Best homeowners insurance in Texas for 2023

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.

*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

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.

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

*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