January 2015
By Josiah Neeley
To read the full R Street Policy Study, please click HERE.


Texas is known for its extreme weather. From hur­ricanes along the coast to wildfires in Bastrop, the state has absorbed more than its share of weather-related property damage. Yet when it comes to prop­erty damage, the most costly culprit is one we typically don’t think about: hail.

Between 1999 and 2011, homeowners’ insurers paid $10.4 bil­lion for hail-related losses, more than any other peril. From 2010 to 2012, Texas generated more than 320,000 hail insur­ance claims, more than double any other state. Hail insur­ance claims have increased 84 percent since 2010.

That trend appears likely to continue. An April 2014 storm in Denton is expected to result in $500 million in losses, while June storm in Abilene may result in another $400 million.

Texans have the highest insurance premiums in the country, 50 percent higher than the national average. Hail claims are the most significant single contributor to those costs. Insur­ance losses from hail claims in Texas exceed those from hurricanes and tornados combined.


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