Best homeowners insurance in Texas for 2022

Latisha Catchatoorian

By 

Latisha Catchatoorian

Latisha Catchatoorian

Freelance contributor

Latisha Catchatoorian is a freelance insurance writer at Policygenius, specializing in auto insurance.

Updated

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Given the high risk of tornadoes and hurricanes in several highly populated areas of Texas, it's important to protect your home with a solid homeowners insurance policy.

The average cost of homeowners insurance in Texas is $3,080 per year or $257 a month. This is around 62% higher than the national average of $1,899 per year. While coverage is generally more expensive in Texas than other parts of the country, there are several affordable policy options for Lone Star State residents.

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But there are other factors you should consider when choosing an insurer. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Texas.  

Best homeowners insurance companies in Texas

Of the companies we evaluated, Farmers has the lowest rate with an average annual policy cost of $484 — roughly $2,500 less than the state average. Texas Farm Bureau’s average annual policy cost of $722 is also substantially less than the Texas state average. 

While cost is important, it’s also essential to consider other factors such as customer and claim satisfaction ratings through companies like J.D. Power when choosing a home insurance company.

Policygenius analyzed thousands of quotes from the 5 largest Texas insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of Texas residents to find the best homeowners insurance in Texas.

Company

Average yearly cost

J.D. Power Rating

State Farm

$2,743

835

USAA

$2,722

882

Farmers

$484

813

Nationwide

$4,698

812

Texas Farm Bureau Insurance

$722

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State Farm

State Farm logo

There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.

Pros

  • Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage

  • Get up to $1 million in personal liability coverage

  • Score discounts for bundling, installing security devices, and choosing a high deductible

  • File and track claims online, over the phone, in person, or through its mobile app

  • High customer satisfaction and financial strength ratings

Cons

  • No discounts for first-time homebuyers or going a year without a claim

Why State Farm tops our best list

State Farm’s score of 835 out of 1,000 in J.D. Power’s 2021 Home Insurance Study makes it one of the highest rate homeowners insurance providers in Texas. While it’s one of the more pricey companies in our analysis, its $2,743 average annual premium is still cheaper than the $3,080 statewide average.

How to get a quote

Online through State Farm

USAA

USAA logo

USAA's robust coverages and high marks for customer service and claims satisfaction make it a solid home insurance option for military members and their families.

Pros

  • Score discounts for zero claims, being a loyal USAA member, opting into e-billing, and more

  • Base policy includes coverages that cost extra with most other companies

  • Offers earthquake coverage — which is hard to come by

  • Get discounted home security systems and a discount on premiums through its partnership with ADT

  • Industry-best customer service and claims satisfaction ratings

Cons

  • Only available to military families

  • Doesn’t offer extended or guaranteed replacement cost dwelling coverage

Why USAA tops our best list

USAA offers robust coverage and is known for its great customer service and claims satisfaction. While USAA policies are only available to military members and their families, Texas has one of the largest active duty military populations in the country, making USAA a great option for many residents.

How to get a quote

Online through USAA

Farmers

Farmers logo

Farmers is one of the largest and most reputable home insurance providers in the industry, offering special discounts for teachers, nurses, first responders, and non-smokers — plus the option to rebuild your home with green materials after a claim.

Pros

  • Several discounts and unique ways to save, including claim forgiveness and declining deductibles

  • 3 flexible coverage packages with varying levels of protection for most coverage and budget needs

  • Offers extended and guaranteed replacement cost coverage options

  • File claims online, via text, on its mobile app, or by calling its claims center

Cons

  • Rates are typically more expensive

  • Below-average customer satisfaction ratings

  • No repair network to help you find a certified contractor or repair professional after filing a claim

Why Farmers tops our best list

Of our top company analysis, Farmers offers the most affordable rate with an average home insurance policy premium of $484. In addition to its affordability, Texas residents may want to consider Farmers for a homeowners insurance policy due to its reputability, special discount offerings, and easy claims filing process.

How to get a quote

Online through Farmers

Nationwide

Nationwide logo

Nationwide offers flexible home insurance policy options for every home type and income level. And we love its slew of discounts for everything from having a newish roof to living in a gated community.

Pros

  • Offers lots of coverage add-ons, including flood and earthquake insurance

  • Option to rebuild roof with stronger, safer materials after a covered loss

  • Score discounts for living in a gated community, making home renovations, having a newer roof, and more

  • Seamlessly submit claims online or through its mobile app

  • Above-average claims satisfaction rating

Cons

  • Below-average customer satisfaction ratings

  • Water backup coverage is more expensive than with other insurers

Why Nationwide tops our best list

While Nationwide’s average home insurance rate of $4,698 is the most expensive in our top company analysis, it also has several discount options available that can trim those high costs. Additionally, it is known for its slew 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.

How to get a quote

Online through Policygenius or Nationwide

Texas Farm Bureau Insurance

Texas Farm Bureau Insurance logo

On top of its stellar customer satisfaction ratings, Texas Farm Bureau Insurance offers everything from home, auto, and life insurance to ranch, farm, and commercial coverage — allowing you to keep all of your policies under one roof.

Pros

  • Offers home, farm, ranch, commercial, life, and auto insurance — letting you keep all of your policies with one company

  • High customer satisfaction ratings for 10 years running

  • File claims online — with 24/7 customer support

Cons

  • Farm Bureau membership required for coverage

  • Minimal information about coverages and discounts available online

Why Texas Farm Bureau Insurance tops our best list

Texas Farm Bureau Insurance has been “protecting Texans for over 50 years.” While a Farm Bureau membership is required for coverage, the company provides unique coverage options for ranches and farms in addition to traditional home insurance. This means that if you’re a Texas farmer or rancher with a Bureau membership, you can house all of your policies under one roof.

How to get a quote

By calling Texas Farm Bureau Insurance

Cheapest homeowners insurance companies by city in Texas

Looking at average home insurance costs for the 15 most popular insurers in Texas, we found that the cheapest homeowners insurance companies in the state are Farmers, Texas Farm Bureau Insurance, and State Auto. 

Farmers' average annual premium of $298 in Seadrift makes this the cheapest overall rate in Texas. Seadrift’s cheap policy cost could be attributed to its low population density of just over 1,000, which means that fewer people in this area are insuring homes overall.

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. The size and age of a home can also factor into the cost of a policy premium. No matter where you live, you should make sure to compare multiple policy options. 

The table below highlights the most affordable homeowners insurance policy option in several Texas cities.

City

Company

Average yearly cost

Abbott

Farmers

$486

Abernathy

Farmers

$435

Abilene

Farmers

$475

Ace

Farmers

$510

Ackerly

Farmers

$437

Addison

Farmers

$548

Adkins

Farmers

$497

Adrian

Texas Farm Bureau Insurance

$567

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Shopping for homeowners insurance in Texas

When looking for the best homeowners insurance for you, it’s best to shop around and compare policy options from several companies. Comparing rates, researching discounts, and weighing your options are all important factors when searching for a policy that fits your homeownership needs.

Texas residents in particular will want to make sure their dwelling coverage limit is high enough to cover the cost of repairs should their home be substantially damaged by severe weather like a hurricane or tornado.

In this section, we break down the average annual home insurance rates in Texas for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies in the state for individuals with poor credit scores, dog owners, and pool owners. Once you’re ready to shop, a Policygenius expert can help you navigate your coverage needs and help you find the best deal on homeowners insurance in Texas.

Texas home insurance costs by coverage amounts

Dwelling coverage is the part of your homeowners insurance policy that protects your house from covered losses, such as a major weather event like a hurricane. It’s important to note that your dwelling coverage amount should be equal to your home’s replacement cost. That means your coverage is calculated based on things like construction costs in your ZIP code and your home’s square footage, not the amount it would go for on the open market.  

As the table below highlights, more dwelling coverage means higher homeowners insurance rates. In Texas, the most significant rate jump occurs in the $400,000 to $500,000 range — with almost a $1,000 difference in premiums between those two coverage levels.

Dwelling coverage amount

Average yearly cost

$100,000

$1,412

$200,000

$2,209

$300,000

$3,080

$400,000

$3,977

$500,000

$4,908

The personal liability portion of your homeowners insurance policy pays for things like medical bills and legal fees in the event you’re legally responsible for an injury or property damage. 

For example, if you have a friend who falls down the stairs or your dog bites a visiting family member, personal liability coverage would cover any related medical expenses. This coverage also covers you in the event of a lawsuit if the injured party decides to pursue legal action.

As the table below highlights, more liability coverage doesn’t always mean higher average home insurance premiums. While choosing high liability coverage limits will generally make your individual rate go up, the difference is often minimal, making it a great value add for any policy.

Liability coverage amount

Average yearly cost

$100,000

$3,083

$200,000

$3,100

$300,000

$3,080

$400,000

$3,733

$500,000

$2,908

Texas home insurance costs by deductible amount

Your homeowners insurance deductible is the amount you must pay toward a covered loss if you file a claim. So, if you filed a claim for $5,000 in water damage and you have a $1,000 deductible, your insurer would pay you $4,000 for the damage.

A higher policy deductible usually means lower premiums, and a lower policy deductible usually means higher premiums. In Texas, the average yearly savings between deductible amounts can vary up to $912. If you live in an area with a high hurricane risk, you may want to consider a deductible that’s not too high since there’s a chance you’ll need to file multiple property damage claims.

As seen in the table below, Texas residents can save around $340 on home insurance by choosing a $1,000 deductible over the $500 option.

Deductible amount

Average yearly cost

$500

$3,420

$1,000

$3,291

$2,000

$3,992

Home insurance discounts in Texas

In Texas, you may be eligible for certain discounts if your dwelling has certain safety features like a deadbolt or burglar alarm. Since these features can reduce the chance of a filing a claim, insurers incentivize customers to install or choose homes that already have these features. 

While you won’t get a huge discount if your house has one of the following features and nothing else, they can add up if you have several protective devices in your home. Here is the average annual rate and average discount percentage for homes in Texas with deadbolts, smoke alarms, or burglar alarms.

Discount

Average yearly cost

Dead bolt

$3,064

Smoke alarm

$3,073

Burglar alarm

$3,007

Home insurance companies in Texas for dog owners

Insurance companies frequently categorize certain dog breeds as more dangerous due to the amount of dog bite liability claims that are filed. If you’re a dog owner, it’s important to research whether your dog is categorized as a higher risk breed or if it is covered at all — some companies deny coverage altogether for specific breeds. 

With an average rate of $484 per year, Farmers has the cheapest home insurance rates in Texas for a home with a dangerous dog breed, while Nationwide’s average yearly premium of $4,698 is the highest. 

Company

Average yearly cost

Farmers

$484

Texas Farm Bureau Insurance

$722

USAA

$2,722

State Farm

$2,743

Nationwide

$4,698

Home insurance companies in Texas for poor credit

Generally, individuals with better credit scores enjoy lower home insurance premiums. Insurance companies have found that customers with lower credit scores are more likely to file 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.

It’s important to note that while your credit score impacts your policy premiums, some insurance companies don’t weigh this factor as heavily as others, so it’s important to do your research and shop around. 

With an average rate of $1,026 per year, Farmers has the cheapest home insurance rates in Texas for a homeowner with poor credit, while Nationwide’s average yearly premium of $5,734 is the highest. 

Company

Average yearly cost

Farmers

$1,026

Texas Farm Bureau Insurance

$1,072

USAA

$3,305

State Farm

$4,711

Nationwide

$5,734

Home insurance companies in Texas for pool owners

Texas is pretty warm year-round and the summer sun is no joke! If you’re a Texas resident with a backyard pool that gets you through balmy springs and scorching summers, you’ll want to look into how having a pool impacts your home insurance rates. 

  • Since pools are considered an “attractive nuisance” aka a liability risk, your insurance company will charge you higher rates to reflect that risk

  • Since a pool is considered a “structure” you’ll need extra dwelling or other structures coverage to cover the value of the pool if it gets damaged by a covered peril

In general though, companies will put less weight on having a pool than others when determining your policy premiums.

With an average rate of $484 per year, Farmers has the cheapest home insurance rates for Texas homes that have a swimming pool, while Nationwide’s average yearly premium of $4,698 is the most expensive.

Company

Average yearly cost

Farmers

$484

Texas Farm Bureau Insurance

$722

USAA

$2,722

State Farm

$2,743

Nationwide

$4,698

How to buy homeowners insurance in Texas

With so many insurance options for homeowners in Texas, it can be overwhelming trying to find the right company and policy that best suits your needs. Because of the potential for extreme weather events in Texas like wind, hurricanes, and flooding, it’s important to get a policy that will work when you need it most.

We recommend following these steps when shopping for homeowners insurance in Texas:

  1. Reach out to a licensed Policygenius agent. Our team of licensed insurance experts can help you figure out how much coverage you need and what company offers it at the best price — all for free with no impact to your credit score.

  2. Ask about a Texas FAIR Plan option. If you live in an area of the Longhorn State that’s at high risk of extreme weather and you’re struggling to find coverage through a traditional company, ask your Policygenius agent if a policy through the Texas Fair Plan Association makes sense for you. The TFPA was “established by the Texas Legislature to provide essential property insurance for eligible Texas policyholders when no one else will.”

  3. Consider purchasing flood insurance. Standard home insurance policies don’t cover flooding, so you might want to add flood coverage or purchase a separate flood insurance policy to make sure you’re fully protected. A Policygenius agent can help you do this, too.

  4. Figure out how low of a deductible you can afford. Since homeowners in Texas have different deductible amounts that you can choose from, you’ll want to consider how often you’ll need to file a claim and how much you’d be able to afford to pay out of pocket in the event of a loss.

  5. Compare quotes from a Policygenius agent. Once you’ve nailed down your coverage needs, limits, and deductibles, a Policygenius agent will walk you through quotes from a few different companies to help you find the best policy for your needs.

  6. Sign the policy and pay your first premium. After you’ve chosen the policy you want, your Policygenius agent will complete all of the paperwork for you. The only thing left to do is sign the policy and pay your first premium. They’ll even cancel your old policy for you if it’s not up yet.

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Frequently asked questions

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, flooding, and even snow storms. Since there’s a higher change of homeowners filing a claim, home insurance companies charge higher rates for this 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.

Is it mandatory to have homeowners 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.

Methodology

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., 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.