5 Best Homeowners Insurance Providers in Texas | September 2024 (2024)

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After in-depth research, we at the Guides Home Team found the following are Texas’s best homeowners insurance providers:

• State Farm: Our top pick for Texas
• Allstate: Best for discounts
• USAA: Best for military members and veterans
• Liberty Mutual: Best for finished basem*nts
• Hippo: Best for quick quotes

Use the chart below to compare prices for each provider against the average homeowners insurance cost in Texas of $5,162 per year.

The average cost of homeowners insurance in Texas is $5,162 per year which is higher than the average annual premium in the U.S. of $2,728 according to our analysis of homeowners insurance premiums using 2024 data provided by Quadrant Information Services. This is due to the state’s high risk from severe weather events including hurricanes, tornadoes and hailstorms.

The annual cost of homeowners insurance can vary greatly based on your specific location which can cause your home to be more or less susceptible to risk. Use the charts below to determine the average cost in your specific area before getting quotes from multiple providers.

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Home insurance rates will significantly vary based on your location, property details and personal situation. We explain some of these factors below to help you understand how home insurance premiums work.

• Location: In Texas, there’s a major risk of severe natural disasters like hurricanes, tornadoes, flooding and more. If you live in a coastal city prone to natural disasters like Houston or Galveston, insurers will consider it risky to insure your property and charge higher rates. Similarly, Dallas and Fort Worth residents will likely pay higher costs due to tornado risk.

• Age and condition of the property: Older properties in historical cities like San Antonio may be more likely to have structural issues, increasing potential repair and rebuilding costs. This can make older homes more expensive to insure. However, residents in developing areas like Austin may live in homes that adhere to modern building standards and pay lower insurance rates.

• Crime rate: Some areas of Houston and Dallas have high crime rates, which means residents will pay higher premiums due to an increased risk of theft and vandalism.

• Proximity to fire stations: Policy costs also depend on whether you can access sufficient local fire protection from your property. For example, if you live in a rural area of West Texas, your rates will likely be higher than those in a more populated and serviced area.

• Property replacement cost: Insurers also consider how much it would cost to rebuild your home in the event of total damage. The higher the rebuilding cost, the more you will pay for insurance.

• Credit score: Although some states do not allow the use of credit scores to determine rates, Texas is not one of them. If you have a lower credit score, you will pay higher premiums.

• Claims history: Insurers will consider you risky to insure if you have filed multiple claims in the past and charge you higher rates for a policy.

We have put together the following map highlighting the top home insurance risks faced by each county in Texas using the National Risk Index (NRI) scores calculated by the Federal Emergency Management Agency (FEMA).

Although the cost of home insurance in Texas is higher than the national average, there are steps you can take to lower your premiums.

See if You Qualify for Discounts

If eligible, you can benefit from insurance discounts to save on your monthly insurance costs in Texas. Potential discounts include:

• Bundling: If you buy more than one type of policy from the same insurer, you can qualify for a bundling discount.

• Security systems: Installing security systems like burglar or fire safety alarms can help you lower premiums.

• Claims-free: Some insurance providers offer a discount to homeowners who do not file a claim for a specified period.

• New home: You can earn a discount if you have a new home as it’s less likely to have structural issues.

• Autopay: Most insurers offer an autopay discount, which lets you save on your premiums by setting up automatic payments every month.

Modify Your Deductible

You can lower your premium by choosing a policy with a higher deductible —but this will result in more out-of-pocket expenses in case of damages. We recommend choosing a deductible amount that balances potential savings and financial impact in case of a claim.

To decide on the right deductible, assess your financial situation and frequency of claims. You might also have to consider your lender’s requirements if you have a mortgaged property.

Consider Your Credit Score

In Texas, insurers can consider your credit history to determine how much you will pay for a policy. You can qualify for a lower rate with a good credit score. However, If you do not have a strong credit history, improving it can be a long-term strategy to reduce insurance costs.

You can improve your credit history by paying your bills on time, settling outstanding debts and regularly reviewing your credit reports for errors.

Shop Around

Every insurer has different underwriting criteria, which means rates will differ between companies. We suggest you gather quotes from multiple providers and compare rates to ensure you get the best deal. You can use our resources to compare home insurance quotes from top providers or tools like helpinsure.com by the Texas Department of Insurance.

Texas homeowners file claims for a wide variety of reasons. Here are some of the most common:

• Hurricanes: Because of its coastal location, Texas is prone to severe impacts from tropical cyclones. These storms can lead to severe damage to homes and personal property.
• Wind: Thunderstorms, tornadoes and tropical weather events can all lead to wind damage. According to the Insurance Information Institute (Triple-I), Texas recorded the second-highest volume of confirmed tornadoes in the U.S. in 2022: 160, which led to three fatalities.
• Hail: According to the Triple-I, Texas recorded 458 hail events in 2022, the most in the U.S.
• Theft and vandalism: Particularly in larger cities like Dallas and Houston, theft and vandalism are common causes of home insurance claims.
• Fire: Fire is another common cause of claims in Texas, with both wildfires and accidental fires to blame.
• Flooding: Flooding is common in some areas of Texas. While home insurance doesn’t cover damage from flooding, you can purchase a separate flood insurance policy.

In theory, insuring your coastal home follows the same process as insuring an inland property. However, things tend to be more complicated. Most providers won’t cover homes near the coast due to the high potential for damage from weather catastrophes like storms, flooding and beach erosion.

To insure your home along the Gulf, you’ll need coastal home insurance. This is a stand-in for standard home insurance, providing all the same coverages, such as dwelling, other structures, personal liability and loss of use. Like standard home insurance, it excludes certain protections like flood and earthquake coverage. But because it’s meant for high-risk homes, it typically costs more.

Texas is host to several local carriers that offer coastal or high-value home insurance. If you’ve contacted these providers and still can’t get covered, look into Texas’ Fair Access to Insurance Requirements (FAIR) Plan as a last resort. These programs sell property insurance to those who have been rejected by the voluntary market. They are less than desirable, though, due to their high cost and low coverage.

Tips for Getting the Best Coverage

If you’ve been denied traditional coverage but are determined that coastal home insurance is right for you, here are a few tips to help you find the best coverage for a reasonable price:

• Shop local providers: With many companies pulling out of coastal Texas, you’re likely to find coastal home insurance with private providers in your area that focus on protecting homes at elevated risk for hurricanes. Some options in Texas include EK Insurance, Coastal Insurance and Cabrillo Coastal.
• Choose your coverage limits carefully: Because coastal home insurance is costlier than a traditional policy, weighing your coverage needs can be a delicate affair. Consider things like your risk for damage, budget and emergency savings when choosing coverage limits. Discussing your situation with your insurance agent can also help.
• Add appropriate endorsem*nts: Since coastal home insurance doesn’t cover earthquakes or flooding, it’s important to seek out these additional protections. Additionally, wind and hail damage isn’t covered on the Texas coast, Harris County or Galveston Bay. If you live in one of these areas, you’ll need a separate policy from local agents with the Texas Windstorm Insurance Association.