Homeowners reeling as staggering new cost sweeps across thousands of zip codes — here's what's behind the surge
Homeowners across Texas are feeling the financial squeeze as insurance premiums skyrocket, and extreme weather is a major driver.
A recent report from the Consumer Federation of America found that Texas has the sixth-highest average home insurance premiums in the U.S., at nearly $4,800. In the Dallas area, it's even worse — $4,900 a year, a 32% jump since 2021, according to the Dallas Morning News.
Why? More destructive storms, rising construction costs, and loose state oversight are all playing a part.
Texas experienced a 27% increase in premiums over just three years, according to the Dallas Morning News. The national average increase? $648. Insurers hiked rates in 95% of ZIP codes, costing U.S. homeowners an estimated $21 billion more in 2024 compared to 2021, as noted by the report.
And as climate disasters pile up, things could get worse.
In 2024, the U.S. was hit with 27 billion-dollar weather disasters that totaled nearly $183 billion in damages, according to Climate.gov. Insurers have responded by raising rates or pulling out of states like Texas, California, and Florida, citing unsustainable risk.
"One of the reasons behind this sharp premium hike is due to the rise of extreme weather events, such as tornados, hail, and severe winds and storms," Sharon Cornelissen, the director of housing for the Consumer Federation of America, said in a statement to the Dallas Morning News.
This crisis doesn't just impact insurance. For many, coverage is the only thing keeping them in their homes, especially with most lenders requiring it. Without affordable options, more families could be forced to leave the places they've lived for generations.
Officials are scrambling to stabilize markets, even relaxing rules to keep insurers in-state. But these short-term fixes may not be enough as climate risks grow.
The root of the crisis is our changing climate, fueled by burning dirty energy like oil and gas. But there's hope.
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Global renewable energy capacity grew by 50% in 2023, and Americans now have more access than ever to solar panels and community clean energy programs — many of which come with incentives and savings.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
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