Mar 10, 2025
When John Cobarruvias moved to Clear Lake, Texas in 1989, it felt like the perfect place to raise a family. But now, skyrocketing home insurance costs have him questioning whether he can afford to stay.
"It was just a perfect place for us and our kids, and over the years, we just didn't want to move," he told ABC 13 Investigates. "It's a great place to live, but we're getting to a point where we're going to have to make some decisions. This increase in insurance can't continue. It's unsustainable."
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In 2000, Cobarruvias told reporters he paid just $750 per year for home insurance with a $500 deductible. Now, insurance is costing him $6,000 a year — with a $9,000 deductible, meaning he'll pay 18 times more before his insurance kicks in. And he’s not alone.
Houston homeowners are being squeezed by rising insurance rates
A 13 Investigates analysis of Texas Department of Insurance data found that insurance rate increases have more than doubled in the last decade. Many homeowners are now struggling to find affordable coverage — or considering whether to go without insurance entirely.
Rising rates are caused by several factors, including more frequent severe weather. Texas experienced 20 billion-dollar weather disasters in 2024 alone, according to the National Centers for Environmental Information. At the same time, increasing construction and repair costs — driven by inflation and soaring material prices — have made home repairs more expensive, resulting in higher insurance premiums.
Ware Wendell, executive director of Texas Watch, a non-partisan group that advocates for consumers, says Texas’ “file and use” system further compounds the issue.
"The insurance companies don't have to wait for approval from the Department of Insurance before they start charging rates under our current laws because we've got this file and use system which allows them to file their rates and start using them immediately," Wendell shared with ABC 13.
The Texas Department of Insurance can only intervene after the fact, a process consumer advocates argue happens too infrequently to prevent excessive hikes.
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Some homeowners, like Robert Dempsey, have had their policies canceled altogether as insurers withdraw from high-risk areas. Trying to find coverage from another provider was challenging.
"We began shopping around to see who we could get for our new insurance carrier and found it to be a lot harder than we were expecting," Dempsey told ABC 13. "A lot of the companies that we contacted just said they were not writing policies in this area."
Those who still have coverage, like Cobarruvias, are debating whether it’s worth keeping.
"I'm supposed to be renewed in March, and I have a funny feeling it's going to be a real big increase," Cobarruvais told reporters. "If that happens, we may just forego insurance completely, and I'm not the only one doing that either."
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3 ways to manage soaring insurance rates
If your home insurance bill is becoming unmanageable, there are several steps you can take to reduce costs.
1. Shop around and compare quotes
Many homeowners stick with the same insurance company for years, but shopping around can save you hundreds or thousands of dollars. Get quotes from multiple providers, including regional or smaller companies.
2. Raise your deductible — if you can afford to
A higher deductible can lower your premium, but it’s important to balance affordability. If you have enough savings to cover a $5,000 or $10,000 deductible in an emergency, this could significantly reduce your monthly or yearly insurance bill. Just make sure you can cover the difference in deductible before pulling the trigger.
3. Ask about rate discounts
Many insurers offer discounts on premiums for home improvements that reduce risk, such as installing a security system or adding storm shutters. If you're in a designated fire-prone area, taking precautions like installing a metal roof or clearing brush from your property can reduce fire risk — and potentially your premium.
Don't forget to ask about discounts for things like bundling your car and home policies, paying annually instead of monthly, automatic payments, military service or reaching retirement.
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
