Texas in Crisis: Home Insurance Costs Are Spiraling Out of Control

The state’s failure to rein in skyrocketing premiums is pushing homeowners to the brink

There’s a growing storm in Texas, and I’m not just talking about the weather.

Across the state, home insurance premiums have shot up at alarming rates. Families who have lived in their homes for decades are now being forced to choose between affording basic coverage—or walking away from everything they’ve built.

This crisis didn’t come out of nowhere. Texas has seen an increase in the frequency and severity of weather events—hail, hurricanes, flooding, and tornadoes—all of which have put pressure on insurance companies. In turn, insurers are raising deductibles, hiking premiums, and in some cases, pulling out of entire zip codes. One major company just increased its wind and hail deductible from 1% to 2%, and it’s becoming the new standard. On a $300,000 home, that’s a $6,000 out-of-pocket hit before coverage even kicks in.

And let’s be clear: this isn’t just a coastal problem. From Dallas to San Antonio to the Hill Country, no region is being spared.

Earlier this year, Texas lawmakers claimed they would tackle the issue. There were promises of reform, transparency, and affordability. But when it came time to act, most of the boldest measures failed to pass. Instead of protecting homeowners, the state has once again protected corporate interests.

Meanwhile, residents are drowning—not from floodwaters, but from unaffordable policies and vanishing options. Some are being forced into risky bare-bones coverage. Others are being denied renewals altogether. And it’s not just working-class families—this is hitting retirees, teachers, and middle-class homeowners who never imagined insurance would become a luxury.

What’s worse, this creeping affordability crisis could snowball into a housing market disaster. If people can’t insure their homes, they can’t refinance or sell. Mortgage companies may pull out. Communities that were once stable could face waves of displacement.

So here’s the bottom line:

Texas is heading toward an insurance-driven housing crisis. And unless something changes fast, many homeowners may find themselves one storm away from financial ruin.

It’s time to stop pretending this is normal.

What You Can Do:

• Call your state representative: Demand legislation that protects homeowners, not just insurance companies.

• Compare policies yearly: Some regional or mutual insurers may offer better terms than national brands.

• Document everything: Keep a detailed record of communication with your insurer and get repair quotes independently.

• Talk to neighbors: Many people are struggling silently—sharing resources can make a difference.