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.
Jennifer Gimbel is a senior managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.
Houston is one of the best places in the country to own a home thanks to its low cost of living, job growth, and the numerous amenities the city has to offer. But it can also be risky to buy a house in Houston given its close proximity to the Gulf of Mexico and Tornado Alley. To ensure your house is fully covered in case of a hurricane, tornado, or another extreme weather event, you'll want to make sure you have an adequate homeowners insurance policy.
Houston homeowners pay an average of $3,143 per year, or $262 a month, for a homeowners insurance policy with $300,000 in dwelling coverage, according to a Policygenius analysis of 2022 premiums. This is around 5% higher than the Texas average of $3,027 per year, and about 39% higher than the national average. While home insurance costs in Houston may skew higher, there are several companies that offer affordable policy options.
Compare the best cheap home insurance companies in Houston
To find the best cheap homeowners insurance in Houston, Policygenius reviewed 15 of the largest Texas companies across the following categories: average annual premiums in 100 Houston 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, State Farm, Farmers, Nationwide, Chubb, and Texas Farm Bureau Insurance are the best home insurance companies in Houston.
At Policygenius, our educational guides are written and fact-checked by licensed home insurance experts and reviewed by our Financial Review Council to ensure autonomy, expertise, and accuracy.
To find the best home insurance companies in Houston, we analyzed over 1,300 quotes from the 15 largest insurance companies in Texas to find the average cost of homeowners insurance with each company in 2022.
When analyzing costs for different coverage levels and risk factors, we changed just one variable at a time to ensure the rates we’re comparing are fair and representative of the factor at hand.
We then looked at J.D. Power customer satisfaction scores, AM Best financial health ratings, quality of policy options, discounts, and compared that with the coverage needs of Houston residents to find the best homeowners insurance in Houston.
To get the average rate for each company in Houston, we analyzed rates provided by Quadrant Information Services in March 2022 for 100 of the city's ZIP codes 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.
State Farm
State Farm is well known for its excellent customer satisfaction ratings from J.D. Power. 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 the mobile app, or by calling and speaking with an agent.
Farmers offers several unique coverage options, including a coverage add-on that gives you the option to use green materials to rebuild your home after a loss. Farmers also offers numerous discounts and perks to help you save money on coverage. This includes its “diminishing deductibles” policy perk that decreases your deductible $100 for each year you’re a customer; or its guarantee to not increase your rates after a claim if you’ve been claim-free for five or more years.
Nationwide combines high customer satisfaction ratings with J.D. Power with industry best coverage add-ons, including flood insurance, an important factor in Houston due to recent catastrophic rainfall from hurricanes. Nationwide also offers numerous discount options, including discounts for having a newer roof and living in a gated neighborhood. File claims easily online or through the mobile app.
Chubb is an excellent home insurance option for Houston 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.
Texas Farm Bureau offers a complete line of insurance products — from auto, home, life, commercial, and ranch, allowing you to have all of your policies with one company. Texas Farm Bureau is a great option for Houston residents looking for personalized customer care and recommendations from a local company that knows the area best.
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 for 100 Greater Houston ZIP codes.
ZIP code
Average annual cost
Difference from Houston average (%)
77002
$3,125
1%
77003
$3,136
1%
77004
$3,149
2%
77006
$3,125
1%
77007
$3,115
1%
77008
$3,064
-1%
77009
$3,088
0%
77010
$3,101
0%
77011
$3,172
2%
77012
$3,023
-2%
77013
$3,156
2%
77014
$3,054
-1%
77015
$2,979
-4%
77016
$3,097
0%
77017
$3,008
-3%
77018
$3,034
-2%
77019
$3,250
5%
77020
$3,154
2%
77021
$3,058
-1%
77022
$3,083
0%
77023
$3,167
2%
77024
$3,217
4%
77025
$3,018
-3%
77026
$3,087
0%
77027
$3,094
0%
77028
$3,112
0%
77030
$3,104
0%
77031
$3,034
-2%
77032
$3,160
2%
77033
$3,005
-3%
77034
$3,158
2%
77035
$3,060
-1%
77036
$3,239
5%
77037
$3,164
2%
77038
$3,055
-1%
77039
$3,010
-3%
77040
$3,094
0%
77041
$3,009
-3%
77042
$3,321
7%
77043
$3,089
0%
77044
$3,040
-2%
77045
$3,078
-1%
77046
$3,064
-1%
77047
$3,023
-2%
77048
$3,046
-2%
77049
$3,063
-1%
77050
$3,066
-1%
77051
$3,031
-2%
77053
$3,777
22%
77054
$3,068
-1%
77055
$3,117
1%
77056
$3,056
-1%
77057
$3,201
3%
77058
$3,415
10%
77059
$3,105
0%
77060
$3,102
0%
77061
$2,974
-4%
77062
$3,200
3%
77063
$3,342
8%
77064
$3,051
-2%
77065
$3,022
-2%
77066
$3,024
-2%
77067
$3,048
-2%
77068
$3,200
3%
77069
$3,003
-3%
77070
$2,998
-3%
77071
$3,079
-1%
77072
$3,167
2%
77073
$3,090
0%
77074
$3,140
1%
77075
$3,033
-2%
77076
$3,046
-2%
77077
$3,029
-2%
77078
$3,170
2%
77079
$3,030
-2%
77080
$3,059
-1%
77081
$3,177
3%
77082
$3,193
3%
77083
$3,189
3%
77084
$3,071
-1%
77085
$3,054
-1%
77086
$3,137
1%
77087
$3,005
-3%
77088
$3,048
-2%
77089
$3,095
0%
77090
$3,046
-2%
77091
$3,039
-2%
77092
$3,006
-3%
77093
$3,081
-1%
77094
$3,028
-2%
77095
$2,939
-5%
77096
$3,044
-2%
77098
$3,196
3%
77099
$3,249
5%
77201
$3,063
-1%
77204
$3,145
2%
77315
$3,042
-2%
77339
$2,864
-8%
77345
$2,978
-4%
77587
$3,036
-2%
Cheapest ZIP codes for home insurance in Houston
With an average home insurance rate of $2,864 per year, the 77339 ZIP code (Kingwood), is the most affordable area for home insurance in Houston. Median home values of $302,000 make the Kingwood neighborhood one of the most affordable places to live in the city.
ZIP code
Average annual cost
Difference from Houston average (%)
77339
$2,864
-8%
77095
$2,939
-5%
77061
$2,974
-4%
77345
$2,978
-4%
77015
$2,979
-4%
77070
$2,998
-3%
77069
$3,003
-3%
77033
$3,005
-3%
77087
$3,005
-3%
77092
$3,006
-3%
Most expensive ZIP codes for home insurance in Houston
With an average annual home insurance rate of $3,777, the 77053 ZIP code (Ridgemont) is the most expensive area for home insurance in Houston. Although these ZIP codes are the most expensive in Houston, rates are still considerably less than some other Texas cities.
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, Houston homes with $500,000 in dwelling coverage pay nearly $2,000 more each year for home insurance than the citywide average.
Dwelling coverage level
Average annual cost
$100,000
$1,438
$200,000
$2,252
$300,000
$3,098
$400,000
$4,088
$500,000
$5,050
Houston home insurance costs by deductible amount
Your deductible is the amount you’re responsible for paying upfront on a claim before your insurance coverage kicks in after a covered loss. A higher deductible amount means lower insurance premiums, but it also means you’ll have to pay more out of pocket on each claim.
As seen in the table below, Houston residents can save around $900 on home insurance by choosing a $2,500 deductible over the $500 option.
Deductible level
Average annual cost
$500
$ 3,420
$1,000
$ 3,398
$2,500
$ 2,549
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 Houston
Based on our analysis, Farmers and State Auto have the cheapest average home insurance rates in Houston, with an average annual premium of $508 and $587, respectively.
In addition to Farmers and State Auto, four other companies have average home insurance rates below the Houston average of $3,098, including Texas Farm Bureau Insurance, Nationwide, and State Farm.
Company
Average annual cost
Farmers
$508
State Auto
$587
Texas Farm Bureau Insurance
$946
Lighthouse Property Insurance
$1,348
Nationwide
$1,428
State Farm
$1,901
Mercury
$3,200
AmGUARD
$3,748
Texas FAIR Plain
$3,967
UPC Insurance
$4,019
USAA
$4,703
Amica
$5,040
ASI Progressive
$5,921
IAT Insurance Group
$7,372
Cheapest home insurance in Houston if you have poor credit
Your credit score affects more than just your ability to get a credit card or buy a car, it also determines how much more you’ll pay for home insurance. Insurance companies consider a low credit score to be an indicator of risky behavior and an increased risk of filing an insurance claim, so many charge higher rates as a result.
With an average rate of $1,123 per year, Farmers has the cheapest home insurance rates in Houston for a homeowner with poor credit, while IAT's average yearly premium of $19,195 is the highest.
Company
Average annual cost
Difference from base rate (%)
Farmers
$1,123
121%
Lighthouse Property Insurance
$1,348
0%
Texas Farm Bureau Insurance
$1,478
56%
Nationwide
$2,050
44%
State Auto
$2,143
265%
State Farm
$3,264
72%
Texas FAIR Plain
$3,967
0%
Mercury
$5,028
57%
AmGUARD
$5,376
43%
USAA
$5,643
20%
Chubb
$5,859
174%
UPC Insurance
$6,352
58%
Amica
$6,425
27%
ASI Progressive
$6,893
16%
IAT Insurance Group
$19,195
160%
Cheapest homeowners insurance in Houston if you have an older home
Older and historic homes are usually more expensive to insure than newer homes. This is because insurers consider them a higher risk than newer homes since they generally more prone to loss, they're constructed with obsolete (and more expensive) materials, and certain structural components like the roof or plumbing systems may not be up to code.
Here's the average home insurance premium from eight Houston 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 (%)
State Auto
$671
14%
Lighthouse Property Insurance
$1,388
3%
Nationwide
$1,439
1%
State Farm
$1,901
0%
Mercury
$3,050
1%
AmGUARD
$3,927
5%
Amica
$5,839
6%
IAT Insurance Group
$7,372
0%
Cheapest home insurance in Houston 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.
Here's the cheapest home insurance companies in Houston for a homeowner with three claims within a five-year period.
Company
Average annual cost
Difference from base rate (%)
Farmers
$874
48%
Texas Farm Bureau Insurance
$910
13%
State Auto
$1,385
121%
Lighthouse Property Insurance
$2,038
51%
State Farm
$2,433
0%
Chubb
$2,478
11%
ASI Progressive
$3,367
48%
USAA
$4,394
11%
AmGUARD
$5,148
25%
Nationwide
$5,402
50%
Mercury
$5,646
93%
Texas FAIR Plain
$5,724
38%
IAT Insurance Group
$7,933
42%
UPC Insurance
$8,081
54%
Amica
$9,792
69%
How to get homeowners insurance quotes in Houston
Now that you're familiar with the best insurance options available in Houston, it's time to start shopping for homeowners insurance and comparing quotes. Here are some steps you can take to find the right insurance coverage for your home at the best possible price.
5 steps to shopping for homeowners insurance in Houston, TX
Reach out to a licensed Policygenius agent. Our team of insurance experts can help you get quotes from top companies, at no cost or obligation to you. We can help you determine how much of each coverage you need to ensure your home is fully insured in the event disaster strikes.
Ask if you should purchase flood, hurricane, or wildfire coverage. Given the recent weather events and tornadoes in Texas, you might want to add additional dwelling coverage or flood insurance to protect your home against catastrophic losses.
Figure out how much you can afford to pay for your deductible. 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 the best for you.
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.
Choose your policy, sign it, and pay your first premium. Policygenius will do all of the paperwork for you, so all you need to do is sign on the dotted line and pay your first premium. We’ll even cancel your old policy if it hasn't expired yet.
The average cost of homeowners insurance in Houston is $262 a month. That’s about $7 more per month than the Texas state average.
How can I lower my homeowners insurance rates in Houston?
Comparing quotes from several insurance companies is one of the best ways to find the lowest home insurance costs. Ask your Policygenius agent about available discounts, or consider increasing your policy deductible to lower your costs.
How much is homeowners insurance in Houston for a $400,000 house?
The average cost of home insurance in Houston for a house with $400,000 in dwelling coverage is $4,088, according to our analysis of quotes from 100 Houston area ZIP codes. This is around $1,000 higher than the citywide average of $3,098.
Is home insurance required in Texas?
While home insurance is not legally required, most mortgage lenders will require you to purchase a policy before extending you a loan. In most cases, you'll be required to purchase enough home insurance coverage to fully rebuild the home 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.
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.
Jennifer Gimbel is a senior managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.
