Texas Homeowners Insurance Spikes: What DFW Buyers Need to Know Before Buying a Home

You've found a house you love.

The price works. The mortgage payment looks manageable. You've calculated your down payment, checked the property taxes, and maybe even negotiated some seller concessions.

Then you get your homeowners insurance quote.

And suddenly that monthly payment looks a little different.

Welcome to another part of buying a home in Texas that doesn't always get enough attention!

If you're planning to buy a home in Mansfield, Arlington, Burleson, Grand Prairie, Midlothian, or anywhere around Dallas–Fort Worth, I want you to understand something:

The price of the home isn't the only number that determines whether you can comfortably afford it.

Property taxes matter. Interest rates matter. HOA fees matter.

And homeowners insurance? That matters more than ever.

Let's talk about why insurance costs have climbed, what makes North Texas a little different, and how to protect your budget before you buy.

Just How Much Has Homeowners Insurance Increased in Texas?

Let's start with the numbers, because they're pretty eye-opening.

According to the Texas Department of Insurance, the average annual homeowners insurance premium in Texas was:

Year	Average Annual Premium
2021	$2,124
2022	$2,374
2023	$2,795
2024	$3,291
2025	$3,489

That's approximately a 64% increase in just four years.

Now, that doesn't mean every homeowner experienced exactly that increase. These are statewide averages, and individual premiums depend on the home, insurance company, coverage, and other factors.

There's also some encouraging news.

In October 2026, the Texas Department of Insurance reported that recent rate filings from homeowners insurance companies averaged a 4.3% decrease over the preceding 90 days.

That's a positive development, but it doesn't automatically mean your renewal will be cheaper.

And for buyers, it certainly doesn't mean we can go back to estimating insurance based on what someone paid five years ago.

Why Is Homeowners Insurance So Expensive in North Texas?

I think anyone who's lived in DFW for a while can probably guess one of the biggest reasons.

Our weather!

We have beautiful spring days here in North Texas.

And then we have the spring days when you're watching the radar, moving the cars into the garage, and hoping the hail misses your neighborhood.

If you've lived in Mansfield or Arlington long enough, you know exactly what I'm talking about.

1. Hail and Wind Damage

North Texas is no stranger to severe thunderstorms, damaging winds, and hail.

And roofs are expensive to replace.

According to the Texas Department of Insurance, wind and hail accounted for an average of 62% of homeowners insurance losses statewide from 2019 onward, based on the data reported in June 2026.

Those claims affect the cost of providing insurance across the market.

2. The Cost of Rebuilding Has Increased

Think about what goes into repairing a home after a major storm.

Roofing materials.

Lumber.

Windows.

Labor.

Contractors.

All of those costs affect what an insurance company may have to pay to repair or rebuild a home.

And when the cost of rebuilding increases, the amount of coverage you need may increase too.

3. Your Home's Specific Risk Factors Matter

Two houses in the same city may receive very different insurance quotes.

A home with a newer roof may be evaluated differently from one with an aging roof.

The home's construction, replacement cost, condition, location, and other underwriting factors can also influence the premium.

That's why I never want buyers assuming that because their current insurance is $200 per month, their next house will cost the same.

What Does This Mean for Your Monthly Mortgage Payment?

This is the part I really want buyers to pay attention to.

Let's say you're buying a home in Burleson.

You've worked with your lender, and you're comfortable with the projected mortgage payment.

The lender initially estimates homeowners insurance at $2,400 per year.

That's $200 per month.

But after getting an actual quote for the property, you discover the policy will cost $4,200 annually.

That's $350 per month.

Suddenly, your monthly housing payment is $150 higher than you originally expected.

That's an additional $1,800 per year.

And remember, that example doesn't involve a higher purchase price or interest rate.

It's the exact same house. The insurance estimate simply changed.

For some buyers, that difference is manageable.

For others, it could change the comfortable price range.

And if you're already stretching your budget, that matters.

Don't Wait Until You're About To Close To Get Insurance Quotes

One of the biggest mistakes I want buyers to avoid is treating homeowners insurance like a last-minute item on the closing checklist.

Yes, your lender will generally require proof of acceptable homeowners insurance before closing.

But I want you thinking about insurance much earlier.

When we're evaluating a home, especially an older home, we should start asking questions about insurability and cost.

And once you're under contract, I want you getting quotes promptly so you have time to investigate concerns and compare options.

The last thing we want is to get close to closing and discover that the property is significantly more expensive to insure than expected.

The Roof Can Make a Big Difference

Let's talk about roofs for a minute.

Because here in DFW, this is a big deal.

When you're looking at a home in an established Arlington neighborhood, a home in Mansfield built 15 years ago, or an older property in Burleson, I want to know about the roof.

How old is it?

What condition is it in?

Has it been replaced after a storm?

Is there documentation?

Has a qualified roofer inspected it?

A roof that's nearing the end of its useful life may create insurance challenges.

Depending on the company, an insurer may charge more, restrict roof coverage, require repairs, or decline to insure a property based on its condition.

And here's something buyers don't always realize.

Not every insurance policy pays for roof damage the same way.

Some policies provide replacement cost coverage.

Others may use actual cash value, which accounts for depreciation.

That difference could mean thousands of dollars out of your pocket after a storm.

So when you're comparing insurance quotes, don't just ask which company has the lowest premium.

Ask what happens if you actually need to use the policy.

Let's Talk About Those 1% and 2% Deductibles

This is another thing I think every Texas homeowner should understand.

You may receive a quote with a percentage-based wind or hail deductible.

And 1% sounds pretty small, right?

Well, not necessarily.

Let's say your home has $400,000 in dwelling coverage.

A 1% deductible would be $4,000.

A 2% deductible would be $8,000.

That's potentially a big difference in what you'd pay out of pocket after a covered storm loss.

And that percentage is generally based on the insured dwelling amount specified in the policy, not necessarily what you paid for the house.

A lower premium with a higher deductible may make sense for some homeowners.

But you need to understand the trade-off.

Personally, I would rather see you make that decision intentionally than discover the deductible amount when you're filing a claim.

New Construction vs. Resale: Which Is Cheaper To Insure?

This is a question worth asking, especially with all the new construction throughout Mansfield, Midlothian, Grand Prairie, and Burleson.

A newer home may have advantages.

A new roof.

Updated electrical systems.

Modern construction materials.

And potentially certain safety or weather-resistant features.

Those things may help with insurance pricing, depending on the company.

But that doesn't automatically mean new construction will always have the lowest premium.

A larger home may cost more to rebuild.

Different roof materials, finishes, and property features can affect coverage needs.

And some newer neighborhoods may have other housing expenses, including HOA dues or special district assessments, that need to be considered separately.

On the resale side, an established home with a recently replaced roof and well-maintained systems may also be attractive to insurers.

The only way to know is to get actual quotes for the homes you're comparing.

This is something John and I want buyers to consider when deciding between new construction and resale.

Because a builder incentive on your mortgage rate is wonderful, but we still need to understand your complete monthly payment.

What About Flood Insurance?

Here's another misconception I hear.

"We're not in a flood zone, so we don't need flood insurance."

Not necessarily.

Most standard homeowners insurance policies do not cover flood damage.

And while lenders generally require flood insurance for properties in designated high-risk flood areas when applicable, flooding can happen outside those areas too.

In communities around North Texas, it's worth evaluating a property's drainage, nearby creeks, flood maps, and other potential risks.

That doesn't mean every home needs the same coverage.

It means you should understand what your homeowners policy excludes and talk with your insurance professional about whether separate flood coverage makes sense.

Five Things I'd Do Before Buying a Home in DFW

If I were buying a home right now, these would be on my checklist.

1. Get an Insurance Quote Early

Don't rely only on the estimate in your initial mortgage worksheet.

Once you've identified a specific home, get a property-specific quote.

2. Ask About the Roof

Find out the roof's age, condition, and replacement history.

Have qualified professionals evaluate any concerns.

And ask your insurance agent how those details affect coverage.

3. Compare More Than One Company

Insurance companies evaluate risk differently.

You may be surprised by the difference between quotes.

Texas has a competitive homeowners insurance marketplace, so it's worth shopping around.

4. Understand Your Deductibles and Coverage

Know what you'll pay after a covered loss.

Ask about wind and hail deductibles, replacement cost versus actual cash value, exclusions, and coverage limits.

5. Calculate the Entire Monthly Payment

Your actual housing budget may include:

• Mortgage principal and interest

• Property taxes

• Homeowners insurance

• Mortgage insurance, if applicable

• HOA dues

• Other applicable property-related assessments

I want buyers looking at the complete picture before deciding what they can comfortably afford.

What If You Already Own a Home in DFW?

This isn't just a conversation for buyers.

If you're already a homeowner in Mansfield, Arlington, Grand Prairie, Burleson, or Midlothian and your insurance renewal arrives with a big increase, don't automatically assume you have to accept it without exploring your options.

Ask your insurance agent to review your policy.

Compare quotes.

Check whether your roof information is accurate.

Ask about eligible discounts.

And make sure you're comparing similar coverage rather than simply choosing the lowest number.

Sometimes a cheaper policy provides less protection.

And that's not a bargain if you discover the difference after a major hailstorm.

If your homeowners insurance is paid through your mortgage escrow account, an increase can also affect your monthly mortgage payment.

So don't ignore that renewal notice.

Here's Why This Matters When You're Shopping for Homes

I talk a lot about making a smart purchase, not just finding a pretty house.

And this is exactly what I mean.

You might find two homes priced at $400,000.

One has an older roof, higher insurance costs, and larger anticipated maintenance expenses.

The other has a newer roof, different coverage options, and potentially lower ongoing costs.

Even though the listing prices are identical, the financial experience of owning those homes could be very different.

That's why I encourage buyers to think beyond the purchase price.

What will it cost to own this house?

What might change over time?

And are you comfortable with those numbers?

That's the conversation we need to have.

The Bottom Line: Buy the Home, But Understand the Cost of Owning It

I don't want higher insurance costs to scare you away from buying a home in North Texas.

I want you to be prepared.

Because there are still wonderful opportunities to buy in Mansfield, Arlington, Burleson, Grand Prairie, Midlothian, and throughout South DFW.

But being prepared means understanding more than just your interest rate.

It means understanding property taxes, insurance, maintenance, and the expenses that come with homeownership.

And if you're considering buying new construction, remember that an attractive builder financing incentive doesn't replace the need to review the full monthly payment.

John and I love helping buyers work through these details because finding the right house is only part of the process.

Making sure it's the right financial fit matters too.

So before you fall in love with the kitchen, the backyard, or that gorgeous primary bathroom, let's make sure the numbers work.

Because the goal isn't just getting the keys.

It's being comfortable with the home long after you've moved in.

Thinking about buying or selling in South DFW?

John and I would love to help you put together a strategy that considers the whole picture—from the purchase price and negotiations to the ongoing costs of owning your next home.

And for more local market information, new construction tours, neighborhood guides, and practical real estate advice, visit our YouTube channel, South of Cowtown with The Deeds.

Call or text HOME to 817-659-0980
Email: info@thedeedsgroup.com
Website: www.thedeedsgroup.com

— Stephanie Deeds
The Deeds Group at Point Realty
Creating Your Next Adventure Together