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The Best Homeowners Insurance Companies in Texas
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|
Dog and other animal liability
|Texas Farm Bureau Mutual Insurance Company||Barns/outbuildings|
Home & garden
|Liberty Mutual||Wind and hail|
Yard & garden
Electronic data recovery
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|
*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|
|2||Texas Farm Bureau Mutual Insurance Company||$1,495|
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|
|Dallas||Texas Farm Bureau Mutual Insurance Company||$1,424|
|Austin||Texas Farm Bureau Mutual Insurance Company||$924|
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.
- Better knowledge of local hazards
- More personalized customer service
- Takes longer to get coverage
- More convenient tools such as smartphone apps
- Easier to purchase and modify coverage
- 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.
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.
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.
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 firstname.lastname@example.org with comments or questions.