The growing number of Texas residents is struggling to buy home insurance or even get home insurance, as it encourages people to record highs to strengthen weather and economic pressures.
Anna Phillips reports on the Washington Post.
in short:
Texas homeowners have seen a sharp rise in property premiums due to a combination of more frequent, harsh weather events and inflation, with some annual fees now exceeding $10,000. Insurers are drawn from risk-prone areas, and will withdraw costs to homeowners, and the state’s “file and use” policy allows them to raise the company’s “file and use” policy without ingesting a quick advocate for those who are not resupplied promptly in advance. They have either been dropped by private insurance companies or are no longer able to afford them, raising concerns about long-term financial stability.
Important Quotes:
“Consumers can opt for a completely affordable insurance with the only option at affordable prices, it’s a hollow policy.”
– Birny Birnbaum, Executive Director of the Centre for Economic Justice
Why is this important:
Texas has experienced almost all kinds of natural disasters, including hurricanes, tornadoes, wildfires, hails, and these events are more frequent and costly. As insurance companies work on billions of people in claims, they are reducing hiking rates and coverage, forcing many residents to either abolish homes or drop coverage entirely. For families, this means making painful trade-offs. This growing instability in the insurance market can ripple beyond private homes and affect rental prices, tax rates and public infrastructure costs. It also raises broader questions about where Americans can live safely and affordably as the climate crisis accelerates. As Texas has often been promoted as a low-cost shelter from expensive coastal cities, changes in affordable prices could reshape migration patterns and political priorities, even as states resist stronger insurance regulations.
For more information, Texas faces an increasing threat of wildfires due to climate change
