Ice Storms: How Much Do They Cost Insurance Each Year in Texas?

In Texas, we expect a lot from Mother Nature—heatwaves, thunderstorms, even the occasional

hailstorm. But over the last few years, it’s the ice storms that have caused some of the biggest

financial headaches, especially for insurance companies, homeowners, and drivers.

Here in Round Rock, TX, and the surrounding Central Texas area, we’ve seen ice events that

shut down highways, burst pipes, and triggered record-breaking insurance claims. But just how

much do these ice storms cost insurance carriers each year in Texas? And more importantly,

what does that mean for your premiums and your protection?

At Safe Beacon Insurance, we dug into the numbers and the stories to help you understand the

true cost of ice storms and how to make sure you’re covered when the next freeze rolls in.

Ice Storms in Texas: A Growing Threat

While many folks associate ice storms with northern states, Texas has seen a sharp uptick in

these extreme cold events—most notably the February 2021 Winter Storm Uri, which

devastated the state.

Since then, smaller but still costly freezes have affected Round Rock, Pflugerville, Hutto, and the

greater Austin metro.

What makes Texas especially vulnerable?

• Our infrastructure isn’t designed for freezing weather

• Homes often lack adequate insulation or pipe protection

• Drivers aren’t used to navigating icy roads

The result? Higher claim volume, more property damage, and big insurance payouts.

How Much Do Ice Storms Cost Texas Insurers?

Let’s look at the most recent data and historical context.

Winter Storm Uri (February 2021):• Estimated insurance losses: $10.3 billion statewide (source: Insurance Council of

Texas)

• Total insured claims: Over 500,000

• Central Texas impact: Thousands of frozen pipe claims and auto accidents reported

This made it the costliest weather disaster in Texas history—even more expensive than

Hurricane Harvey.

Other Notable Ice Events:

• February 2022: Widespread ice in Central Texas caused thousands of auto and

homeowner claims

• January 2023: Ice storm shut down parts of I-35 and damaged trees, homes, and vehicles

While smaller in scope than 2021, each of these events still cost insurers hundreds of millions

of dollars annually.

Ongoing Impact:

• Annual insurance losses from ice storms in Texas now average $1.5–$2.5 billion

• The bulk comes from burst pipe claims, roof damage, and auto collisions

What Types of Insurance Claims Spike During Ice Storms?

1. Homeowners Insurance Claims

• Burst pipes (water damage is typically covered)

• Roof collapses from ice or falling limbs

• Wind damage from freezing gusts

• Loss of use (hotel stays during repairs)

2. Auto Insurance Claims

• Fender benders and major accidents on icy roads

• Collisions with fallen trees or debris

• Comprehensive claims for frozen engines or damage from hail/sleet3. Commercial Property Claims

• Business interruption

• Damage to heating or plumbing systems

• Inventory loss due to power outages

In 2021, nearly 70% of winter storm claims came from residential homeowners, but auto and

business policies saw sharp upticks too.

How Do Ice Storm Costs Affect Your Insurance Premiums?

When insurance companies experience large-scale losses, those costs are eventually shared

across the risk pool—meaning premiums often increase.

In Round Rock, TX, this has translated to:

• Higher homeowners insurance rates since 2021

• Stricter underwriting guidelines for older homes

• Increased interest in optional coverages like water backupequipment breakdown, and

loss of use

In auto insurance, rates have risen too, particularly for drivers with:

• Claims filed during winter months

• Vehicles damaged by weather events

At Safe Beacon, we’re constantly working with top-rated carriers to find you the best balance of

price and protection, even in a hard market.

What Does a Standard Homeowners Policy Cover in an Ice

Storm?

Most Texas homeowners policies do cover:

• Water damage from burst pipes (if precautions were taken)

• Damage to the home’s structure• Damage to personal property

• Additional living expenses if your home is unlivable

However, exclusions and limitations matter. You may not be covered if:

• You failed to heat your home during freezing temps

• Damage was gradual and not sudden

• You lack endorsements for things like water backup

Want to know if you’re fully covered? Safe Beacon can review your policy for gaps before the

next freeze hits.

Commercial Insurance and Ice Storms

Businesses in Round Rock, Georgetown, and Pflugerville took a big hit in 2021 and again in

2023.

Common issues include:

• Frozen sprinkler systems damaging inventory

• Roof leaks disrupting operations

• Loss of income due to shutdowns

Business owners should review:

• Commercial property limits

• Business interruption coverage

• Extra expense protection (like temporary workspaces)

We’ve worked with dozens of Central Texas businesses to tailor winter-ready policies that help

them recover faster.

Auto Insurance and Ice Storms in Texas

Comprehensive and collision coverage become crucial when road conditions go south.

Without collision coverage, damage from hitting a guardrail, tree, or another vehicle in an ice

storm won’t be covered.Without comprehensive coverage, you may be stuck paying for:

• Ice falling from overpasses

• Tree limbs damaging your vehicle

• Windshield cracks from flying debris

It’s also a good idea to carry roadside assistance for tows, jump-starts, or fuel delivery when

you’re stuck in icy conditions.

How to Prepare for the Next Freeze in Round Rock

1. Winterize Your Pipes

• Wrap exterior faucets

• Insulate exposed pipes in the attic or garage

• Drip indoor faucets when temps drop below 32°F

2. Review Your Insurance Coverage

• Confirm what’s covered in your home and auto policies

• Add optional endorsements if needed

• Ask us about comprehensive autoloss of use, and equipment breakdown

3. Create a Storm Safety Plan

• Keep flashlights, water, and nonperishable food on hand

• Know where your water shut-off valve is

• Park under shelter if possible

What to Do If You Need to File a Claim After an Ice Storm

Step 1: Document everything

• Take photos or videos of damage• Save receipts for any emergency expenses

Step 2: Contact Safe Beacon Insurance

We’ll walk you through the claims process and help you understand your deductible, what’s

covered, and what to expect next.

Step 3: Mitigate further damage

• Turn off water if pipes burst

• Board up broken windows

• Move belongings out of harm’s way

Final Thoughts: Ice Storms Are Costly—But Preparation

Pays Off

Ice storms may be rare in Texas, but when they hit, they hit hard. The numbers don’t lie—

billions in damages, skyrocketing claims, and long repair times.

But with the right insurance, a solid plan, and a trusted local agency like Safe Beacon Insurance

on your side, you can ride out the next storm with confidence.

We help families and business owners in Round Rock, TX and the surrounding areas stay

protected—not just for sunny days, but for icy ones too.

Let’s Get You Storm-Ready Before the Next Freeze

Call Safe Beacon Insurance in Round Rock, TX today for a free policy review or winter

weather consultation.

Phone: (512) 535-1918

Email: info@sterilnginsnow.com

Website: https://www.sterlinginsnow.com

Let’s protect what matters—rain, sleet, or snow.

Please complete the form below for a quote.

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Are you ready to save time, aggravation, and money? The team at Safe Beacon Insurance is here and ready to make the process as painless as possible. We look forward to meeting you!