Texas Hurricane Insurance: Fact File

MAY 2017

  • Two of the costliest hurricanes to hit the U.S. caused damage in Texas: Hurricane Ike in 2008 and Hurricane Rita in 2005. (See chart below.)
  • Insured property damage caused by Ike in Texas totaled $9.8 billion, according to ISO ($10.9 billion in 2015 dollars). Hurricane Rita caused nearly $2 billion in insured property losses in Texas in 2005, according to ISO ($2.4 billion in 2015 dollars). These losses do not include damage from flooding, which typically is not covered in standard homeowners insurance policies. Flood insurance is covered by the National Flood Insurance Program.
  • There were 587,692 flood insurance policies covered under the NFIP in Texas in 2015.
  • If the Galveston hurricane of 1900 occurred in 2016, it would have resulted in $41.7 billion in insured losses, based on adjustments for inflation, growth in the number and value of coastal properties and increases in property insurance coverage, according to Karen Clark and Company. 
  • The insured value of properties in coastal areas of Texas totaled $1.2 trillion in 2013, according to an analysis by AIR Worldwide, accounting for 26 percent of the state’s total insured property exposure.
  • The number of people living in coastal areas in Texas increased by 0.8 million, or 10 percent, from 8.3 million in 2000 to 9.1 million in 2015, according to the U.S. Census Bureau. About one third of the total population of Texas lived in coastal areas in 2015.
  • The Texas Windstorm Insurance Association (TWIA), is the state’s insurer of last resort for wind and hail coverage for Texas Gulf Coast residential and commercial property owners in the event of catastrophic loss. TWIA covers wind and hail in 14 coastal counties and parts of Harris County.
  • In fiscal year 2015 TWIA had 272,304 residential policies in force and 14,556 commercial policies, for a total of 286,860 policies, according to Property Insurance Plans Office (PIPSO). Its exposure to loss was $78.6 billion in 2015, according to PIPSO.

 

Top 10 Writers Of Commercial Insurance In Texas By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb Ltd.  $1,153,256 5.1%
2 Liberty Mutual  1,130,744 5.0
3 American International Group (AIG) 1,126,774 5.0
4 Travelers Companies Inc. 1,100,186 4.9
5 Texas Mutual Insurance Co. 948,660 4.2
6 Zurich Insurance Group (2) 880,390 3.9
7 CNA Financial Corp.  872,170 3.9
8 Hartford Financial Services 584,420 2.6
9 Nationwide Mutual Group  580,226 2.6
10 AmTrust Financial Services 539,607 2.4

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

View Archived Tables

 

 

Top 10 Writers Of Homeowners Insurance In Texas By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $1,821,635 21.5%
2 Allstate Corp.                               1,074,461        12.7
3 Farmers Insurance Group of Companies (2)                                  924,610        10.9
4 USAA Insurance Group                                  852,580        10.1
5 Liberty Mutual                                  691,231          8.2
6 Travelers Companies Inc.                                  311,180          3.7
7 Nationwide Mutual Group                                  256,218          3.0
8 Texas Farm Bureau                                  239,594          2.8
9 Progressive Corp.                                  185,932          2.2
10 Chubb Ltd.                                  178,245          2.1

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.
 

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

View Archived Tables

 

 

Top 10 Writers Of Private Passenger Auto Insurance In Texas By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $3,395,165 17.7%
2 Allstate Corp.  2,181,503 11.4
3 Berkshire Hathaway Inc.  2,127,633 11.1
4 Farmers Insurance Group of Cos. (2) 1,821,807 9.5
5 Progressive Corp.  1,678,250 8.8
6 USAA Insurance Group  1,500,366 7.8
7 Liberty Mutual  882,228 4.6
8 Texas Farm Bureau  672,772 3.5
9 Nationwide Mutual Group  499,951 2.6
10 Consolidated Lloyds Insurance Group  455,707 2.4

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

View Archived Tables

 

 

Top 10 Costliest Hurricanes In The United States (1)

($ millions)

        Estimated insured loss (2)
Rank Date Location Hurricane Dollars when
occurred
In 2016
dollars (3)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $49,793
2 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 24,478
3 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME,
NC,NH, NJ, NY, OH, PA,
RI, VA, VT, WV
Hurricane Sandy 18,750 19,860
4 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 14,036
5 Oct. 24, 2005 FL Hurricane Wilma 10,300 12,479
6 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 9,348
7 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC, NJ, NY, OH, PA, TN, VA, WV Hurricane Ivan 7,110 8,891
8 Sep. 17-22, 1989 GA, NC, PR, SC, UV, VA Hurricane Hugo 4,195 7,260
9 Sep. 20-26, 2005 AL, AR, FL, LA, MS, TN, TX Hurricane Rita 5,627 6,817
10 Sep. 3-9, 2004 FL, GA, NC, NY, SC Hurricane Frances 4,595 5,746

(1) Includes hurricanes occurring through 2016.
(2) Property coverage only. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(3) Adjusted for inflation through 2016 by ISO using the GDP implicit price deflator.

Source: Property Claim Services (PCS®), a Verisk Analytics® business.

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Estimated Value Of Insured Coastal Properties Vulnerable To Hurricanes By State, 2012 (1)

($ billions)

Rank State Commercial Residential Total
coastal
Total
exposure (2)
Coastal as a
percent of total
1 New York $2,105.6 $817.5 $2,923.1 $4,724.2 62%
2 Florida 1,359.9 1,502.4 2862.3 3640.1 79
3 Texas 653.8 521.5 1,175.3 4,580.7 26
4 Massachusetts 456.0 393.6 849.6 1,561.4 54
5 New Jersey 374.6 339.3 713.9 2,129.9 34
6 Connecticut 271.7 296.1 567.8 879.1 65
7 Louisiana 153.5 140.0 293.5 823.0 36
8 South Carolina 129.9 109.4 239.3 843.6 28
9 Virginia 95.2 87.1 182.3 1,761.7 10
10 Maine 73.3 91.3 164.6 285.5 58
11 North Carolina 65.8 97.7 163.5 1,795.1 9
12 Alabama 61.6 56.6 118.2 917.8 13
13 Georgia 57.4 49.3 106.7 1,932.2 6
14 Delaware 31.8 50.1 81.9 208.9 39
15 New Hampshire 28.5 35.5 64.0 278.7 23
16 Mississippi 29.6 31.0 60.6 468.5 13
17 Rhode Island 22.6 35.7 58.3 207.5 28
18 Maryland 8.7 8.6 17.3 1,293.4 1
  Total, states shown $5,979.5 $4,662.7 $10,642.2 $28,331.4 38%
  Total, United States 5,979.5 4,662.7 $10,642.2 $64,624.3 16%

(1) Includes residential and commercial Gulf and East Coast properties, as of December 31, 2012. Ranked by value of total insured coastal property.
(2) Total exposure is an estimate of the actual total value of all property in the state that is insured or can be insured, including the full replacement value of structures and their contents, additional living expenses and the time value of business interruption coverage.

Source: AIR Worldwide.

View Archived Tables

 

Other Resources

I.I.I. Facts & Stats: Flood Insurance

I.I.I. Facts & Stats: Hurricanes

I.I.I. Issues Updates: Catastrophes

I.I.I. Issues Updates: Hurricane and Windstorm Deductibles

 

Texas Windstorm Insurance Association Website


[1] Karen Clark and Company.