Texas Tops List of Three States Hit Hardest by Natural Disasters

Homeowners and residential real estate investors can expect property insurance rates to rise following the growing number of natural disasters nationwide, according to SitusAMC. A new SitusAMC white paper, “Weathering the Storm: Burgeoning Insurance Costs for Real Estate,” found the impact of natural disasters on the residential property market has not been limited to California and Florida, where several high-profile disasters have taken place.

In fact, in 2020, the states hardest hit by natural disasters were Texas, Virginia and South Dakota. Winter storms in Texas, for example, accounted for 40 percent of the total losses in the U.S. property insurance market during the first half of 2021. The rise in the number and severity of hurricanes, wildfires, tornadoes and other events tied to climate change has created significant risk for insurance companies, which will lead to a rise in insurance premiums and reductions in coverage for property owners.