Insurance Information Institute ranks Texas sixth least affordable for homeowners insurance

The Insurance Information Institute has released an analysis of Texas property and casualty insurance, highlighting the complex risks in the state and ranking it as the sixth least affordable for homeowners insurance in the United States. This announcement was made via a press release.

According to a July 2025 press release by the Insurance Information Institute, severe flooding in the Texas Hill Country over the Fourth of July holiday emphasized the increasing risks of natural disasters in the area. The report notes that flooding caused by Tropical Storm Barry’s remnants is part of a trend of more frequent and severe inland flood events. The analysis suggests a direct connection between these environmental hazards and rising homeowners insurance costs across Texas.

The Insurance Information Institute’s 2025 Texas Issues Brief indicates that Texas leads the nation in tornado frequency, averaging over 100 tornadoes annually, particularly affecting the Panhandle and North Texas regions. In 2024, Texas also recorded 878 hail events with stones at least one inch in diameter, making it the national leader for this peril as well. The same report details that Texas had 4,369 homeowners’ insurance lightning loss claims in 2024, with an average claim cost of $38,558, significantly exceeding the national average.

A 2024 study by the Insurance Information Institute reveals that Texas homeowners spend on average 3.13% of median household income on homeowners insurance, ranking it as sixth-least-affordable in the nation for this coverage. In contrast, personal auto insurance premiums account for 1.65% of median household income, placing Texas 14th for auto insurance affordability. These figures are attributed to the state’s heightened exposure to natural catastrophes and resulting insurance losses.

According to its official website, the Insurance Information Institute is a nonprofit communications group established in 1960 with a mission to improve public understanding of insurance—what it does and how it works. It provides consumers, media, and policymakers with credible information and analysis on insurance topics and is regarded as an authoritative resource for objective data on the U.S. insurance industry.