Best homeowners insurance in Austin

Your guide to the best homeowners insurance companies in Austin, the cost of coverage by ZIP code, and special considerations for Austin homeowners.

Pat Howard 1600

Pat Howard

Published September 25, 2019

Homeowners insurance is important and lender-required protection for your home, your personal property, and your combined assets in the event your property is damaged or you’re sued because of an accident. If you’re one of the quarter of a million Greater Austin residents who owns a home, you’ll want to make sure you have a good homeowners insurance policy and that you’re insured with a reputable company.

That’s because the Austin metropolitan area is considered among the riskiest areas in the country to own a home. Austin experiences just about every type of natural disaster: flash floods, drought, wildfires, extreme thunderstorms and hail, and remnants from hurricanes on the Gulf Coast. If you’re a homeowner in the Greater Austin area, pay special attention to your policy dwelling coverage and consider extended or guaranteed replacement cost home coverage. Austin residents should also obtain flood insurance, which you can get through the NFIP or a private insurance company.

Keep reading for our guide on homeowners insurance in Austin, and check out our Texas homeowners insurance guide for more information about insuring your home in the Lone Star State.

The best homeowners insurance companies in Austin

While low insurance premiums are certainly a reason to select a particular policy, it shouldn’t be the only reason. There are a number of other factors you should consider to ensure you’re getting enough coverage.

When comparing companies, pay special attention to their financial strength, how they handle claims, the number of discounts they offer, and how robust their standard policy offerings are. Sure, Company A’s policy may be 25% cheaper than Company B’s, but it may be worth going with Company B if their base policy includes a number of additional coverages and has an unblemished claims reputation compared to Company A.

The cheapest company for homeowners insurance in the Austin area is Lighthouse, with an average annual premium of around $700. Chubb is far and away the most expensive insurer with an average annual premium of around $3,500.

CompanyAverage annual premium
AIG$2,155
Allstate$1,105
Amica$1,754
AAA$1,591
Assurant$1,156
Chubb$3,538
Crestbrook Insurance$1,724
Encompass$1,614
Esurance$1,229
Foremost$1,800
Garrison Insurance Company$1,193
Hartford$2,236
Hippo$1,034
Kemper$755
Liberty Insurance$2,849
Lighthouse$701
Mercury$831
Metlife$1,832
Mountain Valley$1,320
National Specialty$838
National Surety$1,089
Nationwide$869
Progressive$1,903
Republic Lloyds$1,058
Safeco (a division of Liberty Mutual)$1,511
State Farm$1,880
Texas FAIR Plan$1,119
Texas Farm Bureau Insurance$1,494
Texas Farmers Insurance$803
Travelers$1,258
Trumbull$2,134
Unitrin$1,095
USAA$1,210

Methodology: Average annual premium data is based on a 10- to 35-year-old home in Austin with $200,000 in coverage. Quotes were retrieved using Help Insure—a Texas Department of Insurance quoting tool.

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Austin homeowners insurance prices by ZIP code

When determining your homeowners insurance premium, companies factor in your coverage amounts, the makeup, build and age of your home, your credit score, and where your home is located. Around 55% of Travis County and 27% of Austin proper are made up of wildlands, which are areas of 10 acres or more covered by vegetation.

In drought-prone Austin, wildlands are highly susceptible to wildfires. The West Austin neighborhood of River Place, for insurance, is surrounded by wildlands. And although it has a deforested buffer area between it and the forest or a “Community Protection Zone”, homes are still at extreme risk of catching fire. If you live in the River Place area or surrounding neighborhoods of Long Lake, Glenlake, and Westminster Glen, be sure you’re insuring your home and personal property at or above their replacement cost.

The cheapest region for homeowners insurance in the Austin area amongst the areas we researched was the 78666 ZIP code (San Marcos) with a $1,433 average annual premium. The suburb of Taylor (78724) has the highest rates, with a $1,522 average annual premium.

ZIP codeAverage annual premium
78745 (South Austin)$1,470
78753 (North Austin)$1,484
78701 (Downtown Austin)$1,450
78744 (SE Austin)$1,466
78759 (NW Austin)$1,482
78702 (East Austin)$1,500
78724 (Taylor)$1,522
78734 (Lakeway)$1,437
78613 (Cedar Park)$1,443
78666 (San Marcos)$1,433

Methodology: Average annual premium data is based on a 10- to 35-year-old home with $200,000 in coverage. Quotes were retrieved using Help Insure—a Texas Department of Insurance quoting tool.

Austin homeowners insurance rates by coverage amount

Your coverage amounts are directly impacted by how much coverage you have. Your home’s insured value or dwelling coverage amount should be equal to the rebuild cost of the home. If you live in a Frank Lloyd Wright-designed estate, there’s a good chance you’ll need more dwelling coverage than a single-story ranch home.

Here is the average rate for three different coverage levels for a home in Austin.

Coverage amountAverage annual premium
$150,000$1,302
$200,000$1,484
$350,000$2,033

Methodology: Average annual premium data is based on 10- to 35-year-old home in Austin with $150,000, $200,000 and $350,000 in coverage. Quotes were retrieved using Help Insure—a Texas Department of Insurance quoting tool.

Special considerations for Austin residents

Homeowners in the Austin area have a number of things to consider when setting up their homeowners insurance policy. Austin sits right in the middle of Flash Flood Alley, a geographical term for the Central Texas region that’s prone to flash flooding. As we’ve already touched on, Travis County is also prone to devastating wildfires and intense rainfall and thunderstorms.

Wind and hail deductibles

Although homeowners insurance covers damage caused by tornado and hurricane winds, it’s pretty standard for insurance companies in Central Texas to require a separate wind and hail deductible before they’ll reimburse you for damage caused by those perils. Your insurance company will give you the option of choosing your wind and hail deductible amount. They’ll also typically give you the option of leaving it off your policy altogether for a cheaper premium. Keep in mind that wind and hail damage is typically excluded from your policy if you forego this deductible.

Homeowners insurance resources for Austin residents

Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.