Home insurance premiums in Texas have been on the rise, and Lubbock residents are feeling the pinch. According to Ronald Hettler, president of Hettler Insurance Agency, rate decreases are rare, with most homeowners experiencing significant increases in their premiums. In 2013, the average homeowner’s annual premium was $1,646, but by 2022, that number had jumped to $2,374. This trend is not unique to Lubbock, as it is seen across the state.
Hettler attributes these increases to two main factors: weather catastrophes and inflation. Texas has seen its fair share of weather disasters, with 179 events since 1980 totaling more than a billion dollars in damage each. In the past two years alone, there have been 32 such events, with more expected as hurricane season continues until November 30. These billion-dollar claims have a significant impact on insurance companies, leading to higher reinsurance costs.
Reinsurance costs are what insurance companies pay to cover these large claims, and when they increase, it ultimately trickles down to homeowners in the form of higher premiums. In addition to weather-related factors, inflation is also playing a role in driving up insurance costs. The cost of materials, such as roofing materials, has risen by 40% in the last three years, further contributing to the overall increase in premiums.
Despite these challenges, there are steps homeowners can take to lower their insurance rates. Increasing your deductible, improving your credit score, and ensuring you are receiving all eligible discounts are some ways to potentially reduce your premiums. It’s also a good idea to periodically review your policy and compare rates from different insurance companies to ensure you are getting the best deal.
In response to the rising insurance premiums, Texas Lieutenant Governor Dan Patrick and House Speaker Dade Phelan have ordered committees to hold hearings on the issue before the legislature meets in January. The focus will be on the impact of rising costs and finding ways to increase consumer transparency in the insurance industry.
Overall, the increase in home insurance premiums in Texas, including Lubbock, is a complex issue driven by weather disasters, inflation, and reinsurance costs. By being proactive and exploring ways to lower rates, homeowners can better navigate these challenges and ensure they are adequately protected without breaking the bank.