Best homeowners insurance in Austin, TX for 2022

We looked at average costs, 3rd party ratings, and policy options to find the best and cheapest homeowners insurance companies in Austin.

Laura GunnPat Howard 1600

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.

&Pat Howard

Pat Howard

Managing Editor & Licensed Home Insurance Expert

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.

Expert reviewed

Expert reviewed

This 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.

By

Pat Howard

Pat Howard

Managing Editor & Licensed Home Insurance Expert

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.

Updated|5 min read

Policygenius content follows strict guidelines for editorial accuracy and integrity. Learn about our editorial standards and how we make money.

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.

Compare home insurance rates in Austin

We don't sell your information to third parties.

Best cheap home insurance companies in Austin

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.

Learn more >> USAA home insurance review

State Farm

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.

Learn more >> State Farm home insurance review

Chubb

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. 

Learn more >> Chubb homeowners insurance review

Farmers

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.

Learn more >> Farmers home insurance review

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.

Compare home insurance rates in Austin

We don't sell your information to third parties.

Austin home insurance rates by ZIP code

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%

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%

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.

ZIP code

Average annual cost

Difference from city average (%)

78742

$2,354

9%

78712

$2,276

5%

78710

$2,274

5%

78753

$2,258

5%

78741

$2,255

5%

78723

$2,239

4%

78722

$2,217

3%

78721

$2,208

2%

78724

$2,208

2%

78744

$2,206

2%

Learn more >> Home insurance rates by ZIP code

Austin home insurance costs by coverage amount

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, which Helps homeowners impacted by Hurricane Harvey repair, rebuild, improve, or elevate their home, along with temporary housing until the work is complete.

→ Learn more about wind mitigation discounts & how to qualify

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

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%

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%

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%

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

  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 — 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.

  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. 

Compare home insurance rates in Austin

We don't sell your information to third parties.

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.

Authors

Freelance contributor

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.

Managing Editor & Licensed Home Insurance Expert

Pat Howard

Managing Editor & Licensed Home Insurance Expert

gray twitter icon linkgray linkedin icon link

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.

Questions about this page? Email us at .