Why Is Homeowners Insurance So Expensive in Dallas-Fort Worth?

DFW homeowners: Wondering why your home insurance rates keep rising? Learn the top reasons behind high premiums in Dallas-Fort Worth.

If you’re a homeowner in Dallas-Fort Worth—whether in Mansfield, Arlington, Fort Worth, or Frisco—you’ve probably noticed your homeowners insurance premiums rising over the past few years. And you’re not imagining things. Texas, and especially North Texas, is one of the most expensive areas in the country for home insurance. But why exactly is this happening?

At McKnight Insurance Services, we hear this question from clients every single day: “Why is my home insurance so expensive now?” To help you understand what’s going on, here’s a comprehensive breakdown of what’s driving these high premiums—and what steps you can take to better protect your home and your wallet.

1. Hail and Severe Weather Are Major Risks in North Texas

Dallas-Fort Worth is located in what’s often called “Hail Alley”—one of the most active hailstorm regions in the U.S. Between March and June, massive hail events are common across Mansfield, Fort Worth, and surrounding areas. According to the Insurance Information Institute, Texas leads the nation in hail-related claims year after year.

Hailstones can damage roofs, siding, windows, fences, and outdoor equipment in a matter of minutes. And when thousands of homes are damaged in a single storm, insurance companies must pay out millions—sometimes billions—in claims. The result? Rising premiums for all policyholders in the region, regardless of whether you’ve filed a claim yourself.

2. Roof Age and Roof Type Are Big Underwriting Factors

Roofs are one of the most important (and expensive) parts of any home, and they’re often the first line of defense against storm damage. Insurers are paying close attention to:

• Roof age: Older roofs (typically over 10–15 years) are more likely to sustain damage, and many carriers will surcharge or exclude replacement cost coverage.
• Roof type: Impact-resistant shingles or metal roofs may earn discounts, while less durable materials could raise your premium.

Some policies in Texas now offer only Actual Cash Value (ACV) for roof damage instead of Replacement Cost Value (RCV), especially for older roofs. That means you get a depreciated payout based on the age of the roof, not what it would cost to install a new one today.

3. Inflation and Building Costs Are Driving Up Rebuild Values

Homeowners insurance is based on the cost to rebuild your home—not its real estate market value. And those rebuild costs have skyrocketed due to:

• Lumber and construction material inflation
• Labor shortages in skilled trades (roofers, framers, electricians, etc.)
• Supply chain delays pushing up prices of everything from appliances to drywall

As the cost to replace your home increases, your dwelling coverage limit must rise as well—and so does your premium. In some cases, a policy that cost $1,200 per year just two years ago now costs $1,700 or more, simply due to increased rebuild valuations.

4. High Rates of Insurance Fraud and Legal Risk in Texas

Texas has long been a hotbed for insurance litigation—particularly surrounding roofing contractors and storm-related claims. Some bad actors inflate claims or push homeowners to file unnecessary ones. In turn, insurers face more lawsuits and legal expenses.

This legal environment creates what insurance professionals call a “hard market”—fewer carriers, stricter underwriting, and higher rates across the board. In DFW, where severe weather is common, insurers are especially cautious.

5. Localized Risk Factors Also Matter

Premiums are not just set based on regional data—they also reflect your specific neighborhood. Carriers consider:

• Crime rates (higher theft or vandalism = higher premiums)
• Proximity to fire stations and hydrants (affects emergency response times)
• Home age and construction materials (older homes may have outdated wiring or plumbing)

For example, a newer home in Mansfield’s south side may cost less to insure than a 40-year-old home in a dense part of Fort Worth. ZIP code, building codes, and even your claim history can all impact what you pay.

6. Claim Frequency, Even Small Ones, Can Raise Rates

Many homeowners are surprised to learn that even minor claims—like water damage from a leaking AC unit or small hail repairs—can result in non-renewal or surcharges.

Insurers now use CLUE (Comprehensive Loss Underwriting Exchange) reports to track claims on your property, regardless of size. If you’ve had multiple claims in the past 5 years, your options for affordable coverage may become limited.

7. Coverage Add-Ons and Customizations

Texas homeowners often need to add endorsements to their base policy, such as:

• Wind/hail deductible buyback
• Water backup or sewer coverage
• Extended replacement cost coverage
• Foundation coverage
• Scheduled personal property (for jewelry, firearms, etc.)

These add-ons improve protection—but they also increase the total premium. It’s important to review your policy regularly with a local agent to make sure you’re not overpaying for coverage you don’t need—or underinsured for risks that matter in DFW.

What Can You Do to Save on Home Insurance in DFW?

Here are some actionable tips to reduce your homeowners insurance premiums:

• Bundle your home and auto policies to receive a multi-policy discount
• Install home security and fire alarm systems for additional savings
• Upgrade your roof with impact-resistant materials (often earns a discount)
• Choose a higher deductible (if you have the emergency savings to cover it)
• Work with an independent agency that can shop your rate across multiple carriers

At McKnight Insurance Services, we do all of this and more. We’ll review your current policy, assess your property risk, and help you find the best balance between cost and protection.

Final Thoughts

Homeowners insurance in Dallas-Fort Worth is expensive because the risks here are real: hail, high rebuild costs, legal exposure, and more. But that doesn’t mean you’re stuck overpaying or settling for poor coverage.

By understanding the “why” behind rising rates—and by working with a trusted local agent—you can make smart choices to protect your home and your finances.

Are you frustrated with your insurance? Contact McKnight Insurance today to speak with a local expert who knows how to help DFW homeowners save without cutting corners on coverage.

Let’s protect what matters—together.