A recent exodus of insurance companies from the Greater Houston area combined with an upward trend in nationwide disasters has led homeowners insurance rates to increase.

Cass Moore, the owner of Goosehead Insurance agency in The Woodlands, said rates for homeowners insurance have increased by 22% on average this year. Mortgage lenders require homeowners to have homeowners insurance to cover repairs or reconstruction in the event of a disaster, such as a fire or storm, that damages a home.

“Nationally, rates are increasing at an unprecedented amount,” Moore said.

And it’s not over yet. Rates are likely to climb again next year before hopefully stabilizing in 2025, Moore said.

Rising insurance rates locally are a reflection of wider trends. National disasters, such as tornadoes in Alabama and wildfires in California, affect rates in Houston, he said.


Since 2020, there have been over 22 U.S. disasters that cost at least $1 billion in insurance claims, Moore said. One of those events was Winter Storm Uri, which hit Texas in February 2021.

“That was a multiple-billion-dollar event that happened,” Moore said.

Insurance companies raise rates nationally to make up these losses, Moore said.

Also contributing to the Greater Houston area’s rising homeowners insurance rates is the area’s proximity to the Gulf Coast. Being close to the coast makes the area at higher risk with a higher amount of claims, Moore said.
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A handful of insurers have entered the Greater Houston area market only to leave because its proximity to the coast makes it hard to be profitable, he said.

“Companies are losing millions and millions of dollars,” Moore said.

Inflation and supply chain issues also play a role. Due to past shortages in lumber and other materials to rebuild houses, it costs more to insure them, Moore said.

Moore encouraged residents facing large increases in their homeowners insurance rates to shop around. Residents are eligible for major discounts if they get a new roof or a home security system, Moore said. Since 1980, adjusted for inflation, there has been an upward trend of billion-dollar disasters in the U.S., which raise insurance rates. So far in 2023, 99 people nationwide have died in nine billion-dollar events, most of which were severe storms.