Real Estate Meets Reality

Paul Epperley, president of the Greater Fort Worth Association of Realtors, told the Star-Telegram that many buyers are caught off guard when they see their projected insurance premiums. “I do feel like there are people that just either drop out or they drop down,” he said, referring to prospective buyers walking away altogether due to rising insurance costs.

Why Are So Many Claims Getting Denied?

Experts attribute this alarming surge to several key factors:

Rising Deductibles

Insurers have steadily increased deductibles, often pushing the out-of-pocket cost so high that minor claims simply go unpaid. In coastal Texas, wind damage deductibles of 2–3% of home value are now common—translating to nearly $9,000 on a $300,000 home .

Narrower Coverages

More policies are excluding specific perils like wind or hail—reducing insurer liability, but leaving homeowners exposed

Homeowner Inaction

Many homeowners don’t dispute claim denials due to time, complexity, or lack of resources.

Industry responses often point to high deductibles or policy grouping—such as associating renter claims with homeowners—in explaining these statistics

Why Premiums Are Surging

Climate Change

Unpredictable and more frequent climate disasters are driving up insurance rates. The rising number of claims from recent wildfires, storms, floods, and tornadoes is forcing insurers to increase costs.

Rising Inflation

Inflation has raised the cost of building materials and labor, making it more expensive to repair or rebuild homes.The escalating costs of building materials and labor due to inflation have significantly increased the expense of repairing or rebuilding homes.

Storm and Flood Damage in the Midwest

According to Insurify,  Homeowners nationwide should anticipate increased insurance expenses as insurers modify their pricing to account for escalating risks, with the Midwest potentially experiencing some of the most substantial premium hikes.

How to protect yourself

You can’t control the insurance industry or stop climate change, but you can take steps to lower your home insurance costs.

Each year, compare quotes from various insurance providers to secure the best rates. Enhancing your home’s weather resistance, such as by upgrading your roof or wiring, can not only help minimize damage but may also make you eligible for discounts.

Shopping around is key—but be prepared, it can take time to call around for quotes.Consider increasing your deductible and refraining from filing minor claims, as these actions can lead to lower premiums. Relocating to a lower-risk area might also be beneficial, given that residents in high-risk zones face insurance costs approximately 82% higher.