Here's why Texas home insurance premiums have skyrocketed

The Dallas metro and the state of Texas rank near the top of the country for average home insurance premiums — thanks in part to the rise in extreme weather events.

A study published earlier this month from the Consumer Federation of America found that Texas has reported average homeowners insurance premiums of nearly $4,800, the sixth-highest in the United States. Since 2021, premiums have increased by more than $1,000 a year or 27% in the Lone Star State, according to the "Overburdened" report.

The Dallas metro area reported average premiums of nearly $4,900. That's the ninth-highest among the country's 50 largest metro areas. Since 2021, premiums have increased by nearly $1,200 or 32%.

"One of the reasons behind this sharp premium hike is due to the rise of extreme weather events, such as tornados, hail, and severe winds and storms," Sharon Cornelissen, the foundation's director of housing, said in a statement. "Rising premiums are also due to the rising costs of construction and building materials, and weak regulatory oversight by state insurance commissioners. While they are supposed to keep an eye out for consumers, they have allowed price hike after price hike, with little oversight."

Texas' 27% increase was tied for 16th largest in the country over the three-year period. Utah (59%), Illinois (50%) and Arizona (48%) topped the list.

Dallas' 32% increase was tied for 14th highest. Salt Lake City (62%), New Orleans (58%) and Jacksonville/Phoenix (47%) topped the list.

The report found annual insurance premiums for the typical homeowner increased by an average of $648 across the country. Insurance companies increased premiums in 95% of ZIP codes during this period. American single-family homeowners collectively paid an estimated $21 billion more in premiums in 2024 than in 2021.

The Consumer Federation analyzed data provided by Quadrant Information Services in its report. Averages were weighted by state-level insurance company market share and the number of homeowners in each ZIP code.