Best cheap homeowners insurance in Austin

The average cost of home insurance for $250,000 in dwelling coverage in Austin, Texas is $1,320 per year. Although this is well below the state average of $1,860, many homeowners will still want to find the lowest rate for their desired coverage options.

To find the best cheap home insurance companies in Austin, our editorial team looked at some of the largest providers in the area by market share and compared average rates with customer satisfaction and financial strength ratings. Based on our review, we determined that some of the best cheap home insurance companies in Austin are Farmers, Travelers and Nationwide.

Best cheap home insurance companies in Austin

According to rate data provided by Quadrant Information Services, three of the cheapest homeowners insurance providers in Austin are Farmers, Travelers and Nationwide. These companies all have average annual rates that are below Austin’s average of $1,320 for $250,000 in dwelling coverage.

To find the best cheap homeowners insurance in Austin, we evaluated the largest home insurance companies in Texas by market share and leveraged rate data from Quadrant. We also gave each company a Bankrate Score out of 5.0 points, based on criteria like financial strength, coverage options and affordability. Lastly, we looked to J.D. Power’s 2022 U.S. Home Insurance Study to see how each insurer was ranked for overall customer satisfaction.

In the table below, you can see the full list of best cheap home insurance companies in Austin based on our review and Quadrant data.

*Not officially ranked by J.D. Power due to eligibility restrictions. 

Farmers

Farmers Insurance is one of the most affordable home insurance companies in Austin, with an average premium of $944 per year for $250,000 in dwelling coverage. It also has a wide selection of endorsements that homeowners may use to customize their coverage. Through Farmers, Austin homeowners may be able to add green rebuilding coverage, contents replacement cost coverage, identity theft coverage and others. Farmers customers may also get discounts for bundling, installing protective devices, and remaining claims-free for three years. Customers should note that Farmers is rated below average by J.D. Power for overall customer satisfaction.

Learn more: Farmers Insurance review

Travelers

Travelers may be a great home insurance company for Austin homeowners looking to customize their policy. For added financial protection from covered perils, policyholders may be able to add valuable items coverage, water backup coverage, green home coverage and more. The company also offers lots of potential discounts, including savings of up to five percent for homeowners with a LEED-certified “green home.” While Travelers offers low average rates for Austin homeowners, it’s rated below average for overall customer satisfaction by J.D. Power, indicating that policyholders may not be satisfied with the level of customer service.

Learn more: Travelers Insurance review

Nationwide

Nationwide’s home insurance policies may be a comprehensive and affordable option for homeowners looking for a variety of endorsements. You may be able to add various coverage options, like Better Roof Replacement and Brand New Belongings coverage, as well as identity theft insurance, dwelling replacement cost insurance and earthquake coverage. Nationwide offers multiple potential discounts for customers in Austin, including a discount for enrolling in Nationwide’s smart home program. Like many of the other cheap insurers we reviewed, Nationwide was rated slightly below average in J.D. Power’s Home Insurance Study.

Learn more: Nationwide Insurance review

State Farm

With State Farm, Austin homeowners may be able to get affordable rates, generous discounts and helpful online tools and resources. The company is also rated above average for overall customer satisfaction by J.D. Power. State Farm offers potential discounts for having a home security system, an impact-resistant roof and bundling your home and auto insurance policies. But compared to some other providers we reviewed, State Farm offers fewer discounts. It also offers fewer add-on coverages, so it may not be the best option if you want to customize your policy.

Learn more: State Farm Insurance review

USAA

Although USAA has one of the higher average annual premiums on our list, the carrier’s average rates still fall below Austin’s average rate of $1,320 per year. The carrier only sells insurance to eligible active or former military members and their immediate family members, but if eligible, Austin homeowners may find USAA to be an affordable option with policies tailored to the needs of the military community. The company offers potential discounts of up to 10 percent for bundling home and auto policies as well as select discounts for qualified safety features through their Connected Home program.

Learn more: USAA Insurance review 

Home insurance coverage options in Austin

Unlike auto insurance, homeowners insurance is not legally required by state or federal laws. But keep in mind that your mortgage lender will likely require you to purchase and maintain home insurance coverage. Even if you own your Austin home outright, having home insurance coverage may protect you from out-of-pocket expenses should your home sustain damage in a covered peril.

Although it’s located away from the coast, the Austin area is still vulnerable to natural disasters. During Winter Storm Uri in 2021, millions of Texas homes lost power, and more than 500,000 insurance claims were filed, which resulted in almost $6 billion in payouts. Out of those claims, 85 percent were from residential homes.

In addition to a standard homeowners policy, Austin homeowners may also benefit from endorsements, which could fill gaps in coverage and provide more financial protection in case of a covered event. Here are some coverage options Austin homeowners may want consider:

• Flood insurance: Standard home insurance policies do not cover flood damage, but you may be able to purchase a flood insurance policy from many insurance companies or through the National Flood Insurance Program. The average cost of flood insurance in the U.S. is $700 per year, according to FEMA.
• Water backup coverage: Water backup coverage or sewer backup insurance are designed to pay for necessary repairs if water backs up into your home through sewers or drains in a covered event. Most policies also provide coverage if you have a sump pump that overflows and causes water damage inside your house.
• Scheduled personal property coverage: Standard home insurance policies will have set limits for valuable items, but if you keep jewelry, art, collections or electronics in your home, you might consider purchasing scheduled personal property coverage. If your belongings are stolen or damaged in a covered event, this additional coverage will pay to replace them up to the limit listed in the policy.

Home insurance discounts in Austin

If you’re searching for cheap home insurance in Austin, you might consider looking for providers that offer multiple discounts you can take advantage of when insuring your home. Some home insurance discounts may offer significant savings, and looking for providers that offer discounts you may be eligible for could be one strategy to save on your premium. Below are some common discounts that may help you get cheap home insurance in Austin:

• Claims-free discount: If you have no prior insurance claims on your record within a set time period, typically three to five years, you may qualify for a discount on your policy.
• Smart home discount: Some home insurance companies offer a discount to homeowners who have smart home equipment in their home. This may include a self-monitored home security system, flood sensors, or window and door sensors.
• Policy bundling discount: Bundling or multi-policy discounts are some of the most common discounts offered by home insurers. Homeowners who bundle two or more policies, typically home and auto insurance policies, may qualify for savings on their auto insurance.
• Gated community discount: Austin is home to many gated communities. If your home is in a gated neighborhood, you may qualify for a lower insurance premium.

While home insurance discounts may help you save money, it’s important to understand the savings potential of each one. For example, living in a gated community and installing smart home devices typically have a smaller impact on your rate than bundling policies or having no recent claims on your record.

However, every home insurance company is different, so it’s a good idea to ask a licensed insurance agent how much you can expect to save with various discounts. In addition, not all discounts are available in all states.

Frequently asked questions

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    What is the best home insurance company?

    The best home insurance company is likely different for every homeowner. For example, some homeowners may prioritize finding a provider with the lowest rates, while others may be looking for the company with the most coverage options. To find the best home insurance provider for you, most insurance professionals recommend shopping around and comparing companies based on your personal criteria for what makes a company “the best.”
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    How much is home insurance in Austin?

    The average cost of home insurance in Austin is $1,320 per year for $250,000 in dwelling coverage. For comparison, the average Texas homeowner pays $1,860 per year for the same amount of coverage. However, you may pay more or less than average rates based on factors like your home’s characteristics, your credit-based insurance score and claims history.
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    How much home insurance do I need in Austin?

    Most insurance professionals recommend that you have enough dwelling insurance to cover the cost of rebuilding your home, and enough personal property coverage to replace all of your personal items, should a covered peril occur. Many homeowners start by considering the specifics of their home and financial assets to determine coverage needs. It may be a good idea to speak with a licensed insurance agent before deciding how much insurance you need and which provider best fits those needs.
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    Who has the cheapest home insurance in Austin?

    According to rate data from Quadrant, Farmers, Travelers and Nationwide offer some of the cheapest home insurance rates in Austin. However, remember that home insurance premiums may be personalized based on factors like your ZIP code, home specifics and claims history. The cheapest provider for you will likely vary based on these factors. One of the best ways to find the cheapest company for your situation may be to shop around and get home insurance quotes from multiple providers.

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    Methodology

    Bankrate utilizes Quadrant Information Services to analyze 2022 current rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

    • Coverage A, Dwelling: $250,000
    • Coverage B, Other Structures: $25,000
    • Coverage C, Personal Property: $125,000
    • Coverage D, Loss of Use: $50,000
    • Coverage E, Liability: $300,000
    • Coverage F, Medical Payments: $1,000

    The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

    These are sample rates and should be used for comparative purposes only. Your quotes will differ.

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    Bankrate Score

    Bankrate Scores are calculated on a five-point scale and primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

    To determine how well the best home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for homeowners, we analyzed quoted premiums based on 40-year-old male and female homeowners with a home policy with $250,000 in dwelling coverage. This profile, assessed across nearly 35,000 ZIP codes in the U.S., provided a basis on which homeowners may compare each provider.

    While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.