Best Homeowners Insurance in Texas: Living in Texas means you’re familiar with the state’s unique weather and housing challenges. From hurricanes along the Gulf Coast to tornados in the Panhandle, Texans need homeowners insurance that can protect their property and finances.
Homeowners insurance isn’t just a smart decision—it’s essential to safeguard your biggest investment. If you’re looking for the best homeowners insurance in Texas, you’re in the right place.
This guide will walk you through everything you need to know, from understanding policies to finding the best rates and getting free quotes.
Understanding Homeowners Insurance
Before diving into the specifics of Texas homeowners insurance, it’s important to understand what it is and why it’s so essential.
Homeowners insurance is a policy that protects your home and your belongings against unexpected events like fire, theft, or natural disasters. It also provides liability coverage if someone is injured on your property. In essence, it’s a safety net that ensures you’re not left financially devastated by unforeseen circumstances.
Why Homeowners Insurance is Crucial in Texas
Texas homeowners face unique challenges due to the state’s diverse climate. From tropical storms on the coast to wildfires and tornadoes inland, extreme weather is a real threat. On top of that, property values in Texas have been steadily rising, making proper insurance coverage even more important to protect your investment.
The unpredictable nature of Texas weather means that homeowners need comprehensive coverage, not just the basics. Whether you’re in Houston, Dallas, or rural Texas, having the right homeowners insurance is a necessity.
Types of Homeowners Insurance Policies in Texas
Not all homeowners insurance policies are created equal. In Texas, you’ll come across several types of coverage:
- HO-1: Basic Form – Offers very limited coverage and is rarely used.
- HO-2: Broad Form – Provides protection for more perils than HO-1 but is still limited.
- HO-3: Special Form – The most common type of policy that covers your home against all perils except those specifically excluded.
- HO-5: Comprehensive Form – Offers the broadest coverage, including your home and personal belongings, with fewer exclusions.
- HO-8: Older Home Coverage – Specifically designed for older homes that may not meet current building codes.
What Does Homeowners Insurance Cover?
A standard homeowners insurance policy in Texas typically covers the following:
- Dwelling Protection: Covers the structure of your home, including walls, roof, and foundation.
- Personal Property Coverage: Protects your belongings inside the home, such as furniture, electronics, and clothing.
- Liability Protection: Covers legal expenses if someone is injured on your property.
- Additional Living Expenses: Pays for temporary housing if your home becomes uninhabitable due to a covered event.
What Isn’t Covered by Homeowners Insurance?
While homeowners insurance covers a lot, there are some exclusions to be aware of:
- Flood Insurance: This is not included in standard policies and must be purchased separately, usually through the National Flood Insurance Program (NFIP).
- Earthquake Insurance: Also not typically covered and requires additional coverage.
- Other Exclusions: Items like wear and tear, mold, and certain high-value items may need special riders or separate policies.
Factors That Affect Homeowners Insurance Rates in Texas
Several factors influence how much you’ll pay for homeowners insurance:
- Location: Coastal areas prone to hurricanes tend to have higher premiums.
- Home’s Age and Construction Materials: Older homes or homes built with less durable materials may cost more to insure.
- Claim History: If you’ve made multiple claims in the past, your rates may be higher.
- Credit Score: Insurance companies often use credit scores to determine premiums.
- Safety Features: Homes with smoke detectors, burglar alarms, and sprinkler systems may qualify for discounts.
How to Get a Free Homeowners Insurance Quote in Texas
Now that you understand the basics, how do you get a free quote? There are a few ways to do this:
- Online Comparison Tools: Websites like Policygenius and Insure.com allow you to compare quotes from multiple insurers.
- Consulting Insurance Agents: Agents can help you tailor a policy to your specific needs.
- Using Insurance Company Websites: Most major insurance companies allow you to get free quotes directly from their websites.
Top Homeowners Insurance Providers in Texas
When it comes to choosing an insurer, you want to go with a company known for both competitive rates and excellent service. Here are some top providers in Texas:
- State Farm: Known for its extensive agent network and customizable policies.
- Allstate: Offers a variety of discounts and solid customer service.
- USAA: Exclusively for military families, with exceptional customer satisfaction.
- Farmers Insurance: Provides comprehensive coverage options and discounts.
- Progressive: Great for bundling home and auto insurance for additional savings.
Cheapest Home Insurance Companies in Texas
Home insurance rates in Texas have increased by 16% — namely due to claims from hurricanes, wildfires and other natural disasters.
While how much you pay for home insurance is very specific to you, our Dynamic Insurance Rating Tool allows us to source annual rate filings to see which company is the cheapest homeowners insurance in Texas.
For a dwelling value of at least $300,000, which 39% of Texas homeowners carry, Texas Farm Bureau ($1,794/year), Chubb ($1,893/year) and USAA ($2,202/year) are the cheapest homeowners companies in Texas.
Cheapest home insurance in Texas — Texas Farm Bureau
Compared to the state average of $2470, Texas Farm Bureau offers the cheapest premium at $1,794 per year.
Pros
- Lowest premium for home insurance in Texas
- Local agents available
Cons
- Lack of customizations for home insurance coverage
- Only available in Texas
Begin your search for cheap homeowners insurance by reviewing the most affordable Texas companies, listed below. Then, see our list of home insurance carriers consumers rated the best for customer satisfaction.
Cheapest Home Insurance Companies in Texas
| Company | Avg. Annual Premium |
|---|---|
| Texas Farm Bureau | $1,794 |
| Chubb | $1,893 |
| USAA | $2,202 |
| Nationwide | $2,519 |
| State Auto | $2,585 |
| Farmers | $2,637 |
| State Farm | $2,799 |
| AmGUARD Insurance Company | $2,834 |
| Texas Fair Plan Association | $3,120 |
| Universal Ins Co of N. America | $3,161 |
| Foremost | $3,202 |
Cheapest Home Companies in Texas for New Homes
The age of your home can greatly impact any quotes you get for homeowners insurance. Depending on when and where your home was built, outdated plumbing and building practices can make insuring an older home more expensive.
According to our data, home insurance quotes in Texas for a new build are considerably cheaper than an older home — $1,682/yr versus $2470 for a home built before 2011.
Cheapest insurance in TX for new homes — Nationwide
The average cost for insuring a new house with Nationwide is 35% cheaper than the state average. $1,115 for an annual policy versus $1,805.Cheapest home insurance in Texas for new builds
| Company | Avg. Annual Premium |
|---|---|
| Nationwide | $1,157 |
| USAA | $1,381 |
| ASI | $1,402 |
| Chubb | $1,430 |
| Lighthouse Prop Ins Corp | $1,480 |
| Farmers | $1,601 |
| State Auto | $1,680 |
| United P&C | $1,680 |
| Republic Indemnity | $1,717 |
| State Farm | $1,765 |
| Universal Ins Co of N. America | $1,777 |
| AmGUARD Insurance Company | $1,880 |
| Occidental/Acceptance Group | $1,956 |
| Texas Farm Bureau | $2,019 |
| Amica Mutual | $2,878 |
| Texas Fair Plan Association | $3,120 |
| Foremost | $3,202 |
Best home and auto insurance in Texas — Texas Farm Bureau
Texas Farm Bureau offers the best bundle discount according to our data. On average, customers lowered their home insurance quote by 15%.
Home Insurance Quotes with Auto Insurance Bundle Discount
| Company | Bundled Home Insurance Quotes | Non-Bundled Quotes | Savings |
|---|---|---|---|
| State Farm | $1,977 | $2,799 | $822 |
| Amica Mutual | $3,024 | $3,780 | $756 |
| Nationwide | $2,183 | $2,519 | $336 |
| Farmers | $2,346 | $2,637 | $291 |
| Texas Farm Bureau | $1,556 | $1,794 | $238 |
| Chubb | $1,698 | $1,893 | $195 |
| United P&C | $3,429 | $3,618 | $189 |
| AmGUARD Insurance Company | $2,686 | $2,834 | $148 |
| USAA | $2,080 | $2,202 | $122 |
| Occidental/Acceptance Group | $3,198 | $3,286 | $89 |
| State Auto | $2,505 | $2,585 | $80 |
| ASI | $3,272 | $3,287 | $15 |
| Foremost | $3,202 | $3,202 | $0 |
| Universal Ins Co of N. America | $3,161 | $3,161 | $0 |
| Texas Fair Plan Association | $3,120 | $3,120 | $0 |
Best home insurance in Texas for natural disasters
Generally, any flooding-related damage will not be covered by a standard home insurance policy. But damage from wind, hail, fire or tornadoes is often included or can be added on.
Does home insurance cover hurricanes in Texas? — Partially
Coverage after a hurricane will apply depending on if the damage was caused by water or wind. Any flooding-related damage from a hurricane is not covered by a typical homeowners policy — but wind damage will often be covered.
Because of the cost, most insurance companies are unwilling to take on the full financial risk of a hurricane. If your home is damaged by wind during a hurricane, your standard home insurance policy should apply. However, any water-related damage would fall under a FEMA policy — which is discussed below.
Depending on where you live in Texas, your insurance company may offer a separate hurricane deductible if you reside in a region especially susceptible to wind storms. These deductibles are separate from your standard homeowners deductible and can work slightly differently.
Best and cheapest companies in Texas for hurricane coverage
| Company | Avg. Annual Premium |
|---|---|
| USAA | $2,131 |
| Lighthouse Prop Ins Corp | $2,217 |
| Texas Farm Bureau | $2,460 |
| Nationwide | $2,519 |
| Farmers | $2,551 |
| State Auto | $2,619 |
| State Farm | $2,799 |
| AmGUARD Insurance Company | $2,834 |
| Universal Ins Co of N. America | $3,146 |
| ASI | $3,156 |
| Foremost | $3,229 |
| Texas Fair Plan Association | $3,255 |
| Occidental/Acceptance Group | $3,286 |
| United P&C | $3,480 |
| Amica Mutual | $3,960 |
| Chubb | $5,529 |
Home insurance quotes in Texas by most populated cities
How much you pay for home insurance will largely depend on the regional specifics of your city. If your city has a history of hurricanes or other natural disasters, like Houston, your insurance needs will be different than that of Austin.
Below are the most populated cities in Texas with the average rate for home insurance.
| City | Avg. Annual Premium |
|---|---|
| San Antonio | $1,782 |
| Plano | $2,915 |
| Laredo | $1,674 |
| Houston | $2,933 |
| Fort Worth | $2,963 |
| El Paso | $1,468 |
| Dallas | $2,828 |
| Corpus Christi | $2,757 |
| Austin | $1,607 |
| Arlington | $2,956 |
Comparing Homeowners Insurance Quotes
When comparing quotes, don’t just look at the premium. Pay attention to:
- Policy Limits: Make sure the coverage amount is enough to rebuild your home.
- Deductibles: Higher deductibles lower your premium but mean you’ll pay more out of pocket if you file a claim.
- Additional Riders: Consider whether you need extra coverage for things like jewelry, art, or home business equipment.
Saving Money on Your Homeowners Insurance in Texas
There are several ways to lower your homeowners insurance costs:
- Bundling Policies: Many insurers offer discounts if you bundle your home and auto insurance.
- Increasing Deductibles: A higher deductible can significantly reduce your premium.
- Home Security: Installing security systems, deadbolts, and smoke alarms can earn you discounts.
- Maintaining Good Credit: Insurers often offer better rates to customers with higher credit scores.
Special Considerations for Texas Homeowners
Texans, especially those living in coastal or flood-prone areas, need to consider additional coverage like:
- Flood Insurance: Texas is prone to flooding, especially after hurricanes or heavy rains, making flood insurance essential.
- Windstorm Insurance: For homes along the coast, windstorm insurance may be necessary to protect against damage from high winds.
How to File a Homeowners Insurance Claim in Texas
Filing a claim can be stressful, but it doesn’t have to be if you follow these steps:
- Document the Damage: Take photos and make a list of damaged items.
- Contact Your Insurance Provider: Notify them as soon as possible.
- Submit Necessary Paperwork: Provide all requested documentation, including receipts and estimates for repairs.
- Meet with the Adjuster: An adjuster will assess the damage and determine the payout.
Common Mistakes to Avoid When Choosing Homeowners Insurance
- Not Reviewing Policy Exclusions: Make sure you understand what’s not covered by your policy.
- Choosing Based Solely on Price: A cheaper policy might not offer the coverage you need.
- Failing to Update Coverage: If you remodel or add value to your home, be sure to update your policy to reflect the changes.
FAQs about Best Homeowners Insurance in Texas
1. What does homeowners insurance in Texas typically cover?
Homeowners insurance in Texas generally covers your home’s structure, personal belongings, and liability protection. This includes damage from events like fire, theft, and certain natural disasters. However, flood and earthquake coverage may require separate policies.
2. Is homeowners insurance required in Texas?
While Texas law does not mandate homeowners insurance, most mortgage lenders will require you to have it to protect their investment. It’s highly recommended for safeguarding your home and belongings.
3. What factors affect homeowners insurance rates in Texas?
Several factors impact homeowners insurance rates in Texas, including the location of your home, its age, construction materials, and the amount of coverage you need. Weather risks like hurricanes or hailstorms can also influence rates.
4. How can I lower my homeowners insurance premium in Texas?
You can lower your homeowners insurance premium by bundling it with other insurance policies, raising your deductible, installing safety features like smoke detectors or burglar alarms, and maintaining a good credit score.
5. What is the average cost of homeowners insurance in Texas?
The average cost of homeowners insurance in Texas varies based on location and coverage levels. On average, homeowners pay around $1,800 annually, but this can fluctuate depending on your specific circumstances.
6. Are there any discounts available for homeowners insurance in Texas?
Yes, many insurers offer discounts for bundling policies, installing security systems, or being claim-free. Be sure to ask your insurance provider about available discounts that could help reduce your premium.
Conclusion
In Texas, homeowners insurance is more than just a safety net—it’s a necessity. From protecting your home against extreme weather to offering liability coverage, the right policy gives you peace of mind. Now that you know what to look for, take the next step and get a free quote today. Compare options, understand your coverage, and make sure you’re fully protected.
References
For further reading and to validate the information provided in Best Homeowners Insurance in Texas, here are some reputable sources you can explore. These references offer insights into Texas homeowners insurance, coverage options, and factors to consider when selecting the best policy:
- Texas Department of Insurance – For official guidelines and resources on homeowners insurance in Texas.
- National Association of Insurance Commissioners (NAIC) – Offering a national perspective on insurance regulations and consumer tips.
- Insurance Information Institute – A trusted source for insurance education, including specific advice on homeowners insurance.
- Consumer Reports – Independent reviews and comparisons of homeowners insurance providers.
These sources ensure that you have accurate and up-to-date information to help you make informed decisions.
