Texas and Oklahoma have the highest home insurance costs in the U.S.
Add Axios as your preferred source to
see more of our stories on Google.
Home insurance premiums are on the rise nationwide, and Texas remains one of the states with the highest rates.
Why it matters: Homeowners have experienced major cost of living hikes because of rising property taxes, electricity bills and insurance premiums.
The big picture: Texas' effective rate change for owner-occupied homeowners insurance increased 23% in 2023, per S&P Global. It was the highest increase of any state.
- Oklahoma and Texas now have the highest average home insurance costs in the country, more than double the national average, per a NerdWallet analysis.
- U.S. home insurance rates are expected to reach a record high this year, per Bloomberg.
State of play: Texas' severe weather events have caused $402 billion in damages since 1980, more than any other state.
- The losses have fueled an increase in insurance premiums as companies recoup payouts and anticipate upcoming expenses.
- The average cost of $300,000 of dwelling coverage in Texas is $4,400, per NerdWallet. The national average is $1,915.
The intrigue: Our neighbors to the north pay an average of $5,500 for similar coverage — another reason to never live in Oklahoma.
How it works: Insurance companies set their rates based on anticipated payouts and have to get approval from state regulators before the hikes go into effect.
- And because most policies have a 12-month term, policyholders don't immediately experience the effects of natural disasters.
Zoom in: In Dallas, the average annual cost of $300,000 of home insurance coverage is $5,045, per NerdWallet. In Fort Worth, the average annual cost is $5,335.
- Houston's is even higher, at $6,610.
What's next: Insurance premiums may keep rising as climate change intensifies weather events, including wildfires and storms.