Home Insurance Rising In Red State

Photo by Zac Gudakov on Unsplash

(PartiallyPolitics.com) – An overwhelming number of homeowners in Texas are worried about potential increases in their insurance premiums due to the growing threat of extreme weather events linked to climate change, as revealed by a survey from Redfield & Wilton Strategies.

The survey found that 89 percent of participants expressed concern, with 37 percent being “very concerned,” 34 percent “fairly concerned,” and 18 percent “slightly concerned” about the possibility that natural disasters like hurricanes and floods could lead to higher home insurance costs in the future.

This poll, which gathered insights from 814 eligible Texas voters from February 1 to 3, highlights the anxiety among residents regarding insurance rates in a state where the average home insurance cost is already at $4,142 annually, according to Insurance.com. This figure places Texas as the fifth most expensive state for home insurance in the U.S., well above the national average of $2,777.

Despite a slight decrease of 1.2 percent in house prices from December 2022 to December 2023, the average home value in Texas stood at $293,824 at the end of December. The poll also revealed varied perceptions among respondents about the housing market, with 63 percent observing an increase in house prices, 14 percent seeing stability, and 7 percent noting a decrease.

The U.S. home insurance sector is currently adapting to the heightened risks posed by climate change, which is expected to lead to more frequent and severe natural disasters. This situation is not unique to Texas, as states like Florida and California have also faced challenges, with Florida experiencing the highest home insurance premiums in the nation and major insurers withdrawing from the market. Similarly, California has seen a rise in premiums and a withdrawal of private insurers due to the increased risk of wildfires.

In these states, there has been a significant uptick in residents turning to insurers of last resort, such as Florida’s Citizens Property Insurance and California’s FAIR Plan, which primarily covers fire damage.

While Texas has not yet experienced a crisis on the scale of Florida or California, the survey indicates that residents are increasingly apprehensive about the future. Among homeowners with insurance, 56 percent of survey respondents acknowledged owning a house and having home insurance, while 39 percent did not own a property or have insurance coverage for it. Moreover, 72 percent of insured homeowners reported that their premiums had risen over the past year, underscoring the growing concern over insurance costs in the face of climate change.

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