As cooler temperatures fade and spring weather arrives in Texas, the wildfire threat to Texans grows, according to Newsweek.
Experts interviewed by Newsweek warn that the threat of wildfires, combined with the growth of the population in some of the state’s most vulnerable areas, could be a “ticking time bomb” for Texas homeowners insurance.
According to Newsweek, Texas could face a situation similar to California, where major insurers have cut coverage in high-risk areas while raising premiums for years. That could happen in Texas, which experts say is not prepared for a disastrous wildfire to break out.
The Growing Wildfire Threat in Texas
Warm temperatures and high winds during the winter-spring season, which we are currently experiencing, spread dangerous wildfires. The dormant grasses provide fuel for wildfires, which can result in a large fire.
According to Newsweek and a Redfin report, thousands of people have relocated to areas of Texas that are considered “high-risk” for wildfire. This could lead to higher insurance rates.
The risk that wildfires in Texas could cause enormous damages is growing as more people move to fire-prone areas, according to recent data.
A 2024 report by Redfin found that a total of 97,535 people moved into high-fire-risk U.S. counties in 2023; 35,175 of these moved to Texas. All in all, high-fire-risk counties in the Lone Star State saw a net inflow of 30,156—which means that a majority of those who moved to Texas went to live in a vulnerable area.
Insurance Rates Rising In Texas
According to LendingTree, homeowner insurance premiums in Texas have already risen by 54.5% between 2019 and 2024.
The increased number of wildfires and threats of wildfires may raise those costs or even cause some insurance companies to withdraw entirely.