How Wildfires Are Impacting Texas Homeowners Insurance Rates

In 2011, almost every area of Texas was assaulted by wildfires. It was a year with some of the state’s worst wildfires on record. Unfortunately, the chaos hasn’t died off completely, and Texas is still dealing with severe wildfires.

If you have homeowners insurance in Texas, it’s important to understand that local insurance companies can raise rates based on your area. In other words, the cost of insurance is likely to be higher in areas that are currently experiencing increased wildfire activity.

Some Californians have witnessed a doubling of the cost of their insurance, but the cost of homeowners insurance in Texas is still extremely high.

Finding the Right Homeowners Insurance in Texas

To combat the issue of wildfires, many Texans have installed a 50-foot lawn, which serves as a buffer between their home and the fire. Others have started installing landscaping that is capable of resisting wildfires.

The problem is that many properties in Texas still have a high risk rating, so landlords are still paying more money for homeowners insurance in Texas. In some areas, the problem has become so dire that homeowners are considering moving away or finding a better quote.

Many California residents are paying even more money for their insurance premiums than Texan residents. The major contributor to the large number of wildfires in Texas is a series of droughts, which significantly increases the risk of wildfires.

Insurers are scared and want to avoid another repeat of the Rim fire, which scorched over 250,000 acres. Homeowners insurance in Texas is rising because of devastating wildfires.

Widespread Wildfires

Unfortunately, the wildfire problem is far more widespread than most people think, and it’s causing Texans to pay more for homeowners insurance in Texas. While California is being hit hard, other states are also feeling the pain.

Core Logic’s 2015 Wildfire Hazard Risk says there are 900,000 homes across 13 different states that are considered high risk for wildfire damage. If all of these homes were to get leveled by wildfires, it would cost over $236 billion dollars to fix the damage, and the cost of homeowners insurance in Texas would increase more.

An interesting fact is that this number is much higher than it was in 2013, which means the risk level is going up. The main cause of the increase is the sheer number of wildfires. The majority of the high-risk properties are located in Texas, Colorado and California.

The total value of the high-risk properties in these three states exceeds $35 billion. In terms of fire danger, one of the top five geographical areas is New Braunfels, Texas. Another top area is Round Rock, Texas. Wildfires are widespread and affecting many areas of Texas, which is why homeowners insurance in Texas is becoming more expensive.

Why Insurance Companies Are Forced To Raise Rates

If you have homeowners insurance in Texas, it might be difficult to understand why insurance companies raise their rates. Many Texans would prefer to pay the same rate.

A lot of residents actually believe rates should go down over time. The reason why insurance companies are raising their rates is because they must hedge against the risk associated with wildfires.

Since they’ll be forced to pay for all of the homes that burn down in drought-stricken areas of Texas, they must raise the cost of premiums. Although wildfires are common problems in Texas, tornados shouldn’t be forgotten about.

Some insurance have stopped writing policies for certain areas because they’re become too risky. For example, many Florida insurance companies have stopped selling policies to people in areas that have been massacred by hurricanes.

How You Can Combat Wildfire Rate Increases

If you pay for homeowners insurance in Texas, then you know you could be affected by wildfires. Fortunately, there are plenty of tips for Texans who live in high-risk areas. You can start by moving grass, branches and leaves away from your home.

This will help you to create a defensible space and pay less for homeowners insurance in Texas. Another tip is to repair missing roof tiles or shingles, which prevents embers from penetrating your home. While there is nothing that you can do to stop the wildfires raging across the lone star state, you can use these tips and avoid becoming another statistic.