Fact file: Texas hurricane insurance

May 2019

  • Two of the costliest hurricanes to hit the U.S. caused damage in Texas: Hurricane Harvey in 2017 and Ike in 2008. (See chart below.)
  • Insured property damage caused by Ike in Texas totaled $9.8 billion, according to ISO ($11.3 billion in 2018 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, but private flood insurance is becoming increasingly available.
  • There were 664,178 flood insurance policies covered under the NFIP in Texas in 2017.
  • 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.
  • In Texas, about 544,000 homes were at risk in 2018 for storm surge damage from hurricanes up to Category 5 strength, according to CoreLogic, Inc. These homes would cost $103.3 billion to completely rebuild, including labor and materials.
  • 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 2017 TWIA had 231,633 residential policies in force and 11,010 commercial policies, for a total of 242,643 policies, according to Property Insurance Plans Office (PIPSO). Its exposure to loss was $65 billion in 2016, according to PIPSO.

Top 10 Writers Of Commercial Insurance In Texas By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb  $1,247,333 4.9%
2 Travelers  1,241,187 4.8
3 Liberty Mutual  1,190,782 4.7
4 AIG  1,097,888 4.3
5 Texas Mutual Insurance Co. 1,097,244 4.3
6 CNA  965,018 3.8
7 Zurich  955,931 3.7
8 Progressive  754,070 2.9
9 Berkshire Hathaway Inc.  653,238 2.6
10 The Hartford  616,839 2.4

(1) Before reinsurance transactions.

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, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $1,847,041 19.6%
2 Allstate Corp. 1,236,065 13.1
3 Farmers Insurance  981,914 10.4
4 USAA  916,464 9.7
5 Liberty Mutual  696,450 7.4
6 Travelers  378,692 4.0
7 Texas Farm Bureau Insurance  246,143 2.6
8 Progressive  235,391 2.5
9 Nationwide  233,066 2.5
10 Chubb  193,207 2.1

(1) Before reinsurance transactions.

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

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Top 10 Writers Of Private Passenger Auto Insurance In Texas By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $3,399,131 15.0%
2 Berkshire Hathaway Inc. 2,971,256 13.1
3 Allstate Corp. 2,641,888 11.7
4 Progressive 2,535,002 11.2
5 USAA 1,913,652 8.4
6 Farmers Insurance 1,852,274 8.2
7 Liberty Mutual 1,180,983 5.2
8 Texas Farm Bureau Insurance 739,359 3.3
9 Consumers County Mutual Ins. Co. 578,666 2.6
10 Nationwide 404,217 1.8

(1) Before reinsurance transactions.

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
Rank Date Location Hurricane Dollars when occurred In 2018 dollars (2)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $51,882
2 Sep. 19-22, 2017 PR, USVI Hurricane Maria (3) 25,000-30,000 25,600-30,700
3 Sep. 6-12, 2017 AL, FL, GA, NC, PR, SC, UV Hurricane Irma (3) 20,000-25,000 20,400-25,600
4 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME, NC, NH,
NJ, NY, OH, PA, RI, VA, VT, WV
Hurricane Sandy 18,750 20,688
5 Aug. 25-Sep. 1, 2017 AL, LA, MS, NC, TN, TX Hurricane Harvey (3) 16,000-19,000 16,400-19,400
6 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 25,404
7 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 14,631
8 Oct. 24, 2005 FL Hurricane Wilma 10,300 13,002
9 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 9,729
10 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC, NJ,
NY, OH, PA, TN, VA, WV
Hurricane Ivan 7,110 9,254

(1) Property losses only. Excludes flood damage covered by the federally administered National Flood Insurance Program. Ranked on dollars when occurred. As of March 6, 2019.
(2) Adjusted for inflation through 2018 by the Insurance Information Institute using the GDP implicit price deflator.
(3) Insurance Information Institute estimate based on data from catastrophe risk modelers, reinsurance companies, the Property Claims Services unit of Verisk Analytics, the Federal Emergency Management Agency of the U.S. Department of Homeland Security, and the Florida Office of Insurance Regulation. These estimates are preliminary because the organizations involved periodically resurvey the events, and the severity of losses and other factors create a high level of uncertainty surrounding the ultimate loss figures.

Source: Insurance Information Institute, catastrophe risk modelers, reinsurance companies, U.S. Department of Homeland Security, the Florida Office of Insurance Regulation, the Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company, and the U.S. Bureau of Economic Analysis.

View Archived Tables

Storm Surge Risk By State By Number Of Homes and Reconstruction Value, 2018 (1)

 

    By number of single-family homes
Rank State Extreme Very high High Moderate Low (2)
1 Florida 351,093 1,064,674 1,752,603 2,292,791 2,774,175
2 Louisiana 72,256 207,442 624,521 747,111 817,480
3 Texas 39,109 117,558 253,947 384,944 543,847
4 New Jersey 95,659 278,539 382,065 471,353 (3)
5 New York 75,238 224,558 347,236 462,380 (3)
6 Virginia 26,960 94,378 246,824 366,478 409,129
7 South Carolina 35,934 126,997 209,026 294,239 347,030
8 North Carolina 32,282 95,286 160,831 210,233 259,718
9 Massachusetts 11,048 46,558 102,189 157,898 (3)
10 Georgia 8,887 50,409 105,735 141,518 152,559
11 Maryland 17,824 60,553 99,056 125,417 (3)
12 Mississippi 9,261 30,353 60,620 90,010 101,720
13 Pennsylvania 932 20,815 56,830 83,808 (3)
14 Connecticut 7,167 28,497 46,618 67,207 (3)
15 Alabama 6,379 17,306 32,331 44,744 57,973
16 Delaware 8,901 24,649 40,048 56,418 (3)
17 Rhode Island 1,876 8,153 17,312 26,484 (3)
18 Maine 5,645 7,960 11,851 18,150 (3)
19 New Hampshire 284 4,551 7,446 9,753 (3)
  Total homes potentially affected 806,735 2,509,236 4,557,089 6,050,936 6,942,499
    By reconstruction value (4)
($ millions)
Rank State Extreme Very high High Moderate Low (2)
1 Florida $68,993 $214,615 $353,434 $458,546 $552,418
2 New York 29,069 92,193 142,654 190,524 (3)
3 Louisiana 15,058 44,362 141,431 169,398 186,089
4 New Jersey 27,211 83,141 116,379 146,074 (3)
5 Texas 6,545 20,281 46,590 73,690 103,258
6 Virginia 6,889 23,533 57,148 84,231 95,057
7 South Carolina 10,366 33,690 52,352 70,363 80,775
8 North Carolina 6,503 19,557 33,348 43,888 54,356
9 Massachusetts 2,980 13,364 29,309 46,443 (3)
10 Georgia 2,740 13,213 24,703 31,745 33,764
11 Maryland 4,349 14,484 23,474 29,807 (3)
12 Connecticut 2,559 9,609 15,453 22,112 (3)
13 Mississippi 1,977 6,157 11,914 17,373 19,558
14 Pennsylvania 216 4,664 13,121 19,445 (3)
15 Delaware 2,636 7,021 11,464 16,078 (3)
16 Alabama 1,204 3,124 5,790 7,962 10,140
17 Rhode Island 529 2,408 5,094 7,809 (3)
18 Maine 1,281 1,914 2,960 4,634 (3)
19 New Hampshire 64 933 1,721 2,312 (3)
  Total homes potentially affected $191,171 $608,264 $1,088,339 $1,442,436 $1,620,653

(1) The risk categories are cumulative and increase in value from extreme to low. Extreme risk signals the higher risk of damage from a weak hurricane, while low risk includes up to Category 5 hurricanes that are the least likely to occur but will cause more storm surge damage inland.
(2) The low-risk category refers to Category 5 hurricanes, which are not common along the northeastern Atlantic Coast.
(3) Storm surge risk in the low category for homes on the northeastern Atlantic Coast is not shown due to the extremely low probability of a Category 5 storm affecting these areas.
(4) Represents the cost to completely rebuild including labor and materials by geographic location.

Source: CoreLogic, Inc., a data and analytics company.

Flood insurance penetration rates in select high-risk coastal Texas counties, August 2016

County name Total NFIP
policies
NFIP policies
in high
risk areas
Housing
units
in county
High risk areas
(penetration
rate)
Coastal high
risk areas
(penetration
rate)
Riverine high
risk areas
(penetration
rate)
Overall
county
(penetration
rates)
Aransas 6,433 2,030 15,355 0.88 0.88 - 0.42
Nueces 28,570 9,564 141,033 0.68 0.93 0.12 0.20
Galveston 54,712 22,107 132,492 0.58 0.58 0.54 0.41
Brazoria 31,119 8,257 118,336 0.40 0.57 0.38 0.26
Guadalupe 2,874 1,874 50,015 0.40 - 0.40 0.06
Comal 2,329 730 47,108 0.37 - 0.37 0.05
Cameron 16,396 5,357 141,924 0.33 0.53 0.16 0.12
Llano 1,170 554 14,280 0.33 - 0.33 0.08
Burnet 1,109 578 20,870 0.33 - 0.33 0.05
Orange 8,406 2,104 35,313 0.32 0.36 0.22 0.24
Hardin 1,905 428 22,597 0.30 - 0.30 0.08
Harris 240,350 56,485 1,598,698 0.28 0.64 0.27 0.15
Jefferson 19,019 2,261 104,424 0.28 0.28 0.28 0.18
Calhoun 2,420 434 11,410 0.28 0.28 - 0.21
Chambers 2,855 149 13,291 0.26 0.31 0.17 0.21

Source: National Flood Insurance Program, Insurance Information Institute.

Additional resources

Texas Windstorm Insurance Association Website


[1] Karen Clark and Company.

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Facts + Statistics: Flood insurance
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