Texas Insured Property Losses Setting Record in 2016

September 29, 2016

Damaging hail storms and wide-spread flooding have caused record setting losses for both homes and automobiles this year in Texas, according to a state insurance trade group.

This year’s insured losses for the first two quarters already surpass every year’s total losses dating back to Hurricane Ike in 2008, the Insurance Council of Texas (ICT) reports.

“Hailstorms have already totaled $4 billion for residential property losses alone in Texas this year,” said Mark Hanna, a spokesman for the ICT. “Hail and flooding has caused more than $1 billion in auto losses. This year’s losses for both home and auto have doubled the annual losses we have seen in the past several years.”

In March, multi-million hailstorms pounded Fort Worth, Arlington and Plano. Softball size hail knocked holes through roofs in the city of Wylie on April 11. The state’s costliest hailstorm on record struck San Antonio on April 12. San Antonio was pounded by two more hailstorms later in the month raising the city’s total losses past $2 billion.

Additional storms in April and May resulted in massive flooding that claimed several lives in Wimberley and Houston. Some areas reported up to 20 inches in rainfall that flooded homes and submerged vehicles.

“Texas had a record number of tornadoes last year, but the insured losses from those storms, is pale in comparison to what this year’s hailstorms have caused,” said Hanna.

Texas Residential Wind/Hail Losses
Year Paid Losses in Billions
2008 5.0
2009 3.5
2010 1.7
2011 2.6
2012 2.5
2013 1.95
2014 2.0
2015 2.5
2016 – 1st two quarters 4.0
Texas Auto Wind/Hail Losses
Year Paid Losses in Millions
2008 700
2009 700
2010 150
2011 500
2012 600
2013 450
2014 500
2015 750
2016 – 1st two quarters 1.5 billion

The losses don’t factor in residential flood losses or any insured losses to commercial property. Second quarter results generally reflect the state’s highest property losses, but in fall 2015, Texas experienced massive flood losses in late October, as well as more than $1 billion in damage from tornadoes that struck the Dallas area the day after Christmas.

Source: The Insurance Council of Texas

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Latest Comments

  • October 5, 2016 at 6:15 pm
    lonestar says:
    I can hear customers already: "Why did MY rate go up, I did not file any home claims last year." Mr. Customer, I am sure you did not file any health insurance claims last year... read more
  • October 2, 2016 at 1:42 pm
    Don Smith says:
    People who live in areas not subject to hurricanes, floods and forest fires get higher rates. The solution is to do business with insurance companies that limit exposure to a ... read more
  • October 2, 2016 at 12:26 pm
    Captain Planet says:
    Texas, the Middle East of The United States.
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