What concerns us even more is that many homeowners are paying more while receiving less coverage than they used to.
Why Are Home Insurance Rates Going Up?
Many people assume their premium is based only on their own house or neighborhood.
In reality, insurance companies look at the overall risk across Texas—and often the entire Gulf Coast region.
Over the past several years, Texas has experienced more severe weather, including hailstorms, tornadoes, flooding, and winter storms. Even if your city wasn't hit, large losses in places like Dallas, Austin, or San Antonio can affect rates statewide.
On top of that, construction materials and labor have become much more expensive. When homes need repairs after a claim, insurance companies are paying significantly more than they did just a few years ago.
But Here's the Bigger Problem
We've noticed that many policies aren't just getting more expensive.
The coverage itself is changing—and not always in your favor.
1. Roof Coverage May No Longer Be Full Replacement Cost
Many homeowners assume their roof is still covered at Replacement Cost, meaning the insurance company pays to repair or replace it with a new one (minus your deductible).
However, more companies are switching roofs to Actual Cash Value (ACV) coverage.
That means depreciation is deducted before the claim is paid.
Example:
A new roof costs $20,000
Your 10-year-old roof is valued at $10,000 after depreciation
Your wind/hail deductible is $8,000
The insurance company may only pay $2,000, leaving you responsible for the remaining $18,000.
Many homeowners don't realize this change until they file a claim.
2. Wind and Hail Deductibles Are Much Higher
Years ago, a 1% deductible was common.
Today, many Texas policies have 2% to 5% wind and hail deductibles.
These percentages are based on your home's insured value—not the amount of the claim.
For example, if your home is insured for $350,000:
2% deductible = $7,000
5% deductible = $17,500
That means you must pay that amount before insurance starts paying.
There's nothing wrong with choosing a higher deductible if you're comfortable with the risk—but you should know that's what you're buying.
3. Some Coverages Have Quietly Been Reduced
Sometimes a policy looks reasonably priced because certain protections have been limited.
For example:
Water damage from plumbing leaks or burst pipes may have much lower coverage limits.
Some policies cover only functional damage, not cosmetic damage. For example, if hail leaves visible dents on your roof but doesn't affect its ability to keep water out, the damage may not be covered.
These changes are easy to overlook unless someone reviews the policy carefully.
Does More Coverage Always Mean Better?
Not necessarily.
Insurance is about balancing cost and risk.
If you have enough savings to handle a larger deductible, choosing one can reduce your premium.
The important thing is that it's your informed decision—not something you discover after a claim.
Not Sure What Your Policy Covers?
If you'd like a second opinion, send us your current policy or renewal quote.
We'll review the coverage with you, explain what's included (and what isn't), and help you understand whether your policy still fits your needs.
You don't necessarily need to switch insurance companies—but you should know exactly what protection you're paying for.
