NACOGDOCHES, Texas (KTRE) – Whether you rent or own, the rising cost of homeowners insurance in Texas is affecting you. It even caught the attention of the state auditor. According to the controller’s office to workThe average home insurance premium increased by 18 percent in 2023 compared to 2021.

with Mark Friedlander Insurance Information Institute He said one factor causing home insurance rates to rise is that Texas is considered a high-risk state due to severe weather such as hurricanes and hurricane season damage.

“Texas faces severe weather impacts year-round, and the hazards are clearly leading to more property claims,” he said.

Another factor is replacement cost. According to the Insurance Information Institute research, 55 percent cumulative increase From 2020 to 2022.

“The high cost of construction materials such as lumber and workers’ warehouses due to supply chain disruption,” Friedlander said.

There is also an increase in litigation claims. Customers file lawsuits over insurance claims.

“Claims can be resolved through the standard process, working with your insurer and having an attorney involved, which increases the cost. And if we see that trend across the country, that will mean more expensive claims,” ​​Friedlander explained.

Sometimes, high rates may lead some to look into self-insurance. This is often the case when a homeowner without a mortgage chooses to go without commercial home insurance, but this comes with great risk.

“The regret of homeowners after the storm saying, ‘I thought I’d take a chance, take the chance, and it was a really bad idea,’ because they can’t afford to rebuild or repair their homes,” Friedlander said. .

Insurance experts recommend homeowners shop for competitive rates and look for discounts.

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