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Best homeowners insurance in Texas for 2023

USAA, Allstate and State Farm are among the best homeowners insurance companies in Texas, according to Bankrate.

Updated Sep 07, 2023
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Where you live affects your rates

But so does your insurance company. Shop companies to find the best prices for your coverage needs. 

Texas

$1,967/yr*

+ - % vs. national avg
VS
2023
national
avg.

$1,428/yr*

+ - % vs. 2022

*Based on $250k dwelling coverage

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.

USAA
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info
AM Best
A++
J.D. Power score
884
/1,000
Avg. monthly premium
$117
Avg. annual premium
$1,399
Get a quote
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
AM Best
A+
J.D. Power score
815
/1,000
Avg. monthly premium
$243
Avg. annual premium
$2,911
Get a quote
State Farm
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
AM Best
A++
J.D. Power score
829
/1,000
Avg. monthly premium
$140
Avg. annual premium
$1,683
Read review
Nationwide
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
AM Best
A+
J.D. Power score
Not rated
Avg. monthly premium
$134
Avg. annual premium
$1,607
Get a quote
Farmers
Rating: 2.9 stars out of 5
2.9
Bankrate Score
Info
AM Best
A
J.D. Power score
792
/1,000
Avg. monthly premium
$137
Avg. annual premium
$1,639
Get a quote
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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.

*Premiums are for $250K in dwelling coverage

**USAA not officially ranked by J.D. Power due to eligibility restrictions

The top 5 home insurance companies in Texas

USAA

USAA logo

Best for military-focused coverage

Rating: 3.7 stars out of 5
3.7 Bankrate Score
JD Power: 884/1,000 AM Best: A++

Average annual premium

$ 1,399 for $250k dwelling coverage
USAA Review Get a personalized quote

Why USAA made our list: USAA only sells insurance to active-duty military members, veterans 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.

Who USAA may be good for: Budget-conscious veterans or active service members (and their families).

Allstate

Best for digital tools

Rating: 3.5 stars out of 5
3.5 Bankrate Score
JD Power: 815/1,000 AM Best: A+

Average annual premium

$ 2,911 for $250k dwelling coverage
Allstate Review Get a personalized quote

Why Allstate made our list: 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.

Who Allstate may be good for: Tech-savvy homeowners who want multiple coverage options — and don’t mind paying a bit more for it.

State Farm

Best for local agents

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 829/1,000 AM Best: A++

Average annual premium

$ 1,683 for $250k dwelling coverage
State Farm Review Get a personalized quote

Why State Farm made our list: State Farm is the largest U.S. home insurer based on market share and boasts a statewide 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.

Who State Farm may be good for: People who want to bundle their car insurance policy with other types of insurance.

Nationwide

Best for robust coverage options

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: Not rated AM Best: A+

Average annual premium

$ 1,607 for $250k dwelling coverage
Nationwide Review Get a personalized quote

Why Nationwide made our list: 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.

Who Nationwide may be good for: Those looking for a discounted homeowners insurance policy from a well-known national brand.

Farmers

Best for shopping experience

Rating: 2.9 stars out of 5
2.9 Bankrate Score
JD Power: 792/1,000 AM Best: A

Average annual premium

$ 1,639 for $250k dwelling coverage
Farmers Review Get a personalized quote

Why Farmers made our list: 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.

Who Farmers may be good for: Insurance shoppers who want a customized policy to fit their needs.

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.

Clock Wait
46
years of industry expertise
Search
122
carriers reviewed
Location
20.7K
ZIP codes examined
Dollar Coin
1.2M
quotes analyzed

How much is homeowners insurance in Texas?

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, 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 38 percent more than the national annual average cost of home insurance, which is $1,428 per year for $250,000 in dwelling coverage. This higher premium average could be due to the environmental hazards and geographic location, making claims more frequent.

Texas home insurance rates by dwelling coverage

$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
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.

Texas homeowners insurance rates by city

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.

  • Lovelady: $1,688 — 14 percent below the state average
  • Laneville: $1,689 —14 percent below the state average
  • Huntington: $1,691 — 14 percent below the state average
  • Purdon: $1,691 — 14 percent below the state average
  • Salineno: $1,691 — 14 percent below the state average

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.

  • Deer Park: $2,166 — 10 percent above the state average
  • Hale Center: $2,164 — 10 percent above the state average
  • Maryneal: $2,163 — 10 percent above the state average
  • Richardson: $2,163 — 10 percent above the state average
  • Roby: $2,161 — 10 percent above the state average

*Rates are for $250,000 in dwelling coverage

How to find the best cheap home insurance in Texas

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: 

  1. 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 may wind up paying 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 without notice.
  2. 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 come with 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.
  3. 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. 

Common 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:

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: 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 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 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, 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.

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.

Frequently asked questions

Written by
June Sham
Former Writer, Insurance

June Sham is a former insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer writing auto, property, umbrella and earthquake policies.

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