Best cheap homeowners insurance in Houston

Homeowners insurance is not a legal requirement in Houston, Texas, although it is likely required by mortgage lenders. However, home insurance is a wise investment in most scenarios, given that Houston is commonly subject to many extreme weather events, including tropical storms, tornadoes and wildfires. Since 2015, the greater Houston area has seen seven federally declared disasters, putting many homes and homeowners at risk.

On average, Houston homeowners pay $1,991 per year for a home insurance policy with $250,000 in dwelling coverage, which is more expensive than the U.S. national average. However, a handful of Texas home insurance companies offer more affordable rates. Bankrate’s team conducted a study of each company, leveraging third-party rate data and insurance product features, to help you find the best cheap home insurance in Houston.

Best cheap home insurance companies in Houston

Our process for determining the best cheap homeowners companies included evaluating several key attributes, including affordability, available discounts, policy customization options and third-party ratings for customer satisfaction and financial strength. We combined these metrics into a Bankrate Score on a scale of 0.0 to 5.0. The higher a company’s Bankrate Score, the more highly that carrier scored in the ranking categories. Based on Bankrate’s research and analysis of average annual premium data from Quadrant Information Services, the best cheap home insurance in Houston, Texas is offered by Nationwide, State Farm and Travelers.

State Farm

State Farm is one of the most reputable home insurance companies, with a high rating from J.D. Power for overall claims satisfaction. State Farm also has the highest possible financial strength score of A++ (Superior) from AM Best. Although State Farm has below-average rates and excellent third-party ratings, it lacks in a few areas compared to its competitors. For example, State Farm offers fewer discounts for Houston homeowners than other companies in this review.

Learn more: State Farm Insurance review

Nationwide

Nationwide has some of the cheapest home insurance in Houston, based on average rates among the insurers included in this review. Nationwide also offers excellent coverage customizations, with multiple endorsements — such as valuables coverage, dwelling replacement cost coverage and better roof replacement —  to expand your financial protection. However, while Nationwide received a higher-than-average claims satisfaction rating from J.D. Power, it does have a lower-than-average overall customer satisfaction rating.

Learn more: Nationwide Insurance review

Travelers

Travelers may be a great option for Houston homeowners who are specifically looking to customize their policy with add-ons. Travelers offers lots of endorsements, including green home coverage, identity fraud coverage, valuables coverage, special personal property coverage and others. Multiple discounts are also offered through Travelers to help make rates more affordable. However, it has a lower J.D. Power rating than some of the other providers we reviewed.

Learn more: Travelers Insurance review

ASI Progressive

ASI Progressive has the most expensive average rates of the Houston home insurance companies we reviewed, but the rates are still cheaper than the citywide average. ASI Progressive offers a handful of endorsements and a good selection of discounts, which could help you get a lower rate. The company also incentives homeowners to bundle their home and auto insurance with a single deductible for losses that affect both your car and house.

Learn more: ASI Progressive Insurance review

Armed Forces Insurance

Armed Forces Insurance offers homeowners insurance in Houston to active duty military personnel, veterans and their families. The company offers multiple coverage add-ons and provides several ways to save on premiums, with discounts for insuring a new home, installing a security system, living in a gated community and having a newer roof, among others. Armed Forces Insurance offers low rates to Houston homeowners, but it is limited in third-party ratings — likely due to its eligibility requirements.

Home insurance coverage options in Houston

Although homeowners insurance is not mandated by law in Texas, lenders typically require homeowners to carry a policy in order to obtain a mortgage. Most homeowners insurance in Houston includes coverage for your dwelling, other structures (such as a detached garage), your personal property and liability. However, you can also add optional endorsements to your policy for more protection. Here are some of the add-on coverage types that might be beneficial for Houston homeowners:

• Water backup insurance: Houston homeowners may want to consider purchasing coverage for water backup. This type of damage stems from backed-up drains and sewage systems, as well as failed sump pump problems, and can lead to water damage. This type of damage is not typically covered by your basic home insurance policy and may happen following a hurricane or rainstorm.
• Equipment breakdown insurance: Normally, your insurance policy doesn’t cover equipment breakdowns caused by electrical or mechanical failure. You may have this coverage through a home warranty, but if not, you may want to look for a provider that offers an endorsement to cover things like major appliances and home systems.
• Flood insurance: A few major perils are not covered in standard home insurance policies, and one of them is flooding. However, many insurers work with the National Flood Insurance Program and can help you obtain a policy, and others underwrite their own private flood policies. Flood insurance may also be a requirement for Houston homeowners who have a mortgage and are in a flood zone.

Home insurance discounts in Houston

While it offers essential financial protection, insurance comes with a cost that many people would prefer to reduce. Fortunately, most insurers offer at least a few discounts that reduce your premiums. Here are some of the most common ones that can provide policy savings:

• Loyalty discount: Many insurers offer a discount if you have been with the company for a certain number of years. Others give a loyalty discount to you just for switching to that company.
• Alarm systems: Insurers typically incentivize having smoke detectors, fire alarms and burglar-proofing for your home.
• New home: Some home insurance companies apply an automatic discount for insuring a newly purchased or newly built home. However, the qualifying time frame for a new home discount varies based on the specific carrier.
• Bundling discount: Most insurers will give you a discount if you have more than one policy with them. The most common bundles are for auto and home, condo or renters insurance policies. If you are happy with your insurer, it may pay to consolidate your insurance needs, especially if that means reduced premiums.

When it comes to home insurance discounts, it can be helpful to understand how much money you can expect to save. Every home insurance company’s discounts come with varying savings amounts. The best way to determine which insurer offers the cheapest home insurance rates in Houston for your situation is to compare quotes and discount options from several carriers.

Frequently asked questions

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    What is the best home insurance company?

    The best home insurance company for you may not be the same as the best one for your neighbor. To find the company that writes the best policy for your unique circumstances, it’s always a good idea to compare providers and get multiple home insurance quotes. If in doubt, speak with a licensed insurance agent to determine what your needs are.
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    How much does home insurance in Houston cost?

    In Houston, the average cost of home insurance is $1,991 per year for a policy with $250,000 in dwelling coverage. This is more expensive than the national average cost of home insurance, which is $1,383 per year. In addition, Houston homeowners pay slightly more than the average Texan for home insurance; the statewide average annual rate is $1,860. However, home insurance premiums are highly personalized, so factors like your credit score, claim history, the age of your home and the size of your home may cause your premium to be cheaper or more expensive.
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    How much home insurance do I need in Houston?

    Experts typically advise Houston homeowners to have enough home insurance to be able to repair or rebuild the home if it is destroyed completely. You can get a general idea of the starting point for these costs by multiplying construction costs per square foot in your region by your home’s square footage to get a starting number. A licensed insurance agent can help you figure out exactly how much you will need and which policies will best serve your needs.

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.

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.