Skip to Main Content
Powered by Coverage.com (NPN: 19966249)

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Best homeowners insurance in Texas for 2023

Updated Feb 02, 2023
Bankrate logo

The Bankrate promise

At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation of . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our .

Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
Mortgage

Compare home insurance rates

Answer a few questions to see personalized rates from top carriers.
Location-Icon
Your information is kept secure
Caret DownCaret Up
Caret DownCaret Up
Field is required
Powered by Coverage.com (NPN: 19966249)
Insurance Disclosure

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
Circle Check
100% of homes
need insurance before getting a mortgage
See more providers in
Choose from insurers in
Mortgage

Leaving so soon? Your custom quotes are just minutes away.

Compare rates and save on home insurance today!

Close X

How Bankrate chose the best homeowners insurance in Texas

To find the best home insurance companies in Texas, Bankrate first analyzed average homeowners insurance premiums obtained from Quadrant Information Services for the largest insurance providers in the state by market share. However, because the price is only one feature of a home insurance policy, we reviewed each company’s coverage offerings, discounts, customer satisfaction scores, complaint indexes, financial strength ratings and digital tools.

We combined each of these metrics into our proprietary Bankrate Score model. The Scores are on a scale from 0.0 to 5.0, with higher scores indicating that a company scored more highly within the individual metrics. Our methodology was specifically created to help you gain a well-rounded view of each company.

Best home insurance companies in Texas

Our research shows that some of the best homeowners insurance in Texas include USAA, State Farm, Nationwide, Allstate and Farmers. These companies showcase a mix of low rates, high J.D. Power customer satisfaction scores, strong financial strength ratings, robust coverage offerings and substantial discounts. When shopping for the best homeowners insurance, Texas property owners may want to consider getting quotes from these carriers.

USAA
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info
J.D. Power
Not rated
AM Best
A++
Average monthly premium
$117
Average annual premium
$1,399
Get a quote
State Farm
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
J.D. Power
Not rated
AM Best
A++
Average monthly premium
$140
Average annual premium
$1,683
Read review
Nationwide
Rating: 3.22 stars out of 5
3.2
Bankrate Score
Info
J.D. Power
Not rated
AM Best
A+
Average monthly premium
$134
Average annual premium
$1,607
Get a quote
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
J.D. Power
882
/1,000
AM Best
A+
Average monthly premium
$243
Average annual premium
$2,911
Get a quote
Farmers
Rating: 2.9 stars out of 5
2.9
Bankrate Score
Info
J.D. Power
801
/1,000
AM Best
A-
Average monthly premium
$137
Average annual premium
$1,639
Get a quote
Powered by Coverage.com (NPN: 19966249)
Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

*Premiums are for $250K in dwelling coverage

**Not officially ranked by J.D. Power due to eligibility restrictions

BEST HOME INSURANCE COMPANY FOR MILITARY-FOCUSED COVERAGE

J.D. Power:
Not rated
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 1,399

BEST HOMEOWNERS INSURANCE COMPANY FOR LOCAL AGENTS

J.D. Power:
Not rated
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 1,683

BEST HOMEOWNERS INSURANCE COMPANY FOR ROBUST COVERAGE OPTIONS

J.D. Power:
Not rated
AM Best:
A +
Avg. annual premium for 250k dwelling
$ 1,607

BEST HOMEOWNERS INSURANCE COMPANY FOR DIGITAL TOOLS

J.D. Power:
882 /1,000
AM Best:
A +
Avg. annual premium for 250k dwelling
$ 2,911

BEST HOMEOWNERS INSURANCE COMPANY FOR SHOPPING EXPERIENCE

J.D. Power:
801 /1,000
AM Best:
A -
Avg. annual premium for 250k dwelling
$ 1,639

How much is homeowners insurance in Texas?

Texas residents pay an average of $1,967 for $250,000 in dwelling coverage when it comes to home insurance. In Texas, homeowners insurance premiums are higher than in other states possibly due to the increased number of natural disasters. Insurance premiums are largely based on risk, and if an area has a greater likelihood of homes being damaged, the premiums are generally higher so that insurance companies can prepare for a potential claims payout.

Texas homeowners pay 38 percent more than the national annual average cost of home insurance, which is $1,428 per year. This higher premium average could be due to the environmental hazards and geographic location, making claims more frequent.

Average home insurance cost in Texas

The average annual homeowners insurance premiums listed below are based on a 40-year-old homeowner with a clean claim history and good credit.

Lightbulb
Bankrate insight
  • Texas homeowners insurance costs an average of 38 percent more than the national average based on 2023 data.
  • Texas experiences hurricanes, strong summer storms, hail and tornadoes, so the best companies include those with outstanding claims experience.

Home insurance in Texas

When buying a home insurance policy, it can be helpful to understand what kinds of damage are common in your area. That way, you can craft your coverage to fit the unique needs of your location.

Common causes of loss in Texas

In Texas, some claims are more common than others. Home damage caused by nature is a common occurrence and is one of the reasons why you should strongly consider buying home insurance. Common claims include:

  • Hurricanes: Hurricanes represent one of the most significant sources of claim costs in certain areas of Texas. As the National Oceanic and Atmospheric Administration (NOAA) notes, “It is estimated that Hurricane Harvey alone had total costs of $125 billion.”
  • Wind: In addition to high winds from hurricanes along the coast, most of Texas also experiences high wind from summer storms and tornadoes.
  • Fire: According to the Insurance Information Institute (Triple-I), Texas presents the second-highest risk in the nation for wildfires, with over 717,000 properties at risk for damage.
  • Flooding: According to the Federal Emergency Management Agency (FEMA), only a handful of Texas counties are at low-to-moderate risk of flooding. Most counties in the state have a relatively high risk for flood damage.

Home insurance coverage options in Texas

In addition to the standard insurance coverage types, Texas homeowners may want to consider some additional endorsements and even separate policies to gain more coverage:

  • Flood insurance: If you live in or near a flood-prone area, you may want to consider buying a separate flood insurance policy to help repair damages if your home floods. You may be required to purchase flood insurance in some cases. Understanding your flood insurance requirements prior to moving could help you make informed decisions.
  • Wind/hail coverage: If you live near the coast or in another wind-prone area, your policy might exclude wind coverage due to the increased risk of related damage to your home. In cases where you cannot get coverage through your insurance company, the Texas Windstorm Insurance Association (TWIA) can help provide coverage.
  • Seepage and leakage: This endorsement may cover damage from slow leaks or seepage from cracks.

Additionally, insurance experts have noted a recent trend in Texas where insurance companies offer “ACV only” settlement clauses for wind and hail damage. ACV stands for actual cash value, which means the market value of the item minus depreciation. While an ACV clause or policy will be less expensive than replacement cost (RCV), it will also mean lower coverage for whatever items are covered under that clause or policy. Check for exclusions for roof damage caused by hail and consider purchasing additional coverage if needed.

The state of Texas also has separate deductibles for certain losses. In this state, natural disasters, like hurricanes, wind and named storms, may have a separate deductible from your policy deductible. This is usually a percentage deductible of your dwelling coverage amount — typically between 1 and 5 percent.

For example, if your home is insured with $250,000 in dwelling coverage and you have a 2 percent wind deductible, you are responsible for the first $5,000 of a wind damage claim before the insurer will pay toward the damage.

If you have any questions about a policy, talking to an insurance agent may be a good idea. A licensed insurance professional can review your policy and help identify areas where you may need to purchase separate coverage or adjust your current coverage.

Frequently asked questions

Written by
June Sham
Insurance Writer

June Sham is an insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer writing auto, property, umbrella and earthquake policies.

Edited by Insurance Editor
Reviewed by Assistant Vice President & Claims Field Manager