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Floods, fires, severe convective storms, and debilitating winter freezes are making Texas a risk microcosm of the United States.

Tropical Storm Barry was only the latest to cause devastating flooding far inland, where flood insurance take-up rates tend to be low. In Kerr County, where much of the horrific Central Texas flooding of July 4, 2025, took place, flood insurance take-up rates through the National Flood ̽»¨¾«Ñ¡ Program were 2.5 percent.

But tropical storms aren’t always the impetus for flooding. Severe convective storms — from drenching thunderstorms with lightning, to tornadoes, hail, or destructive straight-line winds – are a growing source of losses in Texas and elsewhere. Texas is particularly well placed for these storms, experiencing over 100 tornadoes annually. The state also is highly vulnerable to hail, having experienced 878 events in 2024, involving stones with diameters of one inch or greater – the most such events of any state.

The Lone Star State’s independent electric power grid memorably failed during the winter storms of 2021 – but the entire U.S. grid is aging and subject to failure. And the state is no stranger to litigation trends that drive up costs for consumers, including by putting upward pressure on insurance premium rates.

(As of July 10, 2025)

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