If you’re a homeowner in Texas, it's important to find the best homeowners insurance given the state’s high risk of extreme weather and natural disasters. On average, the cost of homeowners insurance in Texas is $3,080 per year for $300,000 in dwelling coverage, according to our analysis of 2022 rates. While this is higher than the national average of $1,899 per year, there are several affordable home insurance options and plenty of ways for Texas homeowners to save on coverage in 2022.
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To find the best home insurance in Texas, Policygenius analyzed over 30,000 quotes from the 15 largest Texas companies to find the average cost of homeowners with each company in 2022. We then looked at customer satisfaction scores, 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.
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.
Top 5 best home insurance companies in Texas
Here are the five best home insurance companies in Texas along with average annual premiums for each, according to our analysis.
Compare the best home insurance companies in Texas
According to our analysis, the best homeowners insurance companies in Texas are State Farm, USAA, Farmers, Nationwide, and Texas Farm Bureau. All but one of these companies offer rates around or below the Texas average. While coverage affordability is an important factor, the best companies combine low rates with exceptional customer and claim satisfaction ratings, strong policy offerings, and several discounts to keep your rates down.
Texas Farm Bureau Insurance
State Farm
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
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'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
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 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 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
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
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
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
How much is home insurance in Texas?
The average cost of homeowners insurance in Texas is $3,080 per year, or roughly $257 a month, for an insurance policy with $300,000 in dwelling coverage. This is around 62% higher than the nationwide average of $1,899. In a state like Texas, premiums are higher in large part to the outsized risk of natural disasters in certain parts of the state. 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.
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.
Texas Farm Bureau Insurance
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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.
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.
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.
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.
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.
Texas Farm Bureau Insurance
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.
Texas Farm Bureau Insurance
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.
Texas Farm Bureau Insurance
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:
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.
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.”
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.
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.
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.
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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3 home insurance coverage options to consider 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. 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 the Texas hurricane season, as it's not uncommon for insurance companies to put a moratorium on coverage in advance of a tropical storm.
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. [1] [2] 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 about 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. [3] 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.
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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, 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.
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.
What if I can’t get homeowners insurance in Texas?
Homeowners insurance companies can deny you home 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. 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.
