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Property owners in Austin, Texas, pay below average rates for homeowners insurance. According to Bankrate’s 2022 home insurance data. The average cost of home insurance in Austin is $1,320 per year, which is much cheaper than the state average of $1,860 per year for a policy with $250K in dwelling coverage. Lower homeowners insurance rates in Austin are likely due to its lower crime rates; and it is not typically in the path of major hurricanes and other major weather-related events. But despite the city’s below-average rates, most Austin homeowners still look for the cheapest rates for their circumstances.
Best home insurance companies in Austin
To find the best cheap home insurance in Austin, Bankrate evaluated major Texas homeowners insurance companies based on 2022 premium data from Quadrant Information Services and 2021 J.D. Power ratings for overall customer satisfaction. Below are five providers you might consider when comparing cheap home insurance companies in Austin:
|Home insurance company||Annual premium for $250k dwelling||J.D. Power score|
|Bankers Insurance Group||$345||N/A|
|Texas Farm Bureau||$538||N/A|
Bankers Insurance Group
Bankers Insurance is one of the cheapest home insurance companies in Austin, based on our review of carriers. With an average annual premium of just $345 for $250K in dwelling coverage, not only does the company offer affordable home insurance coverage, but Austin homeowners can customize their policy with a long list of endorsements.
Some of the add-on coverages available from Bankers Insurance include animal liability coverage, lock replacement coverage, golf cart coverage, earthquake insurance and full replacement cost coverage. There are some discounts available, but you will need to contact an agent to determine what savings opportunities are offered in your area.
Texas Farm Bureau
Texas Farm Bureau has been selling home insurance to Austin homeowners for more than 50 years, and the company offers affordable rates for basic coverage. Unfortunately, Texas Farm Bureau does not provide many endorsements. This company may be best suited for Austin homeowners who need standard coverage without many extras.
In terms of discounts, Texas Farm Bureau’s website boasts savings for having an alarm system in your home and bundling two or more policies, as well as several other undisclosed discounts. You will need to contact a Texas Farm Bureau agent to get the full list of discounts available in your area. In addition, you will need to speak with an agent to get a quote for homeowners insurance.
Learn more: Farm Bureau Insurance review
State Farm is one of the country’s highest-rated insurance companies, and it is also the largest homeowners insurance company in terms of market share. With State Farm, Austin homeowners can 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 discounts for having a home security system, an impact-resistant roof and bundling your home and auto insurance policy. Compared to some other providers we reviewed, State Farm offers fewer discounts, which is something to consider. However, State Farm may offer a hefty bundle discount for homeowners interested in also insuring their vehicles with State Farm.
Learn more: State Farm Insurance review
Farmers Insurance is an affordable home insurance company in Austin, with an average premium of $944 per year. Farmers has some of the best discounts and endorsements of all the Austin home insurance providers we reviewed. It’s also a great option for homeowners who want to customize their property policy.
Through Farmers, Austin homeowners can add green rebuilding coverage, contents replacement cost coverage and identity theft coverage. In addition, Farmers offers three tiers of coverage—Standard, Enhanced and Premier—which all include a disappearing deductible, claim forgiveness after five years and a claim-free discount after three years. However, Farmers is rated below average by J.D. Power for overall customer satisfaction.
Learn more: Farmers Insurance review
Chubb is a good insurance company for Austin residents who own high-value homes. The company’s signature Chubb Masterpiece® coverage includes contents replacement cost coverage, extended dwelling replacement cost coverage, risk consulting, tree removal after a storm, electronic data recovery, a cash settlement option following a total loss and more.
Additionally, Chubb offers great discounts for Austin homeowners who want a lower rate. There are savings for living in a gated community, renovating your home, bundling your policies, having a fire alarm and burglar alarm installed in your home, being claims-free, having storm shutters installed and many others. One of the biggest downsides to Chubb is that you cannot get a quote online—you must work with a local agent.
Learn more: Chubb Insurance review
Home insurance coverage options in Austin
Unlike auto insurance, homeowners insurance is not legally required by the state. But keep in mind that most mortgage lenders require you to purchase and maintain home insurance coverage. Even if you own your Austin home outright, having home insurance coverage can save you from extensive out-of-pocket expenses should your home sustain significant damage.
In addition to a standard homeowners policy with dwelling, personal property and liability coverage, many Austin homeowners can also benefit from endorsements, which fill gaps in coverage and provide more protection. Here are some coverage options that Austin homeowners may want consider:
- Flood insurance: Standard home insurance policies do not cover flood damage, but you can purchase a standalone flood insurance policy from many insurance companies. You should have enough flood insurance to cover the cost of rebuilding your home and replacing the value of your personal belongings. The average cost of flood insurance in the U.S. is $700 per year, according to FEMA.
- Dwelling replacement cost coverage: Dwelling replacement cost coverage will pay to rebuild your home to its original condition after a total loss. You should have enough dwelling replacement cost coverage to cover your home’s replacement cost value.
- Scheduled personal property coverage: Most standard home insurance policies have low limits for valuable items. You can buy scheduled personal property coverage for more protection if you keep jewelry, art, collections or electronics in your home. Typically, you “schedule” extra coverage per item, so the amount of coverage you need should be equivalent to the item’s value.
Home insurance discounts in Austin
If you are searching for cheap home insurance in Austin, look for providers that offer multiple discounts you can take advantage of when insuring your home. Some home insurance discounts can offer significant savings. Below are some common discounts that can help you get the cheapest home insurance in Austin:
- Claims-free discount: If you have no prior insurance claims on your record within the last three to five years, can you likely qualify for a discount on your policy.
- Home security system discount: If your home has a security system installed, either professionally monitored or self-monitored, you may get rewarded with a lower rate.
- Policy bundling discount: Homeowners who bundle two or more policies, typically a home and auto insurance policy, will often qualify for savings on their insurance.
- Gated community discount: Texas is home to many gated communities. If your home is in a gated neighborhood, you may qualify for a lower insurance premium.
Frequently asked questions
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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.