Drivers in the state are also paying higher rates for their auto policies.
According to an analysis of the latest data from the Texas Department of Insurance, the cost of homeowners insurance and auto policies in the state – particularly in the northern parts – is high and is becoming more expensive, this year.
The average rates for both of those types of coverage have increased by double digits for many residents.
The analysis, which was conducted by The Dallas Morning News, involved a look at the rates being charged within eight selected ZIP codes throughout the city of Dallas, by thirty different homeowners insurance companies. What they determined was that the people residing in those areas saw average increases, this year, of between 9 and 12 percent.
Homeowners insurance wasn’t the only coverage that is rising in cost, as auto rates have skyrocketed.
The same research showed that auto insurance policies within the same areas saw an average rate increase of 11 to 53 percent, this year. Until now, vehicle coverage had been more stable than property policies. Clearly, within that area, the trend has reversed itself, this year.
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The rates and the increases varied quite broadly from one company to the next in both forms of coverage. However, when compared to the rate of inflation, the increases being seen in the insurance premiums within this area have been quite large. From 2008 through mid 2014, the cumulative rate of inflation experienced in the United States has been 10.5 percent. That said, insurance rates in both auto and property lines have increased by nearly that much within the last year, alone.
Representatives of the insurance industry have stated that the reason that the higher premiums are justified is that the costs associated with claims are rising sharply. For example, there price of replacing roofs and repairing vehicles is notably higher than it had been even in recent years. This has been driven by the rapidly rising price of oil, which is a foundational element to many repair and building materials.
It was also pointed out that it remains possible for consumers to keep their auto and homeowners insurance costs down by taking advantage of a string of different types of discounts.