Texas Governor Rick Perry has renewed a declaration of disaster regarding the state’s ongoing and costly drought. Last year, the declaration was renewed several times, as the drought showed no signs of relenting. According to the National Weather Service, 2011 was the driest year Texas has ever known and the second hottest. The conditions ignited several wildfires throughout the state that caused damage to hundreds of homes and ruining thousands of acres of land. Insurers have been battling the disaster as fervently as state officials, but there seems to be…
Read MoreTag: damage caused by droughts
Texas insurers consider rate hikes to offset losses from disasters and theft
Texas has been hit hard by recent natural disasters. From the continuing drought that grips much of the southern and western parts of the state, to flooding from Louisiana hurricanes further to the east, the insurance industry has taken a major financial blow. With insurance reserves falling, many insurers in central Texas are beginning to consider raising rates in order to offset losses. Disasters may not be the only factor contributing to rate increases, however, as there has been an increase in thefts last year. Insurers are beginning to feel…
Read MoreTexas drought costing billions in losses
While much of the South in inundated with water, Texas is suffering from one of the worst droughts in recent history. Last week, the level of drought rose a staggering 22%, putting the level at 48%. There have been more than 9,000 wildfires throughout the state, causing damage to some 400 homes and burning 2.2 million acres of land. Texas officials are seeking aid from the federal government to help mitigate the expected $3 billion in losses because of the severe drought. Farmers across the state are reporting damage to…
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