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.
USAA, Allstate and State Farm are among the best homeowners insurance companies in Texas, according to Bankrate.
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 .
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
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.
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 (compiled from Quadrant Information Services), 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 | AM Best | J.D. Power score | Avg. monthly premium | Avg. annual premium | |
|---|---|---|---|---|---|
|
USAA
3.7
Bankrate Score
|
AM Best
A++
(Superior)
|
J.D. Power score
Not rated |
Avg. monthly premium
$117
|
Avg. annual premium
$1,399
|
Get a quote |
|
Allstate
3.5
Bankrate Score
|
AM Best
A+
(Superior)
|
J.D. Power score
882
/1,000 |
Avg. monthly premium
$243
|
Avg. annual premium
$2,911
|
Get a quote |
|
State Farm
3.2
Bankrate Score
|
AM Best
A++
(Superior)
|
J.D. Power score
Not rated |
Avg. monthly premium
$140
|
Avg. annual premium
$1,683
|
Read review |
|
Nationwide
3.2
Bankrate Score
|
AM Best
A+
(Superior)
|
J.D. Power score
Not rated |
Avg. monthly premium
$134
|
Avg. annual premium
$1,607
|
Get a quote |
|
Farmers
2.9
Bankrate Score
|
AM Best
A
(Excellent)
|
J.D. Power score
801
/1,000 |
Avg. monthly premium
$137
|
Avg. annual premium
$1,639
|
Get a quote |
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
**USAA not officially ranked by J.D. Power due to eligibility restrictions
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.
Allstate offers numerous coverage options and 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. Shoppers can learn more about Allstate’s insurance products and learn how to make the most of their policies.
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.
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.
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.
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.
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.
| Insurance company | $150K | $250K | $350K | $450K | $750K |
|---|---|---|---|---|---|
|
$150K
$958
|
$250K
$1,399
|
$350K
$1,812
|
$450K
$2,210
|
$750K
$3,393
|
|
|
$150K
$1,907
|
$250K
$2,911
|
$350K
$4,093
|
$450K
$5,149
|
$750K
$7,615
|
|
|
$150K
$1,321
|
$250K
$1,683
|
$350K
$1,975
|
$450K
$2,391
|
$750K
$3,700
|
|
|
$150K
$1,129
|
$250K
$1,607
|
$350K
$2,091
|
$450K
$2,560
|
$750K
$4,304
|
|
|
$150K
$1,028
|
$250K
$1,639
|
$350K
$2,305
|
$450K
$2,973
|
$750K
$4,749
|
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.
The cheapest cities for homeowners insurance in Texas tend to offer lower average rates than other areas in the state. Moving for lower homeowners insurance may not be practical, but if you’re considering a move, these five cities may have some of the cheaper property insurance options.
Like some Texas cities that offer cheaper rates, other locations are more expensive. These five cities have the highest average home insurance premiums in Texas. If you’re considering a move to these areas, it may be worth getting additional quotes to help you find the best option that fits your budget and coverage needs.
*Rates are for $250,000 in dwelling coverage
Finding the best cheap homeowners insurance in Texas for your needs may take extra research. Texas homeowners are well aware of the weather differences that can happen in the state. From blizzards and tornadoes in the north to wildfires and hurricanes in other parts of the state, home insurance coverage needs and prices may vary drastically depending on the risk in your area. But even living in an area that has greater risk does not mean finding cheap home insurance in Texas is impossible. There are some strategies you can use to help you find a lower premium:
Discounts are an easy way to lower your homeowners insurance premium. Below are some common discounts Texas homeowners may qualify for:
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:
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.