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The Best Homeowners Insurance Companies in Texas
In the second-largest state in the United States, by size and population, it’s no wonder homeowners insurance costs are Texas-sized too. Based on 2019 Insurance.com estimates, Lone Star State residents pay an average annual homeowners premium of $3,429, $657 above the national average, making Texas the fifth most expensive state in which to insure a home.
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Because of Texas’s size and population distribution, there are huge disparities in rates geographically, so the amount you’ll pay for homeowners insurance depends on the location of your home. With that in mind, we set out to find Texas’ best homeowners insurance providers. For a personalized Texas homeowners insurance quote, use our quote app above.
The 6 best home insurance companies in Texas
- Best Local Coverage: Cypress Texas Insurance Company
- Best for Farms and Ranches: Texas Farm Bureau Mutual Insurance Company
- Best for Valuables: State Farm
- Best for Military Members: USAA
- Best for Severe Weather: Liberty Mutual
- Best for Claim Forgiveness: Allstate
The best Texas home insurance companies at a glance
| Provider | Add-on Coverage Options | J.D. Power Score | SimpleScore |
|---|---|---|---|
| Cypress Texas Insurance Company | Water backup Equipment breakdown Ordinance/law Identity theft Dog and other animal liability Sinkhole Foundation Screened enclosure | Not Rated | 4/5 |
| Texas Farm Bureau Mutual Insurance Company | Barns/outbuildings Animal collision Custom farming Medical liability Employer liability | Not Rated | 3.6/5 |
| State Farm | Nature Random acts Home & garden Jewlery/hobbies | 3/5 | 3.8/5 |
| USAA | Home sharing Earthquake Other structures | 5/5 | 4.5/5 |
| Liberty Mutual | Wind and hail Water Hurricane | 3/5 | 4.4/5 |
| Allstate | Identity theft Water backup Sports equipment Yard & garden Electronic data recovery Green improvement Musical instruments | 3/5 | 4.4/5 |
Best for local coverage – Cypress Property & Casualty Insurance Company
We know you’re used to getting coverage at the snap of your fingers, but if you decide to work with a Cypress agent, make sure you leave yourself a few days of wiggle room at the very least.
In an age when we’ve grown used to getting quotes in 10 minutes or less, it’s hard to imagine a world in which the interaction with our home insurance company would be anything but short and sweet. But some homeowners miss the personalized touch that comes from working one-on-one with a licensed agent who is also an expert in your local area. Cypress Property & Casualty Insurance Company is a local insurance company that will connect you with an agent in your neighborhood to help you best decide what type of coverage you need for your property. There are no instant quotes, smartphone apps or online account management tools, just good old-fashioned customer service.
Best for farms and ranches – Texas Farm Bureau
We like that Texas Farm Bureau is willing to personalize policies to match every landowner’s needs, whether it’s for a single acre or hundreds of them.
Texas is full of beautiful sprawling terrain and large expanses of farmland. If you’re lucky enough to own a piece of Texas paradise, a traditional home insurance policy might not adequately cover your entire plot. Texas Farm Bureau offers country living policies for landowners who don’t quite fit the mold of a standard residential property but aren’t large enough to need the full coverage of farm insurance. These policies can be tailored to insure land, outbuildings, livestock, machinery and any other miscellaneous property you want to protect.”
Best for valuables – State Farm
Personal property is often forgotten when homeowners purchase a policy. State Farm removes the guesswork by providing comprehensive lists of personal items you might want to consider additional insurance for.
If you own any high-value items like collectibles, musical instruments, fine jewelry or even firearms, an off-the-shelf home insurance policy may not cover their full value. State Farm makes it easy to modify any homeowners policy to cover the personal belongings you care about. There’s even an option to protect digital equipment and the data stored on them, whether that equipment is used for home or business purposes.
Best for military members – USAA
As long as you qualify for USAA membership as a current or former service member, there’s no reason not to consider this respected insurance company.
As USAA says, “it’s not a house, it’s your home.” Military families have unique home insurance needs, especially in the event of relocation or deployment. USAA’s home insurance policies include protection for your dwelling, belongings and other structures on your property, even offering coverage if you decide to list your property on a home sharing site while you’re gone. USAA customers are known to rave about the carrier’s low prices and excellent customer service.
Best for severe weather – Liberty Mutual
Texans can stay prepared for anything Mother Nature throws at them simply by adding severe weather coverage to a Liberty Mutual home insurance policy.
Texas is a hotspot for severe weather, which is partially responsible for the state’s driving home insurance premiums way above national averages. Liberty Mutual knows that homeowners are concerned about protecting their property from the unknown, so the company has come up with a range of weather-specific coverage that you can mix and match based on common hazards in your area. Protection from wind and hail is included in a standard policy, but you can opt to add hurricane and/or water damage if your geographic location warrants it.
Best for claim forgiveness – Allstate
Texas homeowners already pay higher insurance premiums than all but two U.S. states, so it makes sense that customers would want to prevent the rate they already pay from going up any further.
Since Texans may have a higher chance of filing weather-related home insurance claims, some homeowners are concerned that their already high premiums could go up after experiencing a loss. Allstate offers a solution with Claim Rateguard, its optional supplemental coverage that protects your premium from going up just because you filed a claim. This benefit can be applied up to once every five years.
How much does home insurance cost in Texas?
According to data collected by the Insurance Information Institute, the average Texan homeowner pays $1,893 each year in home insurance premiums. This number is about 50% above the national average of $1,211 and the third highest in the country.
[Read: The Best Home Insurance Companies ]
So what makes Texas home insurance so expensive? Texas is a geographical hotspot for severe weather events including heavy rainstorms, hurricanes, flooding and even tornadoes. Property insurers consider the increased risk of weather-related property damage when determining home insurance premiums, which explains why homes in Texas are so expensive to insure.
On the other hand, this just means that having a home insurance policy in Texas is even more important. If you own a home in Texas, you run a higher risk of your home suffering major damage from unpredictable weather-related events. To avoid potential financial devastation, factor the cost of home insurance in Texas into your overall housing budget. By planning ahead, you can make sure you’re prepared for the cost of monthly premiums.
Texas average home insurance cost per carrier
| Insurance Company | Texas full year avg. cost | Texas full monthly avg. cost | Texas full weekly avg. cost |
|---|---|---|---|
| Cypress Texas Insurance Company | Not Available* | Not Available* | Not available* |
| Texas Farm Bureau Mutual Insurance Company | $1,495 | $125 | $29 |
| State Farm | $2,563 | $214 | $49 |
| USAA | $1,301 | $108 | $25 |
| Liberty | $3,354 | $280 | $65 |
| Allstate | $1,696 | $141 | $33 |
*Requires personal details and/or contact with agent
Source: Texas Department of Insurance
The cheapest home insurance in Texas
Among the major Texas metropolitan areas we reviewed data from, USAA was the cheapest home insurer with average premiums around $1,301 for $200,000 in coverage. The most expensive, Liberty, was more than two and a half times the cost at $3,354 per year. The remaining insurance carriers fell somewhere in the middle. This just goes to show how important it is to gather quotes from several different property insurers to make sure you’re getting the best rates for Texas home insurance.
| Rank | Company name | Avg. annual premium |
|---|---|---|
| 1 | USAA | $1,301 |
| 2 | Texas Farm Bureau Mutual Insurance Company | $1,495 |
| 3 | Allstate | $1,696 |
| 4 | State Farm | $2,563 |
| 5 | Liberty | $3,354 |
Source: Texas Department of Insurance
The cheapest home insurance in Texas, by city
The cost of your home insurance policy also depends on where you’re located within Texas. We surveyed the four biggest cities in the state by population and found that each had vastly different home insurance prices. Premiums offered by Texas Farm Bureau Mutual Insurance Company in the state’s capital of Austin were surprisingly affordable: just $924 annually for a $200,000 policy. In San Antonio, USAA offered an equally attractive deal of $979 per year for the same amount of coverage.
| City | Company | Avg. annual premium |
|---|---|---|
| Houston | Allstate | $1,784 |
| Dallas | Texas Farm Bureau Mutual Insurance Company | $1,424 |
| Austin | Texas Farm Bureau Mutual Insurance Company | $924 |
| San Antonio | USAA | $979 |
Source: Texas Department of Insurance
Most expensive cities in Texas for homeowners insurance
Texas is the second-largest state in the United States. Its hundreds of cities, towns and villages are home to almost 30 million people, and home insurance rates differ in each one. We used the Texas Department of Insurance’s rate comparison tool to evaluate pricing in some of the state’s largest metropolitan regions. In Houston, the largest city in Texas, the top home insurers quoted us an average of $3,018 per year for a $200,000 policy, more than any other municipality. Dallas came in second place at $2,255 per year, significantly lower than Houston but still well above the state average.
Choosing your provider
The Texas home insurance companies we’ve reviewed consist of both local and national carriers. If you’re not sure of the differences between the two, here are some pros and cons to consider.
Local carrier
Pros
- Better knowledge of local hazards
- More personalized customer service
Cons
- Takes longer to get coverage
National carrier
Pros
- More convenient tools such as smartphone apps
- Easier to purchase and modify coverage
Cons
- Hard to get help from a real person
Things to know about home insurance in Texas
Due to particularly high risk associated with insuring properties in Texas, some homeowners may have difficulty finding an insurance carrier that is willing to give them a policy. If you’ve been turned down by at least two insurance companies, the Texas FAIR Plan Association (TFPA) exists to get you the basic coverage you need.
[More: 3 Reasons You Should Consider Flood Insurance]
TFPA policies don’t offer windstorm or hail insurance, but this can be purchased separately through the Texas Windstorm Insurance Association (TWIA). Anyone who is covered by a TFPA policy is required to reapply for property insurance in the marketplace every two years.
Hurricane home insurance coverage in Texas
Homeowners in Texas should be prepared for a very real threat of hurricanes with a robust hurricane insurance policy. According to the Insurance Information Institute, more than half a million Texas homes are considered at risk in the event of a Category 5 storm with a total potential cost of $113.4 billion to rebuild. While the III notes that private hurricane and flood insurance is becoming more widely available, homeowners can also look to the National Flood Insurance Program and the Texas Windstorm Insurance Association for assistance in getting coverage.
[Related: Does Homeowners Insurance Cover Hurricane Damage?]
Texas coastal areas are considered most at risk for hurricane damage. The TWIA has currently designated 14 Texas counties as catastrophe areas. Homeowners in these areas can purchase a policy through the TWIA as they are unlikely to have success finding coverage through a private insurer. To see whether your home qualifies, visit the Texas Department of Insurance website.
Texas home insurance FAQs
Home insurance is not required by law in Texas, however it is perfectly legal for financial institutions to mandate insurance for any home they finance through a mortgage. Ask your lender for their minimum insurance requirements to make sure your policy meets their standards, but also take your own net worth into consideration and make sure your policy limit covers the total value of your assets.
Homeowners in Texas should purchase coverage for specific weather hazards in their area. Those who live in one of the coastal counties designated as catastrophe areas should consider buying windstorm and hail insurance from the Texas Windstorm Insurance Association. Hurricane and flood insurance can also be purchased through private insurers in many cases.
Many insurance companies offer specific coverage for Texas farms and ranches. In our research, we found that the Texas Farm Bureau Mutual Insurance Company offered the best policy options for these landowners. However, it’s still a good idea to shop around and get different quotes for your Texas land.
Too long, didn’t read?
Homeowners insurance policies in Texas are the third most expensive in the United States, largely due to sky-high risk of adverse weather events. Rates can vary dramatically between different carriers, so always compare multiple quotes before purchasing a policy. You should also consider speaking with an experienced local insurance agent to find out if there’s any additional weather-related coverage you might need for your geographic area.
We welcome your feedback on this article and would love to hear about your experience with the home insurance companies we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.
Keep Reading
Methodology
The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.
For every review, our editorial team:
- Identifies five measurable aspects to compare across each brand
- Determines the rating criteria for each aspect score
- Averages the five aspect scores to produce a single SimpleScore
Here’s a breakdown of the five aspect scores and their rating criteria for our reviews on home insurance.
Why do some brands have different SimpleScores on different pages?
To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.
However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare State Farm’s home insurance according to our criteria for the best home insurance, it scores a 3.8 out of 5. But when we compare State Farm according to the criteria for the best auto insurance, it scores higher, since the features the company offers can vary by the type of insurance.
Discounts
We looked at the number of discounts each company offers – more discounts mean a higher score.
Coverage Options
We awarded higher scores to the companies that offer more coverage options.
Support
We awarded higher scores to companies with the most channels for customer support.
Customer Satisfaction
We leveraged the J.D. Power 2019 Home Insurance Satisfaction Study℠ to see how customers rated their experience with each company. (If a company wasn’t included in J.D. Power’s study, we skipped this aspect and averaged the four remaining aspect scores.)
Accessibility
We looked at the level of accessibility of each company – the more resources they have the higher their score
Reviewed by
Courtney Mihocik
Loans EditorCourtney Mihocik is an editor at The Simple Dollar who specializes in personal loans, student loans, auto loans, and debt consolidation loans. She is a former writer and contributing editor to Interest.com, PersonalLoans.org, and elsewhere.
