170 since the 1980s—several of which have hit Central Texas, including the 2021 and 2023 winter storms, May hailstorm and July flooding. Coupled with a growing population, and the resulting increase in homes needing coverage, Texas insurers are facing more risk than ever. Friedlander said severe local events cause more “catastrophe losses” than larger events. Scott Wade, consultant with Austin’s Birdcreek Roofing, said those factors and others are causing area residents to see rising repair costs, especially for roofs.
80K
60K
40K
Combined losses for Texas insurers During major weather events, a Texas Coalition for Affordable Insurance Solutions report shows insurers face an increase in combined loss ratios.
20K
0
Combined loss ratio
Break-even point
Overall loss
2015
90.4%
Annual cost
124% 2016 - Record hail and flood damage 2017 - Hurricanes Harvey and Irma, record hail and flood damage
Top 10 states for median annual home insurance costs
117.5%
Homes with a mortgage
Homes without a mortgage
2018
Rank
Annual cost
Annual cost
80.5%
1
Florida
$2,273 $2,140 $2,041 $1,974 $1,957 $1,814 $1,773 $1,625 $1,598 $1,538
Colorado Nebraska
$1,706 $1,656 $1,503 $1,456 $1,442 $1,408 $1,405 $1,403 $1,368 $1,364
2019
2 3 4 5 6 7 8 9
Louisiana Oklahoma Colorado
102%
Kansas
Oklahoma
91.6% 2020 - Severe hail storms 141.3% 2021 - Winter Storm Uri
Texas
Florida
Nebraska
Minnesota
Kansas
Massachusetts
Mississippi Minnesota
Texas
2022
Rhode Island Connecticut
90.9%
10
Rhode Island
2023
104.9%
SOURCES: U.S. CENSUS BUREAU, 2023 AMERICAN COMMUNITY SURVEY 1-YEAR ESTIMATES/COMMUNITY IMPACT
SOURCES: TEXAS COALITION FOR AFFORDABLE INSURANCE SOLUTIONS, TEXAS DEPARTMENT OF INSURANCE/COMMUNITY IMPACT
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