Best cheap homeowners insurance in Austin

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 Travelers, Farmers and State Farm. These companies all have average annual rates that are below Austin’s citywide average of $1,715 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.

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

Farmers

Farmers Insurance is one of the most affordable home insurance companies in Austin, with an average premium of $1,124 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

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

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

Chubb

Rounding out Bankrate’s list of the best cheap home insurance in Austin,Texas is Chubb, which won a Bankrate Award for the best home insurance provider for high-value homes. With service options like Risk Consulting, Chubb can help take some of the guesswork out of homeowners’ decisions when it comes to their coverage needs and limits. HomeScan, another tool unique to Chubb, may be able to help homeowners spot leaks, faulty wiring and other issues before the damage occurs. However, with eligibility requirements based on home value, a home insurance policy from Chubb may not be available for every Austin homeowner. Chubb policies are primarily designed for high-net worth clients with high value homes, so its policies can be higher than the national average.

Learn more: Chubb 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 from 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

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 current 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.

Bankrate Scores

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.