While the 2024 average saw a smaller increase at 18.7%, severe weather coverage and other home insurance challenges continue to drive up premiums across the state.
In the San Antonio area, the most prominent coverages include fire, flood and wind and hail, said Lisa Smith, personal team lead at Miller & Miller Insurance Agency.
What you need to know
Home insurance premiums are dependent on various aspects of a property, including the appraised value, the age of the home, the property's location and other factors.
Smith said that some insurance agencies have stopped covering homes in the area due to concerns about wildfires.
While the area has not had a wildfire, the ongoing drought has led to increased risks of fire, and some homes are within the areas marked as the highest risk.
Aside from fire, Smith said the most common claims in the area are due to wind and hail. Smith said the average claim will cover around 2% of a property’s value for wind and hail damage, but homeowners should be wary of what is filed for a claim.
“Insurance is for those really big moments,” Smith said.
With an increase in hail-related claims and increasing roof replacement costs, agencies have also become more strict about the type of roof coverage included in a premium, often meaning homeowners will have to cover most roof repairs out of pocket.
Breaking it down
Statewide, insurance rates increased by single-digit values year over year until 2022, when rates increased by 10.8% on average.
Between 2022 and 2023, the average increase saw a 10.3 percentage point jump to around 21.1% before decreasing to an 18.7% increase in 2024.
While rates are trending down compared to 2023, insurance rates continue to climb, according to TDI data.
The takeaway
TDI officials recommend that consumers regularly shop for coverage to get the best rates.
Homeowners are encouraged to carefully select their deductibles. Policies with higher deductibles generally have lower premiums, but require homeowners to pay more out of pocket for a claim.
To help homeowners get the best rate or information on home insurance, TDI helped create policy comparisons for Texas insurance companies at www.helpinsure.com.
Smith said talking to local agents can also help get the best rate, since local agents usually have the most up-to-date knowledge and information on a specific region.
