Here's what makes Texas unique when it comes to home insurance: most states worry about one or two major weather threats. Texas? It gets hit by everything. Hurricanes barrel up from the Gulf Coast. Tornadoes tear through the plains. Hailstorms the size of softballs pummel roofs across the state. And when everything can damage your home, insurance gets complicated—and expensive.
If you're a Texas homeowner, you've probably noticed your insurance premiums climbing. The average Texas homeowner now pays around $4,101 per year for coverage—more than double the national average of $2,110. That's not an accident. Between 2020 and 2024, Texas experienced 68 billion-dollar weather disasters, more than any other state. In 2024 alone, the state recorded the second-highest total insurance losses in the country at $64.4 billion.
Let's walk through what you need to know about protecting your Texas home, from understanding why your rates keep going up to making sure you have the right coverage when disaster strikes.
Why Texas Home Insurance Costs So Much
The numbers tell the story. Texas homeowners saw insurance rates jump 21% in 2023, followed by another 19% increase in 2024. Some projections suggest rates could climb another 9% in 2025, potentially pushing the average annual cost over $6,500. These aren't arbitrary increases—they're directly tied to what's happening with Texas weather.
From 2018 to 2023, Texas averaged 10.1 billion-dollar disasters per year. Compare that to 5.5 per year from 2010 to 2017, and just 2.5 per year from 2000 to 2009. The trend is clear: severe weather events are becoming more frequent and more expensive. In 2024, Texas experienced 169 tornadoes and 878 major hail events—the most of any state in both categories. Over 180,000 Texas homes were hit by hailstones larger than two inches.
Insurance companies look at these numbers and see risk. A single hailstorm can flood a carrier with claims for $20,000 to $30,000 roof replacements. When that happens repeatedly, some insurers decide Texas is too risky. Foremost, a division of Farmers Insurance, is scaling back its presence in the state. Progressive has restricted selling new homeowners policies, saying Texas storms accounted for nearly 40% of the company's losses in the second quarter of 2024. As companies leave, the ones that stay charge more.
Understanding Your Coverage Options
A standard Texas homeowners insurance policy typically covers wind and hail damage—which is good, since these are the most common causes of claims in the state. Your policy should include dwelling coverage (to repair or rebuild your house), personal property coverage (for your belongings), liability protection (if someone gets hurt on your property), and additional living expenses (if you need to live elsewhere while your home is being repaired).
But here's what trips people up: what's not covered. Standard policies don't include flood insurance. If you live in a coastal area, near a river, or in a low-lying zone prone to flooding, you need a separate flood insurance policy. This is especially important along the Gulf Coast, where hurricanes bring both wind damage (covered by your regular policy or windstorm insurance) and flooding (not covered unless you have a separate policy).
If you live in one of Texas's 14 first-tier coastal counties—Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio, and Willacy—or parts of Harris County east of Highway 146, you might need windstorm insurance through the Texas Windstorm Insurance Association (TWIA). This comes into play when private insurers won't offer you wind coverage because of hurricane risk. To qualify for TWIA, you need to show you've been denied coverage by at least one private insurer, your property meets windstorm building code requirements, and your home is in good repair.
TWIA enrollment has been climbing rapidly. In September 2023, about 73,000 homeowners were enrolled. By September 2024, that number jumped to over 100,000, with projections showing it could reach 135,000 in 2025. This growth reflects how difficult it's becoming to get wind coverage from traditional insurers in coastal areas.
The Hail Problem and What It Means for Your Policy
Hail has become one of the biggest challenges for Texas homeowners trying to maintain insurance coverage. Insurance companies are getting increasingly nervous about concentrated hail risk. If they have too many customers in one area and a single hailstorm hits, they could face thousands of simultaneous claims, each costing tens of thousands of dollars.
This has led to an uptick in non-renewals. The Texas Department of Insurance counted 79 non-renewal complaints in 2023. In 2024, that number jumped to 190. Sometimes homeowners file a single hail claim and then receive a non-renewal notice when their policy comes up for renewal. The insurer isn't necessarily saying you did anything wrong—they're just deciding they have too much exposure in your area.
If this happens to you, don't panic. Texas has a FAIR Plan (Fair Access to Insurance Requirements) that serves as a last-resort option for homeowners who can't get coverage in the regular market. Enrollment in the FAIR Plan has grown significantly, from 73,000 policies in September 2023 to over 100,000 in September 2024. It's not ideal—FAIR Plan policies are typically more expensive and offer less coverage than standard policies—but it's better than going uninsured.
How to Get the Coverage You Need
Start by shopping around. Texas has about 160 companies offering homeowners insurance, and prices vary significantly. Get quotes from at least three insurers. Be honest about your home's condition, age, and any previous claims—trying to hide information will only cause problems later.
Consider your deductible carefully. A higher deductible lowers your premium, but make sure you can actually afford that deductible if you need to file a claim. Many Texas policies have separate wind/hail deductibles, often set as a percentage of your dwelling coverage (like 1% or 2%) rather than a flat dollar amount. On a $300,000 home, a 2% wind/hail deductible means you're paying the first $6,000 of any wind or hail damage.
Invest in protective improvements. Impact-resistant roofing, storm shutters, and reinforced garage doors can qualify you for discounts and make your home more attractive to insurers. These upgrades also actually protect your home, potentially saving you from filing a claim in the first place.
Document everything. Take photos and videos of your home and belongings now, before any damage occurs. Keep receipts for major purchases and home improvements. If disaster strikes, this documentation will make filing a claim much smoother.
Texas home insurance is expensive and getting more so, but it's not optional. With tornadoes, hurricanes, and hail all threatening your home, going uninsured is a risk you can't afford to take. Take the time to understand your coverage, shop around for the best rates, and make sure you're protected against all the ways Texas weather can damage your home. Your future self—the one dealing with a damaged roof after a hailstorm or rebuilding after a hurricane—will thank you for doing the work now.
