Homeowners insurance rates on the rise, research shows

A new study finds it is becoming increasingly difficult for families to have homes across Texas, with researchers saying it's because of the rapid increase in homeowners' insurance premiums

A new study by the Kinder Institute and Texas 2036 shows homeowners' insurance in Texas has surged 74% for some homeowners since 2009.

Experts said this is consuming a much larger portion of families' budgets than it did 10-15 years ago.

"It's not just an urban issue; this is happening all over the state," Rice University Kinder Institute researcher Stephen Sherman said. "This goes back to the core question of housing affordability...and I think we need to look beyond the cost of the home. We need to look at the other necessary expenses of homeownership, insurance being a big one...taxes, maintenance, repairs... but we also need to look at incomes.

Sherman said insurance rates have increased much faster than people's incomes and the price of homes.

He says two-thirds of Texas households can no longer afford median-priced homes, the moment you factor in the insurance you need for them.

According to the Houston Association of Realtors, the median home price in Houston was $345,000 in June.

Sherman says homeowners insurance is around $3,000 a year, depending on where you live, and that doesn't include flood insurance.

The research shows the spike in insurance premiums coincides with catastrophic weather or structural cost pressures.

"Our next phase of research is going to include trade-offs: if insurance is going up, how are people adjusting in their own budgets?" Sherman said.

Researchers said many rural counties are facing disproportionately higher insurance burdens relative to their home values.