Homeowners Insurance Premiums Go Through The Roof in Texas

Although the cost of homeowners insurance premiums has increased slowly over the years, homeowners are now paying anywhere from 7-8% more than they have in the past. In addition to a rise in hail litigation, homeowners insurance companies have also experienced an increase in the number of roof replacement claims they have received as well.

Major Storms Have Caused Significant Damage to Roofs in Texas

Over the past several years, billions of dollars have been paid out by homeowners insurance Houston companies to cover all types of homeowners insurance claims. Although there has been a high incidence of flooding and other structural damage, home insurance companies have received many more claims for damage to roofs than ever before. Although many roofs only need to repaired, many of them need to be replaced as well. Whether a homeowner needs to have their roof repaired or replaced, these types of claims are expensive.

The Homeowners Insurance Increase is Questionable

Despite the surge in the number of storms and increase in claims filed, homeowners insurance companies are doing well. As such, many believe that the 7-8% increase in homeowners insurance premiums is not necessary. Although insurance companies may be doing well, insurance companies are charging more because they factored in all the roof replacement claims they have had to cover and the risk of future storms. In addition, the cost of hail litigation has also been factored in as well.

Over the years, insurance companies in Texas have paid out billions of dollars to cover a combination of auto insurance and homeowners insurance claims. Even if an insurance company is doing well, insurance companies always have to plan for the future and the impact of future storms. As such, homeowners are being asked to pay more to keep their coverage.

Premiums Are Based on Location of Property and Other Factors

As many have discovered, the rates for homeowners insurance premiums can be significantly lower from one zip code to another. In fact, the rates are often as high as $200 more in one zip code over another. As such, it pays to do a little research on premiums based on the location of a property. However, there are many other factors that can drive the cost of insurance up as well. When generating a quote for homeowners insurance, insurance companies also take the time to evaluate the number of claims filed by homeowners, credit history and many other factors as well.

Homeowners May be Able to Save Money on Premiums

Homeowners who think they may be paying too much for insurance should take the time to make sure they aren’t. By taking the time to do some research and comparative shopping, residents of Texas may be surprised to learn that they may be able to save as much $200 per year or more on their homeowners policy. This is especially true for residents of Texas who live in select zip codes.

Although many insurance companies claim that an increase in roof replacement claims has led to an increase in premiums in Texas, there are several other reasons why insurance companies have increased their premiums. Even with the increase, residents will find that they do not have to pay through the roof for homeowners coverage. As many homeowners in Texas go onto discover, there are many different ways to save money on premiums.