WACO, Texas (KXXV) — Waco homeowners are opening renewal notices and seeing significant increases in their home insurance premiums — and experts say the reasons are all around us.
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Mike Garibay has lived in Waco and been a homeowner for 47 years. He said his home insurance rates were steady until a few years ago.
"It seemed like about three or four years ago that it just started rising, quickly, higher. I mean, now it's just to be expected, five to 10% increase, yearly," Garibay said.
According to the Texas Department of Insurance, homeowners' rates climbed nearly 19% in 2024, following a more than 21% spike in 2023. Texans now pay some of the highest home insurance costs in the country.
Insurance experts say Texas faces a unique combination of home risks.
Jordan Carey, owner of Baker and Carey Home Insurance Agency, pointed to severe weather as the primary driver.
"So the primary components that are leading to the increased prices for homeowners insurance are going to be the frequency and intensity of the hailstorms that we've had in the last 6 to 8 years. So that is the biggest reason," Carey said.
When billions of dollars in claims are paid out statewide, insurers raise rates to offset those losses.
Garibay said he understands the situation.
"But you know it's not their fault," Garibay said.
Still, for homeowners watching their budgets, there are options. Garibay said he has started shopping around for better rates.
Carey agreed that now may be a good time to explore alternatives.
"Absolutely shop around as I mentioned, um, it seems like we're in a good place for the first time in quite some time in regards to um the buyer and uh the homeowners insure uh insurer, um, having some options," Carey said.
Texas lawmakers continue to look for ways to address rising premiums, but for now, experts say shopping around and comparing coverage may be your best defense.
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