Texas Home Owners Insurance through the roof in 2023

If you are purchasing your home in Texas, calculating your monthly escrow payment will include your insurance payment. This year insurance rates have increased between 20% to 40%. Calculating your home's monthly payment should include a cushion for an increase this year.

There are a number of factors contributing to the increase in homeowners insurance rates. These include:

• Rising construction costs: The cost of building materials and labor has been rising steadily in recent years. This is due to a number of factors, including the COVID-19 pandemic, supply chain disruptions, and the war in Ukraine. As a result, it is more expensive for insurers to rebuild homes after a loss.
• More frequent and severe weather events: Climate change is leading to more frequent and severe weather events, such as hurricanes, tornadoes, and wildfires. These events are causing more damage to homes, which is driving up insurance claims.
• Increased risk of theft and vandalism: The risk of theft and vandalism has been rising in recent years. This is due to a number of factors, including the economic downturn and the rise of social media. As a result, insurers are taking on more risk when they insure homes.
• Changes in underwriting standards: Insurers are becoming more selective about the homes they insure. This is due to the increasing risk of losses. As a result, homeowners who live in high-risk areas or have older homes may find it more difficult to get insurance or may have to pay higher premiums.

It is important to stay informed about the latest trends in homeowners insurance rates. By taking steps to protect yourself, you can help reduce the impact of the increase in premiums.

In my next blog, which will post next Friday, I will share some tips for homeowners who are looking to save money on their home insurance. Check back then!

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