What Will Insurance Cost on That House? Find Out Before You Offer

From the same Dallas Fed report:

• Texas's median premium increased 60% from 2019 to 2024. Nationally, the increase was 30%.

• Premiums increased 18.7% in 2024 and another 4.3% in 2025. They're still rising, but at a much slower pace.

• Insurance represents 7.9% of housing costs for mortgaged homeowners and 14.9% for homeowners without a mortgage.

• DFW and Amarillo carry the highest insurance burden among Texas metros.

• Texas ranks 7th nationally for climate risk.

That 7.9% versus 14.9% deserves attention.

When the mortgage is finally gone, the insurance premium doesn't disappear. It becomes a larger percentage of what it costs to live in the home.

If you're planning to retire in that house, insurance belongs in the long-term financial conversation.

The short answer: hail.

North Texas experiences recurring severe wind and hail storms, and the roof is one of the biggest factors affecting insurance claims.

Insurance carriers can respond in several ways.

1. They raise the premium

Higher storm risk can translate directly into higher insurance costs.

2. They change the wind/hail deductible

Some policies use a flat-dollar deductible. Others use a percentage of the home's dwelling coverage, known as Coverage A.

For example, a 2% deductible on $450,000 of dwelling coverage equals $9,000 out of pocket before the policy begins paying for a covered claim.

3. They change how the roof is settled

A policy may use RCV (Replacement Cost Value) or ACV (Actual Cash Value).

With ACV, depreciation can significantly reduce the amount you receive after a covered loss.

Some policies may also include specific roof-payment schedules or depreciation provisions.

This is one of the parts of an insurance policy many homeowners don't examine until they need to file a claim.

These are factors that can affect your premium, and much of this can be learned before you write the offer.

Roof

• Exact age and material.

• Standard composition or impact-resistant Class 4?

• Full replacement or partial repair?

• Was the work properly permitted?

• Is there an invoice?

• Is there a transferable warranty?

Property history

• Request the property's CLUE report (Comprehensive Loss Underwriting Exchange), when applicable.

• Ask about recent claims history.

• Was there a previous non-renewal?

• Is the seller's current carrier still writing new policies in that ZIP code?

The house

• Age and material of the plumbing.

• Age of the water heater.

• Age of the HVAC system.

• Electrical panel type.

• Pool or trampoline?

• Other factors that could affect liability coverage?

• Distance to the nearest fire hydrant and fire station.

• Is the property in a flood zone?

Remember: flood insurance is generally a separate policy.

The policy

Ask specifically:

• Is the wind/hail deductible flat or percentage-based?

• What is the exact amount?

• Is the roof covered on an RCV or ACV basis?

• Are there water-damage sublimits?

• Are there limitations related to foundation movement?

Hypothetical example. Two homes have the same list price.

House A has a 2023 impact-resistant roof.

House B has a 2010 roof with ACV settlement.

Estimated annual premium: House A $2,600, House B $3,800. In monthly escrow that is $217 against $317. The difference is $100 a month, and $12,000 over ten years.

A hundred dollars a month doesn't sound like much until you translate it over time.

At roughly 6.8% on a 30-year fixed mortgage, $100 per month represents approximately $15,000 of borrowing capacity, as an illustrative example.

In other words, a higher insurance cost can reduce your buying power even when two homes have exactly the same list price.

All figures are hypothetical estimates illustrating the mechanics, not quotes. Confirm with your lender and a licensed insurance agent.

1. Before you offer

Send your insurance agent:

• Property address.

• Year built.

• Square footage.

• Roof age.

Ask for a preliminary range.

2. Day 1 of the option period

Get formal quotes from two or three carriers.

Compare different deductible structures.

3. Request the CLUE and claims history

This can help you understand the property's prior insurance risk.

4. Ask what type of quote you received

Is it a quick quote, or has it gone through a more complete underwriting process?

Don't treat a preliminary quote as a guarantee.

5. Before the option period expires

If the premium comes in significantly higher than expected, that can become important negotiating information:

• Repairs.

• Roof replacement.

• Price.

• Seller credit.

6. Confirm the escrow calculation

Make sure your lender is using a realistic, current insurance premium when calculating your monthly payment.

Your current premium does not necessarily predict the premium on your next home.

The roof, year built, location, claims history and characteristics of the property can all change the cost.

And if your current home has an aging roof, it's worth understanding how that could affect your buyer's insurance premium.

In a market with 5 months of inventory and approximately 60 days average on market, having an insurable property can become an important selling point.

This isn't insurance or tax advice. Work with a licensed Texas insurance agent and confirm the numbers before making a decision.

I prepared a PDF that includes:

• The complete underwriting checklist.

• The exact questions to ask your insurance agent.

• A worksheet for adding the real insurance premium to your monthly payment.

• The items you should review before making an offer.

It's free and comes with no obligation.

I don't sell insurance and I don't receive a referral fee from an insurance company for this.

Call or text me at (469) 441-8890, or request it at VeronicaYeary.com.

P.S. If you already have a contract in a new community and do not know which districts affect the property, send me the address. I will help you identify where to review the taxing entities and applicable documents.

Bilingual real estate service throughout Dallas-Fort Worth

Phone: (469) 441-8890

Website: VeronicaYeary.com

This article provides general information and does not constitute legal, tax, financial, or mortgage advice. Tax rates, assessments, liens, terms, payoff rules, and obligations depend on the property and district. Confirm the information with the district, city or county, appraisal district, title company, a licensed mortgage professional, and the appropriate legal or tax professionals.

Sources

Federal Reserve Bank of Dallas, Southwest Economy (2026), Texas homeowners pay high insurance costs, face rising premiums: https://www.dallasfed.org/research/swe/2026/swe2609

Want a real insurance number before you make an offer?

Send me the address on WhatsApp and I will tell you what to ask the insurance agent for and how to fit that premium into your monthly payment, before you write the offer. No commitment, nothing to sign.

I am Veronica Yeary, a REALTOR in Dallas-Fort Worth. The whole transaction in Spanish or English, with me, start to finish.

469-441-8890 · call, text or WhatsApp · veronica@veronicayeary.com