Home Insurance Rates in Texas Swing Wildly by the Type of Construction Material Used
By: Ajay kumar Medagani June, 13, 2019
Numerous factors influence home insurance premiums including location, square footage, type of roof, floor material, and bathroom and kitchen finishing. However, in some locations such as Texas, the type of construction material significantly impacts one’s home insurance. In an extensive research on fluctuations in home insurance rates in Texas, Gavop shows that brick and stucco houses are considerably cheaper than frame construction ones. For brick and stucco houses, the median premium is $1,836 and $1,876 and for frame, the median is the highest at $2,013.
The following chart compares home insurance quotes by construction material for the cheapest providers in the state.
Gavop finds that American Strategic Insurance Corporation is one of the cheapest providers in the state. Their median premium for stucco construction houses is $1,021, which is $7 less than the median premium for brick construction houses ($1,028), and that for frame construction houses is $1,033. Trumbull Insurance offers a median premium of $1,149 for stucco houses, which is $30 higher than the premium for brick ones, a median premium of $1,209 for frame construction houses, which is the most expensive premium for frame construction houses.
The exterior walls of a house are critical for three reasons: replacement cost, premium rate, and coverage. In the event of a wildfire or some other mishap that could completely destroy property, the higher the cost of the exterior walls, the greater the replacement value for the home. In addition to the replacement cost, insurance underwriters in Texas scrutinize the fire resistance capabilities of a home. A high probability of wildfire increases the rates of frame construction houses in Texas because it is inflammable material, and consequently, high risk.
Gavop conducts a deeper investigation of wildfire threats in Texas using data published by the Texas Forest Service and finds that since 2005, the state has been affected by more than 150,000 wildfires. The wildland-urban interface is where developed areas intersperse with forested or semi-forested areas. Texas has one of the largest wildland-urban interfaces with over 70,000 km2 of forested area and 393,789 km2 of shrubland. Of the many communities that currently reside in 10.6 million housing units in the state, the state forest department reports that over 15,000 risk wildfire damage. The National Interagency Fire Center lists Texas as second in the list of the 10 states with the highest risk of wildfires, with more than 10,000 fires in 2018 alone and over 560,000 acres of land burned down.
The above image shows five cities listed by the US Forest Service that compose the highest expanse of the wildland-urban interface and thus, are at risk of experiencing wildfires. The red dots indicate areas where wildland or shrubland has intermingled with urban areas.
| City | Population | Housing Units |
|---|---|---|
| Houston | 2.3 million | 964435 |
| San Antonio | 1.5 million | 544975 |
| Dallas | 1.3 million | 568951 |
| Austin | 1 million | 405387 |
| Fort Worth | 0.9 million | 314469 |
| El Paso | 0.7 million | 248159 |
| Corpus Christi | 0.3 million | 132799 |
ABOUT THE AUTHOR
Ajay Kumar Medagani
Ajay Kumar works as a data analyst with Gavop. A (software) engineer by profession, he utilizes his well-established programming skills in big data, to derive insights from a wide variety of data sets. A engineering graduate from JNTU his passion involves analyzing raw data, infographics and other visual aids for research.
