Home Insurance in Texas Projected to Increase in 2026

2026 Projections Show Continued Growth

Home insurance rates in Texas are projected to rise by approximately 9% in 2026, potentially pushing the average annual premium above $6,500. This follows a dramatic escalation in recent years, with Texas experiencing some of the fastest-rising insurance costs in the nation.

Recent Rate History

Home insurance premiums in Texas rose 21% in 2023 and another 19% in 2024, bringing the average annual premium to around $3,851. However, more recent data suggests the situation has worsened significantly. By the end of 2024, the average cost reached approximately $6,000, nearly double the national average of $3,200.

What's Driving the Increases

The projected 2026 increases stem from multiple compounding factors. Texas has experienced 68 separate billion-dollar disasters over the last five years, making it particularly vulnerable to natural disasters. Recent catastrophic events like Hurricane Beryl and the May 2024 derecho have further strained insurance companies' finances.

Insurance giant Swiss Re Group estimates natural disasters will cause $145 billion in global insured losses in 2025, with the United States accounting for nearly 80% and Texas among the top five affected states. Rising construction costs, labor shortages, and inflation continue pushing repair expenses higher, forcing insurers to raise premiums to cover potential claims.

Limited Relief in Sight

The Texas Windstorm Insurance Association's Actuarial & Underwriting Committee recommended in July 2025 that the board not request premium changes for 2026. However, this only applies to the state-run windstorm program, not the broader private insurance market.

Long-Term Outlook

Average premiums for Texans have jumped 43% since 2023 and are expected to rise by about $500 in the current year. Experts warn that climate change will continue driving more frequent and severe weather events, making further increases inevitable beyond 2026.