The Average Cost of Texas Home Insurance Explained
The average cost of Texas home insurance in 2009 was $1409 which is 58 percent higher than it was in 2008. Further, it is 58 percent higher than the next highest state which is Florida. In fact, the national average for homeowners insurance is only $804.
The reason the average cost of Texas home insurance is so high is because of the number of claims due to hail, tornado and wind damage. There also is the issue of mold. In 2003, the state legislature passed a law requiring companies to pay out for mold treatment. This increased the overall cost of homeowners insurance as well. While both mold and weather damage are low-ticket items, there are a lot of them so it adds up.
Is it fair that Texas residents have to pay so much for claims that are low compared to hurricanes and earthquakes. Well, you have to realize that in Florida, for instance, homeowners are required to purchase a separate hurricane rider which is in addition to their normal homeowners insurance. This makes the cost of their homeowners insurance look like it is lower but for comprehensive coverage, they need additional insurance.
Another issue is catastrophe funds. Texas requires it while other large states like Florida and California do not.
But Texans don't see any relief in these cold hard facts. In fact, what they do see is that their insurance rates have been rising by double digits year after year.
The state legislature is considering what they can do to lower the insurance rates. One proposal will require the largest insurers to get permission from the state to increase their rates. However, if they make their requirements too stringent, insurers may just up and leave the state so they have to be careful about the policies they make.
Still, as long as the Lone Star State continues to have weather related home damage, you can expect the average cost of Texas Home insurance to increase every year.
The reason the average cost of Texas home insurance is so high is because of the number of claims due to hail, tornado and wind damage. There also is the issue of mold. In 2003, the state legislature passed a law requiring companies to pay out for mold treatment. This increased the overall cost of homeowners insurance as well. While both mold and weather damage are low-ticket items, there are a lot of them so it adds up.
Is it fair that Texas residents have to pay so much for claims that are low compared to hurricanes and earthquakes. Well, you have to realize that in Florida, for instance, homeowners are required to purchase a separate hurricane rider which is in addition to their normal homeowners insurance. This makes the cost of their homeowners insurance look like it is lower but for comprehensive coverage, they need additional insurance.
Another issue is catastrophe funds. Texas requires it while other large states like Florida and California do not.
But Texans don't see any relief in these cold hard facts. In fact, what they do see is that their insurance rates have been rising by double digits year after year.
The state legislature is considering what they can do to lower the insurance rates. One proposal will require the largest insurers to get permission from the state to increase their rates. However, if they make their requirements too stringent, insurers may just up and leave the state so they have to be careful about the policies they make.
Still, as long as the Lone Star State continues to have weather related home damage, you can expect the average cost of Texas Home insurance to increase every year.
About the Author:
The average cost of Texas Home Insurance is just one of the topics covered at http://homeinsuranceprovider.net. Go there right now to find other valuable insurance resources.
