Homeowners insurance in Texas

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.

Pat Howard 1600

Pat Howard

Published October 7, 2020

KEY TAKEAWAYS

  • 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

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.

Compare Texas quotes here

The 5 best homeowners insurance companies in Texas

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.

Using that criteria, we determined the following five companies were the best homeowners insurance companies in Texas. Read about our methodology here.

Best company for a cheap quote: Hippo

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

Best replacement cost policy: Encompass

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

Best company for discounts: State Auto

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

Best financial ratings: Travelers

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

Best company for high-value homes: Chubb

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

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Average cost of homeowners insurance in Texas by company

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.

CompanyAverage Cost
ASI$ 2,710
Encompass$ 3,566
Hippo$ 2,143
Mercury$ 2,377
MetLife$ 4,304
Nationwide$ 2,770
Progressive$ 2,624
Safeco$ 2,561
State Auto$ 2,490
Stillwater$ 2,641
Travelers$ 2,457
Velocity$ 2,166

Average cost of home insurance in Texas by coverage amount

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 AmountAverage Cost
$100,000-$200,000$ 2,423
$200,000-$300,000$ 2,614
$300,000-$400,000$ 3,038
$400,000-$500,000$ 3,442
Greater than $500,000$ 4,522

Average cost of home insurance in Texas by city

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.

CityAverage Cost
Amarillo$ 2,957
Arlington$ 3,546
Austin$ 1,718
Brownsville$ 2,251
Corpus Christi$ 3,574
Dallas$ 3,062
El Paso$ 1,437
Fort Worth$ 3,643
Frisco$ 3,257
Garland$ 3,274
Grand Prairie$ 3,465
Houston$ 3,104
Irving$ 3,309
Killeen$ 1,516
Laredo$ 2,278
Lubbock$ 2,466
Mckinney$ 2,708
Pasadena$ 3,892
Plano$ 3,534
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.

The cheapest cities for homeowners insurance in Texas

texas-cheapest-homeowners-insurance

The most expensive cities for homeowners insurance in Texas

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Find the best home insurance near you

Windstorm coverage in Texas: what you need to know

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.

Texas Windstorm Insurance Association

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:

  • Aransas
  • Brazoria
  • Calhoun
  • Cameron
  • Chambers
  • Galveston
  • Jefferson
  • Kenedy
  • Kleberg
  • Matagorda
  • Nueces
  • Refugio
  • San Patricio
  • Willacy

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.

Guide to homeowners insurance in Texas

Other common causes of home insurance loss in Texas

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.

Does homeowners insurance cover flooding in Texas?

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.

Texas Department of Insurance

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.

What if I can’t get homeowners insurance?

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

Insurance Expert

Pat Howard

Insurance Expert

Pat Howard is an Insurance Editor at Policygenius in New York City, specializing in homeowners insurance. He has been featured on Property Casualty 360, MSN, and more. Pat has a B.A. in journalism from Michigan State University.

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.

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