Written and edited by: Aaron Whited
Q3 2023 Insurance Filings:
Is this year the year the Texas insurance market makes a comeback? Recent filings show that the trend for 2024 will still be an overall increase for most Texans. Due to rate increases, tightened underwriting, and governing of the amount of new business some insurance companies hope to make a turn to normality in 2024. Join me as we discuss the outlook of Texas Insurance for 2024!
Factors Driving Rate Spikes in Texas
1. Low Supply High Demand
Disruptions in the supply chain caused by the COVID-19 pandemic have led to shortages in construction materials, impacting the cost of rebuilding homes in Texas.
2. Severe Weather and Natural Disasters
Texas, prone to severe weather events and natural disasters, continues to grapple with the aftermath of storms, tornadoes, and other weather-related challenges.
2.1 TikTok Trends: Unusual as it may sound, TikTok trends have caused an actual measurable increase in theft targeting for specific vehicle models in the state. The influence of social media on criminal activity is an emerging concern that insurers are taking into account when assessing risks.
3. Higher Medical Costs
Anticipated increases of around 8% in medical costs for 2024 impact the liability portion of homeowners insurance policies in Texas.
What to Expect in Texas in 2024 and Beyond
While Texas homeowners hope for a decline in insurance rates, experts suggest that prices may continue to climb before stabilizing towards the end of 2024. The unique challenges faced by the state, including its susceptibility to storms and natural disasters, may influence the trajectory of insurance rates. The aftermath of losses incurred by insurers in 2025 might be a turning point for Texas, potentially leading to a decrease in prices. However, uncertainties persist, with some experts expressing concerns about inflationary pressures extending into 2025.
Tips for Cost Savings in Texas
Navigating the current landscape of homeowners insurance in Texas requires strategic decision-making. Here are some tips specifically tailored for Texas homeowners:
As Texas homeowners navigate the evolving landscape of insurance, staying informed and proactive is key. By implementing these Texas-specific strategies, individuals can better navigate the challenges and potentially secure more affordable homeowners insurance in Texas for 2024 and beyond.