Texas Homeowners Pay Pretty Price for Insurance

Not a statistic that any state in particular is looking to be tops in, a recent report from the National Association of Insurance Commissioners (NAIC) shows that Texas once again leads the nation on average in the cost of homeowners’ insurance.

After falling behind Florida a year earlier, the Lone Star State is once again on top, with an average annual premium of $1,460 for the most common form of homeowners’ policy sold nationwide.

According to the numbers, Florida came in second this time around at $1,390, with the national average being $791. Only five states recorded average premiums higher than $1,000 a year from the study, based on premiums collected in 2008, the most recent year by which figures were available.

The average premium in Texas was barely up from the previous year’s comparison; however Florida watched its rates fall by close to 10 percent. Nationally, the average premium declined around 4 percent.

Consumer groups stated that the ranking should not come as a surprise to Texans, given that they have become use to paying steep costs for insurance coverage.

According to one industry spokesman, the rates highlight the large risks for insurance companies selling policies in Texas. He noted that, “I’m not at all surprised Texas is number one again. We have been among the highest in the nation for as long as anyone can remember and have always been significantly higher than the national average.” The spokesman added that until the Legislature puts in place meaningful reforms to keep rates low, Texas homeowners “can expect to keep paying overpriced premiums for inadequate coverage.”

A spokesperson for another industry trade group, added that the ranking for the Lone Star State reflects the fact that “there is probably not another state in the country that is more susceptible to severe weather in every region of the state.”

Despite the weather risks that are prevalent in Texas, experts note that around 100 insurers continue selling homeowner policies in the state, making for a competitive market and stable rates.

For those consumers in Texas or anywhere else looking to save on their homeowners’ insurance, there are a number of means by which to save money.

Among them are: Raising your deductible; purchasing your home and auto coverage from the same insurance company; improve your home security; search for other discounts; keep a good credit record; review your policy and coverage each year.