Best homeowners insurance in Texas (TX) 2024
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BLUEPRINT
Updated 9:59 a.m. UTC June 12, 2024
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Nationwide and Progressive offer the best homeowners insurance in Texas in 2024. Both have a low rate of customer complaints and offer cheap homeowners insurance in Texas compared to other insurers we analyzed.
Best homeowners insurance in Texas
- Nationwide: Best homeowners insurance in Texas.
- Progressive: Best cheap homeowners insurance in Texas.
- Chubb: Best for customer satisfaction in Texas.
- USAA: Best for military in Texas.
- State Farm: Best for bundling home and auto insurance in Texas.
Why trust our home insurance experts
Our team of home insurance experts has decades of experience as licensed property and casualty experts, insurance editors and consumers. We approach home insurance analysis as if we were shopping for ourselves or our family members, focusing on rates, coverage upgrades and consumer complaints.
Using a data-driven methodology, we evaluate hundreds of home insurance products, analyze thousands of data points and rate each insurer to help you find the best home insurance product for your situation. Advertisers never influence our editorial content. You can read more about our methodology below.
- 68 Texas home insurance rates reviewed.
- 17 Texas home insurance companies evaluated.
- 5 levels of fact-checking.
Top-rated homeowners insurance companies in Texas
Compare the best homeowners insurance companies in Texas
| COMPANY | TEXAS RATING | ANNUAL COST OF $350,000 IN DWELLING COVERAGE | COMPLAINTS | LEARN MORE | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| $1,524 | Low | Compare Rates Compare rates offered by participating partners | ||||||||
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| $1,601 | Low | Compare Rates Compare rates offered by participating partners | ||||||||
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| $2,141 | Very low | Compare Rates Compare rates offered by participating partners | ||||||||
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| $2,017 | Very low | Compare Rates Compare rates offered by participating partners | ||||||||
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| $2,159 | Very low | Compare Rates Compare rates offered by participating partners | ||||||||
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| $2,689 | Very low | Compare Rates Compare rates offered by participating partners | ||||||||
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Cheap homeowners insurance in Texas cost comparison
The cheapest home insurance company in Texas is Mercury, according to our analysis of rates.
Here are the cheapest home insurance companies in Texas based on how much each charges on average for a policy with $350,000 in dwelling coverage.
| COMPANY | AVERAGE ANNUAL RATE | AVERAGE MONTHLY RATE |
|---|---|---|
Mercury
| $635
| $53
|
Armed Forces Insurance
| $1,506
| $126
|
$1,524
| $127
| |
$1,601
| $133
| |
$2,017
| $168
| |
Southern Vanguard
| $2,123
| $177
|
$2,141
| $178
| |
$2,159
| $180
| |
Universal Insurance
| $2,527
| $211
|
$2,689
| $224
| |
Texas Farm Bureau
| $2,801
| $233
|
Republic Indemnity
| $2,845
| $237
|
AmGUARD
| $2,999
| $250
|
IAT Insurance Group
| $3,229
| $269
|
Texas Fair Plan Association
| $6,400
| $533
|
What factors affect home insurance rates in Texas?
Home insurance companies take several factors into account when calculating your rates.
Some of those including your:
- Claims history.
- House’s age.
- House’s building materials.
- House’s rebuild value.
- Roof’s age.
- ZIP code.
Home insurance in Texas compared to other states
The average cost of homeowners insurance in Texas for a policy with $350,000 in dwelling coverage is $2,226 per year. Here’s how that compares with home insurance costs across the U.S..
Tips for buying home insurance in Texas
When you're ready to buy home insurance in Texas, you have options, including the cheapest insurance companies listed above. As you look for the right company to work with, here are a few tips to make the process easier.
- Estimate your coverage needs. It’s recommended that you have enough dwelling coverage to fully rebuild your house from the ground up, back to its prior state, after a covered disaster. Also consider purchasing enough liability coverage to fully protect your assets in the event of an expensive lawsuit.
- Assess any special risks. Living on the Gulf Coast can increase the risk of your house being damaged by floods or high winds. In that case, you may need to buy additional coverage separate from your standard home insurance to protect the property and your belongings.
- Explore discounts. With home insurance in Texas being higher compared to other states, it's essential to take advantage of discounts when they're available. The more discounts you can claim, the more you might save on a home insurance policy.
- Shop around for quotes. Getting multiple home insurance quotes can give you a framework for estimating your costs. At a minimum, it's a good idea to get quotes from at least three trusted insurers.
How to save money on your homeowners insurance in Texas
Compared to other states, Texas home insurance tends to cost more on average, thanks in part to the increased vulnerability to natural disasters such as tornadoes and hurricanes. One of the best ways to save money on home insurance in the Lone Star State is to look for discounts on coverage.
Texas homeowners insurance discounts
Texas home insurance companies offer discounts that can help to reduce your overall cost of coverage. Whether you qualify for one discount or several, every penny you can shave off your policy is money saved.
Here are some of the most common home insurance discounts you might qualify for in Texas:
- Multi-policy. Multi-policy or bundling discounts reward you with savings when you purchase both from the same company, like if you bundle your home and auto insurance.
- Protective device. Installing safety and security features in your home could add up to savings on home insurance. Insurers can offer discounts for things like alarm systems, cameras, fire alarms and sprinkler systems.
- New purchase. If you bought a house within the last 12 months, you might be able to qualify for a discount. Discounts may also be available if you purchased a new construction home that's had no previous owners.
- Home renovation. Making home improvements could result in a discount, depending on what you're improving. For example, installing a new roof or overhauling your house’s electrical system can reduce your risk profile and lower your home insurance costs.
- Smart home. Smart home technology could help you to save on home insurance if your devices make the property safer. A smart alarm system or lighting system that is designed to deter crime might qualify for a discount.
- New member. Many home insurance companies in Texas offer discounts to new customers as an incentive to gain their business. You may also get a separate discount for switching your policy from one company to another.
- Claims-free. Having an insurance record that's free of claims for the last three to five years may work in your favor, as insurers can reward you for that with a rate discount.
- Gated community. Living in a gated community can discount your policy with some insurers. Your home insurance company may specify that the discount only applies if there's on-site security present at all times guarding the gate.
- Green discounts. If you enroll in paperless billing or autopay services you may score a discount, depending on the home insurance company.
- Affiliation discounts. Many insurance companies offer discounts if you’ve served in the military, are a first responder or are part of certain membership organizations.
Aside from those discounts, you might also be able to score on cheaper home and wind insurance in Texas if you take steps to fortify your house against wind damage. Regularly comparing home insurance quotes from multiple home insurance companies in Texas can also ensure you’re not missing out on a better deal elsewhere.
Expert tip: If you raise your deductible, it’ll lower your home insurance premium, but it means you’ll receive a smaller payout in the event of a claim.
Common natural disasters in Texas
Texas homeowners face threats from a number of natural disasters. Some of the disasters that most commonly affect Texas include:
- Floods.
- Freezes.
- Hurricanes.
- Severe thunderstorms.
- Tornadoes.
- Wildfires.
- Wind and hail.
- Winter storms.
Texas sees some of the most severe weather in the country. In 2023 alone, there was an estimated $6.1 billion in insured losses due to wind and hail damage, according to CoreLogic, a property data and insights company.
Expert tip: Texas home insurance policies don't always cover windstorm or hurricane damage if you live on the Gulf Coast. The TWIA sells wind and hail coverage to coastal residents, which you can buy through a local agent or broker.
Depending on where you live, you might also need a separate flood insurance policy before you can get wind coverage. A home inspection by an engineer or windstorm inspector may also be required.
Home insurance coverage considerations in Texas
Buying home insurance in Texas starts with understanding your risks. Those risks can largely center around where you live in the state.
Flood insurance
Flood damage to your property is always excluded from standard home insurance coverage. Nearly every major city in Texas is at risk for hurricanes, flash flooding and regular flooding, according to the Federal Emergency Management Agency (FEMA).
To be covered for repairs after flood damage, you’ll need a flood insurance policy. You can buy flood insurance through an insurer that partakes in the National Flood Insurance Program (NFIP), a FEMA-backed organization, or a private flood insurance company.
Wind and hail coverage
In Texas, due to the increased threat of wind and hailstorms, these issues may be excluded from homeowners insurance coverage. If you live on the Gulf Coast, for instance, then it may be in your best interests to purchase wind insurance to supplement the gap in your standard home insurance policy. You can get wind and hail coverage through the TWIA. Just keep in mind this doesn’t include coverage for flooding or storm surge damage — you’ll need home insurance, windstorm insurance and flood insurance to be properly covered in the event of a hurricane.
Wind and hail damage may be included in your policy if you don't live on the coast. However, if you have to file a claim for wind damage you may have to pay a separate windstorm or named storm deductible (the amount subtracted by your insurer before you get your claim payout).
Extended or guaranteed replacement cost coverage
When you buy a home insurance policy, you may be given a choice between upgrading your dwelling coverage to extended replacement cost coverage or guaranteed replacement cost coverage.
- Extended replacement cost: This is an endorsement you can add to your home insurance policy to expand your coverage. If you have to file a claim, then extended replacement cost could pay you anywhere from 10% to 50% above your dwelling coverage limit. You may need this in the event that a natural disaster increases the rate of construction and labor.
- Guaranteed replacement cost: This endorsement takes it a step further than extended replacement cost — repairing your house no matter how far it exceeds your original dwelling coverage limit.
Methodology
Our insurance experts evaluated 17 home insurers in Texas to determine the best homeowners insurance companies in Texas based on the availability of new policies and reinsurance, average home insurance rates for Texans and consumer complaints against each company using the National Association of Insurance Commissioners Complaint Index. Each category was assigned a different weight, adding to a score of 100.
- Rates: 75 points. Our home insurance experts analyzed home insurance rates from Quadrant Information Services. The average rates are based on policies with dwelling coverage of $200,000, $350,000, $500,000 and $750,000. The homeowner profile was a 40-year-old female with a good credit score and no claims history.
- Personal property coverage: 50% of dwelling coverage limit.
- Other structures coverage: 10% of dwelling coverage limit.
- Loss of use coverage: 10% of dwelling coverage limit.
- $500 deductible.
- Liability insurance: $100,000.
- Medical payments coverage: $1,000.
- Consumer complaints: 25 points. We collected complaint data from the National Association of Insurance Commissioners (NAIC), which shows the volume of home insurance consumer complaints against each company to state insurance departments.
Best homeowners insurance in Texas FAQs
If your home insurance company cancels your policy or doesn’t renew it, you can ask for an explanation why. When it comes to nonrenewal, insurers typically have a legally mandated time frame in which they need to let you know.
You may have an opportunity to appeal the insurer’s decision. If not, you’ll need to shop around to find a new home insurance policy. Some of the most common reasons why a policy may be canceled include failing to pass a home inspection, failing to pay premiums or filing too many claims.
The state of Texas doesn’t require homeowners to purchase insurance for their property. However, your mortgage company may require you to have a policy in place for at least the duration of your home loan. If you own your home outright, you could go without coverage but you’d have to carry any financial losses out of pocket.
The average cost of homeowners insurance in Texas for a policy with $350,000 in coverage is $2,226 per year, according to our analysis of rates.
Here are the average annual home insurance costs by dwelling coverage amounts that we analyzed in Texas.
- $200,000 in dwelling coverage: $1,446.
- $350,000 in dwelling coverage: $2,226.
- $500,000 in dwelling coverage: $2,978.
- $750,00 in dwelling coverage: $4,193.
Nationwide, Progressive and USAA are the cheapest home insurance companies in our rating of the best homeowners insurance in Texas.
Texas homeowners are at risk of experiencing drought, flood, severe storm, cyclones, wildfires, winter storms and freezes. CoreLogic, a property data and insights company, estimates that 10.3 million housing structures in Texas are at severe risk for freezes. The company also estimated that wind and hail damage resulted in $6.1 billion insured losses in 2023 alone.
Home insurance doesn’t cover damage from flooding. If you live in an area of Texas that experiences floods, you’ll want to purchase flood insurance to financially protect your property.
Depending on where you live and your insurer, wind and hail coverage may also be excluded from your homeowners insurance in Texas. You may need to add wind coverage to your policy.
If you can’t find coverage in the open marketplace, you may need to purchase wind insurance through Texas Windstorm Insurance Association.
No, Texas does not require any special homeowners insurance coverage by law, however your mortgage lender may require you to purchase home insurance as well as windstorm or flood insurance, depending on your risk. If your house is damaged by wind or hail, a separate deductible may be applied to your claim payout.
Home insurance rates are rising nationwide, and Texas is no exception. The increase in expensive natural disasters, inflation and rising rebuild costs all contribute to more expensive home insurance rates in Texas.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
