Americans across the country are concerned about the fact that homeowners insurance rates are continually increasing. Individuals in the state of Texas are especially concerned about this since it has been estimated that Texas is included in the top three states that are experiencing steep hikes in homeowners insurance rates. In fact, it has been noted by the Texas Department of Insurance that the average Texan is paying more than $1,745 each year on homeowners insurance premiums. Why are insurance rates so high in the state of Texas?
One of the factors that plays the largest role in high homeowners insurance rates in Texas is the weather. Texas can experience violent and rough weather throughout the entire year. On the one hand, there are times when Texas is dealing with a drought. On the other hand, there are times when there are severe hurricanes, flash floods, and nonstop rain. Included in the rough weather is also tornadoes and hail. All of these things can cause serious damage to homes and cause homeowners insurance premiums to go up. While it is true that just one disaster will not cause premiums to skyrocket, when they are looked at over the past couple of years and then foreseeable disasters are anticipated in the future, homeowners insurance premiums will go up. In fact, it was estimated that between January and June 2015, almost $2 billion in direct losses were sent out to Texas residents from insurance companies.
All of these things may cause a Texas resident to wonder if there is anything they can do to lower their homeowners insurance premiums. The good news is that there are a couple of steps they can take to save money. First of all, it is not always wise for a Texas resident to stick with the same policy they have always had. In fact, the Texas Department of Insurance has noted that when a person sticks with just one policy for many years, they may be spending a lot more money than is necessary. The best thing that a person can do is look at their homeowners insurance policy on a regular basis and make sure that the price they are paying is comparable with the going rate and all of their needs are still covered.
Fortunately, there are a lot of online sites that allow a person to compare homeowners insurance rates. After entering some basic information about themselves and their home, they will be able to get a quote. Price is not the only thing that homeowners need to be concerned about though. They need to make sure they pay close attention to what is actually covered in a policy. Their needs may change from time to time. For example, having certain types of dog breeds in a home and can either make an insurance policy go up or down. So if you have recently lost your pit bull in death or have given your dog away, your insurance premium may go down.
Another thing that Texas residents want to pay close attention to while looking at homeowners insurance is special endorsements that can be added to their policy. For example, many individuals are concerned about damage that may come to their home as a result of fracking. There is always the worry that small earthquakes will cause walls and the ceiling to crack. Also, there is the risk of fire and explosions. The vast majority of homeowners insurance policies do not cover damage that has come as a result of fracking. However, certain endorsements can be added that will cover damage from environmental factors as well as earthquakes.