When evaluating real estate investment opportunities, it’s important to consider insurance rates and regional risks. Insurance rates and deductibles can provide insight into the likelihood of various losses in different regions, helping investors make more informed business decisions. Keep reading for a list of some of the worst and best places to invest based on these factors.
Worst Places to Invest
Insurance carriers often use regional data, including loss history and claim frequency, to determine rates. These regions are currently facing some of the highest rates and most frequent losses.
Texas
Properties in Texas experience a high frequency of wind/hail and named storm claims, leading to some of the highest insurance rates in the country. So far, in 2024, nearly 48% of all claims submitted through our program have been due to wind/hail damage, with 46% of those incidents occurring in Texas. Additionally, nearly 50% of all claims in our program involving hurricanes or named storms have come from Texas.
Because of this high level of risk, deductibles for wind/hail losses in this state are typically set at a minimum of $5,000 to $10,000, or around 5% of the property’s coverage amount.
While certain areas of Texas can still offer promising investment opportunities, many parts of the state experience a…