Average Cost of Texas Home Insurance
The National Association of Insurance Commissioners says the average cost of Texas Home insurance in 2009 is $1409, a 28 percent increase over 2008. That’s 58 percent higher than in Florida, which is the next most expensive state. The national average for home insurance is just $804.
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.
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.
But this comes as no relief to Texans who have seen their rates rise by double digits each year for some time now.
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.
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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