If you’re one of the nearly 49% of Dallas County residents who own their homes, you know the importance of homeowners insurance to protect your investment. The average homeowner in Dallas, Texas pays $3,107 for their policy, although rates differ depending on several factors, including your credit rating, home’s age and condition and more.
We looked at the home insurance providers in Dallas that write the most policies and understand homeowners’ needs in the area, which may include coverage for tornadoes, sinkholes and hurricanes, all of which are fairly common. Then we compared pricing, customer service and more to find the cheapest home insurance for Dallas residents.
Best home insurance companies in Dallas
Based on our research, these insurers provide the best and cheapest homeowners insurance in Dallas. All of them offer free quotes and a range of policy options and discounts for customization.
|Home Insurance Company||Average Annual Premium for $250K Liability||J.D. Power Score|
State Farm is the largest writer of homeowners policies in the U.S., with good reason. Its average premium price is the cheapest homeowners insurance in Dallas, TX, at $994 per year. Discounts for bundling policies, installing home alert systems and using impact-resistant roofing products can save even more. The latter is crucial for Dallas residents, who may experience tornado activity.
State Farm has a functional website that makes it easy to do insurance business online, such as paying bills or filing claims. They have numerous agents in the Dallas region, so you should be able to get your policy written quickly and easily.
Learn more: State Farm Insurance review
MetLife homeowners insurance covers hail, fire, theft and tornadoes, among other perils. With some policy options, the company will replace the contents of your home without deduction or depreciation, and you may also be eligible for the full cost to rebuild your home even if your policy limits have been reached.
MetLife is known for its dedicated agents, which is a good thing because you’ll need to work with your agent to build your policy and file a claim — the provider’s website does not offer a great deal of functionality to manage your policy online.
Learn more: MetLife Insurance review
American Family sells homeowner’s insurance in Texas through Midvale Home & Auto, with whom they are affiliated. It offers standard coverages for dwelling, property, liability and more, as well as endorsements for identity theft, personal injury, valuable coverages and increased limits for home repair and personal property.
The company also offers numerous discounts, including new home purchase, moving, bundling and smoke or burglar alarms.
Learn more: American Family Insurance review
USAA is known for having some of the best customer service practices in the business. It tops J.D. Power’s Customer Satisfaction ranking with 889 points out of 1,000. Its rates are reasonable and well below the Texas average of $2,589. It also has a vibrant online community that offers support and the ability to manage your policy easily and quickly.
The only catch is that USAA only sells policies to service members, veterans and their families.
Learn more: USAA Insurance review
Dallas home insurance recommendations
Texas does not require homeowners insurance, but if you have a mortgage, you will need a policy. If you are like most homeowners, you will purchase an HO-3 policy, which is the most common type in the U.S. It covers you against named perils, including fire, hail, vandalism and roughly a dozen other possible disasters.
Texas has more tornadoes than any state in the U.S., so you may be wondering if your policy covers you for wind damage. Most basic insurance coverage will pay for wind-related disasters, but you should ask your agent if you need additional coverage to protect yourself fully. Other coverages include:
- Dwelling coverage: This is the heart of an HO-3 policy, and it protects your home from damage by named perils. You may also have other structures coverage, which pays for damage to detached garages, sheds and any other structures on your property.
- Flood coverage: Floods are one of the biggest disasters not covered by standard insurance policies. You will need to purchase an additional flood policy, which is probably available through your regular insurer or purchased through the National Flood Insurance Program (NFIP).
- Extended replacement: This is an optional type of coverage that you can add to your policy. It increases the payout you will get on a claim following damage by a named peril. It is a reasonable precaution to have if you believe that building and repair costs have increased since you purchased your policy.
Home insurance discounts in Dallas
A smart homeowner can save a significant amount through the use of discounts. Most insurers offer a handful of them, and many are easy to earn. Review your policy annually to ensure that you are not missing out on any discounts for which you are eligible.
Here are some typical discounts:
- Home safety features: It’s a great idea to install smoke detectors in your home, and it may make you eligible for an insurance discount. Burglar alarms, sprinkler systems and other safety features may also net you savings.
- Customer loyalty: If you’ve been with your insurer for a certain number of years, you may earn a discount; many insurers offer it after five years.
- Bundling: If you are happy with your insurer, consider using the same company for auto, life or other insurance needs. Most insurers will give you a discount for purchasing multiple policies.
- Military service: Many insurance companies discount policies for military members and their families. A company such as USAA, which is focused on the military, may have multiple discounts if you are deployed or in active service.
You can usually find out what discounts each company offers on its website, but it also pays to talk to an agent to be sure you are not missing anything.
Frequently asked questions
What is the best home insurance company?
There is no single company that is always best for everyone. Some of the best companies in Dallas include State Farm, MetLife, American Family and USAA. To start your search for the best insurance company, check out Bankrate’s list of the Best Homeowners Insurance Companies for 2021.
How much does home insurance in Dallas cost?
The average cost of homeowners insurance in Texas is $2,589. In Dallas, however, the average is $3,170. Your costs will be determined by factors, including your home’s age and location, as well as crime statistics in your neighborhood and your credit rating.
How much home insurance do I need in Dallas?
To answer this question, it helps to know what the average building costs are in your area per square foot. Multiplying that by the number of square feet in your house will give you a starting cost. But keep in mind that a lot of factors go into the cost of insurance. It’s a good idea to speak with a licensed insurance expert to determine how much insurance you need for your specific circumstances.
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.