SAN ANTONIO – Texans are no strangers to extreme weather, with everything from hailstorms and flash floods to wildfires and tornadoes becoming part of everyday life. While storms may pass quickly, their consequences often stick around for years, impacting insurance costs and policy terms.
As insurance companies face rising payouts due to these weather-related disasters, they are changing how they assess risk, affecting homeowners across the state.
Texas weather can switch dramatically; one week might see scorching triple-digit temperatures, while the next could bring fierce storms with damaging winds and hail.
Rich Johnson, director of communications for the Insurance Council of Texas, explains that insurance companies are adapting to these increasing risks in various ways.
“We’ve seen a couple of different strategies,” Johnson said. “There’s been some changes in deductibles, but there’s also been price increases. We’ve seen our home insurance and even auto insurance increase, especially after the last five years.”
Insurance companies evaluate the frequency of weather events, the cost of damage, and their risk tolerance when setting rates and policy terms.
Hail remains a top concern for insurers
For many homeowners in Texas, hail is one of the most significant financial threats.
“Hail is the number one payout that the insurance company is concerned about right now, just because of that frequency and severity,” Johnson noted.
Hail can cause damage to vehicles, windows, and siding, but roof damage typically represents the most substantial expense.
“Aside from a total replacement of a home after something like a devastating fire, that roof is the biggest expense that insurance companies are paying out on,” Johnson explained.
Recent years have seen several major hail events in North and Central Texas, leading to increased claim costs statewide.
Flood insurance often requires separate coverage
Flooding is another significant risk, particularly in South Central Texas, where heavy rainfall can quickly overwhelm drainage systems and lead to flash flooding.
However, many homeowners might be surprised to learn that standard homeowners insurance usually does not cover flood damage.
“Your typical homeowner’s policy does not cover flood,” Johnson pointed out.
Homeowners often need to purchase flood insurance separately, either through the National Flood Insurance Program or private insurers. Johnson advises homeowners not to assume they are safe just because they live outside a designated flood zone.
Wildfire risk extends beyond rural areas
Extreme heat and dry conditions can also elevate wildfire risk, particularly during Texas summers.
Experts recommend that homeowners take steps to create “defensible space” around their property, which can include clearing brush, removing dead vegetation, and keeping flammable materials away from structures.
“Make sure that you can afford those deductibles,” Johnson advised. “Shop around, get the best price you can, but there are things that you can start doing to your home, especially when it comes to wildfires.”
Texas ranks among the most weather-vulnerable states
Insurance companies are also considering risks from tornadoes, hurricanes, strong winds, and lightning strikes.
“Texas really ranks in the top five for every insurable peril, whether that’s flood, hail, wind, tornadoes, hurricanes, or lightning strikes,” Johnson emphasized. “All of those things are having an effect in Texas.”
As these risks continue to shape the insurance landscape, homeowners may experience higher premiums, increased deductibles,
