The Best Texas Home Insurance Companies 2020

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Owning a home is a rewarding experience, but it does require some extra level of responsibility and protection. That’s where homeowners insurance comes in. Homeowners insurance covers things like your physical property, personal property, and even dog bites if you have the right kind of coverage. The homeownership rate in Texas is 62% , and each homeowner is required to have homeowners insurance if their home has a mortgage. This is required by the lender, not the state. But home insurance Texas is an inexpensive way to protect yourself and your home.

Some of the more costly claims that you could encounter as a homeowner include fire damage, dog bites to a guest, other liabilities, freezing water and smoke damage. If you have a dog, you will want liability protection, and if you have multiple dogs you may benefit from a personal umbrella policy, which covers you if you exceed your limits.

When shopping for the cheapest homeowners insurance Texas has to offer, consider these important factors, as they will determine the cost of your insurance premium:

  • Value of your home and property
  • Type of coverage and coverage limits
  • Deductible amounts
  • Additional coverages

Optional coverages, like flood insurance and wind/hail insurance if you live on the Gulf Coast of Texas, do add additional amounts onto your premium, but they help will protect you if you live in a disaster-prone area.

Best home insurance companies in Texas

While the cheapest homeowners insurance Texas offers may not be the best option for you, the table below compiles the five most well-known homeowners insurance providers in Texas. According to the J.D. Power 2018 U.S. Home Insurance Study, the best home insurance Texas has to offer comes from one of these insurance providers ranked highly in the Texas region:

  • Amica: Amica Mutual earned 5 out of 5 Power Circle Ratings, putting it right under USAA as among the best homeowners insurance providers.
  • Allstate: We chose Allstate due to their wide variety of optional coverage options, including everything from business property to yard and garden property, and even identity theft protection.
  • Farmers: Of all the insurance providers we cover, Farmers has some of the best value-add features, like a declining deductible, claim forgiveness and a claims-free discount. They also cover a wide variety of special home situations.
  • State Farm: For the most well-rounded coverage, an old name like State Farm is a good choice. We like that their policies are pretty inclusive so you don’t need a ton of extra coverage.
  • USAA: If you’re a military member or related to one, you may be eligible for homeowners insurance through USAA. USAA offers a convenient mobile app for filing your claims, and they offer multi policy discounts for people who get auto and life insurance with them as well.
JD Power Rating A.M. Best Rating BBB Rating
Allstate 3 out of 5 stars A+ A+
Farmers 3 out of 5 stars A- A+
Amica 5 out of 5 stars A+ A+
State Farm 3 out of 5 stars A++ A
USAA 5 out of 5 stars* A++ B-

*USAA is profiled, but not rank eligible because it does not meet J.D. Power’s study award criteria.

Average homeowners insurance cost in Texas

The cheapest homeowners insurance Texas offers will depend on a number of factors. In 2016, the average insurance premium for a Texas homeowner was $1,937. If you escrow your payments monthly with your mortgage, you can get protection for you and your property for less than $162 a year. That’s not a lot of money to pay to get coverage for things like hail damage to your roof or fire damage to your kitchen.

Home insurance coverage options in Texas

Buying homeowners insurance doesn’t need to be overwhelming and stressful. Below, find some information on the type of insurance coverage you’ll 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.
  • Personal Property Coverage: You want personal property coverage for your belongings, whether inside or outside of your home.
  • Liability Protection: Liability protection covers you in case someone is hurt on your property or you damage another person’s property.
  • Guest Medical Protection: This coverage is specifically to cover people who are injured on your property.

In addition to these standard types of insurance coverage, most insurance companies offer optional coverage that you can add on to your policy for more protection. In Texas, flood insurance is an optional coverage that may be required by your lender. If you live on the Gulf Coast, your insurance likely excludes damage from wind and hail. You’ll want to get a specific policy for that, and your lender may even require it.

Common causes of home insurance losses in Texas

Filing a claim against your insurance is a common homeowner situation, and that’s what you have insurance for so don’t be afraid to use it. While there are a number of reasons someone may file a homeowner’s insurance claim, there are some common types of claims relevant to Texas. Specifically, those claims are:

  • Water damage, including plumbing issues and burst pipes, but not including flood damage
  • Hail damage from thunderstorms and hurricanes, but not extended to shrubs and trees
  • Wind damage from thunderstorms and tornadoes
  • Theft and/or burglary of property

Hurricanes are a common problem for Texans in the summer months. Texans are especially prone to flooding and wind damage from hurricanes, having been exposed to three of the top flood-causing hurricanes in history, by insurance payout, and having a continued risk. The National Flood Insurance Program (NFIP), which extends and manages flood insurance, made flood payouts to Texas in 2016 as the number two state. Only Louisiana had more payouts from flood insurance. This should highlight the importance of a flood insurance policy for Texas homeowners.

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 in which you live, 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.

How do I get homeowners insurance in Texas?

To get homeowners insurance in Texas, you’ll want to start with getting your home appraised. This is something that is likely to be done when you purchase the home, so you should have it on hand when you’re buying insurance. You can apply online in many cases and get an instant quote.
If you’re looking to switch insurance companies, it’s a good idea to have your current insurance information on hand so you can compare the policies. This will ensure you get the appropriate amount of coverage.

What do I need to get homeowners insurance in Texas?

Whether you’re buying your home or just looking to switch to a new insurance provider, you’ll need to provide some personal information. You’ll also provide the address of the home. Any additional information that is needed will be requested by the insurance provider.

Does flood insurance come with my homeowners insurance policy?

No, in most cases flood insurance does not come with your policy. It’s important to clarify with your insurance agent exactly what is and isn’t covered. You can purchase separate flood insurance, however, and it may be required by some lenders.