Finding the best homeowners insurance in Texas for your needs is an essential part of your overall financial health. On average, Texas home insurance costs $1,863 per year for $250,000 in dwelling coverage, based on Bankrate’s 2021 study of quoted annual premiums. But price is only one factor of homeowners insurance policies, and Texas homeowners might find it helpful to look at other aspects of each insurance company.
Owning a home in Texas comes with its fair share of risks. The state regularly faces the risk of damage caused by strong summer storms, tornadoes, hurricanes and wildfires. The best Texas homeowners insurance is a policy that fits your needs and protects your finances from costly home repairs or replacement. Bankrate has analyzed several Texas homeowners insurance companies to help you find an option that may be best for you.
The best home insurance companies in Texas
Based on our research of the largest insurance carriers by market share in the Lone Star State, Allstate, Amica Mutual, Farmers, State Farm and USAA are among the best Texas homeowners insurance companies. We analyzed each company’s average premium, coverage offerings, discounts, policy features and third-party scores to determine which carriers to feature.
| Home insurance company | Average annual premium for $250K dwelling coverage | J.D. Power score |
|---|---|---|
| Allstate | $1,846 | 829/1,000 |
| Amica Mutual | $3,547 | 853/1,000 |
| Farmers | $2,189 | 814/1,000 |
| State Farm | $1,722 | 829/1,000 |
| USAA* | $1,198 | 889/1,000 |
*Not officially ranked by J.D. Power due to eligibility restrictions
Amica Mutual
Amica Mutual routinely ranks as one of the best insurance providers in the country based on reviews by J.D. Power, AM Best and individual customers. Amica offers a wide range of insurance products, including home, auto, umbrella and even flood insurance. One of the most unique features about Amica is its dividend policy.Policyholders who choose this option are eligible to get up to on average 20% of their annual premium back each year.
Learn more: Amica Mutual Insurance review
State Farm
State Farm is a national insurance provider that offers multiple insurance products along with homeowners insurance. For example, you can get auto insurance, motorcycle insurance, life insurance and boat insurance, among others. Policyholders who purchase more than one policy type with State Farm may save with their multi-policy discount. If you are looking for 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.
Learn more: State Farm Insurance review
Allstate
Allstate offers numerous coverage options as well as a variety of ways to save on your premium. One of Allstate’s most unique features is its online presence. The carrier offers a variety of tools and free resources on its webpage for both members and non-members. Members can learn more about Allstate’s insurance products and learn how to make the most of their policy.
Learn more: Allstate Insurance review
Farmers
Farmers offers home, auto, renters, business, condo and life insurance. The home insurance company offers three customizable plans for its members 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 lowers your deductible by $50 for each year that your policy is in force. You may also want to consider the cosmetic damages option or claim forgiveness.
Learn more: Farmers Insurance review
USAA
USAA only sells insurance to active or former military members and their families. If you are eligible, USAA may be a great option. Like many other 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. Additionally, USAA is member-owned, so its customers may get dividends each year.
Learn more: USAA Insurance review
How much is homeowners insurance in Texas?
The average cost for a Texas homeowners insurance policy is $1,863 for $250,000 in dwelling coverage. Homeowners insurance premiums in Texas are higher than 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. To help reduce your premium, you may want to shop around and take advantage of available discounts to find the best price.
Texas homeowners pay quite a bit more than the national annual average of $1,312 for homeowners insurance due to the environmental hazards and geographic location.
Texans are not alone in paying more than the national average premium for homeowners insurance. In fact, none of the states that border Texas feature lower-than-average premiums. Oklahoma has the highest average annual premium in the nation at $3,519, likely due to the high risk of tornadoes and wind damage. The average premium in Louisiana is $1,813 per year, policyholders in Arkansas pay an average of $2,142 per year, and New Mexico homeowners insurance costs an average of $2,024 per year.
Home insurance in Texas
Texas homeowners have unique considerations when purchasing homeowners insurance. Understanding the common causes of loss in Texas could help you choose coverage types that are appropriate to protect your finances.
Common causes of loss in Texas
In Texas, there are some types of claims that 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.
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.” Harvey made landfall in Texas in 2017. Covered perils that are the most common homeowners insurance claims in Texas are:
- Water damage, including plumbing issues and burst pipes, but not including flood damage
- Hail damage from thunderstorms and hurricanes
- Wind damage from thunderstorms, hurricanes and tornadoes
- Theft and/or burglary of property
- Fire damage caused by lightning
You may want to read your policy very carefully regarding wind and hail damage. If you live in a high-risk area, your policy may exclude wind and hail damage or you may have a higher deductible for these perils. Check for exclusions for roof damage caused by hail and consider purchasing additional coverage if needed.
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.
Home insurance coverage options in Texas
Buying homeowners insurance can be a relatively easy process. Below, find some information on the type of insurance coverage you will most likely encounter and what they are used for:
- Dwelling coverage: This is your standard insurance policy and it covers the physical structure of your property — your “dwelling” — and any attached structures.
- Personal property coverage: Personal property coverage is for your belongings, whether inside or outside of your home.
- Liability coverage: Personal liability protection covers you in case someone is hurt on your property and you are found at fault or you damage another person’s property.
- Guest medical protection: This coverage is specifically to cover people who are injured on your property, regardless of fault.
In addition to these standard types of insurance coverage, most insurance companies offer coverage options that you may want to consider:
- 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 in the event your home floods. In some cases, you may be required to purchase flood insurance. Being aware of your flood insurance requirements prior to moving to an area could help you make informed decisions.
- Wind/hail coverage: If you live near the coast or in another wind-prone area, your policy might automatically exclude wind coverage due to the increased risk of hurricane — or tornado — 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.
- Water backup coverage: This option provides coverage for the backup of drains or sewer lines, often from sump pumps not being able to keep up with heavy rains.
Working with a licensed agent could be helpful when choosing coverages. An agent should be able to help you choose the coverages you need to build a policy that is appropriate for your needs.
Although historically flood insurance could only be purchased from the U.S. government, some private carriers do now offer flood insurance policies. You can call your agent to see if they can facilitate your purchasing of a policy through the National Flood Insurance Program (NFIP), or if they have any private carriers who offer flood coverage.
You may even want to consider flood insurance if you do not live in a flood zone. According to the NFIP, 99% of all U.S. counties experienced flooding between 1996 and 2019.
Frequently asked questions
What is the cheapest homeowners insurance in Texas?
The cheapest insurance in Texas depends on a number of factors, including the value of your home, the area you live in, what type of home you live in and what type of coverage you select. Your deductibles and coverage limits will make up a portion of the cost. Getting quotes from several carriers might help you find the lowest-priced policy, but keep in mind that price isn’t everything. The level of service, financial stability and types of coverage a company offers are also important.
How do I get homeowners insurance in Texas?
If you need homeowners insurance, you may want to obtain quotes from multiple insurance companies to compare rates, coverage options and discounts. Understanding your home’s characteristics, like square footage, roof type and safety features, will help insurers determine how much your home would cost to rebuild. Knowing these details will be important when obtaining quotes. You will also want to have an idea of how much your personal belongings would cost to replace and what deductible you would feel comfortable paying in the event of a claim.
How do I choose a home insurance company?
Knowing what factors matter most to you in a home insurance company could help you to narrow down your options. Are you most concerned with price? Does financial stability matter to you? What about customer reviews? If you are unsure where to start, a licensed agent may be able to help you find the right policy for you.
What do I need to get homeowners insurance in Texas?
Whether you are buying your home or just looking to switch to a new insurance provider, you will likely need to provide some personal information, like your date of birth, as well as your home’s address and ZIP code. Insurance providers may request additional information to accurately price your policy.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2021 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.
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