We looked at average costs, 3rd party ratings, and policy options to find the best and cheapest homeowners insurance companies in Austin.
By
Laura GunnLaura GunnFreelance contributorLaura 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.&Pat HowardPat HowardManaging Editor & Licensed Home Insurance ExpertPat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.
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Pat HowardPat HowardManaging Editor & Licensed Home Insurance ExpertPat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.
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Expert reviewedExpert reviewedThis article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.Learn more about oureditorial review process.
The average cost of homeowners insurance in Austin is $2,158 per year, or $180 a month, for a homeowners insurance policy with $300,000 in dwelling coverage, according to Policygenius' analysis of 2022 rates. This is around 29% lower than the statewide average of $3,027 per year, but about 14% higher than the national average of $1,899.
While home insurance costs in Austin can often skew higher due to the wildfire risk in certain areas, there are several companies that offer affordable policy options.
To find the best cheap homeowners insurance in Austin, Policygenius reviewed 15 of the largest Texas companies across the following categories: average annual premiums in 43 Austin ZIP codes, financial strength ratings with companies like AM Best, customer and claims satisfaction scores with companies like J.D. Power, policy options, and more.
Based on our findings, USAA, State Farm, Chubb, Farmers, and Texas Farm Bureau Insurance are the best home insurance companies in Austin.
Company
Policygenius rating
Average monthly cost
USAA
4.9 out of 5
$158
State Farm
4.5 out of 5
$153
Chubb
4.3 out of 5
$159
Farmers
4.1 out of 5
$31
Texas Farm Bureau Insurance
N/A
$53
USAA
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.
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.
Chubb is an excellent home insurance option for Austin homeowners who own a house valued at $1 million or more or have multiple properties or cars to insure. A base policy with Chubb includes enhanced coverage for both your home and your personal property, and you don’t need to pay a deductible on property damage greater than $50,000. That means if your home is leveled in a storm or destroyed by fire, you will not be financially responsible for any of the repair or rebuild costs.
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.
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.
Home insurance rates can vary drastically depending on which ZIP code or neighborhood your home is located in, as certain areas may be more prone to tropical storm damage or property crime than others.
To help you find out how much home insurance costs where you live, we calculated average home insurance rates in every Austin ZIP code.
ZIP code
Average annual cost
Difference from city average (%)
78617
$2,173
1%
78701
$2,186
1%
78702
$2,203
2%
78703
$2,081
-4%
78704
$2,154
0%
78705
$2,185
1%
78710
$2,274
5%
78712
$2,276
5%
78717
$2,008
-7%
78719
$2,201
2%
78721
$2,208
2%
78722
$2,217
3%
78723
$2,239
4%
78724
$2,208
2%
78725
$2,201
2%
78726
$2,109
-2%
78727
$2,104
-2%
78730
$2,117
-2%
78731
$2,175
1%
78732
$2,121
-2%
78733
$2,119
-2%
78735
$2,097
-3%
78736
$2,157
0%
78737
$2,115
-2%
78739
$2,067
-4%
78741
$2,255
5%
78742
$2,354
9%
78744
$2,206
2%
78745
$2,179
1%
78746
$2,107
-2%
78747
$2,151
0%
78748
$2,064
-4%
78749
$2,051
-5%
78750
$2,063
-4%
78751
$2,185
1%
78752
$2,194
2%
78753
$2,258
5%
78754
$2,171
1%
78756
$2,147
-1%
78757
$2,109
-2%
78758
$2,138
-1%
78759
$2,092
-3%
78799
$2,089
-3%
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Cheapest ZIP codes for home 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 annual cost
Difference from city average (%)
78717
$2,008
-7%
78749
$2,051
-5%
78750
$2,063
-4%
78748
$2,064
-4%
78739
$2,067
-4%
78703
$2,081
-4%
78799
$2,089
-3%
78759
$2,092
-3%
78735
$2,097
-3%
78727
$2,104
-2%
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Most expensive ZIP codes for home insurance in Austin
With an average home insurance rate of $2,354, the 78742 ZIP code (east Austin) is the most expensive area for home insurance in Austin.
Along with your home's location, your homeowners insurance premiums are primarily based on how much dwelling coverage you need to rebuild in the event of a disaster.
As you can see in the table below, Austin homes with $500,000 in dwelling coverage pay over $1,300 more each year for home insurance than the citywide average.
Dwelling coverage level
Average annual cost
$100,000
$1,022
$200,000
$1,576
$300,000
$2,158
$400,000
$2,836
$500,000
$3,495
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 level
Average annual cost
$500
$3,363
$2,000
$3,162
$2,500
$2,815
Wind mitigation discounts & incentives in Texas
Many home insurance companies offer wind mitigation discounts if your home is outfitted with features to withstand high winds and flooding caused by a hurricane or strong windstorm. In Texas, you can save on premiums by installing Fortified Roof and Fortified Home elements to your home. You can also score discounts for opening protection, wind-resistant construction, and secondary water barriers to reduce windstorm damage where you live.
Other incentives include the Homeowner Assistance Program, whichHelps homeowners impacted by Hurricane Harvey repair, rebuild, improve, or elevate their home, along with temporary housing until the work is complete.
The cheapest homeowners insurance companies in Austin
Based on our analysis, Farmers and State Auto have the cheapest average home insurance rates in Austin, with an average annual premium of $372 and $450, respectively.
In addition to Farmers and State Auto, six other companies have average home insurance rates below the Austin average of $2,158 per year, including Texas Farm Bureau Insurance, USAA, and State Farm.
Company
Average annual cost
Farmers
$372
State Auto
$450
Texas Farm Bureau Insurance
$638
Lighthouse Property Insurance
$1,238
Chubb
$1,364
State Farm
$1,836
USAA
$1,899
Mercury
$2,092
Texas FAIR Plan
$2,254
IAT Insurance
$2,504
AmGUARD
$2,686
UPC Insurance
$2,836
Nationwide
$2,891
ASI Progressive
$3,847
Amica
$5,691
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Cheapest home insurance in Austin if you have 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 $1,026 per year, Farmers has the cheapest home insurance rates in Austin for a homeowner with poor credit, while IAT Insurance Group's average yearly premium of $10,741 is the highest.
Company
Average annual cost
Difference from base rate (%)
Farmers
$1,026
176%
Texas Farm Bureau Insurance
$1,072
68%
Lighthouse Property Insurance
$1,353
9%
State Auto
$2,471
449%
USAA
$3,305
74%
Texas FAIR Plan
$3,964
76%
State Farm
$4,711
157%
Mercury
$4,944
136%
Nationwide
$5,734
98%
Chubb
$6,031
342%
AmGUARD
$6,204
131%
UPC Insurance
$6,660
135%
Amica
$6,671
17%
ASI Progressive
$6,713
75%
IAT Insurance Group
$10,741
329%
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Cheapest homeowners insurance in Austin if you have an older home
Older homes can be costly to insure, as they're more prone to structural damage than a newer build, and they're often constructed with materials and features that are more expensive to replace.
Here's the average home insurance premium from 15 Austin insurers for a home that's over 100 years old, and how it compares to each company's average rate for a 30-year-old home.
Company
Average annual cost
Difference from base rate (%)
Farmers
$439
35%
State Auto
$544
113%
Texas Farm Bureau Insurance
$637
0%
Chubb
$1,087
7%
Lighthouse Property Insurance
$1,172
137%
Mercury
$1,674
102%
State Farm
$1,784
121%
USAA
$1,865
63%
Texas FAIR Plan
$2,269
0%
UPC Insurance
$2,296
57%
IAT Insurance Group
$2,491
122%
ASI Progressive
$2,525
125%
AmGUARD
$2,871
57%
Nationwide
$3,036
306%
Amica
$5,713
49%
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Cheapest home insurance in Austin if you have a history of claims
Claims history is one of the biggest factors insurers use to determine home insurance premiums. If you have multiple claims on your record, you'll typically pay more for home insurance, as insurers will consider you more likely to file future claims than a homeowner with a spotless claims history.
With an average annual premium of $714, Texas Farm Bureau Insurance offers the cheapest home insurance rates in Austin for a homeowner that's filed three claims within a five-year period, while Amica is the most expensive.
Company
Average annual cost
Difference from base rate (%)
Texas Farm Bureau Insurance
$714
12%
Farmers
$742
51%
State Auto
$1,080
120%
Chubb
$1,501
11%
Lighthouse Property Insurance
$1,708
50%
State Farm
$1,784
0%
USAA
$2,117
10%
Mercury
$3,165
89%
AmGUARD
$3,423
25%
Texas FAIR Plan
$3,687
62%
ASI Progressive
$3,924
40%
IAT Insurance Group
$4,146
66%
Nationwide
$4,682
38%
UPC Insurance
$4,803
53%
Amica
$9,169
69%
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How to buy homeowners insurance in Austin
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.
6 simple steps to buying homeowners insurance in Austin
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.
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.
Consider purchasing flood insurance. Flooding is a real and present threat year-round for Austin homeowners — especially during tornado season in Texas. Standard home insurance policies don't cover flooding, so be sure to ask your Policygenius agent about separate flood insurance.
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.
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
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.
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.
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.
Pat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.
