Why is My Homeowners Insurance So Expensive?

Why is My Homeowners Insurance So Expensive? It’s a question we hear often from customers particularly when mortgage statements are received and the dreaded increase in the monthly payment becomes a reality.

A recent report by Insurify based upon 2016 data from the National Association of Insurance Commissioners indicates that Texas has the second highest average home insurance premiums in the country. That study hints at one of the factors driving that number: Texas has had 352 federally declared disasters since 1953, by far the most in the country. And we average 134 confirmed tornadoes a year. Inclement weather in Texas includes tornadoes, hurricanes, hail, ice storms, flooding and wildfires. The only thing we lack is an active volcano.

But none of that resonates with a homeowner who has never had a claim and is facing another premium increase. Your best bet is to focus on rising values and increasing reconstruction costs. These are the consequences of a vibrant expanding economy, which is reflected in rising amounts of insurance for homes and personal property.

Point out to your customers that increasing values means rising equity in what, for many, is their largest single investment. In that context rising premiums are necessary to protect a growing asset, the equity in their home. And if that doesn’t work, blame global warming.

 

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