Laura Gunn

By 

Laura Gunn

Laura Gunn

Freelance contributor

Laura Gunn is an insurance expert and writer. As a former English teacher, she made the transition to full-time writing and editing in 2016. Since that time she has written extensively about insurance topics, as well as topics pertaining to education and marketing.

Her work has been published in The Millennial Source, News Hunt 360, Realty Today, HNGN, and other publications.

Updated May 1, 2022

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Austin, Texas is known for its blend of bustling city life, outdoor activities, and established and eclectic music scene. This capital city offers a lot, but Austin residents should be aware of the city’s propensity for strong winds, hail, and flooding. When it comes to flood disasters in Austin, it’s not a matter of "if,” but rather "when," area residents will want to consider flood insurance in addition to comprehensive homeowners insurance.

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The average cost of homeowners insurance in Austin is $2,196 per year or $183 a month. This is around 30% lower than the statewide average of $3,080 per year, but about 24% higher than the national average of $1,899. 

However, cost isn’t the only factor to consider when choosing a home insurance company. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Austin.  

Best homeowners insurance companies in Austin

Of the companies we analyzed, Farmers has the lowest rate in the Austin area, with an average yearly cost of $475. That's over $1,700 cheaper than the state average. In addition to Farmers, Austin residents can also find cheap rates with Texas Farm Bureau Insurance.

When shopping for homeowners insurance, it's important to consider factors aside from just cost. You’ll also want to check customer satisfaction and claims ratings with J.D. Power so that you have an idea of a company's overall performance. 

Policygenius analyzed thousands of quotes from the 5 largest Austin 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 Austin residents to find the best homeowners insurance in Austin.

Company

Average yearly cost

J.D. Power Rating

State Farm

$1,784

835

USAA

$1,926

882

Farmers

$475

813

Nationwide

$3,388

812

Texas Farm Bureau Insurance

$637

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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 tops our best list because of their relatively low rates, excellent customer satisfaction ratings with J.D. Power, and numerous discount options. Part of the reason State Farm’s high ratings is because they make it easy to manage and use your policy. So when it comes time to paying your bill, changing your coverage or filing a claim, you won’t be left scratching your head.

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 combines great coverage options with high customer satisfaction ratings, making this a great home insurance option for military service members and their families. USAA’s basic policy options are known to include coverages and perks that other companies consider add-ons, giving you access to specialized coverages at no additional cost.

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

Farmers offers extended and guaranteed replacement cost, two dwelling coverage enhancements that ensure your home will be completely protected in the extent of an expensive loss. This can be especially helpful to Austin residents who live in areas prone to wildfire damage.

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

Nationwide offers numerous optional coverages including extended replacement cost, earthquake coverage, and separate flood insurance. If you live in a floodplain in or around Austin, you’ll want to strongly consider flood insurance in addition to your home insurance policy.

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 is a one-stop shop for all of your insurance needs. As a local provider who understands the lay of the land, Texas Farm Bureau offers a level of customer service and knowledge that will help Austin homeowners get the coverage they need.

How to get a quote

By calling Texas Farm Bureau Insurance

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Cheapest homeowners insurance companies by ZIP code in Austin

Looking at average home insurance costs for 15 of the most popular companies in Austin, we found that the cheapest home insurance in the city can be found in the 78747 ZIP code (south Austin) with Farmers. The average Farmers rate in this area is $358 per year — significantly less than the city average of $2,196 per year. 

Homeowners in most areas of Austin are likely to find the cheapest rates with Farmers or State Auto. These two insurers had the cheapest average yearly cost in every Austin ZIP code that we looked at.

ZIP code

Company

Average yearly cost

78617

Farmers

$372

78701

Farmers

$493

78702

Farmers

$396

78703

State Auto

$513

78704

Farmers

$456

78705

Farmers

$493

78710

State Auto

$472

78712

Farmers

$493

The most affordable areas for homeowners insurance in Austin

With an average home insurance rate of $2,008 per year, the 78717 ZIP code (north Austin), is the most affordable area for home insurance in Austin. 

ZIP code

Average yearly cost

78717

$2,008

78749

$2,051

78750

$2,063

78748

$2,064

78739

$2,067

The most expensive areas for homeowners insurance in Austin

With an average home insurance rate of $3,832, the 78799 ZIP code (downtown Austin) is the most expensive area for home insurance in Austin. On average, downtown areas are more densely populated and have higher rates of crime, which can explain the higher average yearly costs. 

ZIP code

Average yearly cost

78799

$3,832

78742

$2,354

78712

$2,276

78710

$2,274

78753

$2,258

Shopping for homeowners insurance in Austin

It’s important to find the right homeowners insurance for your home, not simply your budget — so you’ll also want to make sure your policy provides enough protection for your house and lifestyle. 

In this section, we break down the average annual home insurance rates in Austin for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies in the state for individuals with a poor credit score, dog owners, and pool owners.

Once you’re ready to shop for home insurance, a Policygenius expert can help you navigate your coverage needs and help you find the best deal on homeowners insurance in Austin.

Austin home insurance costs by coverage amounts

Dwelling coverage amount

Average yearly cost

$100,000

$1,022

$200,000

$1,576

$300,000

$2,196

$400,000

$2,836

$500,000

$3,495

Homeowners insurance isn't just one single coverage, but rather multiple coverages that ensure your home is fully insured. The most important of these is your dwelling coverage. This covers the cost to repair or replace the physical structure of your home in the event of a covered loss. 

The table below shows the relationship between dwelling coverage amounts and average yearly cost. In general, more dwelling coverage means higher yearly premiums. In Austin, the biggest rate jump is between the $300,000 and $400,000 range. 

Liability coverage amount

Average yearly cost

$100,000

$2,199

$200,000

$2,244

$300,000

$2,196

$400,000

$2,945

$500,000

$2,076

Home insurance also includes personal liability coverage that covers everything from expensive medical bills to lawsuits in the event you’re legally responsible for an injury or property damage. Your personal liability coverage limit should be high enough to cover the total value of your assets, including your home, automobiles, belongings, and any investments. 

The table below highlights the average yearly cost for different liability coverage amounts. Unlike dwelling coverage, higher liability coverage limits don’t necessarily correlate with higher average home insurance premiums in Austin. 

Austin home insurance costs by deductible amount

Your homeowners insurance deductible is the amount of money you’re responsible for paying before your insurance will kick in to cover a claim. A low policy deductible generally means a higher home insurance rate, and vice versa.

As seen in the table below, Austin residents can save around $600 on home insurance by choosing a $2,000 deductible over the $500 option.

Deductible amount

Average yearly cost

$500

$2,466

$1,000

$2,348

$2,000

$3,102

Home insurance discounts in Austin

Most insurance companies will apply discounts to your policy if you add safety features to your home, including dead blots, smoke alarms, and burglar alarms. These features not only make your home safer for you and your family, but they also help reduce the chances that you'll need to file a claim.

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 Austinwith deadbolts, smoke alarms, or burglar alarms. 

Discount

Average yearly cost

Dead bolt

$2,186

Smoke alarm

$2,192

Burglar alarm

$2,149

Home insurance companies in Austin for dog owners

Some insurance companies deem certain dog breeds as agressive or dangerous and a high liability risk. To offset that risk, many insurers charge higher rates to homeowners who own one of these breeds.

With an average rate of $475 per year, Farmers has the cheapest home insurance rates in Austin for a home with a dangerous dog breed, while Nationwide's average yearly premium of $3,388 is the highest. 

Company

Average yearly cost

Farmers

$475

Texas Farm Bureau Insurance

$637

State Farm

$1,784

USAA

$1,926

Nationwide

$3,388

Home insurance companies in Austin for poor credit

Credit is another factor used to determine insurance coverage and yearly cost. Insurers equate low credit scores with frequent claims, so to offset this risk, they’ll charge you higher premiums if you have poor credit

With an average rate of $956 per year, Texas Farm Bureau Insurance has the cheapest home insurance rates in Austin for a homeowner with poor credit, while Nationwide's average yearly premium of $4,110 is the highest. 

Company

Average yearly cost

Texas Farm Bureau Insurance

$956

Farmers

$996

USAA

$2,326

State Farm

$3,063

Nationwide

$4,110

Home insurance companies in Austin for pool owners

Insurance companies view pools as a liability risk, and Austin residents with a backyard pool will often see this heightened risk reflected in their home insurance rates. 

With an average rate of $475 per year, Farmers has the cheapest home insurance rates for Austin homes that have a swimming pool, while USAA's average yearly premium of $3,388 is the most expensive.

Company

Average yearly cost

Farmers

$475

Texas Farm Bureau Insurance

$637

State Farm

$1,784

USAA

$1,926

Nationwide

$3,388

How to buy homeowners insurance in Austin

To make sure you’re getting the right coverage at the best rates, it's important to compare policies from different companies. 

  1. Reach out to a licensed Policygenius agent. Our team of licensed insurance experts will help you figure out how much coverage you need and what company offers it at the best price.

  2. Ask about Texas FAIR Plan Association – Texas's FAIR Plan provider. For Austin residents who find it difficult to qualify for a traditional homeowners policy, consider applying for the Texas FAIR Plan — a type of last-resort coverage for Texas residents. Ask your Policygenius agent about whether or not a policy through the FAIR Plan Association is right for you.

  3. Consider purchasing flood insurance. Flooding is a real and present threat year-round for Austin homeowners. Standard home insurance policies don't cover flooding, so be sure to ask your Policygenius agent about separate flood insurance.

  4. Determine your deductible limit. Be sure to consider your deductible limit carefully. While a high deductible means short term savings, you’ll also be left paying more out of pocket when it comes time to file a claim. 

  5. Compare quotes from a Policygenius agent. Once you’ve provided all of the necessary information, Policygenius will present quotes from multiple home insurance companies to help you find a policy to suit your needs

  6. Choose your policy, sign it, and pay your first premium. The only thing left to do is pick a company, sign your new policy, and pay your first premium. A Policygenius agent will make sure everything is in order — and they can even cancel your old policy for you. 

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Frequently asked questions

What is the average cost of homeowners insurance in Austin, Texas?

The average cost of homeowners insurance in Austin, Texas is $183 per month, or $2,196 per year.

Is home insurance in Austin more expensive than other places?

Yes and no. The average yearly cost for homeowners insurance in Austin is higher than the national average, but it's lower than the Texas state average. Austin's average yearly premium is around $800 less than the Texas average, but it's only about $300 higher than the national average.

How can I lower my homeowners insurance in Austin?

If you're looking to lower your homeowners premium, ask your home insurance agent if you're eligible for any discounts, or if there’s anything particular you can do to lower your premium. One quick way to lower your homeowners insurance rates is by increasing your deductible.

Is it mandatory to have homeowners insurance in Texas?

There are no state or federal laws requiring homeowners insurance. However, most mortgage lenders will require you to purchase homeowners insurance before extending you a home loan.

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.