What is the cheapest homeowners insurance in Texas?

Because every homeowners insurance company calculates rates differently, there isn’t a single option that will be the cheapest for every homeowner. Finding the cheapest home insurance in Texas depends heavily on your home and personal rating factors. This includes the size and square footage of your home, the area you live in, construction costs, coverage selections and much more. By requesting quotes from multiple home insurance companies in Texas, you may be able to pinpoint the carrier that will offer the cheapest homeowners insurance rate for you.

How do I get homeowners insurance in Texas?

If you need to get homeowners insurance in Texas, you have a few different options for purchasing a policy. You may be able to get one by visiting a licensed insurance agent in person, or you may be able to obtain one online or over the phone. Whatever method you choose, it can be helpful to get several home insurance quotes from different carriers so you can find the best company with the best rates on the coverage you need. After finding the right policy, you can apply for coverage. The coverage will typically be active once you make at least the first month’s payment on your policy.

How do I choose the best home insurance company?

With so many insurance carriers on the market, it can be hard to know which is the best for you. It may help to narrow down the options by starting with your own preferences and needs for your policy. Whether you want to prioritize finding homeowners insurance on a budget, an array of coverage options, financial strength, a local agent, or something else entirely, make sure to look toward insurance carriers that fit those needs. From there, it can be beneficial to request quotes from the companies that fit your needs and wants so you can compare options and choose the best home insurance company.

Why is Texas home insurance so expensive?

Texas home insurance is expensive due to a variety of factors. First, Texas is at high risk of numerous types of natural disasters, including hurricanes, windstorms, fires and flooding. These disasters can be costly, which drives up the cost of homeowners insurance for all homeowners. But there are also other factors that are used to help determine how much you pay for home insurance. The size of your home, the coverage amounts you need, the types of coverage and the deductible you choose can also impact how much homeowners insurance in Texas.

What if I can’t find a company willing to insure me in Texas?

If you can’t find a company willing to insure you in Texas, you may still have options. The Texas FAIR Plan Association provides coverage to Texas homeowners who have already been turned down by at least two insurance companies that are licensed to sell insurance in Texas. You can get more information by calling the Texas FAIR Plan Association at 800-979-6440 or by visiting the website at www.texasfairplan.org.

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Best homeowners insurance in Texas for 2023

Written by

June Sham

Edited by

Angelica Leicht

Reviewed by

Steve Ellis, CPCU, AIC, MBA

Updated Feb 02, 2023

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 .

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

What To Know First

The average annual cost of Texas homeowners insurance is $1,860 for $250,000 in dwelling coverage, or about $155 per month, much higher than the national average of $1,383 per year for the same coverage. And while the price is an important consideration, Bankrate knows there’s more to a home insurance policy than just the cost. Our insurance editorial team, which includes four licensed agents with a combined 47 years of industry experience, conducted extensive research into the Texas home insurance market.

To help you find the best policy, Bankrate analyzed premium data from Quadrant Information Services for dozens of Texas homeowners insurance companies. Weighing the average rates, along with information about customer service rankings, financial strength ratings, and policy options may help you find the best Texas homeowners insurance for your needs.

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.

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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.

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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 primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to an analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support. To determine how well the best home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for homeowners, we analyzed quoted premiums based on 40-year-old male and female homeowners with a home policy with $250,000 in dwelling coverage. This profile, assessed across nearly 35,000 ZIP codes in the U.S., provided a basis on which homeowners may compare each provider. While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.

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.

Insurance company	J.D. Power	AM Best	Average monthly premium	Average annual premium
USAA Rating: 3.7 stars out of 5 3.7 Bankrate Score	J.D. Power Not rated	AM Best A++ (Superior)	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	J.D. Power Not rated	AM Best A++ (Superior)	Average monthly premium $140	Average annual premium $1,683	Read review
Nationwide Rating: 3.22 stars out of 5 3.2 Bankrate Score	J.D. Power Not rated	AM Best A+ (Superior)	Average monthly premium $134	Average annual premium $1,607	Get a quote
Allstate Rating: 3.5 stars out of 5 3.5 Bankrate Score	J.D. Power 882 /1,000	AM Best A+ (Superior)	Average monthly premium $243	Average annual premium $2,911	Get a quote
Farmers Rating: 2.9 stars out of 5 2.9 Bankrate Score	J.D. Power 801 /1,000	AM Best A- (Excellent)	Average monthly premium $137	Average annual premium $1,639	Get a quote

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Insurance Disclosure

*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

USAA

3.7 Bankrate Score

USAA Insurance Review Get a personalized quote

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

USAA only sells insurance to active or former military members and eligible families. If you are eligible, USAA may be a great option. Like many other insurance providers, you can bundle and save choose from a variety of coverage options and manage your policy in the USAA mobile app. USAA offers unique protections to service members. For example, active-duty or deployed service members can rest assured that their military uniforms are covered.
Pros
Low average premiums

Superior AM Best financial strength rating

Military-focused coverage options available
Cons
Only available to military-affiliated customers

Fewer discounts than some other competitors

Texas city	USAA avg. annual premium for $250K dwelling
Corpus Christi	$526
Dallas	$1,318
Fort Worth	$1,725
Houston	$2,406
Plano	$1,817

USAA Insurance Review Get a personalized quote

BEST HOMEOWNERS INSURANCE COMPANY FOR LOCAL AGENTS

State Farm

3.2 Bankrate Score

State Farm Insurance Review Get a personalized quote

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

State Farm is a national insurance provider with a large network of local Texas agents. The provider also offers multiple insurance products along with homeowners insurance. For example, you can get auto insurance, motorcycle insurance, life insurance and boat insurance. Policyholders with more than one State Farm policy type may save with a multi-policy discount. If you want a company that offers discounts and convenient ways to access your account either online or via a mobile app, State Farm may be a good choice.
Pros
Local agencies available

Several types of insurance offered

High third-party ratings
Cons
Fewer discounts than most competitors

Higher-than-average overall NAIC complaint index

Texas city	State Farm avg. annual premium for $250K dwelling
Corpus Christi	$1,105
Dallas	$1,873
Fort Worth	$1,806
Houston	$1,191
Plano	$1,824

State Farm Insurance Review Get a personalized quote

BEST HOMEOWNERS INSURANCE COMPANY FOR ROBUST COVERAGE OPTIONS

Nationwide

3.22 Bankrate Score

Nationwide Insurance Review Get a personalized quote

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

Nationwide makes it easy to personalize your policy to your specific needs. With options like Valuables Plus, Replacement Cost Plus and Better Roof Replacement, Nationwide may help your insurance coverage go further during a claim. The carrier also offers a list of discounts and sells several other types of insurance. If you like bundling your policies with one company, Nationwide also offers auto, motorcycle, classic car and RV insurance, among other products.
Pros
Numerous coverage options

Several discounts

Lower-than-average premium
Cons
Higher-than-average overall NAIC complaint index

AM Best financial strength is lower than some competitors

Lower-than-average J.D. Power customer satisfaction score

Texas city	Nationwide avg. annual premium for $250K dwelling
Corpus Christi	$804
Dallas	$2,117
Fort Worth	$2,419
Houston	$915
Plano	$2,138

Nationwide Insurance Review Get a personalized quote

BEST HOMEOWNERS INSURANCE COMPANY FOR DIGITAL TOOLS

Allstate

3.5 Bankrate Score

Allstate Insurance Review Get a personalized quote

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

Pros
Numerous digital tools available

Several discounts offered

Numerous coverage options
Cons
Higher-than-average premiums

AM Best rating is lower than some competitors

J.D. Power customer satisfaction is below average

Texas city	Allstate avg. annual premium for $250K dwelling
Corpus Christi	$3,703
Dallas	$3,007
Fort Worth	$3,370
Houston	$2,549
Plano	$3,004

Allstate Insurance Review Get a personalized quote

BEST HOMEOWNERS INSURANCE COMPANY FOR SHOPPING EXPERIENCE

Farmers

2.9 Bankrate Score

Farmers Insurance Review Get a personalized quote

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

Farmers offers home, auto, renters, business, condo and life insurance. The homeowners insurance company offers three customizable plans to choose from: Standard, Enhanced and Premier. Farmers also offers unique features to help customize your policy. You can enroll in the Declining Deductibles program, which may lower your deductible each year that your policy is active. You may also want to consider the cosmetic damages option or claim forgiveness.
Pros
Three customizable coverage levels make personalizing policies easy

Long list of discounts

Declining Deductibles available
Cons
Lowest AM Best rating on our list

J.D. Power customer satisfaction score is well below average

Fewer endorsements than some competitors

Texas city	Farmers avg. annual premium for $250K dwelling
Corpus Christi	$553
Dallas	$1,210
Fort Worth	$1,202
Houston	$2,745
Plano	$1,187

Farmers Insurance Review Get a personalized quote

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.

Texas city Average annual premium*

Austin $1,715

Dallas $2,108

Fort Worth $2,090

Houston $1,934

*Rates reflect $250,000 in dwelling coverage

Texas city	Average annual premium*
Austin	$1,715
Dallas	$2,108
Fort Worth	$2,090
Houston	$1,934

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

Because every homeowners insurance company calculates rates differently, there isn’t a single option that will be the cheapest for every homeowner. Finding the cheapest home insurance in Texas depends heavily on your home and personal rating factors. This includes the size and square footage of your home, the area you live in, construction costs, coverage selections and much more. By requesting quotes from multiple home insurance companies in Texas, you may be able to pinpoint the carrier that will offer the cheapest homeowners insurance rate for you.
If you need to get homeowners insurance in Texas, you have a few different options for purchasing a policy. You may be able to get one by visiting a licensed insurance agent in person, or you may be able to obtain one online or over the phone. Whatever method you choose, it can be helpful to get several home insurance quotes from different carriers so you can find the best company with the best rates on the coverage you need. After finding the right policy, you can apply for coverage. The coverage will typically be active once you make at least the first month’s payment on your policy.
With so many insurance carriers on the market, it can be hard to know which is the best for you. It may help to narrow down the options by starting with your own preferences and needs for your policy. Whether you want to prioritize finding homeowners insurance on a budget, an array of coverage options, financial strength, a local agent, or something else entirely, make sure to look toward insurance carriers that fit those needs. From there, it can be beneficial to request quotes from the companies that fit your needs and wants so you can compare options and choose the best home insurance company.
Texas home insurance is expensive due to a variety of factors. First, Texas is at high risk of numerous types of natural disasters, including hurricanes, windstorms, fires and flooding. These disasters can be costly, which drives up the cost of homeowners insurance for all homeowners. But there are also other factors that are used to help determine how much you pay for home insurance. The size of your home, the coverage amounts you need, the types of coverage and the deductible you choose can also impact how much homeowners insurance in Texas.
If you can’t find a company willing to insure you in Texas, you may still have options. The Texas FAIR Plan Association provides coverage to Texas homeowners who have already been turned down by at least two insurance companies that are licensed to sell insurance in Texas. You can get more information by calling the Texas FAIR Plan Association at 800-979-6440 or by visiting the website at www.texasfairplan.org.

Learn more:

Best homeowners insurance in nearby states:

Written by

June Sham

Insurance Writer

Best homeowners insurance in Texas for 2023

The Bankrate promise

What To Know First

On This Page

Compare home insurance rates

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

How Bankrate chose the best homeowners insurance in Texas

Methodology

Bankrate Score

Best home insurance companies in Texas

USAA

State Farm

Nationwide

Allstate

Farmers

How much is homeowners insurance in Texas?

Average home insurance cost in Texas

Texas homeowners insurance rates by city

Home insurance in Texas

Common causes of loss in Texas

Home insurance coverage options in Texas

Frequently asked questions

What is the cheapest homeowners insurance in Texas?

How do I get homeowners insurance in Texas?

How do I choose the best home insurance company?

Why is Texas home insurance so expensive?

What if I can’t find a company willing to insure me in Texas?

Learn more:

Best homeowners insurance in nearby states: