AUSTIN, Texas - A report from the Texas Department of Insurance says that homeowners insurance premiums in Texas have gone up 21 percent since 2009.
The report that state Insurance Commissioner Eleanor Kitzman presented to a Senate committee Tuesday showed that the average premium on a homeowners policy in Texas last year was $1,412. The report found that the average loss on an insurance claim in Texas is among the highest in the country, which contributed to high premiums.
The Dallas Morning News reports that there are several reasons behind the increase, including insurance industry models that project greater property losses in Texas from natural disasters including hurricanes, hail storms and wildfires.
Another contributing factor is increased insurance company expenses and declines in interest rates that have cut investment returns for insurers.