FACT SHEET: The Home Insurance Affordability Crisis In Texas

Home insurance affordability is a crisis hitting Texans directly in their wallets — putting their most valuable asset at risk, threatening their financial security, and placing the American dream of homeownership out of reach for many. 

1. Insurance costs are skyrocketing nationwide — and Texas families are feeling the pinch. 

• Climate change is driving a nationwide home insurance crisis that is raising home affordability costs for many Texas families. Home insurance premiums rose in 95% of U.S. zip codes between 2021 and 2024, and in Texas, home insurance premiums have increased by 55.9% since 2020. 
• Texas homeowners are paying an average annual premium of $6,000. Texas has some of the highest home insurance premiums in the country and Texas homeowners are paying nearly double the national average.
• Home insurance is becoming a top affordability concern for Texas voters. Nearly all Texas homeowners (92%) are concerned about the cost of their home insurance premiums, and almost two-thirds (63%) of Texans place insurance costs higher on their list of concerns than grocery prices (57%), utility costs (46%), and gas prices (25%).

Key takeaway: Rapidly rising insurance premiums are becoming one of the biggest drivers of household financial strain for Texas homeowners — rivaling or surpassing everyday cost-of-living pressures. 

2. Texas’s home insurance crisis is tied to housing affordability.

• Rising home insurance premiums put Texas homeowners at a disadvantage. Higher premiums also reduce home values—by as much as $40,000 in the most climate-exposed communities.
• A majority of homebuyers see rising home insurance premiums as an obstacle to buying a home. 76% of Texans believe that the soaring cost of home insurance is making it even more expensive to buy a home and conversely, making it harder for Texas homeowners to sell.
• As premiums go up, more Texans are likely to fall behind on mortgage payments. Borrowers are 20% more likely to experience mortgage delinquency following even just a $500 increase in annual home insurance premiums.

Key takeaway: Home insurance costs are reshaping the Texas housing market — lowering home values, discouraging buyers, and increasing the risk of mortgage instability.

3. The growing number of climate disasters in Texas puts a strain on insurance access and affordability.   

• Texans expect their premiums to increase due to climate change. Texas homeowners (65%) are very concerned that their premiums will continue to go up in the next few years, and a majority (66%) believe that climate change and extreme weather will impact their insurance costs.
• In addition to affordability, home insurance access is a growing problem in Texas. Since 2021, there have been at least 33,700 cancelled home insurance policies in Texas, and at least five companies announced plans to halt new business or exit the state’s insurance market altogether.
• As climate change becomes more costly, insurance companies are denying claims. In 2024, Texas experienced 20 unique climate disaster events (floods, droughts, storms, hurricanes, and more) with losses exceeding $1 billion. Despite this, nearly half of claims filed with Texas home insurers were closed without any payment to the homeowner.
• Low-income, seniors, Black and Latino homeowners are bearing the brunt of the insurability crisis. Black homeowners and Latino homeowners are more likely to be uninsured or underinsured. Meanwhile, seniors in Central Texas saw their claims denied following the catastrophic 2025 floods.
• Texas voters see action and accountability as solutions for the insurance affordability crisis. 90% of Texas voters want policy solutions to reduce the cost of home insurance. A majority of Texans blame the state government and the Texas Insurance Commissioner for rising premiums, as well as insurance companies.  

Key takeaway: More frequent and costly disasters leave millions of Texans paying more for home insurance while getting less protection from climate change.

BOTTOM LINE

Texas’s home insurance crisis is an affordability crisis. Escalating extreme weather disasters are forcing homeowners to make do with less — less coverage, less financial stability, and less protection from the ongoing threats of climate change.