Fact file: Texas hurricane insurance

June 2020

  • 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 ($11.5 billion in 2019 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 747,334 flood insurance policies covered under the NFIP in Texas in 2018.
  • In Texas, about 563,000 single-family homes were at risk in 2020 for storm surge damage from hurricanes up to Category 5 strength, according to CoreLogic, Inc. These homes would cost $113.4 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 2019 TWIA had 189,935 residential policies in force and 8,674 commercial policies, for a total of 198,609 policies, according to Property Insurance Plans Office (PIPSO). Its exposure to loss was $55.2 billion in 2019, according to PIPSO.

Top 10 Writers Of Commercial Insurance In Texas By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb $1,407,917 5.1%
2 Travelers Companies Inc. 1,341,976 4.8
3 Liberty Mutual 1,269,003 4.6
4 Texas Mutual Insurance Co. 1,069,298 3.8
5 American International Group (AIG) 1,050,241 3.8
6 CNA 1,004,127 3.6
7 Zurich 988,634 3.5
8 Progressive 881,465 3.2
9 Hartford Financial Services 803,662 2.9
10 Berkshire Hathaway Inc. 665,739 2.4

(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 Homeowners Insurance In Texas By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $1,861,663 18.3%
2 Allstate Corp. 1,348,756 13.3
3 USAA Insurance Group 1,017,411 10.0
4 Farmers Insurance Group 1,005,685 9.9
5 Liberty Mutual 646,261 6.4
6 Travelers Companies Inc. 466,734 4.6
7 Texas Farm Bureau 252,255 2.5
8 Nationwide Mutual Group 243,427 2.4
9 Progressive 230,017 2.3
10 Chubb 211,037 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, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $3,255,667 14.0%
2 Progressive 3,102,637 13.4
3 Berkshire Hathaway Inc. 3,082,238 13.3
4 Allstate Corp. 2,824,829 12.2
5 USAA 1,974,517 8.5
6 Farmers Insurance 1,823,955 7.9
7 Liberty Mutual 1,057,647 4.6
8 Texas Farm Bureau Insurance 767,565 3.3
9 Consumers County Mutual Insurance Co. 530,895 2.3
10 Auto Club Exchange 388,520 1.7

(1) Before reinsurance transactions.

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

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Top 10 Costliest Hurricanes In The United States (1)

($ millions)

        Estimated insured loss
Rank Date Location Hurricane Dollars when occurred In 2019 dollars (2)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $52,828
2 Sep. 19-22, 2017 PR, USVI Hurrican Maria (3) 25,000-30,000 26,100-31,300
3 Sep. 6-12, 2017 AL, FL, GA, NC, PR, SC, UV Hurricane Irma (3) 25,000-30,000 26,100-31,300
4 Aug. 25-Sep. 1, 2017 AL, LA, MS, NC, TN, TX Hurricane Harvey (3) 18,000-20,000 18,800-20,800
5 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME, NC, NH,
NJ, NY, OH, PA, RI, VA, VT, WV
Hurricane Sandy 18,750 21,065
6 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 25,867
7 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 20,861
8 Oct. 10-12, 2018 AL, FL, GA, MD, NC, SC, VA Hurricane Michael 9,000-12,000 9,200-12,200
9 Oct. 24, 2005 FL Hurricane Wilma 10,300 13,239
10 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 9,906

(1) Property losses only. Excludes flood damage covered by the federally administered National Flood Insurance Program. Ranked on dollars when occurred. As of April 17,2020.
(2) Adjusted for inflation through 2019 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.

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Storm Surge Risk By State By Number Of Single-Family Homes and Reconstruction Value, 2019 (1)

 

    Number of single-family homes at risk by storm category (2)
Rank State Category 1 Category 2 Category 3 Category 4 Category 5
1 Florida  358,902 1,085,288 1,788,071 2,338,348 2,830,201
2 Louisiana  74,792 213,442 637,354 765,612 839,321
3 Texas  40,633 121,010 259,993 393,837 555,569
4 New Jersey  94,083 276,872 381,551 471,143 (3)
5 New York  76,797 227,962 351,783 467,398 (3)
6 Virginia  23,321 89,387 243,401 365,134 409,259
7 South Carolina  37,155 130,565 216,551 304,442 359,024
8 North Carolina  33,200 97,158 163,632 213,922 264,264
9 Massachusetts  9,310 45,042 101,171 157,311 (3)
10 Georgia  9,863 54,777 112,747 151,627 163,191
11 Maryland  16,473 58,141 96,774 124,684 (3)
12 Mississippi  9,005 29,381 60,167 90,360 102,199
13 Pennsylvania  924 21,406 58,659 85,480 (3)
14 Connecticut  6,874 29,194 47,292 68,022 (3)
15 Alabama  5,777 15,596 29,234 41,164 54,586
16 Delaware  11,027 31,329 49,517 67,320 (3)
17 Rhode Island  1,391 7,423 16,513 25,354 (3)
18 Maine  5,846 8,300 12,336 18,824 (3)
19 New Hampshire  186 3,999 7,069 9,315 (3)
  Total homes potentially affected 815,559 2,546,272 4,633,815 6,158,577 7,071,745
    Reconstruction cost value of single-family homes at risk (4) ($ millions)
Rank State Category 1 Category 2 Category 3 Category 4 Category 5
1 Florida $73,255.3 $225,758.2 $372,102.5 $482,986.8 $581,641.5
2 New York  30,075.0 94,513.9 145,839.3 194,358.1 (3)
3 Louisiana  16,343.1 47,945.9 151,667.9 182,479.3 200,785.2
4 New Jersey  27,035.0 84,599.0 119,106.5 149,676.0 (3)
5 Texas  7,399.5 22,434.1 50,758.8 80,141.0 112,087.7
6 Virginia  6,046.8 22,878.8 58,270.3 87,017.7 98,744.9
7 South Carolina  10,377.6 34,543.8 54,837.2 74,049.4 85,214.8
8 North Carolina  7,094.4 20,928.6 35,570.1 46,843.7 57,973.4
9 Massachusetts  2,381.6 12,625.7 28,897.8 46,442.6 (3)
10 Georgia  2,980.9 14,662.9 27,079.1 35,130.6 37,325.4
11 Maryland  4,046.8 13,834.2 23,084.4 29,768.4 (3)
12 Connecticut  2,429.5 9,913.0 15,895.6 22,659.2 (3)
13 Mississippi  1,947.1 6,186.9 12,375.8 18,241.7 20,554.7
14 Pennsylvania  214.4 5,013.7 14,187.6 20,823.0 (3)
15 Delaware  3,159.6 8,797.1 14,026.2 19,121.3 (3)
16 Alabama  1,143.4 2,917.3 5,387.9 7,534.0 9,888.1
17 Rhode Island  351.3 2,039.2 4,669.2 7,321.1 (3)
18 Maine  1,294.4 1,970.7 3,031.9 4,738.2 (3)
19 New Hampshire  33.9 693.9 1,395.2 1,988.6 (3)
  Total homes potentially affected $197,609.5 $632,257.0 $1,138,183.1 $1,511,320.6 $1,701,112.2

(1) The risk categories are cumulative and increase in value from Category 1 to Category 5. Category 1 represents the higher risk of damage from a weak hurricane; Category 5 includes Categories 1 to 4 and the low risk of damage from a Category 5 hurricane.
(2) Measured in units.
(3) Storm surge risk for Category 5 storms 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®, a property data and analytics company.

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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

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Facts + Statistics: Flood insurance
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Facts + Statistics: Hurricanes