If you’ve bought or renewed a home insurance policy in Texas recently, you already know: it costs more than it used to. This isn’t a one-time bump. It’s the fifth straight year insurance costs have risen nationally, and Texas is one of the states feeling it hardest. I want to talk about what’s actually driving this and, more importantly, what it means if you’re buying or selling in Greater Houston right now.
Where Rates Stand Right Now
Major insurers have filed significant rate increases in Texas this year — Allstate alone filed an 8% adjustment affecting roughly 852,000 policyholders statewide, one of the largest single rate impacts filed anywhere in the country this year. Other carriers have filed increases well into the double digits. Texas homeowners are now paying an average of $4,000–$4,500 a year for coverage, though that number swings enormously by location — homes closer to the coast, including areas with more storm and flood exposure, run considerably higher than homes further inland. Zoom out, and Texas premiums have climbed more than 55% since 2019.
What This Means If You’re Buying
Insurance is no longer a formality you handle the week before closing — it needs to be part of your budget conversation from day one. A home that looks affordable on the mortgage calculator can look very different once you add in a realistic insurance quote. My advice: get a quote early in the process, not after you’re under contract, so there are no surprises. It’s also worth asking about a home’s claims history, roof age, and foundation — all things that move your premium up or down.
What This Means If You’re Selling
Buyers are more insurance-savvy than they used to be, and some are walking into showings already worried about what coverage will cost. If your home has a newer roof, updated electrical or plumbing, or storm mitigation features, make sure that’s front and center in your listing — it can genuinely ease a buyer’s mind and protect your sale price. If you’re not sure how your home’s age or systems affect insurability, that’s worth a conversation before you list, not after an offer falls through.
The Bigger Picture
None of this means Houston real estate isn’t a good move — it means going in informed. Insurance is one more piece of the puzzle, alongside mortgage rate and price, that determines what a home really costs you month to month. The buyers and sellers who come out ahead right now are the ones who plan for it instead of getting surprised by it.
A note on the numbers above: insurance rates vary by carrier, location, and individual property, and they change often. Treat these as general, current-as-of-publication figures — talk to a licensed insurance agent for a quote specific to your address.
Have Questions About What a Home Will Really Cost You?
I’d love to help you think through the full picture — mortgage, taxes, and insurance — before you buy or list. Reach out and let’s talk about your next move.