Best homeowners insurance in Houston, TX (2024)

We looked at average costs, customer service ratings, and policy options from multiple top insurers to find the best and cheapest home insurance companies in Houston.

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By

Pat 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.

Edited by

Jennifer GimbelJennifer GimbelSenior Managing Editor & Home Insurance ExpertJennifer 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.

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Houston is one of the best places in the country to live thanks to no state income tax, a relatively low cost of living, and its diverse food and culture scene. While you can add the city's close proximity to the Gulf of Mexico to the list of reasons to live there, the high risk of hurricane-related wind damage and flooding that comes with it makes home ownership in Greater Houston an inherently risky endeavor.

To ensure your house is fully covered in case of a tropical storm, tornado, or whatever other extreme weather event comes your way, you'll want to make sure you have adequate homeowners insurance coverage from a reputable company. Here are our picks for the best homeowners insurance companies in Houston, TX.

Compare home insurance rates in Houston

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Compare the best cheap homeowners insurance companies in Houston

To find the best cheap homeowners insurance in Houston, Policygenius reviewed over a dozen of the largest insurance companies in the state and chose the five with the highest overall Policygenius rating. Our ratings are based on each company's financial strength and customer service ratings, the number and quality of available coverage, and average policy premiums in 98 Houston ZIP codes.

Based on our findings, State Farm, Farmers, Nationwide, Progressive, and Texas Farm Bureau are the best home insurance companies in Houston.

Company

Average monthly cost

Policygenius rating

State Farm

$158

4.8 out of 5

Farmers

$43

4.5 out of 5

Nationwide

$113

4.5 out of 5

Progressive

$490

4.5 out of 5

Texas Farm Bureau

$79

3.9 out of 5

Methodology & why you can trust our rates

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.

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2024 Policygenius award winner

State Farm

State Farm logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.8

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Offers extended replacement cost

All 50 states

Why we chose itchevron icon

State Farm home insurance is one of the best overall home insurance providers in Texas thanks to its statewide availability, large selection of policy options for most home types, high customer service marks, and industry-best financial stability ratings.

Pros and conschevron icon

Pros

  • High customer satisfaction and financial strength ratings

  • Top-tier coverage add-ons, including extended replacement cost coverage

  • Offers large discounts when you bundle your home and auto insurance

Cons

  • 20% more complaints filed with the NAIC than other companies of its size

  • No discounts for first-time homebuyers

More detailschevron icon

Why we chose State Farm

At a time when lots of competitors are no longer insuring homes in areas prone to wildfires or hurricanes, State Farm continues to offer its relatively affordable and highly-rated home insurance to homeowners in most parts of the country, including Texas.

While some of its competitors may not have the financial strength to pay out claims after several natural disasters in the same year, State Farm isn't one of them. It earns the highest rating possible from A.M. Best for financial strength and stability — only six insurance companies out of nearly 70 we reviewed hold this title.

How do State Farm home insurance rates compare to the Houston average?

The average cost of State Farm home insurance in Houston is $1,895 per year, which is about 35% cheaper than the average annual premium in Houston of $2,936.

How to get a quote

Online through State Farm

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2024 Policygenius award winner

Farmers

Farmers Insurance logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Offers extended replacement cost

Bundle home & auto

Smart home discounts

Why we chose itchevron icon

Along with saving around 20% when you bundle your home and car insurance, Farmers also gives you access to its extensive suite of discounts, unique policy credits, and claim-free incentives that help put money back in your pocket.

Pros and conschevron icon

Pros

  • 12+ discounts to save on rates

  • Optional extended or guaranteed replacement cost dwelling coverage

  • Shave $50 off your deductible each year you’re with Farmers

Cons

  • Below-average scores on J.D. Power’s overall customer satisfaction and digital experience surveys

More detailschevron icon

Why we chose Farmers

Farmers home insurance stands out against competitors thanks to its 17 available discounts and policy perks. For context, Farmers competitors offer an average of around seven discounts total.

Along with several discount offerings and affordable rates, Farmers also offers the following two key policy perks:

  • Declining deductibles: Earn $50 toward your home deductible each year you have a home insurance policy with Farmers.

  • Claim forgiveness: Once you’ve gone five years without filing a claim, Farmers won’t raise your rate after that if you end up filing one.

Even more, depending on your state of residence, you can save up to 45% on your auto insurance and up to 34% on your home insurance when you bundle policies, according to farmers.

How do Farmers home insurance rates compare to the Houston average?

The average cost of Farmers home insurance in Houston is $519 per year, which is around 82% cheaper than the average annual premium in Houston of $2,936.

How to get a quote

Online through Farmers

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2024 Policygenius award winner

Nationwide

Nationwide logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Mobile app

New homebuyer discount

Offers extended replacement cost

Why we chose itchevron icon

Nationwide home insurance features an extensive range of comprehensive coverage and policy options. It also received high marks for claims satisfaction with J.D. Power, indicating you can rely on Nationwide when it matters most.

Pros and conschevron icon

Pros

  • Multiple high-quality coverage options

  • Highly rated for claims satisfaction with J.D. Power

Cons

  • Below-average customer satisfaction and digital experience ratings

  • Won’t cover Airbnbs or other short-term rentals

More detailschevron icon

Why we chose Nationwide

Nationwide is known for it's robust policy options and large selection of coverage add-ons, such as flood coverage and options to rebuild your roof with stronger materials after a covered loss, making Nationwide a smart choice if you live in a Texas area at risk for extreme weather or natural disasters. In addition to featuring some of the lowest premiums on average in Houston, Nationwide also offers several discounts that can trim your rates even more.

How do Nationwide home insurance rates compare to the Houston average?

The average cost of Nationwide home insurance in Houston is $1,358 per year, which is around 54% cheaper than the average annual premium in Houston of $2,936.

How to get a quote

Online through Policygenius or Nationwide

award icon

2024 Policygenius award winner

Progressive

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Mobile app

Why we chose itchevron icon

Progressive offers robust home insurance coverage and ways to save. Our fave perk? Its bundling discount, which lets you save up to 20% on premiums and only requires you to pay one deductible if your home and car are damaged in the same event.

Pros and conschevron icon

Pros

  • Save up to 20% when you bundle your home and auto insurance

  • Bundling perks include single-deductible claims and streamlined bill payment

  • User-friendly app to manage and update policy

Cons

  • Below-average claims satisfaction ratings

  • Cost varies by company Progressive places you with

  • Customer service & claims options vary by company

More detailschevron icon

Why we chose Progressive

Progressive shines for its industry-best home and auto insurance bundling perks. Insure both your home and car with Progressive and you’ll not only score a huge discount, but you’ll only have to pay one deductible if your home and car are damaged in the same incident. This means if a tornado or hurricane knocks a tree over onto your home and car, you’ll only be on the hook for one deductible.

How do Progressive home insurance rates compare to the Houston average?

The average cost of Progressive home insurance in Houston is $5,885 per year, which is around 100% more expensive than the average annual premium in Texas of $2,936.

How to get a quote

Online through Policygenius or ASI Progressive

Texas Farm Bureau

Farm Bureau Financial Services logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starHalf orange starEmpty gray star

3.9

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Why we chose itchevron icon

Texas Farm Bureau offers exceptional customer service and the option to bundle a slew of insurance policies on top of just home insurance to save money on rates.

Pros and conschevron icon

Pros

  • Excellent customer service score — received 99% fewer complaints expected for a company of its size in 2021

  • Excellent financial strength rating from A.M. Best, proving it likely has the funds to pay out claims in the wake of a natural disaster

  • Only pay one deductible if your home, car, and boat are damaged in the same event and you bundle your insurance policies with Farm Bureau

Cons

  • Rates are $1,400 more expensive than the national average

  • Need to have a Farm Bureau membership to purchase insurance

More detailschevron icon

Why we chose Texas Farm Bureau

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. Farm Bureau is a great option for Texas residents looking for personalized customer care and recommendations from a local company that knows the area best.  

How do Texas Farm Bureau home insurance rates compare to the Houston average?

The average cost of Texas Farm Bureau home insurance in Houston is $946 per year, which is about 68% cheaper than the average annual premium in Houston of $2,936.

How to get a quote

By contacting a local Texas Farm Bureau agent

Compare home insurance rates in Houston

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How much is homeowners insurance in Houston?

Houston homeowners pay an average of $2,936 per year, or $245 a month, for a homeowners insurance policy with $300,000 in dwelling coverage. This makes home insurance in Houston roughly 1% more expensive than the Texas average of $2,919 per year, but around 67% pricier than the national average. While home insurance costs in Houston may skew higher, there are several companies that offer affordable policy options.

Houston home insurance rates by ZIP code

Home insurance premiums can vary depending on your neighborhood or ZIP code, as certain areas may be at higher risk of 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 premiums in the 10 most populated Houston ZIP codes.

ZIP code

Average annual cost

Difference from state average (%)

77084

$2,755

-6%

77083

$2,876

-1%

77095

$2,613

-10%

77036

$2,929

0%

77072

$2,852

-2%

77077

$2,709

-7%

77089

$3,360

15%

77070

$2,998

3%

77015

$3,153

8%

77088

$3,048

4%

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Cheapest ZIP codes for home insurance in Houston

With an average home insurance rate of $2,550 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 state average (%)

77339

$2,550

-13%

77095

$2,613

-10%

77345

$2,671

-8%

77041

$2,688

-8%

77065

$2,702

-7%

77094

$2,709

-7%

77077

$2,709

-7%

77201

$2,710

-7%

77079

$2,711

-7%

77046

$2,711

-7%

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Most expensive areas for homeowners insurance in Houston

With an average annual home insurance rate of $3,360, the 77089 ZIP code (South Belt/Ellington) is the most expensive area for home insurance in Houston.

ZIP code

Average annual cost

Difference from state average (%)

77089

$3,360

15%

77034

$3,349

15%

77053

$3,324

14%

77075

$3,307

13%

77021

$3,236

11%

77049

$3,232

11%

77062

$3,200

10%

77011

$3,172

9%

77023

$3,167

8%

77032

$3,160

8%

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Learn more >> Home insurance rates by ZIP code

Houston home insurance costs by coverage amount

Along with your home's location, your homeowners insurance premiums are primarily based on how much dwelling coverage is in your policy. This is the centerpiece of your home insurance coverage, covering the cost to repair or rebuild your home after a covered disaster.

As you can see in the table below, the average annual premium for a Houston home with $500,000 in dwelling coverage is over $2,000 higher than the citywide average.

Dwelling coverage limit

Average annual cost

$100,000

$1,261

$200,000

$2,022

$300,000

$2,936

$400,000

$3,914

$500,000

$4,973

Houston home insurance costs by deductible amount

Your home insurance deductible is the amount you’re responsible for paying on each claim before insurance kicks in to help cover the cost of repairing or replacing your property. A higher deductible means lower insurance premiums, but it also means you're responsible for paying more out of pocket when you file a claim.

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

Deductible

Average annual cost

$500

$4,550

$1,000

$2,936

$2,500

$1,307

Cheapest homeowners insurance companies in Houston

Based on our analysis, Farmers, State Auto, Texas Farm Bureau, Lighthouse Property Insurance, and Nationwide are the five cheapest home insurance companies in Houston, with average premiums citywide ranging from $519 to $1,358 per year.

State Farm, Chubb, and Mercury are also among the most affordable home insurance options for Houston residents in 2023, as detailed in the table below.

Company

Average annual cost

Farmers

$519

State Auto

$588

Texas Farm Bureau

$946

Lighthouse Property Insurance

$1,348

Nationwide

$1,358

State Farm

$1,895

Chubb

$2,139

Mercury

$3,199

AmGUARD Insurance

$3,740

Texas FAIR Plan

$3,967

UPC Insurance

$4,026

USAA

$5,022

Amica

$5,033

Progressive

$5,885

IAT Insurance Group

$7,184

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Cheapest home insurance in Houston if you have poor credit

Insurance companies may also take your credit score into consideration when determining your home insurance premium. Insurers consider customers with poor credit to be more likely to file claims for small losses or damages rather than cover the costs themselves out of pocket, so they'll often charge more in premiums as a hedge against the higher risk of claim payouts.

With an average annual premium of $1,124, Farmers has the cheapest home insurance rates in Houston for a homeowner with poor credit, while IAT's average of $19,192 per year is the most expensive. 

Company

Average annual cost

Farmers

$1,124

Lighthouse Property Insurance

$1,348

Farm Bureau Insurance

$1,477

Nationwide

$2,050

State Auto

$2,145

State Farm

$3,253

Texas FAIR Plain Association

$3,967

Mercury

$5,022

AmGUARD Insurance

$5,364

USAA

$5,634

Chubb

$5,856

UPC Insurance

$6,365

Amica

$6,420

IAT Insurance Group

$19,192

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Cheapest home insurance in Houston if you have an older home

Insurance carriers consider older homes to have a higher risk of damage or loss compared to newer homes since they're constructed with older and more difficult to replace materials. Additionally, certain structural components in older homes, like the roof or plumbing systems, may not be up to code.

Looking at average quotes for a 50-year-old home, State Auto is the cheapest home insurance option for Houston homeowners, while IAT insurance is the most expensive.

Company

Average annual cost

State Auto

$618

Farmers

$682

Farm Bureau Insurance

$946

Lighthouse Property Insurance

$1,388

Nationwide

$1,395

State Farm

$1,894

Chubb

$1,913

Mercury

$3,014

UPC Insurance

$3,870

AmGUARD Insurance

$3,918

Texas FAIR Plain Association

$3,967

USAA

$5,144

Amica

$5,642

IAT Insurance Group

$7,371

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Cheapest homeowners insurance in Houston if you have a history of claims

Your claims history is one of the biggest factors that can impact your home insurance premiums. If you've filed one or more claims in the previous five years, you'll typically pay more for home insurance compared to if you went claim free during that time.

Here's the cheapest home insurance companies in Houston for a homeowner with three claims within a five-year period on their record. According to our analysis, homeowners with multiple claims will likely find Farmers to be their cheapest option, while IAT insurance appears to be the most expensive.

Company

Average annual cost

Farmers

$999

Farm Bureau Insurance

$1,075

State Auto

$1,296

State Farm

$1,894

Lighthouse Property Insurance

$2,034

Chubb

$2,367

Nationwide

$2,881

Texas FAIR Plain Association

$4,221

AmGUARD Insurance

$4,673

Mercury

$5,638

USAA

$5,643

UPC Insurance

$7,525

Amica

$9,269

IAT Insurance Group

$9,805

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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. Here are some things you should keep in mind as you compare home insurance quotes in Houston.

5 steps to shopping for homeowners insurance in Houston, TX

  1. Shop with an independent insurance marketplace like Policygenius. Our team of licensed insurance agents 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.

  2. Consider additional insurance coverage for windstorm and flood damage. Given the recent weather events and tornadoes in Texas, you might want to consider additional dwelling coverage, such as extended or guaranteed replacement cost coverage. You'll also want to consider additional flood insurance considering the risk of flooding in Greater Houston.

  3. Compare quotes. Once you’ve identified your coverage needs, a Policygenius agent will send over quotes from top companies so you can review your options.

  4. Figure out how high of a deductible you can afford. A higher deductible means you’ll pay a lower home insurance premium, but it also means you'll have pay more out of pocket on each claim.

  5. Choose your policy, sign it, and pay your first premium. Once you choose a policy, all you need to do is sign on the dotted line and pay your first premium. We’ll cancel your old policy on your behalf if it hasn't expired yet.

Compare home insurance rates in Houston

We don't sell your information to third parties.

Author

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.

Editor

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.

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