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.
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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.
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.
With so many moving into the Dallas-Fort Worth area, home prices are significantly higher than other parts of the state, and with several weather extremes in recent years, homeowners insurance is more important than ever.
The average cost of homeowners insurance in Dallas is $3,559 per year for a policy with $300,000 in dwelling coverage, according to our analysis of 2022 premiums. This is around 15% higher than the Texas average of $3,027 per year, and about 47% higher than the national average.
Compare the best cheap home insurance companies in Dallas
To find the best cheap homeowners insurance in Dallas, Policygenius rated over a dozen of the largest insurance companies in Texas across several categories, such as average policy cost, financial strength ratings with AM Best, customer and claims satisfaction scores with J.D. Power, available policy options, and more.
Based on our findings, USAA, State Farm, Chubb, Farmers, and Texas Farm Bureau Insurance are the best homeowners insurance companies in Dallas.
It’s no surprise that USAA is the number one choice for military service members and their families. USAA customers can score discounts for zero claims and opting for e-billing, and its base policy includes coverages that typically cost extra with other companies.
Along with its multiple savings and coverage options, USAA also has some of the highest customer service and claims satisfaction ratings with J.D. Power.
State Farm has an excellent rating with J.D. Power and its rates are $700 less than the city average, making it a great all-around insurance option in Dallas.
One potential reason for State Farm’s high J.D. Power ratings is how easy they make it to manage and use your policy. Customers can easily file claims online, through State Farm’s signature app, or by calling and speaking with an agent directly.
It also offers a complete line of insurance options, including several coverage add-ons like water backup and equipment breakdown, but doesn’t offer discounts for first-time homebuyers or going a specific time without a claim.
While Chubb’s rates tend to be higher, its insurance offerings go above and beyond that of most other companies. 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 don't have to pay an out-of-pocket policy deductible.
Farmers may be one of the largest insurance companies in the country, but it hasn’t forgotten about those who serve our neighborhoods and local communities. Farmers offers special rates to teachers, firefighters, and various affinity groups. You can also qualify for discounts by living in a smoke-free home, going a certain number of years without filing a claim, or choosing e-billing.
In addition to saving opportunities, Farmers also offers unique coverage options, including an add-on that gives you the option to use green materials to rebuild your home after a loss.
Texas Farm Bureau Insurance offers a complete line of insurance products from auto, commercial, home, life, and others, allowing you to bundle all of your policies under one roof.
With its local agents and offices, Texas Farm Bureau is a great option for those looking for personable service at an affordable rate.
Home insurance rates can vary substantially depending on which ZIP code your home is located in, as homes in certain Dallas neighborhoods may be more prone to extreme weather 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 for 51 ZIP codes in Dallas.
ZIP code
Average annual cost
Difference from city average (%)
75201
$3,468
-4%
75202
$3,725
3%
75203
$3,513
-3%
75204
$3,407
-6%
75206
$3,340
-7%
75207
$3,735
4%
75208
$3,547
-2%
75209
$3,656
1%
75210
$3,478
-4%
75211
$3,503
-3%
75212
$3,435
-5%
75214
$3,438
-5%
75215
$3,803
5%
75216
$3,877
7%
75217
$3,437
-5%
75218
$3,351
-7%
75219
$3,366
-7%
75220
$3,633
1%
75223
$3,522
-2%
75224
$3,634
1%
75226
$3,557
-1%
75227
$3,492
-3%
75228
$3,445
-5%
75229
$4,013
11%
75230
$3,906
8%
75231
$3,461
-4%
75232
$3,818
6%
75233
$3,601
0%
75235
$3,698
3%
75236
$3,494
-3%
75237
$3,714
3%
75238
$3,351
-7%
75240
$3,834
6%
75241
$3,866
7%
75242
$3,652
1%
75243
$3,579
-1%
75244
$4,042
12%
75246
$3,561
-1%
75247
$3,722
3%
75248
$3,850
7%
75249
$3,620
0%
75251
$3,676
2%
75252
$3,566
-1%
75253
$3,519
-2%
75254
$3,824
6%
75260
$3,440
-5%
75270
$3,517
-3%
75275
$3,780
5%
75287
$3,687
2%
75342
$3,503
-3%
75398
$3,554
-1%
Cheapest ZIP codes for home insurance in Dallas
With an average home insurance rate of $3,340 per year, the 75206 ZIP code (Glencoe Park) is the most affordable area for home insurance in Dallas. With its close proximity to White Rock Lake Park and other local attractions, plus below-average homeowner insurance rates, the Glencoe Park neighborhood is one of the most sought-after areas in the city to own a home.
ZIP code
Average annual cost
Difference from city average (%)
75206
$3,340
-7%
75238
$3,351
-7%
75218
$3,351
-7%
75219
$3,366
-7%
75204
$3,407
-6%
75212
$3,435
-5%
75217
$3,437
-5%
75214
$3,438
-5%
75260
$3,440
-5%
75228
$3,445
-5%
Most expensive ZIP codes for home insurance in Dallas
With an average annual premium of $4,042, the 75244 ZIP code (Farmers Branch) is the most expensive ZIP code in Dallas for home insurance. If you live one of these 10 ZIP codes, your rates might be among the highest in Dallas.
Dwelling coverage is the part of your home insurance policy that pays to rebuild your home from the ground up after a covered loss. Your home insurance costs are generally based on how much of this coverage you need.
In Dallas, the average annual home insurance rate for a home with $500,000 in dwelling coverage is $5,683 — over $2,000 higher than the state average. With raw materials and labor costs so expensive, you’ll want to ensure you’ve purchased enough coverage to protect your home after a covered loss.
Dwelling coverage level
Average annual cost
$100,000
$1,624
$200,000
$2,542
$300,000
$3,608
$400,000
$4,601
$500,000
$5,683
Dallas home insurance costs by deductible amount
A deductible is the amount you’re responsible for paying on an insurance claim before your insurance kicks in after a covered loss. If you’ve been affected by the weather extremes in Texas over the last several years and filed multiple claims, you might want to consider a smaller deductible.
As seen in the table below, Dallas residents can save around $1,800 on home insurance each year by choosing a $2,500 deductible instead of a $500 deductible.
Deductible level
Average annual cost
$500
$3,918
$1,000
$2,595
$2,500
$2,161
The cheapest homeowners insurance companies in Dallas
Based on our analysis, Farmers, Texas Farm Bureau, and State Auto have the cheapest average home insurance prices in Dallas, with average premiums of $556, $742, and $890 per year, respectively.
In addition to these insurers, average home insurance rates for five other Dallas companies have average rates below the Dallas average of $3,608, including Mercury, State Farm, and USAA.
Company
Average annual cost
Farmers
$556
Texas Farm Bureau Insurance
$742
State Auto
$890
Lighthouse Property Insurance
$1,674
Mercury
$2,737
State Farm
$2,799
USAA
$2,955
IAT Insurance Group
$3,591
Texas FAIR Plan
$4,513
AmGUARD
$5,063
ASI Progressive
$5,759
UPC Insurance
$5,992
Nationwide
$6,760
Amica
$7,308
Cheapest home insurance in Dallas if you have poor credit
A bad credit score does more than just cost you a few dollars in late payment fees — it can also make your auto and home insurance rates thousands of dollars higher.
With an average rate of $1,088 per year, Texas Farm Bureau has the cheapest home insurance rates in Dallas for a homeowner with poor credit, while UPC's average yearly premium of $9,558 is the highest.
Company
Average annual cost
Difference from base rate (%)
Texas Farm Bureau Insurance
$1,088
47%
Farmers
$1,192
114%
Lighthouse Property Insurance
$1,747
4%
State Auto
$3,456
289%
USAA
$3,715
26%
Texas FAIR Plan
$4,513
0%
Mercury
$4,625
69%
State Farm
$4,807
72%
Chubb
$5,009
173%
ASI Progressive
$7,054
22%
AmGUARD
$7,262
43%
Nationwide
$8,144
20%
IAT Insurance Group
$9,295
159%
Amica
$9,336
28%
UPC Insurance
$9,558
60%
Cheapest homeowners insurance in Dallas if you have an older home
Older homes are generally more expensive to insure than a more modern build, as they're often less structurally sound and constructed with materials that cost more to replace.
Here's the cheapest home insurance companies for a Dallas home that's over 100 years old.
Company
Average annual cost
Difference from base rate (%)
Farmers
$512
40%
Texas Farm Bureau Insurance
$742
0%
State Auto
$1,076
115%
Chubb
$1,462
7%
Lighthouse Property Insurance
$1,801
150%
Mercury
$2,718
105%
State Farm
$2,799
122%
USAA
$2,854
84%
ASI Progressive
$3,301
182%
IAT Insurance Group
$3,591
123%
Texas FAIR Plan
$4,513
0%
AmGUARD
$5,306
57%
UPC Insurance
$5,756
52%
Nationwide
$5,796
375%
Amica
$8,172
50%
Cheapest homeowners insurance in Dallas if you have a history of claims
Claims history is one of the biggest factors that insurance companies use when calculating your home insurance premiums. If you have multiple claims on your record, your insurer will likely view you as a risk for filing future claims and may charge you higher rates as a result.
Here's the cheapest home insurance companies in Dallas for a homeowner with three claims within a five-year period.
Company
Average annual cost
Difference from base rate (%)
Texas Farm Bureau Insurance
$826
11%
Farmers
$868
55%
Chubb
$2,032
11%
State Auto
$2,149
128%
Lighthouse Property Insurance
$2,658
52%
State Farm
$2,799
0%
USAA
$3,260
10%
Mercury
$5,188
91%
ASI Progressive
$5,349
46%
IAT Insurance Group
$6,138
71%
AmGUARD
$6,327
25%
Texas FAIR Plan
$7,334
63%
Nationwide
$9,655
43%
UPC Insurance
$12,610
56%
Amica
$13,046
69%
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.
Home insurance can get pricey in Dallas — to the point where it can often account account for a major portion of your homeownership costs. The best way to keep costs down and ensure you're getting the best policy for your needs is to compare quotes from multiple companies.
5 steps to shopping for homeowners insurance in Dallas, TX
Reach out to a licensed Policygenius agent. Our team of experienced agents can help you get affordable quotes from top providers. We can help you determine which coverage works best for you and how much protection you’ll need to ensure your home is fully covered in the event disaster strikes.
See if you need additional wildfire, flood, or hurricane coverage. Given the unpredictable weather and tornadoes in Texas, consider purchasing additional dwelling coverage or flood insurance to protect your home against catastrophic losses.
Figure out a deductible amount you can afford. A higher deductible means you’ll pay less for homeowners insurance, but you’ll also pay more out of pocket on each claim. A Policygenius agent can help you pick out a deductible that works within your budget.
Compare quotes from a Policygenius agent. Once you’ve identified your coverage needs, limits, and deductibles, a Policygenius agent will send over quotes from top companies so you can review your options.
Sign the policy, and pay your first premium. Policygenius will do all of the paperwork for you, and will even cancel your old policy if it isn’t expired yet. All you need to do is sign on the dotted line and pay your first premium.
What is the average home insurance cost in Dallas?
The average home insurance rate in Dallas is $297 a month. That’s about $40 more per month than the statewide average.
Why is home insurance so expensive in Dallas?
Home insurance is so expensive in Dallas for a number of reasons, including: high construction costs, inflation, and the city’s unique weather-related risks that include tropical storms, tornados, and even Arctic temperatures.
Do I need additional home insurance if I put in a swimming pool?
If you’re lucky enough to have a swimming pool in your backyard, you should purchase additional liability coverage to protect you against potentially expensive pool-related injuries, like a guest slipping and falling. For the section of your policy that covers property damage, providers may classify an above-ground pool as personal property and an inground pool as part of your “other structures,” which could affect how much you’re reimbursed on a pool damage claim.
Is it mandatory to have homeowners insurance in Texas?
It isn’t mandatory to have homeowners insurance in Texas unless you have a mortgage on your property. Mortgage lenders require insurance for the full 100% replacement value of your home to protect their investment in the event of a disaster.
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.
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.
