Fact file: Texas hurricane insurance

 

  • 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 MHC Inc. 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.

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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: The Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company.

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Estimated Value Of Insured Coastal Properties Vulnerable To Hurricanes By State, 2015 (1)

($ billions)

Rank State Commercial Residential Total Coastal Total exposure (2) Coastal as
a percent of total
1 New York $2,093.0 $1,272.0 $3,365.0 $5,571.0 68%
2 Florida 1,483.0 1,718.0 3,200.0 4,058.0 79
3 Virginia 92.0 106.0 1,993.0 2,078.0 10
4 Texas 725.0 638.0 1,363.0 5,358.0 28
5 Massachusetts 441.0 511.0 953.0 1,765.0 54
6 New Jersey 373.0 422.0 795.0 2,453.0 32
7 Connecticut 290.0 385.0 675.0 1,025.0 64
8 Louisiana 182.0 147.0 329.0 896.0 38
9 South Carolina 112.0 126.0 239.0 931.0 26
10 Maine 73.0 111.0 184.0 321.0 53
11 North Carolina 69.0 109.0 178.0 2,014.0 8
12 Alabama 63.0 65.0 128.0 1,014.0 13
13 Georgia 53.0 56.0 109.0 2,171.0 5
14 Delaware 34.0 59.0 93.0 241.0 29
15 New Hampshire 32.0 42.0 74.0 328.0 23
16 Mississippi 36.0 35.0 71.0 527.0 14
17 Rhode Island 25.0 46.0 71.0 241.0 22
18 Maryland 8.0 10.0 18.0 1,476.0 1
  All states shown $6,184.0 $5,858.0 $13,838.0 $32,468.0 38%
  Total, United States $6,184.0 $5,858.0 $13,838.0 NA 16%

(1) Includes residential and commercial Gulf and East Coast properties, as of December 31, 2015. 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.

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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


[1] Karen Clark and Company.

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Facts + Statistics: Flood insurance
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