In recent years, Austin has become a popular place to live. Between January 2020 and January 2021, the homeownership rate increased by more than 20%. Because Austin has weather risks, especially hurricanes and flooding, having home insurance in Austin is important. The average annual home insurance premium in Austin is $1,824 per year for $250K in dwelling coverage.
Purchasing home insurance in Austin can be complicated, especially if you are looking for a provider with cheap rates or a specific type of coverage. We evaluated popular providers in Austin and compared their average annual rates, coverages available, discounts and more.
Best home insurance companies in Austin
Austin homeowners looking for the best home insurance in Texas have several options to choose from, but not all providers are created equal. We found the best cheap homeowners insurance companies in Austin based on average rates, third-party ratings, coverage options, discounts and customer service. Here are the five providers we recommend:
|Home Insurance Company||Average Annual Premium for $250K Liability||J.D. Power Score|
|Bankers Insurance Group||$458||N/A|
|Texas Farm Bureau||$1,063||N/A|
|Chubb Ltd Grp||$1,289||778/1,000|
Bankers Insurance Group
Bankers Insurance is one of the cheapest home insurance companies in Austin, with an average annual premium of just $458 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 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 minimal coverage without many extras.
In terms of discounts, Texas Farm Bureau’s website advertises savings for having an alarm system in your home and bundling two or more policies, as well as several other undisclosed discounts. However, you will need to contact a Texas Farm Bureau agent to determine what specific discounts are available.
Chubb is a good insurance company for Austin residents who own a high-value home. The company’s signature Chubb Masterpiece® coverage includes contents replacement cost coverage, dwelling extended 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 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.
State Farm is one of the country’s highest-rated insurance companies, and it is also the largest in terms of market share. With State Farm, Austin homeowners get affordable rates, generous discounts and helpful online tools and resources, making it a popular choice for first-time Austin home insurance buyers.
State Farm has discounts for having a home security system, an impact-resistant roof and bundling your home and auto insurance policy. Austin homeowners can save up to $965 per year on home and auto insurance when they bundle the two policies with State Farm.
Austin home insurance recommendations
For most people, homeowners insurance in Austin is not required. But keep in mind that some mortgage lenders require you to buy home insurance before your loan can be approved. Even if you are not required to purchase home insurance, getting coverage is valuable. Here are some coverage options that Austin homeowners should consider:
- Flood insurance: Standard home insurance policies do not cover flood damage, but you can purchase a standalone flood insurance policy from most 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 Texas is $860.72 per year.
- 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. Some home insurance discounts can offer significant savings. Here 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
What is the best home insurance company?
The best home insurance company varies. Some homeowners are looking for the lowest rates, some are looking for specific coverages, and others are looking for the best customer service. The only way to find the best home insurance company for you is to shop around and compare providers and get multiple home insurance quotes.
How much does home insurance in Austin cost?
The average cost of home insurance in Austin is $1,824 per year for $250K in dwelling coverage. For comparison, the average Texas homeowner pays $2,589 per year for the same amount of coverage. However, you may pay more or less than the citywide average rate based on factors like your age, credit score and claims history.
How much home insurance do I need in Austin?
Home insurance is not required in Austin, but it is a good idea to purchase a policy anyway. You should have enough dwelling insurance to cover the cost of rebuilding your home, and enough personal property coverage to replace all of your personal items. Consider your financial assets, like your income and savings, to determine your liability coverage needs. It’s a good idea to speak with a licensed insurance agent before deciding how much insurance you actually need and which provider best fits those 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.