How Texas Weather Impacts Homeowners Insurance

They say everything is bigger in Texas, and unfortunately, insurance premiums are no exception. If you live in Texas, you can expect to pay a few hundred dollars more than the national average for homeowners insurance. In fact, the average Texan is paying about $1,100 to insure their home.

The reality is that the additional cost is the result of exposure to hurricanes, unsettling foundations and regular flooding. When you consider these serious risks, it should be easier to understand why Texans pay more for their insurance.
The cost of homeowners insurance in Texas has been high for a very long time, so most residents have become accustomed to paying higher rates.

The Role of the Weather in Texas

The Texas Housing Authority has released a number of statistics and reports, and according to these reports, the average Texan is about eight times more likely to file for bankruptcy than the rest of the nation, and age, gender and race have nothing to do with this statistic.

It’s true that many tragedies cause Texans to file for bankruptcy, and these tragedies might not have anything to do with the weather, but the fact remains that severe weather plays a major role in the bankruptcy statistic. When most people think about Texas, they probably envision beautiful sunny days and peaceful landscapes.

The reality is that Texas is home to a wide range of weather patterns, and a lot of the weather in Texas can be extremely severe. Depending on the type of real estate you own in Texas, you could be more or less vulnerable to the swift changes in weather.

Overall, the weather patterns in Texas are somewhat stable, but when the outliers hit, they tend to hit extremely hard, which is why they can result in millions of dollars in homeowners insurance claims.

Huge amounts of rain and wind are known to hit Texas incredibly hard, and the changes in weather that occur during the different seasons are known to be especially rough on wood frames and certain metals. If you live in Texas, you should make sure to have a plan that protects you from the wide range of weather conditions.

Seasonal Weather Changes in Texas

You should never wait for severe weather changes to occur to get a homeowners insurance policy because even minor changes can cause significant damage. The weather changes that take place during fall, summer, spring and winter can cause severe damage to certain portions of your home, and if you don’t have an insurance policy, you won’t be covered for your losses.

Heavy rain or snow can cause wood to warp, and if your home suffers this type of damage, it could be a very long time before you even notice the damage. An insurance policy will protect your home and pay for an essential repairs. It’s a well-known fact that heavy weather usually hits Texans unexpectedly, which leaves virtually no time to prepare.

Flooding and severe snow storms have been known to occur without warning and cause millions of dollars in damages. Depending on the situation, the weather might even indirectly cause harm to your family, and without a proper homeowners insurance policy, you could be left paying for the medical bills.

Tornados in Texas

A number of different natural disasters can occur in Texas, but unfortunately, tornados are quite common. Every year, about 132 tornados rip through Texas and cause massive amounts of damage. The panhandle and North Texas are especially notorious areas for tornado spawning.

Out of these tornadoes, about 76 percent end up turning into EF0 or EF1, which can have wind speeds up to 110 MPH. When you compare these wind speeds with the 322 MPH wind speeds of EF5 tornadoes, they might not seem like much, but there is no denying the fact that they can cause serious damage to homes and other structures.

If you lose a portion of your garage or roof to a tornado, you need to know someone will pay for the damage, which is why you need an insurance policy. A lot of people don’t ask their insurance advisor about natural disaster protection.

Severe weather is one of the major reasons why Texans end up paying so much more money for homeowners insurance. Another interesting fact is that nearly half of all horses owned in the United States reside in Texas. With so many personal animals in Texas, it’s no wonder why insurance premiums are high.

Foremost Insurance Policies

Foremost can provide coverage for mobile home owners in Texas. However, they also offer several other types of insurance policies. In fact, Foremost has already issued over one million insurance policies to mobile home owners.

The foremost insurance company was started in 1952 and was originally created to provide insurance to mobile home owners. After being in business for 9 years, they expanded and started offering insurance in almost every part of the United States.

The operation started with only a few employees and quickly grew to a massive operation. Today, Foremost is even working with AARP and offering motorcycle insurance. The company offers insurance for a wide range of needs and helps Texan residents get their homes properly insured.

Currently, humans have no way to control the weather, so when it comes to huge weather systems pounding Texas, there is no end in sight. Homeowners can protect their assets with an insurance policy from Foremost. With the right policy, you can protect your home from tornados, severe snow and other damaging weather conditions.

Although the premiums for homeowners insurance will remain high in Texas, it’s no excuse to skip getting coverage. A small monthly premium could offset hundreds of thousands of dollars in damages caused by the next severe weather system that passes through Texas.



Homeowners Insurance in Texas

The cost for homeowners insurance in the state of Texas is on the relatively high side. In fact, Texas is the third most expensive state for homeowners insurance in the nation. Most homeowners are paying about $1,700 a year in premium costs. And it has been estimated that homeowners insurance costs are going to continue to increase. The only two states that have higher homeowners insurance premiums are Florida and Louisiana.

The Texas Department of Insurance mentioned that the average price that individuals were paying for homeowners insurance went up more than 26 percent between the years 2010 and 2014. The main reason why Texas has such high rates for homeowners insurance is because the amount of different catastrophes that occur in the state.

Texas is one of the few states that can experience violence from all different types of harsh weather. The variety of catastrophes that can occur in Texas include droughts, wildfires, severe storms, hurricanes, hail and floods. The weather in the state of Texas has been at times described as extremely violent. Not only does the possibility exist that all of these things can take place, but there is also the high possibility that the weather will change quickly, which can lead to even more damage.

There are many homeowners in the state of Texas who have not had their homes damaged by natural elements. However, this has not stopped their rates from going up. A report that was done by the Texas Department of Insurance mentioned that in just the first six months of the year 2015, more than $1.8 billion in direct losses were sent out to homeowners from insurance companies.

When homeowners insurance policies are offered to homeowners, the way they determine the cost will include that average cost of disasters as well as any possible costs from future disasters. Just one disaster will not affect insurance rates. However, when they are looked at over a few years, this affects the premiums that individuals pay in homeowners insurance.

Does this mean that there is nothing that homeowners can do about the high prices they are paying for homeowners insurance? No. There are still steps that homeowners can take to save money on this necessary insurance. One study was done that showed that the longer a customer stays with the exact same homeowners insurance policy, the more likely it was that they would be overpaying. This underscores the importance of shopping around for the best rates.

The key factor that individuals want to take into consideration when shopping around for homeowners insurance is making sure that the policy covers everything that may occur in one particular area. Texas residents need to be sure that their homeowners insurance policy not only covers flood damage, but that it also covers storm damage. Certain endorsements can be included in homeowners insurance policies that can cover damage that is not always expected.

One thing that homeowners in the state of Texas want to take into consideration is the damage that may occur because of fracking. The vast majority of homeowners insurance policies will not cover this unless certain endorsements have been included. It is possible for homes to be damaged in areas where fracking has occurred. This may include earthquakes, explosions, fires, and cracks that can be seen in the ceiling and walls of a home. Two specific endorsements that homeowners should ask their insurer about include earthquake endorsements and environmental protection endorsements.

Unfortunately, there are many people out there who simply go with the least expensive home insurance they can find. They do so without fully understanding their policy. It’s important for Texas residents to take time to understand their home insurance policy and be sure it is right for them.