Texas home insurance prices could soon become the highest in the country
NORTH TEXAS (CBSDFW.COM) — A group of research analysts say Texas is on pace to become the nation's leader on a list that could prove painful for homeowners.
The price of home insurance is going up fast, and experts say it could have some serious effects.
"The average cost to ensure a home in Texas has gone up 6% in the last year, making the state the second-most expensive for home insurance in the entire nation," says Nick VinZant.
VinZant is a senior research analyst with Quote Wizard. A study they conducted shows Texas is only behind Oklahoma when it comes to home insurance prices.
"It's getting more expensive, and it's getting more expensive quickly," VinZant says.
In the Lone Star State, the average cost to insure a home is currently north of $3,600. That's up from $3,400 last year.
VinZant says there are three factors fueling this trend: Inflation, home prices going up, and the abundance of natural disasters hitting recently.
"In the last 20 years, we have seen a 163% increase in natural disasters. When natural disasters happen, that obviously affects the insurance industry," he explains.
When prices go up, they hardly ever go back down – and that's exactly what VinZant expects to happen here. "No is basically the short answer."
In fact, he says, not only are prices not coming back down, but his research suggests it won't be long until Texas claims the top spot for the most expensive state to ensure a home.
"I think we could potentially be approaching the days where someone cannot buy a house, cannot live in an area because the cost of insuring a home in that location is just too expensive," VinZant says. "If the math holds out the way it has been, it could be next year."
Experts say that now more than ever, homebuyers need to make sure they are budgeting up front for insurance costs so that they can avoid any surprises down the road.
