How Much Has Homeowners Insurance Gone Up in Texas?
Texas homeowners have absorbed some of the most punishing insurance premium increases in the nation over the past several years — and while the pace has slowed in 2026, the cumulative financial damage is staggering. Here is the complete picture.
The Numbers Tell a Painful Story
The data from official Texas sources leaves no room for ambiguity. According to the Texas Department of Insurance, average statewide homeowners' rate changes accelerated dramatically — rising 5.9% in 2021, then surging 10.8% in 2022, peaking at 21.1% in 2023, and remaining brutal at 18.7% in 2024, before finally slowing to 4.3% in 2025. The cumulative result is severe. The median Texas homeowner paid 60% more for home insurance in 2024 compared with 2019 — more than double the national median increase of 30% over the same period. Looked at over a longer horizon, average homeowners' insurance premiums in Texas increased by more than 55% between 2019 and 2024, while AARP Texas research found premiums rose approximately 57% between 2015 and 2023.
Real Homeowners Are Feeling It in Real Dollars
The statistics translate into real financial pain at the individual level. One Bellaire homeowner in the Houston metro area saw his premium jump 22% in 2023 and 39% in 2024 — and then surge another 78% in 2025, all without filing a single claim. His insurer explained that storms, including Hurricane Beryl and the May 2024 derecho, had caused widespread damage, forcing rate increases across all policyholders — whether they filed claims or not. Texas currently ranks among the 10 most expensive states for homeowners' insurance, with an average annual premium of $3,969 — well above the national average of $2,395.
Texas Is Outpacing the Nation — But Finally Cooling
Texas home insurance premiums rose faster than national premiums during the post-pandemic period, with the insurance burden — insurance costs as a share of total household costs — higher in Texas and growing more steeply than the national average. The good news is that 2025 brought a dramatic deceleration. Texas saw one of the smallest rate increases in the nation in 2025 at just 0.6%, following years of double-digit surges. The Federal Reserve Bank of Dallas reports that since price pressures in 2026 are more similar to 2025 than 2024, the slower growth rate is likely to persist through the rest of this year.
Why Texas Was Hit So Hard
Three compounding forces drove Texas's outsized increases. Rising construction costs, climate risk, and reinsurance costs all contributed to the upward momentum, with the severity of storms like the February 2021 statewide freeze and the May 2024 Houston derecho coinciding with pandemic-driven supply chain disruptions and labor shortages that pushed rebuilding costs sky-high simultaneously. Texas's regulatory environment also played a role. Texas operates under a "file and use" system that allows insurance companies to increase rates before the state's insurance department has reviewed the filing, which allows carriers to reprice quickly after major losses, keeping them profitable and in the market, but at the direct expense of policyholders.
What Texas Homeowners Can Do
Shopping around remains the most powerful tool available. An independent insurance agent with access to multiple carriers can compare rates across companies that have different appetites for Texas risk. Investing in roof upgrades, maintaining a strong credit score, and requesting a full policy review annually — rather than allowing automatic renewals — are the most practical steps Texas homeowners can take to slow the financial bleeding, even if stopping it entirely is no longer a realistic expectation.
