More on Home Insurance
More on Home Insurance
The cost of homeowners insurance in Texas is $2,854 a year for the average amount of coverage. Texas residents can compare rates from 16 different companies with Policygenius.
Updated October 7, 2020
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Texas is a massive state with a diverse climate — West Texas is mostly dry and arid while the east side of the state is humid and prone to hurricanes, tornadoes, and inclement weather. But whether you own a ranch home in Lubbock or a beach house in Galveston, you should make sure your home is well protected with a comprehensive homeowners insurance policy.
The statewide average cost of homeowners insurance in Texas is $2,854, making Texas the third most expensive state in the country to insure your home, behind only Louisiana and Oklahoma. But bear in mind that premiums for Texas residents will vary based on specific factors related to your home and policy. Your rates will be directly impacted by your home’s condition and style of build, its location, your credit and claims history, and your policy deductible amount. Rates will also be different from company to company for the same level of coverage, which is why it’s so important to compare policies from different companies — that’s where we come in.
To help simplify your shopping experience, Policygenius reviewed the five best homeowners insurance companies in Texas offered through our website. We also calculated the average rate for several companies offered through Policygenius, the cheapest and most expensive cities in Texas for home insurance, and the average cost for each level of coverage based on hundreds of submitted quotes.
The average cost of homeowners insurance in Texas is $2,854 per year for $100,000–500,000 in coverage, according to Policygenius data
The most affordable insurance company in Texas is Hippo, according to Policygenius quote data
When deciding on policy coverage, Texas residents should consider the state’s susceptibility to tropical storm damage and tornadoes
Before deciding on a homeowners insurance policy, consider doing a little research on the company that will be insuring your house and all of your assets. A great homeowners insurance company is financially stable, has a good track record when it comes to handling claims, and offers affordable coverage, flexible policy options, and high quality discounts.
Hippo provides the cheapest Texas home insurance quote of any Policygenius partnering carrier. The average quote with Hippo is $2,143 for around $300,000 in dwelling coverage, which is over $700 dollars cheaper than the statewide annual average of $2,854. Texas residents looking for great coverage at a relatively low cost should consider homeowners insurance with Hippo.
Read our full review of Hippo here
Texas residents looking to maximize coverage to protect against natural disasters and an unexpected surge in rebuild costs should consider Encompass. Encompass has three comprehensive tiers of coverage, with the two highest coverage tiers including guaranteed replacement cost, a policy add-on that will pay out a full rebuild of your home back to its prior condition, regardless of the expense.
Read our full review of Encompass here
Texas residents looking for home insurance savings should look no further than State Auto, a company that offers a total of nine available discounts for everything from bundling your home and auto insurance to fitting your house with smart home devices to fortified home discounts. Texas residents who build their homes to withstand the state’s high risk of hurricanes, tornadoes and hailstorms should take advantage of these valuable rate-saving opportunities.
Read our full review of State Auto here
One important indicator of an insurance company’s ability to pay out claims in an effective and timely manner is its financial stability, and Travelers is among the highest-rated insurers in that area. With an A++ rating with A.M. Best, Travelers has the highest score a company can receive with the insurance company credit rating agency. Travelers also has high marks with Standard & Poors, which measures long-term financial stability, as well as Moody’s, which measures what the expected losses would be if a company were to go into default.
Read our full review of Travelers here
Texas residents with high-value homes should consider a homeowners insurance policy with Chubb. This luxury insurance company provides guaranteed replacement cost dwelling coverage, replacement cost coverage on all personal property, and additional services like a property manager if you have a vacation or secondary home in a coastal county of Texas. Keep in mind that Chubb only covers homes with an insured value north of $1 million.
Read our full review of Chubb here
When comparing insurance companies, Texas residents may find that rates differ greatly from company to company for the same level of coverage. Higher-priced policies may include coverage add-ons or have higher limits than other plans, or they may cost more simply because that insurer charges more for coverage in that particular location.
After reviewing hundreds of quotes submitted with Policygenius, we found that Hippo is the cheapest insurance company in Texas with a $2,143 average annual premium for $100,000–500,000 in coverage. MetLife has the most expensive coverage with an average annual premium of $4,304 for the same amount of coverage.
The average cost of homeowners insurance in Texas will also differ considerably based on the amount of insurance you have for your home. Below are the average homeowners insurance quotes for five different levels of coverage, according to Policygenius quotes.
|Coverage Amount||Average Cost|
|Greater than $500,000||$ 4,522|
Insurance companies will also price policies differently based on where you live. We found that the Gulf Coast city of Pasadena has the highest rates in the state with a $3,892 average annual premium for $100,000-500,000 in coverage. The city with the cheapest rates in the Lone Star State is El Paso, with an average annual premium of $1,437 for the same amount of coverage.
|Corpus Christi||$ 3,574|
|El Paso||$ 1,437|
|Fort Worth||$ 3,643|
|Grand Prairie||$ 3,465|
|San Antonio||$ 1,988|
We selected the 20 largest cities in Texas by population where customers have submitted quotes with Policygenius. Quotes are based on a coverage amount between $100,000 and 500,000.
In most of East Texas, insurance companies provide wind and hail coverage by charging you a separate wind and hail deductible. If your home incurs wind or hail damage from a thunderstorm, tornado, or tropical storm, you pay that separate deductible before the insurance company pays out for a loss.
But in certain high-risk coastal communities of Texas, namely Gulf Coast counties, wind and hail coverage may be excluded altogether for certain homes. If windstorm damage is excluded from your policy, you’ll need to find separate windstorm insurance to supplement that gap in coverage. That’s where the Texas Windstorm Insurance Association (TWIA) comes in.
The TWIA offers windstorm insurance in 14 coastal counties and parts of Harris County. In order to qualify for a TWIA policy, applicants must have been rejected by at least one private insurer. Here’s a list of TWIA-eligible counties:
If you need to get a TWIA policy, be sure you get coverage in advance of hurricane season, as it's not uncommon for insurers and surplus line carriers to put a moratorium on coverage after a certain date.
In addition to hurricanes and tornadoes, Texas also experiences many wildfires, ranking second in the country in wildfire frequency, according to the Insurance Information Institute. If you live in a wildfire-prone region of Texas, be sure you have enough dwelling coverage to fully replace your home in the event of a disaster and consider adding extended replacement cost coverage or guaranteed replacement cost coverage to your policy.
The Lone Star State is also no stranger to earthquakes. If your home is located near a fault line, like the Balcones Fault in central Texas, you should consider earthquake insurance. If you’d like to acquire earthquake coverage and your insurer doesn’t offer it, ask an agent to point you in the direction of a carrier who does. Coverage may be available through smaller surplus line carriers in your area, and some larger insurers like USAA offer earthquake coverage as an endorsement to your policy.
Homeowners insurance does not cover flood damage in Texas or any of the other 49 states. Texas residents can supplement that gap in coverage by purchasing a flood insurance policy. Flood insurance can typically be provided through the same insurance company that insures your home.
Most flood policies are sold by private companies but administered by the federal government’s National Flood Insurance Program (NFIP). An NFIP flood policy can cover up to $250,00 for the structure of your home and up to $100,000 for personal belongings.
The Texas Department of Insurance is a valuable resource for Texas homeowners purchasing coverage for the first time and those who are already insured. The TDI website has helpful information about what to prioritize when selecting your coverage, comparing rates, preparing your home for bad weather, and you can even file a complaint if you’re unhappy with your home insurance company.
Homeowners insurance companies can cancel your insurance for a number of reasons — maybe you filed too many claims in a short period of time, maybe the insurance company no longer offers coverage where you live, or maybe they determined your home was too risky to insure after a recent inspection.
If you’re struggling to find coverage, you can get last-resort coverage via the Texas Fair Access to Insurance Requirements (FAIR) Plan Association. The Texas FAIR Plan Association is a not-for-profit insurance association that provides basic coverage for Texas residents who are unable to get home insurance on the open market. To qualify for a FAIR Plan, you need to demonstrate that you’ve had at least three unsuccessful attempts to buy insurance from other companies.
Not where you live? We've got you covered, check out our guide to homeowners insurance in your state
Pat Howard is a homeowners insurance editor at Policygenius in New York City. He has written extensively about home insurance cost, coverage, and companies since 2018, and his insights have been featured on Investopedia, Lifehacker, MSN, Zola, HerMoney, and Property Casualty 360.
Pat has a B.A. in journalism from Michigan State University.
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