54.1% of the residents of Harris County are homeowners, and if you are one of them, you know how important it is to have a robust insurance policy to protect your property. Houston, Texas experiences hurricanes periodically and is prone to flooding, so it is important to have coverage that protects you from the expensive damage these natural disasters can cause.
The average annual premium for Houston residents is $3,183, which is higher than the Texas average of $2,589. To determine the best cheap homeowners insurance Houston, we looked at price, customer service and financial stability.
Best home insurance companies in Houston
As the fourth largest city in the U.S., it is not surprising that most national insurers and many regional providers write policies in the city. We looked at all of them and determined that the following five were writing the best cheap home insurance Houston.
|Home Insurance Company||Average Annual Premium for $250K Liability||J.D. Power Score|
|Bankers Insurance Group||$839||N/A|
|ARX Holding Corp Grp (Progressive)||$1,107||797/1,000|
Bankers Insurance Group
Bankers is a well-regarded insurer that offers homeowners and flood insurance in Texas. Headquartered in Florida, the company has extensive experience working in areas that see frequent hurricanes and other natural disasters, and its reputation is excellent for getting policyholders back on their feet after a regional catastrophe.
Its basic HO-3 policy (the type most homeowners have) includes dwelling, other structures, personal property, liability and more. Additional endorsements, or riders, include animal liability, identity fraud and full replacement cost coverage, which does not take depreciation into account when determining your payout. Bankers also gave us the cheapest homeowners insurance in Houston, at $839 for an annual premium.
Nationwide’s premiums are at the low end for those looking for cheap home insurance in Houston. The company’s basic policy has all the standard coverage options, including dwelling, property, liability and medical payments. It also covers ordinance or law insurance, which will help rebuild your home to code after a disaster, and credit card coverage for unauthorized transactions.
Nationwide, like many insurers, offers flood insurance through FEMA’s National Flood Insurance Program. If your home is anywhere near the Gulf — or any body of water, no matter how small — you should consider adding this essential coverage to your policy.
Learn more: Nationwide Insurance review
ARX Holding Corp./Progressive
Progressive’s homeowner’s policies provide coverage for the named perils that most HO-3 policies cover, including tornadoes, windstorms and lightning strikes. The company also offers several discounts that are relatively easy to earn. For example, you can save money just by agreeing to receive policy documents by email. Bundling your homeowners with auto, boat, RV, or any other type of policy will also save you money.
Allstate scores high on J.D. Powers’ Customer Satisfaction ranking, which means you can expect the company to handle your claims quickly and efficiently. Although Allstate agents have a great reputation for service, the company also makes it easy to do business through the website, where you can file and manage a claim, pay premiums and read up on insurance matters in their informational blog.
Allstate also offers some easy ways to save. You’ll get a 5% discount just for setting up an automatic payment plan, as well as 10% for switching to Allstate from another company — and that savings stay with you as long as you have your policy with them.
Learn more: Allstate Insurance review
Houston home insurance recommendations
Although homeowners insurance is not mandated by law in Texas, your lender probably requires you to carry a policy if you have a mortgage. Most homeowners insurance in Houston includes coverage for your home (including other structures such as a garage), your personal property and liability coverage. Other options that you can include in your policy as endorsements, or riders, include the following:
- Water backup: Houston homeowners should consider purchasing coverage for water backup, which includes backed-up drains and sewage systems as well as sump pump problems. This type of damage would not be covered by your basic policy and may happen following a hurricane or rainstorm.
- Flood insurance: A few major perils are not covered in HO-3 policies, and one of them is flooding. However, your insurer can write you a flood policy backed by the Federal government’s FEMA National Flood Insurance Program. If you are anywhere near a body of water, even a small one, this is essential coverage.
- Equipment breakdown: Normally, your insurance policy doesn’t cover equipment breakdown caused by electrical or mechanical failure. You may have this coverage through a home warranty, but if not, and if you have expensive appliances or technology, you may want to look for a provider that offers an endorsement to cover those items.
Home insurance discounts in Houston
Nobody wants to spend more than they have to on insurance premiums. Fortunately, most insurers offer at least a few discounts that reduce your premiums. Here are some of the most common ones:
- Loyalty discount: Many insurers offer a small 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 usually reward you for smoke detectors, fire alarms and burglar-proofing your home.
- Military service: Some companies, including big names like Geico and USAA, offer discounts to active duty military members and their families.
- Bundling discount: Most insurers will give you a discount — sometimes as much as 20% — if you have more than one policy with them, whether it’s auto, life, RV or boat. If you are happy with your insurer, it pays to consolidate your insurance needs with one company, especially if that means reduced premiums.
It is probably safe to say that you rarely need to pay full price for your insurance since almost all insurers offer multiple discount options.
Frequently asked questions
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, start with Bankrate’s Best Homeowners Insurance Companies for 2021. It’s always a good idea to compare providers and get multiple quotes. If in doubt, speak with a licensed insurance agent to determine what is best for you.
How much does home insurance in Houston cost?
The average cost of a Houston homeowners policy is $3,183. Actual rates will differ for everyone since they are based on information about your home’s age, condition and location, the amount of coverage and more.
How much home insurance do I need in Houston?
You probably need enough home insurance to be able to repair or rebuild your home after a catastrophic disaster, such as a hurricane. 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.
Bankrate utilizes Quadrant Information Services to analyze 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 separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
Rates are determined based on 2020 Quadrant Information Services data.