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Everyone is in Texas. From condos to houses.
Insurance rates across the county are up. That kind of increase I’ve seen mainly in Florida but Texas doesn’t entirely surprise me. Where roughly in the state?
Yup makes sense. Lot of locations on the gulf are insanely expensive now insurance wise
Same thing with our condo in FL. This is crazy
Subject Expert
Is this on the coast/Houston? Is it an area subject to hurricanes, tornadoes, or wildfire? What’s driving this kind of increase?
EY1 - When you keep having once in a century storms every 5-7 years of course the insurance rates will rise. Houston has only grown bigger, and while new construction is more mindful of water management, the older parts of Houston don’t necessarily have the infrastructure to handle a storm bigger or slower than Harvey at the moment. They are working on it though. Houston is also designed to flood.
Not to mention the other parts of Texas that are prone to tornados, wild fires, and aerial/flash flooding during severe thunderstorms.
If another big, slow hurricane like Harvey pops up with even more rain + side tornadoes? It’s a lot of potential damage.
Also, I cannot remember which fire in California changed the game for fire insurance. I think it was Woolsley. But a town that was mostly cement burned down. Before that fire, that was considered a low fire risk area. But the fire burned so hot and for so long it caused more than just smoke damage.
For OP, I think the condo collapse in Florida contributed to the rate hikes for condos specifically needing more catastrophic coverage to operate.
Texas and Florida are horrendous for insurance right now. So hard to get decent coverage and if you can get a quote for good coverage, premiums are crazy.
I have a house in Houston, my overall insurance didn't go up a huge amount, but my previous windstorm insurance was discontinued and had get another provider to cover it.
Not related, car insurance has definitely spiked up for people here.
Mentor
There is a well documented reason for this, as Texas becomes the most expensive place to insure
1) Texas (and Florida) have far more natural disasters due to climate change
2) more people are moving there, so all of those homes need to be protected
https://www.cbsnews.com/amp/texas/news/texas-home-insurance-prices-could-soon-become-the-highest-in-the-country/
Sounds about right, be careful where you buy. I work in the insurance industry. I listen in on the state of the industry, even though I’m on the tech side. Claims were extremely high last year. Also the bond market killed us. Similar to banks we buy bonds with customer premiums. So we buy bonds at 3% interest, rates go up to 5%. Apparently we lost a few billion dollars in that scenario. Also we’re exiting high risk markets. I’m not on the financial side of things, but I imagine if a house in Northern California, Texas, Florida is at such a high risk that it can’t be insured it’s value is significantly decreased. Especially as we’re better able to assess the risk to particular houses through A.I. and Machine learning models.