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 |
Methodology & why you can trust our rates
At Policygenius, our educational guides are written and fact-checked by licensed home insurance experts and reviewed by our Financial Review Council to ensure autonomy, expertise, and accuracy.
To find the best home insurance companies in Texas, we analyzed over 30,000 quotes from the 15 largest insurance companies in the state to find the average cost of homeowners insurance with each company in 2022.
When analyzing costs for different coverage levels and risk factors, we changed just one variable at a time to ensure the rates we’re comparing are fair and representative of the factor at hand.
We then looked at J.D. Power customer satisfaction scores, AM Best financial health ratings, quality of policy options, discounts, and compared that with the coverage needs of Texas residents to find the best homeowners insurance in Texas.
To get the average rate for each company in Texas, we analyzed rates provided by Quadrant Information Services in March 2022 for 1,930 ZIP codes in Texas for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
All rates based on the above coverage limits except where otherwise noted.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs — your actual quotes may differ.
Best overall homeowners insurance in Texas: State Farm
2023 Policygenius award winner
State Farm
4.8
Bundle home & auto
Offers extended replacement cost
All 50 states
Why we chose it
State Farm home insurance is one of the best overall home insurance providers in Texas thanks to its statewide availability, large selection of policy options for most home types, high customer service marks, and industry-best financial stability ratings.
Pros and cons
Pros
High customer satisfaction and financial strength ratings
Top-tier coverage add-ons, including extended replacement cost coverage
Offers large discounts when you bundle your home and auto insurance
Cons
20% more complaints filed with the NAIC than other companies of its size
No discounts for first-time homebuyers
More details
Why we chose State Farm
At a time when lots of competitors are no longer insuring homes in areas prone to wildfires or hurricanes, State Farm continues to offer its relatively affordable and highly-rated home insurance to homeowners in most parts of the country, including Texas.
While some of its competitors may not have the financial strength to pay out claims after several natural disasters in the same year, State Farm isn't one of them. It earns the highest rating possible from A.M. Best for financial strength and stability — only six insurance companies out of nearly 70 we reviewed hold this title.
How do State Farm home insurance rates compare to the Texas average?
The average cost of State Farm home insurance in Texas is $2,743 per year, which is about 6% cheaper than the average annual premium in Texas of $2,919.
How to get a quote
Online through State Farm
Best for policy perks & discounts: Farmers
2023 Policygenius award winner
Farmers
4.5
Offers extended replacement cost
Bundle home & auto
Smart home discounts
Why we chose it
Along with saving around 20% when you bundle your home and car insurance, Farmers also gives you access to its extensive suite of discounts, unique policy credits, and claim-free incentives that help put money back in your pocket.
Pros and cons
Pros
12+ discounts to save on rates
Optional extended or guaranteed replacement cost dwelling coverage
Shave $50 off your deductible each year you’re with Farmers
Cons
Below-average scores on J.D. Power’s overall customer satisfaction and digital experience surveys
More details
Why we chose Farmers
Farmers home insurance stands out against competitors thanks to its 17 available discounts and policy perks. For context, Farmers competitors offer an average of around seven discounts total.
Along with several discount offerings and affordable rates, Farmers also offers the following two key policy perks:
Declining deductibles: Earn $50 toward your home deductible each year you have a home insurance policy with Farmers.
Claim forgiveness: Once you’ve gone five years without filing a claim, Farmers won’t raise your rate after that if you end up filing one.
Even more, depending on your state of residence, you can save up to 45% on your auto insurance and up to 34% on your home insurance when you bundle policies, according to farmers.
How do Farmers home insurance rates compare to the Texas average?
The average cost of Farmers home insurance in Texas is $484 per year, which is around 83% cheaper than the annual statewide average of $2,919.
How to get a quote
Online through Farmers
Best for comprehensive coverage options: Nationwide
2023 Policygenius award winner
Nationwide
4.5
Bundle home & auto
Mobile app
New homebuyer discount
Offers extended replacement cost
Why we chose it
Nationwide home insurance features an extensive range of comprehensive coverage and policy options. It also received high marks for claims satisfaction with J.D. Power, indicating you can rely on Nationwide when it matters most.
Pros and cons
Pros
Multiple high-quality coverage options
Highly rated for claims satisfaction with J.D. Power
Cons
Below-average customer satisfaction and digital experience ratings
Won’t cover Airbnbs or other short-term rentals
More details
Why we chose Nationwide
Nationwide is known for it's robust policy options and large selection of coverage add-ons, such as flood coverage and options to rebuild your roof with stronger materials after a covered loss, making Nationwide a smart choice if you live in a Texas area at risk for extreme weather or natural disasters. While Nationwide’s average home insurance rate of $4,456 is among the most expensive in our top company analysis, it has several discount options available that can trim those high costs.
How do Nationwide home insurance rates compare to the Texas average?
The average cost of Nationwide home insurance in Texas is $4,456 per year, which is around 50% higher than the annual statewide average of $2,919.
How to get a quote
Online through Policygenius or Nationwide
Best for bundling home & auto insurance: Progressive
2023 Policygenius award winner
Progressive
4.5
Bundle home & auto
Mobile app
Why we chose it
Progressive offers robust home insurance coverage and ways to save. Our fave perk? Its bundling discount, which lets you save up to 20% on premiums and only requires you to pay one deductible if your home and car are damaged in the same event.
Pros and cons
Pros
Save up to 20% when you bundle your home and auto insurance
Bundling perks include single-deductible claims and streamlined bill payment
User-friendly app to manage and update policy
Cons
Below-average claims satisfaction ratings
Cost varies by company Progressive places you with
Customer service & claims options vary by company
More details
Why we chose Progressive
Progressive shines for its industry-best home and auto insurance bundling perks. Insure both your home and car with Progressive and you’ll not only score a huge discount, but you’ll only have to pay one deductible if your home and car are damaged in the same incident. This means if a tornado or hurricane knocks a tree over onto your home and car, you’ll only be on the hook for one deductible.
How do Progressive home insurance rates compare to the Texas average?
The average cost of Progressive home insurance in Texas is $5,102 per year, which is about 75% more expensive than the average annual premium in Texas of $2,919.
How to get a quote
Online through Policygenius or ASI Progressive
Best for basic coverage at low rates: Texas Farm Bureau
Texas Farm Bureau
3.9
Why we chose it
Texas Farm Bureau offers exceptional customer service and the option to bundle a slew of insurance policies on top of just home insurance to save money on rates.
Pros and cons
Pros
Excellent customer service score — received 99% fewer complaints expected for a company of its size in 2021
Excellent financial strength rating from A.M. Best, proving it likely has the funds to pay out claims in the wake of a natural disaster
Only pay one deductible if your home, car, and boat are damaged in the same event and you bundle your insurance policies with Farm Bureau
Cons
Rates are $1,400 more expensive than the national average
Need to have a Farm Bureau membership to purchase insurance
More details
Why we chose Texas Farm Bureau
Texas Farm Bureau offers a complete line of insurance products — from auto, home, life, commercial, and ranch, allowing you to have all of your policies with one company. Farm Bureau is a great option for Texas residents looking for personalized customer care and recommendations from a local company that knows the area best.
How do Texas Farm Bureau home insurance rates compare to the Texas average?
The average cost of Texas Farm Bureau home insurance in Texas is $722 per year, which is about 75% cheaper than the average annual premium in Texas of $2,919.
How to get a quote
By contacting a local Texas Farm Bureau agent
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.
In a state like Texas, premiums 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. So if your house is one of the approximately 700,000 in Texas at extreme risk of flooding, you’ll want to consider purchasing flood insurance. 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.
Frequently asked questions
What is the cheapest home insurance company in Texas?
The cheapest home insurance company in Texas for $300,000 in dwelling coverage is Farmers, with an average rate of $484 per year, according to our analysis of 2022 rate data.
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.
How can I lower my homeowners insurance in Texas?
You can lower your homeowners insurance in Texas by taking advantage of discounts offered through your home insurance company. This might mean bundling your home and auto policies together for discounts off your premiums, or opting into a retiree discount if you’re over 55, depending on what your company offers. Another way to lower your homeowners insurance rates is by opting for a higher deductible. Just keep in mind a higher deductible means you’ll have to pay more money out of pocket when you file a claim before your insurance kicks in.
Who has the best home insurance in Texas?
There's no one "best" home insurance company in Texas — it will vary depending on your coverage needs, where you live, and your priorities when it comes to cost, customer service, and claims. That's why the easiest way to find the "best" home insurance company for you is to compare quotes from multiple companies. Our licensed agents at Policygenius can help you do that here.
