The average cost of homeowners insurance in Texas is $2,919 per year, or around $243 per month for a policy with $300,000 in dwelling coverage, according to a Policygenius analysis of Texas rate data.
Homeowners in the Lone Star State paid an average of 10.8% more for home insurance in 2022 compared to the previous year — the largest average yearly rate increase in 10 years, according to the Texas Department of Insurance.
Insurance regulators approved 32 rate increase requests from several top insurance carriers in 2022, including State Farm and Liberty Mutual. If your home insurance bill went up recently, that may be one of the culprits.
Expensive home insurance may seem inevitable in Texas these days, but there are still several carriers offering industry-best coverage at affordable rates, according to our 2023 analysis of the best home insurance companies in Texas.
Compare the best homeowners insurance companies in Texas
State Farm, Farmers, and Nationwide top our list of the best homeowners insurance companies in Texas.
To come up with our top picks, we looked at the 15 Texas companies with the highest market share in the state and chose the five with the highest overall Policygenius rating. Our ratings are based on each company's financial strength and customer satisfaction ratings, the number and quality of available coverages, and average policy premiums in 1,930 Texas ZIP codes.
Company | Best for... | Average monthly cost | Policygenius rating |
---|---|---|---|
Overall | $229 | 4.8 out of 5 | |
Policy perks & discounts | $40 | 4.5 out of 5 | |
Comprehensive coverage options | $371 | 4.5 out of 5 | |
Bundling home & auto insurance | $425 | 4.5 out of 5 | |
Basic coverage at low rates | $60 | 3.9 out of 5 |
Best overall homeowners insurance in Texas: State Farm
Best for policy perks & discounts: Farmers
Best for comprehensive coverage options: Nationwide
Best for bundling home & auto insurance: Progressive
Best for basic coverage at low rates: Texas Farm Bureau
How much is homeowners insurance in Texas?
The average cost of homeowners insurance in Texas is $2,919 per year for an insurance policy with $300,000 in dwelling coverage. This is around 66% higher than the nationwide average of $1,754.
Home insurance premiums in Texas are higher in large part due to the outsized risk of natural disasters in certain areas. As hurricanes, tornadoes, and hail continue to worsen and cause extensive damage to homes all over the state, insurance companies account for this by charging higher rates.
Texas homeowners insurance rates by city
Home insurance costs in Texas can vary substantially depending on where you live. Cities with a high risk of natural disasters such flooding or extreme weather conditions will likely have higher average home insurance rates.
Here’s a look at the average cost of home insurance in the 20 largest cities in Texas.
City | Average monthly cost | Average annual cost | Difference from state average (%) |
---|---|---|---|
Houston | $245 | $2,936 | 1% |
San Antonio | $197 | $2,365 | -19% |
Dallas | $274 | $3,284 | 13% |
Austin | $180 | $2,158 | -26% |
Fort Worth | $272 | $3,258 | 12% |
El Paso | $140 | $1,679 | -42% |
Arlington | $282 | $3,378 | 16% |
Corpus Christi | $206 | $2,466 | -16% |
Plano | $269 | $3,228 | 11% |
Lubbock | $271 | $3,257 | 12% |
Laredo | $190 | $2,277 | -22% |
Irving | $276 | $3,307 | 13% |
Garland | $268 | $3,210 | 10% |
Frisco | $236 | $2,833 | -3% |
McKinney | $268 | $3,217 | 10% |
Grand Prairie | $280 | $3,360 | 15% |
Amarillo | $304 | $3,649 | 25% |
Brownsville | $176 | $2,109 | -28% |
Killeen | $181 | $2,170 | -26% |
Denton | $269 | $3,223 | 10% |
Texas homeowners insurance rates by coverage amount
The table below highlights the average annual premium in Texas for five different levels of dwelling coverage, which is the part of your policy that covers structural damage to your home.
Generally speaking, more dwelling coverage means higher homeowners insurance rates, as shown in the table below.
Dwelling coverage limit | Average annual cost |
---|---|
$100,000 | $1,318 |
$200,000 | $2,086 |
$300,000 | $2,919 |
$400,000 | $3,749 |
$500,000 | $4,642 |
Cheapest homeowners insurance companies in Texas
Based on our analysis, Farmers, State Auto, Texas Farm Bureau, Lighthouse Property Insurance, and Chubb are the five cheapest home insurance companies in Texas, with statewide average premiums ranging from $484 to $2,201 per year. USAA, State Farm, and Mercury are also among the most affordable home insurance carrier options for Texas residents in 2023, as detailed in the table below.
Company | Average annual cost |
---|---|
$484 | |
$665 | |
$722 | |
Lighthouse Property Insurance | $1,353 |
$2,201 | |
$2,703 | |
$2,743 | |
$2,760 | |
IAT Insurance | $3,699 |
$3,964 | |
$4,196 | |
$4,206 | |
$4,456 | |
$5,102 | |
$5,168 |
Cheapest Texas homeowners insurance if you have poor credit
Generally, individuals with better credit scores enjoy lower home insurance premiums. Insurance companies have found that customers with lower credit scores file more claims for small losses, like a pipe leak, since they may not be in a financial position to pay for these damages out of pocket.
Here's the cheapest homeowners insurance in Texas for a homeowner with poor credit.
Company | Average annual cost |
---|---|
Farmers | $1,026 |
Farm Bureau Insurance | $1,072 |
Lighthouse Property Insurance | $1,353 |
State Auto | $2,471 |
USAA | $3,305 |
Texas FAIR Plain Association | $3,964 |
State Farm | $4,711 |
Mercury | $4,944 |
Nationwide | $5,734 |
Chubb | $6,031 |
AmGUARD Insurance | $6,204 |
UPC Insurance | $6,660 |
Amica | $6,671 |
Progressive | $6,713 |
IAT Insurance | $10,741 |
Cheapest Texas homeowners insurance if you have an older home
The median age of homes in Texas is 33 years old, according to an analysis of U.S. census data by House Method. And like everything else, the age of your home plays a role in how much you pay for home insurance in Texas.
Older and historic homes are usually more expensive to insure than newer homes. This is because insurers consider them a higher risk than newer homes since they can be fragile, their construction materials may be obsolete, and certain structural components like the roof or plumbing may not be in good shape or up to current-day code. Because of this, they'll charge higher premiums to offset the risk.
Here's the cheapest home insurance in Texas for a home that's over 50 years old:
Company | Average annual cost |
---|---|
Farmers | $511 |
State Auto | $701 |
Farm Bureau Insurance | $722 |
Lighthouse Property Insurance | $1,394 |
Chubb | $1,968 |
Progressive | $2,682 |
State Farm | $2,740 |
USAA | $2,765 |
Mercury | $2,873 |
Texas FAIR Plain Association | $3,964 |
IAT Insurance | $4,143 |
Nationwide | $4,144 |
UPC Insurance | $4,168 |
AmGUARD Insurance | $4,534 |
Amica | $5,912 |
Cheapest Texas homeowners insurance if you have a history of claims
One of the biggest factors that plays a role in your home insurance premium is your claims history. You'll typically pay more for home insurance if you have multiple claims on your record, since insurers perceive you as posing a greater risk of filing more.
Here's the cheapest home insurance companies in Texas for a homeowner with three claims within a five-year period:
Company | Average annual cost |
---|---|
Farmers | $790 |
Farm Bureau Insurance | $807 |
State Auto | $1,472 |
Lighthouse Property Insurance | $2,043 |
Chubb | $2,437 |
State Farm | $2,740 |
USAA | $3,004 |
Progressive | $4,044 |
AmGUARD Insurance | $5,406 |
Mercury | $5,656 |
Texas FAIR Plain Association | $6,231 |
IAT Insurance | $6,340 |
Nationwide | $6,719 |
UPC Insurance | $8,134 |
Amica | $9,755 |
Coverage options in Texas
When you buy homeowners insurance in Texas, there are three additional coverage options you may need to consider to protect against the state’s frequent natural disasters.
Texas Windstorm Insurance Association
In many areas of Texas prone to tornadoes or hurricanes, many insurance policies have a wind and hail exclusion, meaning insurers won’t cover repairs to property damaged by wind or hail. Since going without this coverage is a huge gamble, many Texas homeowners purchase additional windstorm insurance through the Texas Windstorm Insurance Association (TWIA) to fill this important gap in coverage.
The TWIA offers windstorm insurance in 14 coastal counties and parts of Harris County. To qualify for a TWIA policy, applicants must show proof of being denied coverage by at least one insurance company.
Aransas
Brazoria
Calhoun
Cameron
Chambers
Galveston
Harris
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 the Texas hurricane season, as it's not uncommon for insurance companies to put a moratorium on coverage in advance of a tropical storm.
Learn more >> Guide to windstorm insurance coverage
Flood insurance
Homeowners insurance does not cover water damage caused by flooding in Texas or any of the other 49 states. There are approximately 700,000 homes in Texas at extreme risk of flooding, so you'll want to consider getting flood insurance if you purchase a house in the area. The average cost of flood insurance in Texas through the National Flood Insurance Program is $676 per year, making the Lone Star State one of the cheapest in the country for flood insurance.
Most home insurance providers in Texas offer NFIP flood insurance as a separate policy. but some companies also offer their own private flood insurance or flood insurance add-ons that you can add to your home insurance for an additional fee.
Learn more >> How much is flood insurance in Texas?
Wildfire insurance
In addition to hurricanes and tornadoes, Texas also experiences many wildfires. Texas has the second most properties at risk of wildfire damage of any U.S. state — only California has more, according to Verisk Analytics. 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 or guaranteed replacement cost coverage to your policy.
Learn more >> What is wildfire insurance & how much do I need?
Common causes of home insurance claims in Texas
With its proximity to the Gulf Coast and Tornado Alley, Texas homeowners have a string of natural disasters to ensure their homes are covered against. Here are some of the most common causes of home insurance claims in Texas to protect your biggest investment against.
Hurricanes: With over 64 hurricanes making landfall in Texas since 1854, according to the National Oceanic and Atmospheric Administration (NOAA), hurricanes are one of the leading causes of home insurance claims in the Lone Star State. [1]
Wind: Texas experiences the most tornadoes of any other state in the U.S. — averaging 136 twisters per year — according to the NOAA. The corresponding high number of wind claims made by Texas homeowners is just another reason why adding windstorm coverage to your home insurance policy is a good idea.
Hail: The Lone Star State topped the list of states with the most properties affected by hail in 2021, according to Verisk's Hail Report of 2022. [2] Texas saw 1.6 million properties pummeled with hailstones, leading to many roof damage claims.
Lightning: Texas ranks third for the most lightning-caused home insurance claims filed in 2020, according to the Insurance Information Institute (III). [3] This makes fire insurance an essential supplementary coverage for homeowners in the Lone Star State.
Wildfires: Texas is just behind California in the top 10 list of states with the most wildfires and acres burned in 2021, according to the Insurance Information Institute. [4]
Flooding: While most Texas homes are in flood zones with a moderate to low risk of flooding, around 25% of all flood insurance claims come from these areas, according to FEMA. [5] This is why flood insurance is another endorsement you should strongly consider adding to your home insurance policy.
Am I required to have home insurance in Texas?
While it’s not legally required to purchase homeowners insurance in Texas, most mortgage lenders require you to purchase home insurance before they’ll extend a home loan to you. This is because they have a financial investment in the property until you pay off your mortgage, so they want to ensure it’s fully protected.
Why is home insurance in Texas so expensive?
Home insurance is expensive in Texas because the state is at high risk for severe weather damage due to hurricanes, tornadoes, wildfires, flooding, and even snow storms. Since there’s a higher change of homeowners filing a claim, insurance companies charge higher rates to account for the added risk.