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Best homeowners insurance companies in Texas for 2024

Updated May 02, 2024
USAA, Allstate and State Farm are among the best for homeowners insurance in Texas according to Bankrate’s research.

Compare the best homeowners insurance companies in Texas

Our research shows that some of the best homeowners insurance companies 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 from AM Best, 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
Bankrate Score
Info
Average monthly premium Average annual premium*
4.7
Rating: 4.7 stars out of 5
$229
$2,744
4.2
Rating: 4.2 stars out of 5
N/A
N/A
4.2
Rating: 4.2 stars out of 5
$286
$3,436
4.3
Rating: 4.3 stars out of 5
$184
$2,207
3.6
Rating: 3.6 stars out of 5
$216
$2,594
*Premiums are for $300K in dwelling coverage **USAA not officially ranked byJ.D. Power due to eligibility restrictions
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Bankrate's trusted insurance industry expertise

Read our full methodology

The home insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers information they need to make educated decisions when shopping for home insurance.

46

years of industry expertise

122

carriers reviewed

34.5K

ZIP codes examined

1.2M

quotes analyzed

The top 5 home insurance companies in Texas

Best for military-focused coverage

USAA

4.7

Rating: 4.7 stars out of 5

Avg. premium for $300K dwelling

$229/mo

Avg. premium for $300K dwelling

$2,744/yr

Customer satisfaction

881/1,000

Best for digital tools

Allstate

4.2

Rating: 4.2 stars out of 5

Avg. premium for $300K dwelling

Not available

Avg. premium for $300K dwelling

Not available

Customer satisfaction

809/1,000

Best for local agents

State Farm

4.2

Rating: 4.2 stars out of 5

Avg. premium for $300K dwelling

$286/mo

Avg. premium for $300K dwelling

$3,436/yr

Customer satisfaction

829/1,000

Best for robust coverage options

Nationwide

4.3

Rating: 4.3 stars out of 5

Avg. premium for $300K dwelling

$184/mo

Avg. premium for $300K dwelling

$2,207/yr

Customer satisfaction

812/1,000

Best for shopping experience

Farmers

3.6

Rating: 3.6 stars out of 5

Avg. premium for $300K dwelling

$216/mo

Avg. premium for $300K dwelling

$2,594/yr

Customer satisfaction

800/1,000

Additional Texas home insurance companies to consider

While the largest companies often come to mind when looking for home insurance in Texas, there are dozens of other insurance providers that offer excellent coverage and service in the Lone Star state. Here are a couple additional carriers to consider:

Chubb

Chubb

Who this may be best for

Homeowners seeking high-value home insurance policies

Chubb is known for its premium insurance offerings, particularly for homeowners who are seeking high-value home insurance policies. With a reputation for strong customer service and a wide range of coverage options, Chubb could be a good choice for homeowners who are looking for a more personalized, robust insurance package. Especially for those with upscale properties or unique coverage needs, Chubb may be worth considering.

Esurance

Esurance

Who this may be best for

Homeowners who prefer managing policies online

Owned by Allstate, Esurance combines innovative technology with solid insurance coverage. If you're someone who leans toward digital platforms and prefers managing your policy online, Esurance could be a fitting choice. Its digital tools are designed to make policy management convenient and straightforward. For homeowners who would appreciate a seamless digital experience without the need to compromise on coverage, Esurance could be an option to consider. You can also obtain Esurance coverage through its statewide network of independent agents.

How Bankrate chose the best home insurance companies 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 also 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.

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Cheapest home insurance companies in Texas

When it comes to safeguarding your Texas home, balancing quality coverage with affordability is key. As mentioned, the Lone Star State can pose some challenges for homeowners seeking insurance. However, there are still insurance providers that offer competitive rates without compromising on coverage. Below, we've compiled a table showcasing some of the most cost-effective home insurance companies in Texas to help you make an informed decision.

Carrier Monthly premium for $300k coverage Annual premium for $300k coverage Savings vs state avg. for $300k coverage
Armed Forces
$146
$1,754
- $2,019
$184
$2,207
- $1,566
$216
$2,594
- $1,179
$229
$2,744
- $1,029
$286
$3,436
- $337

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.

How to get cheap Texas home insurance

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 ice storms 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:

  • Understand your coverage needs: Having the right homeowners insurance coverage helps protect you financially should disaster strike your home, but making sure you are not overinsuring yourself is equally important to finding the cheapest coverage for your needs. For example, if you decide to pay out of pocket for a smaller claim, you may want to consider increasing your homeowners insurance deductible to save on premium costs. Just make sure that the deductible you choose is an amount you feel comfortable paying out of pocket.
  • Shop around: Getting quotes from multiple insurance companies can help you find cheap coverage since rates can vary widely by company. Remember, cheap coverage can also include good customer service. It is possible to find cheap coverage with many outstanding companies. Shopping online, working with an insurance broker or local agent, or calling around are a few ways to get home insurance quotes.
  • Apply discounts: Many insurance companies offer discounts, and these savings can help reduce your premium cost. While many carriers offer common discounts, some may be unique to certain companies. When quoting, check out what discounts are available with each company to maximize savings.
  • Safeguard your home: You may be able to get a cheaper premium if you have a home security system, fire alarms and other safety features installed on your property. These risk-mitigation measures are often rewarded by homeowners insurance companies because they reduce your likelihood of needing to file a serious claim. Even a DIY security system with window alarms and cameras could help you nab savings.

Best home insurance discounts in Texas

Discounts are an easy way to lower your homeowners insurance premium. Below are some common discounts Texas homeowners may qualify for:

Existing homeowners who switch companies in advance (before their existing policy expires or enews) may qualify for an advanced quote or early shopper discount with some providers.
Homeowners with active and monitored security systems may qualify for extra savings with a home security discount.
Bundling discounts can offer significant savings with many insurance companies. Homeowners shopping for cheaper home insurance may want to consider what savings they may earn if they get their auto insurance coverage with the same carrier.
Homeowners who have not filed a property insurance claim in the past may be eligible for a claim-free discount. Some insurers require you to be claim-free for at least three to five years to qualify.

How to save on home insurance policy renewals in Texas

Year after year, as homeowners confront policy renewals, many wonder how they might obtain better rates or discounts without sacrificing crucial coverage. In Texas, with its unique set of challenges and risks, leveraging certain strategies could result in potential savings on home insurance renewals. Here are some actionable steps you can consider:

  • Shop around: Don't just auto-renew without taking a moment to consider other potential insurance options. Compare rates from different insurers to ensure you're getting the best deal. Remember, insurance markets evolve and premiums can vary from one provider to another.
  • Bundle policies: Many insurers offer discounts if you bundle multiple policies with them, such as auto and home insurance.
  • Increase your deductible: Opting for a higher deductible can reduce your premium, but ensure it's an amount you can afford out of pocket in case of a claim.
  • Inquire about discounts: Ask your insurer about discounts for security systems, storm shutters or even being a long-term policyholder. Sometimes, savings are available but not automatically applied.
  • Review your coverage: Ensure you're not over-insured. As the value of possessions depreciates or if you've made home improvements, adjust your coverage accordingly.
  • Maintain good credit: Insurers often use credit data to determine premiums. Having a positive credit history might get you a better rate.

How much is home insurance in Texas?

Texas residents pay an average of $3,773  for $300,000 in dwelling coverage for home insurance. Texas homeowners insurance premiums are higher on average than in other states, possibly due to loss costs from natural disasters, which includes hurricanes and tornadoes. 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 75 percent more  than the national annual average cost of home insurance, which is $2,153 per year for $300,000 in dwelling coverage.

Texas homeowners insurance rates by city

Within Texas, insurance rates can fluctuate from one city to another. Factors like local crime rates, vulnerability to natural disasters and the overall housing market could play a role in these variations. While some cities could have more affordable premiums, others, due to their unique challenges, may see higher rates. To provide a clearer picture of these disparities, we've provided a map and a searchable data table below. By exploring this information, homeowners can get a better understanding of insurance costs across different Texas cities.

  • Anthony: $1,884 per year — 50 percent below state average
  • Canutillo: $1,888 per year — 50 percent below state average
  • Clint: $1,888 per year — 50 percent below state average
  • Fabens: $1,912 per year — 49 percent below state average
  • San Elizario: $1,912 per year — 49 percent below state average
  • Galveston: $9,385 per year — 149 percent above state average
  • Gilchrist: $9,372 per year — 148 percent above state average
  • High Island: $9,119 per year — 142 percent above state average
  • Port Bolivar: $9,073 per year — 141 percent above state average
  • Seabrook: $8,767 per year — 132 percent above state average

*Rates are for $300,000 in dwelling coverage.

What does home insurance cover in Texas?

Homeowners face a unique set of challenges and risks in Texas. Insurance policies in the state are usually crafted to address these specific threats, but it's crucial for homeowners to be aware of what their policies cover. Understanding the standard coverage types can help Texas residents identify gaps in their protection and consider additional policies tailored to their specific needs.

Standard Texas home insurance policies typically cover these common perils:

  • Wind and hail damage: This coverage can financially protect against the tornadoes or severe convective storms that can be frequent in certain parts of Texas.
  • Fire and smoke damage: This kicks in for damage caused by wildfires in drier regions or household accidents.
  • Theft and vandalism: This provides coverage for burglaries or intentional property damage.
  • Liability coverage: This coverage is important in case someone gets injured on your property or if you cause damage to others.
  • Water damage: This typically covers sudden incidents, but it's essential to note this doesn't always include flooding from external sources. Many insurers require separate flood insurance for claims regarding natural disasters.
  • Loss of use: If your home becomes uninhabitable due to a covered event, this can assist with temporary living expenses that align with your typical costs. You may not be able to stay in a five-star resort, but your insurer will cover a local hotel and groceries.

Additional home insurance coverage types 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: 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. Flood insurance is offered through the federally backed National Flood Insurance Program and many private flood insurers. 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 state-backed 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, some 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 value (RCV) coverage, 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.

Texas also has separate deductibles for certain losses. In this state, natural disasters, like named tropical cyclones and hailstorms, 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 or hail damage claim before the insurer will pay toward the damage.

If you have any questions about a policy, consulting with 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.

Related content:

Common Texas home insurance problems

Acquiring home insurance in Texas isn't always straightforward. Given the state's predisposition to various natural calamities and its vast territorial expanse, insurers may often approach policies with caution. This unique blend of factors can sometimes make it challenging for homeowners to find comprehensive coverage at affordable rates.

Some common issues Texas homeowners might encounter include:

  • Higher premiums: Homeowners may see increased rates due to frequent natural disasters like hurricanes, tornadoes, and hail storms.
  • Flood insurance gaps: Standard policies usually don't cover flooding, which is common throughout Texas, necessitating separate flood insurance.
  • Limited coverage in certain areas: Insurers might offer limited coverage or charge higher premiums in areas particularly prone to events like wildfires or coastal storms.
  • Claim delays: After widespread events, the sheer volume of claims might lead to delays in processing and payouts.
  • Policy non-renewals: In high-risk areas, some insurers may decide to nonrenew policies, forcing homeowners to seek coverage elsewhere.

!

Recent news in Texas homeowners insurance market

Texas, with its diverse and expansive geography, has always been susceptible to a wide range of natural calamities. While the state's residents are no strangers to challenges, the recent upheavals in the homeowners' insurance market have added another layer of complexity. From unexpected rate hikes to insurers grappling with escalating replacement costs, there's a lot unfolding in the Texas insurance market.

Here's What You Need to Know:

  • Rate increase requests in 2023: Year-to-date, 96 entries in the state database detail insurance rate hikes for homeowners, with an average increase of 13.3 percent.
  • Homeowners insurance loss ratios: Insurance companies measure financial health using the loss ratio — the lower the number, the better for them. Between 2012 and 2020, the loss ratio for homeowners insurance stood at around 59 percent. However, 2021 saw a dramatic surge to 104 percent, mainly due to catastrophic events, meaning insurers paid more in claims than they received in premiums. Fortunately, 2022 saw a decrease to about 49 percent.
  • Reasons for rate hikes: Despite the better loss ratio in 2022, homeowners still face rate increases. Insurers cite increasing replacement costs and challenging financial equations as primary reasons. According to a new analysis from the Insurance Information Institute (Triple-I), cumulative replacement costs have increased 45 percent since 2020, triple the U.S. inflation rate for the same timeframe.

Bankrate continues to monitor the evolving landscape in the Texas homeowners market to help our readers navigate potential challenges.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze May 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $150,000, $300,000, $350,000, $450,000, $750,000
  • Coverage B, Other Structures: $15,000, $30,000, $35,000, $45,000, $75,000
  • Coverage C, Personal Property: $75,000, $150,000, $175,000, $225,000, $375,000
  • Coverage D, Loss of Use: $30,000, $60,000, $70,000, $90,000, $150,000
  • Coverage E, Liability: $500,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply. 

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Bankrate Score

Our Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

5
Rating: 5 stars out of 5
Overall Score
  • Cost & ratings 50%
  • Coverage & savings 30%
  • Support 20%

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

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Written by
Ashlyn Brooks

Ashlyn Brooks is a finance writer with more than half a decade of experience, known for her knowledge in areas such as taxes, insurance, investing, retirement, finance news, and banking products.

Edited by Editor, Insurance
Reviewed by Director of corporate communications, Insurance Information Institute