Homeowners struggle as prices skyrocket for household necessity: 'A lot of people are just being priced out'
Texas homeowners are facing skyrocketing insurance costs, with policies becoming harder to find and more expensive because of natural disasters' increasing severity, reported KHOU 11 News.
New homeowner Jonathan Leopold discovered this harsh reality while trying to secure insurance for his Houston home.
"You have to have home insurance that qualifies with the mortgage company. It was a little frustrating that I had to shop multiple insurance agencies," he shared.
Insurance broker Melody Fontenot confirmed this trend is widespread. "I'm going to say about 10 to 15% higher. Definitely. Yes. And in some areas even more," she explained.
The situation has become dire for many Texans. "A lot of people are just being priced out," Fontenot noted.
Insurance companies are increasingly pulling out of flood-prone areas that have experienced multiple flooding events. When fewer companies serve a region, remaining insurers can raise rates even higher.
Attorney John Black, who represents homeowners against insurance companies, highlighted the growing tension: "Insurance companies are charging more and giving less, covering less."
This insurance crisis is a result of our changing climate. As warming temperatures drive more severe weather events across Texas, from hurricanes to floods, insurance companies face mounting claims and financial pressure.
When smaller companies can't handle the rising costs of climate-related disasters, they're forced to merge with larger firms or go out of business entirely. Consolidation reduces competition, allowing remaining companies to charge higher premiums.
Without adequate coverage, homeowners face devastating personal and financial losses when disasters strike. Many families may need to compromise on protection, leaving them vulnerable during increasingly unpredictable weather events.
Do you think home heating costs are higher than they should be?
Definitely
Depends on the season
Depends where you live
No
Click your choice to see results and speak your mind.
The situation also disproportionately affects people in particularly vulnerable communities. For instance, if you live in an area that's already experienced flooding, you may find it nearly impossible to secure affordable coverage.
Despite these challenges, homeowners have options to help manage insurance costs. Fontenot recommends shopping around for new rates each year to find better deals as the market changes.
You can also work on improving your credit score, which can lower your premium costs over time. Many people don't realize how much their credit rating affects their insurance rates.
Using an insurance broker rather than contacting companies directly can save you time and money. Brokers work with multiple companies and can find options you might miss on your own.
For his part, Leopold persevered through the difficult process. "I just continued to shop and did not get discouraged," he said.
Industry experts also suggest considering higher deductibles to lower monthly costs, bundling home and auto insurance for discounts, and installing protective features like storm shutters or reinforced roofing that can qualify you for premium reductions.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Axios
11 hours ago
- Axios
Amid backlash, Tesla remained resilient in Texas
Even as Tesla deliveries plunged nationally this year amid Elon Musk's very visible (if short-lived) alliance with President Trump, there was at least one state where Tesla registrations were up: Texas. Why it matters: The registration data, obtained by Axios through public information requests, indicates loyalty to the brand in its home base, including Texas' large urban and suburban counties. The depth of conservatives' enthusiasm for Musk's automobiles now faces a major test amid the absolute meltdown last week between the Tesla CEO and the president. By the numbers: Texans registered 12,918 new Teslas in the first three months of 2025, a period when Musk, who contributed more than $250 million to a pro-Trump super PAC during the 2024 election campaign, was enmeshed in the Trump administration as the overseer of DOGE, the president's cost-cutting initiative. Over the same period in 2024, Texans registered 10,679 Teslas. That's a 21% increase year over year. The intrigue: The spike in Texas registrations came as Tesla was flailing elsewhere. Tesla's vehicle deliveries plunged 13% globally in the first quarter of 2025 (336,681 electric vehicles) compared with Q1 2024 (386,810). Tesla vehicles were torched at showrooms and the brand's reputation cratered. Zoom in: Tesla saw year-over-year improvements in its sales in some of the most populous Texas counties. In Travis County, new Tesla registrations grew from 1,369 in the first quarter of 2024 to 1,424 during the first quarter of 2025. In Harris County, they grew from 1,526 to 1,837 during the same period. Tesla registration grew from 1,316 to 1,546 in Collin County and from 990 to 1,146 in Dallas County. In Bexar County, registrations grew from 631 to 664. What they're saying:"It's homegrown pride," is how Matt Holm, president and founder of the Tesla Owners Club of Austin, explains the car company's resilience to Axios. "And regardless of all the drama going on these days, people can differentiate between the product and everything else going on, and it's just a great product." "Elon has absolutely and irreversibly blown up bridges to some potential customers," says Alexander Edwards, president of California-based research firm Strategic Vision, which has long surveyed the motivations of car buyers. "People who bought Teslas for environmental friendliness, that's pretty much gone," Edwards tells Axios. Yes, but: The company had been enjoying an increasingly positive reputation among more conservative consumers. Musk was viewed favorably by 80% of Texas Republicans polled by the Texas Politics Project in April — and unfavorably by 83% of Democrats. In what now feels like a political lifetime ago, Trump himself even promoted Teslas by promising to buy one in support of Musk earlier this year. "In some pockets, like Austin, you have that tech group that loves what Tesla has to offer, can do some mental gymnastics about Musk, and looks at Rivian and says that's not what I want or might be priced out," Edwards says. Between the lines:"Being in the state of Texas, you're naturally conditioned to think you're better than everyone else in the U.S. And when you buy a Tesla" — a status symbol — "that's what you're saying. It doesn't surprise me that there's an increase in sales" in Texas, Edwards says. Plus: Tesla's resilience in Texas could have practical reasons as well, Edwards says. Texas homes — as opposed to, say, apartments in cities on the East Coast — are more likely to have a garage to charge a car in, he adds. What's next: Musk said late last month that Tesla was experiencing a "major rebound in demand" — without providing specifics. But that was before things went absolutely haywire with Trump and Tesla stock took a bath last week.
Yahoo
4 days ago
- Yahoo
Texas removes BlackRock from state blacklist after ESG pushback
After pulling back from ESG initiatives (Environmental, Social, and Governance) as a result of pushback from Texas trade officials, BlackRock (BLK) was removed from the state's blacklist that bars financial institutions from from being state contractors and receiving state investments. Yahoo Finance legal correspondent Alexis Keenan comes on Market Domination Overtime to explain the events and what this victory means for BlackRock and CEO Larry Fink. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. BlackRock getting back in good stead with the key Texas official after retreating from environmental, social, and governance initiatives. For more, let's bring in Yahoo Finance senior legal reporter Alexis Keenan. There had been a bit of a fight between Texas and BlackRock. A three-year-long fight, at least, and it was out of a Texas law that banned the state funds from being used to invest in companies that were antagonistic to fossil fuel production. So Texas has had on this law in the books, uh, passed in 2021, and BlackRock has been dealing with it, as have other companies since then. Uh, specifically, the law states that investments from the state's coffers cannot go to companies that harm, penalize, or limit the industry. So now, these Texas pension funds and other funds from the state, they're going to be able to be used to buy most of BlackRock's products. There are some funds that don't qualify still, and they're still on that blacklist. And this all, of course, comes after the CEO Larry Fink had disentangled BlackRock from a number of climate initiatives, two specific ones that the controller in Texas cites to in doing this pullback. Uh, in a statement, BlackRock said to Yahoo Finance that it's proud to help millions of Texas retire, Texans retire with dignity, and on behalf of clients, invest over 400 billion in corporations, local governments, energy infrastructure all throughout the state. Uh, a report from the Wall Street Journal has said that the law did indeed lead Texas to pull what they say billions. I don't say how many billions. We've asked as well, from, uh, from its investments. So this will change things significantly. It's there there's still big numbers, despite it being probably a drop in the bucket for BlackRock. It's still a lot of money when it comes to Texas. So at the same time, you have an antitrust suit, though, on the other hand going on. That is a Texas-led antitrust suit, and it alleges that, uh, that BlackRock and Vanguard and State Street collectively got together on, uh, an ESG initiative to reduce the production of coal, and so they say that that harmed consumers. So you have kind of two messages going on there, and the FTC and the DOJ have also sided with the states in this matter. Important story. Thank you so much, Alexis. Appreciate it. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Yahoo
House budget proposal cuts SNAP, Medicaid in major rollback
TYLER, Texas (KETK) — The House has passed a budget proposal within the 'Big Beautiful Bill' that would cut the Supplemental Nutrition Assistance Program (SNAP) and Medicaid. This results in the largest rollback of food assistance in our nation's history, according to 'Feeding Texas'. Nacogdoches holds second annual Duck Derby fundraiser for county donations 'This represents a 30 percent cut to our nation's most important and effective anti-hunger program,' Vice President of Feeding Texas Jamie Olsen said. SNAP currently feeds 3 million Texans and cutting funding for this program would result in $300 billion lost in aid. 'Texas would be required to pay 1.8 billion dollars a year starting in 2028,' Olsen said. The estimated total of Texans at risk of losing all SNAP benefits is 392,000 and 806,000 are at risk of losing partial benefits. Additionally, the bill could leave one million Texans without health insurance, specifically putting elderly and pregnant women in rural areas at risk. 'We're urging Congress to ensure no one is forced to choose between food and other basic needs,' the East Texas Food Bank said. The Senate is projected to vote on the budget as early as June 16. Both chambers must conference and re-vote on a final bill before the August debt limit. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
