Best homeowners insurance in Houston, TX for 2022

Affectionately known as “Space City” because of its connection to the space industry, Houston is a thriving Texas city filled with museums, eating establishments, and cultural activities for the entire family. Houston is also located near the Gulf Coast and, in recent years, has suffered extensive damage from tropical storms and hurricanes, making home insurance more important than ever.

The average cost of homeowners insurance in Houston is $3,143 per year or $262 a month. This is around 4% higher than the statewide average of $3,080 per year, and about 39% higher than the national average of $1,899. 

However, the cost isn’t the only factor to consider when choosing a home insurance company. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Houston.  

Best homeowners insurance companies in Houston

Of the companies we looked at, Farmers has the lowest home insurance rate, with an average annual policy cost of $484 per year — about $2,600 less than the state average. State Auto has the next lowest average rate at $564 per year.

Policygenius analyzed thousands of quotes from the 5 largest Houston insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of Houston residents to find the best homeowners insurance in Houston.

State Farm

There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.

Pros

• Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage

• Get up to $1 million in personal liability coverage

• Score discounts for bundling, installing security devices, and choosing a high deductible

• File and track claims online, over the phone, in person, or through its mobile app

• High customer satisfaction and financial strength ratings

Cons

• No discounts for first-time homebuyers or going a year without a claim

Read our full State Farm home insurance review

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Why State Farm tops our best list

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. 

How to get a quote

Online through State Farm

USAA

USAA's robust coverages and high marks for customer service and claims satisfaction make it a solid home insurance option for military members and their families.

Pros

• Score discounts for zero claims, being a loyal USAA member, opting into e-billing, and more

• Base policy includes coverages that cost extra with most other companies

• Offers earthquake coverage — which is hard to come by

• Get discounted home security systems and a discount on premiums through its partnership with ADT

• Industry-best customer service and claims satisfaction ratings

Cons

• Only available to military families

• Doesn’t offer extended or guaranteed replacement cost dwelling coverage

Read our full USAA home insurance review here

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Why USAA tops our best list

With such a large military presence in Houston, 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 providers. 

How to get a quote

Online through USAA

Farmers

Farmers is one of the largest and most reputable home insurance providers in the industry, offering special discounts for teachers, nurses, first responders, and non-smokers — plus the option to rebuild your home with green materials after a claim.

Pros

• Several discounts and unique ways to save, including claim forgiveness and declining deductibles

• 3 flexible coverage packages with varying levels of protection for most coverage and budget needs

• Offers extended and guaranteed replacement cost coverage options

• File claims online, via text, on its mobile app, or by calling its claims center

Cons

• Rates are typically more expensive

• Below-average customer satisfaction ratings

• No repair network to help you find a certified contractor or repair professional after filing a claim

Read our full Farmers home insurance review here

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Why Farmers tops our best list

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. To help you save money on coverage, Farmers offers a slew of discounts and perks. This includes its “diminishing deductibles” feature 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. 

How to get a quote

Online through Farmers

Nationwide

Nationwide offers flexible home insurance policy options for every home type and income level. And we love its slew of discounts for everything from having a newish roof to living in a gated community.

Pros

• Offers lots of coverage add-ons, including flood and earthquake insurance

• Option to rebuild roof with stronger, safer materials after a covered loss

• Score discounts for living in a gated community, making home renovations, having a newer roof, and more

• Seamlessly submit claims online or through its mobile app

• Above-average claims satisfaction rating

Cons

• Below-average customer satisfaction ratings

• Water backup coverage is more expensive than with other insurers

Read our full Nationwide home insurance review here

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Why Nationwide tops our best list

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.

How to get a quote

Online through Policygenius or Nationwide

Texas Farm Bureau Insurance

On top of its stellar customer satisfaction ratings, Texas Farm Bureau Insurance offers everything from home, auto, and life insurance to ranch, farm, and commercial coverage — allowing you to keep all of your policies under one roof.

Pros

• Offers home, farm, ranch, commercial, life, and auto insurance — letting you keep all of your policies with one company

• High customer satisfaction ratings for 10 years running

• File claims online — with 24/7 customer support

Cons

• Farm Bureau membership required for coverage

• Minimal information about coverages and discounts available online

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Why Texas Farm Bureau tops our best list

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.  

How to get a quote

Online through Texas Farm Bureau

Cheapest homeowners insurance companies by ZIP code in Houston

Looking at average home insurance costs for 15 of the most popular companies in Houston, we found that the cheapest home insurance in the city can be found in the 77087 ZIP code (Golf Crest) with Farmers. The average Farmers rate in this area is $415 per year — significantly less than the city average of $3,143 per year. 

Homeowners in Houston are likely to have the cheapest rates with Farmers and State Auto, with rates ranging from $414 to $678 per year in most ZIP codes.

The most affordable areas for homeowners 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.   

The most expensive areas for homeowners insurance in Houston

With an average home insurance rate of $3,974, 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.

Shopping for homeowners insurance in Houston

Given its proximity to the Gulf Coast, Houston residents have dealt with more than their share of tropical storms and hurricanes in recent years, making home and flood insurance more important than ever. You’ll want to find the best coverage at a price that works within your budget.

In this section, we break down the average annual home insurance rates in Houston for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies for dog and pool owners.

Houston home insurance costs by coverage amounts

Dwelling coverage is that part of your home insurance policy that pays to rebuild or repair your house after a covered loss. Houston homes with $400,000 in rebuild coverage pay an average of $3,977 each year for home insurance — over $800 higher than the city average.

Personal liability coverage is the portion of your homeowners insurance policy that pays for medical or legal bills if you’re found legally responsible for an injury or property damage on your property. 

As the table below reflects, additional liability coverage doesn’t necessarily mean higher average home insurance rates in Houston. While adding more liability coverage to your individual policy will likely make your rates go up, the increase is often minimal.

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 $2,200 on home insurance by choosing a $2,000 deductible over the $1,000 option.

Home insurance discounts in Houston

While you won’t get a huge discount if your house has any of the following features and nothing else, they can add up if you have several protective devices in your home. Plus, Houston has one of highest crime rates in the nation, so having extra security devices can help reduce your insurance costs.

Here is the average annual rate and average discount percentage for homes in Houston with deadbolts, smoke alarms, or burglar alarms. 

Home insurance companies in Houston for dog owners

If you already own or are considering getting a dog that is considered a dangerous breed, you might be paying more for your home insurance. Some insurance companies charge higher rates for certain breeds and could even deny you coverage altogether if you own one.

With an average rate of $519 per year, Farmers has the cheapest home insurance rates in Houston for a home with a dangerous dog breed, while USAA’s average yearly premium of $5,102 is the highest. 

Home insurance companies in Houston for 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 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 $1,124 per year, Farmers has the cheapest home insurance rates in Houston for a homeowner with poor credit, while USAA’s average yearly premium of $5,634 is the highest. 

Home insurance companies in Houston for pool owners

There’s nothing better for cooling off during the scorching summer months than taking a dip in your own swimming pool. However, if you do have a pool, you might want to increase the amount of liability coverage on your home, as some insurance companies consider swimming pools to be a liability risk and will often charge higher rates.

With an average rate of $519 per year, Farmers has the cheapest home insurance rates for Houston homes that have a swimming pool, while USAA has the most expensive rates at $5,105 per year.

How to buy homeowners insurance in Houston

Now that we have showcased the different kinds of home insurance options available in Houston, here are some easy steps to take as you shop for insurance: 

1. 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.

2. Ask if you should purchase flood, hurricane, or wildfire coverage. Given the recent weather events in Houston, you might want to add additional dwelling coverage or flood insurance to protect your home against catastrophic losses.

3. 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.

4. 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.

5. 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.

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.