BEST HOME INSURANCE COMPANY FOR MILITARY-FOCUSED COVERAGE
- J.D. Power:
- Not rated
- AM Best:
- A ++
- Avg. annual premium for 250k dwelling
- $ 1,399
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.
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
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.
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.
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
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
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
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
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
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 |
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
**Not officially ranked by J.D. Power due to eligibility restrictions
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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.
The average annual homeowners insurance premiums listed below are based on a 40-year-old homeowner with a clean claim history and good credit.
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.
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:
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.