According to data from the National Centers for Environmental Information, Texas is ranked first in terms of weather-related property damage caused by natural disasters. Tornados, lightning strikes and tropical storms cause the most damage, with more than 100 individual instances causing $1 billion in damage since 1980. With these stats in mind, it becomes easier to see why homeowners insurance is important in Texas.
We at the MarketWatch Guides team have reviewed the best homeowners insurance companies nationwide based on coverage, cost and more. Our top picks for the best home insurance in Texas are State Farm, Allstate and USAAbased on how they scored in our comprehensive methodology.
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Top 5 Home Insurance Providers in Texas
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.
Provider | Annual Premium | Our Rating | J.D. Power | A.M. Best |
---|---|---|---|---|
State Farm | $3,570 | 4.7 | 829/1000 | B |
Allstate | $4,760 | 4.5 | 809/1000 | A+ |
USAA | $4,562 | 4.6 | 881/1000 | A++ |
Liberty Mutual | $4,720 | 4.4 | 789/1000 | A |
Hippo | $4,230 | 4.1 | NR | A- |
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State Farm
Our top pick for Texas
4.7
Cost: 4.6/5
Customer Experience: 4.9/5
Industry Standing: 4.2/5
Coverage: 5/5
Our Review
A.M. Best J.D. Power Annual Cost
Why We Chose State Farm
State Farm is our pick for new homeowners because of its helpful online resources, including the 360Value tool that estimates the replacement value of your home and prefills your quote application based on its insurance coverage recommendations. Additionally, the insurer offers a unique personal touch by directly connecting each customer with a local agent to help them purchase and manage their policy.
Pros and Cons
Pros Offers a unique discount for homes with impact-resistant roofing materials Local agents may sell extra add-ons, such as daycare liability or rented personal property coverage Standard policies include extra protection for personal property, such as firearms or silverware Cons Offers fewer discount options than other companies Its deductible options are higher than other companies and are based on a percentage of dwelling coverage
Discounts and Endorsem*nts
Discounts:Roof type, security and fire alarm systems, claim-free history, multi-policy bundling
Endorsem*nts:Loss assessment coverage for HOA charges from damaged shared space or amenities, water backup, earthquake protection, home systems, identity theft protection
Allstate
Best for discounts
4.5
Cost: 4.6/5
Customer Experience: 4.3/5
Industry Standing: 4.3/5
Coverage: 4.6/5
Our Review
A.M. Best J.D. Power Annual Premium
Why We Chose Allstate
Allstate is a well-known, established insurance provider with comprehensive policies, great customer service, and an extensive list of discounts and add-ons to help customize policies. One unique benefit of an Allstate home insurance policy is the Claim RateGuard add-on that protects your premium from increasing after you make a claim.
Pros and Cons
Pros Getting a quote doesn’t require you to give out your phone number or Social Security number Has a unique extended coverage option for roof surfaces replacement, which adds extra coverage to pay for roof repairs Offers a digital inventory tool for keeping track of your covered personal belongings Cons Premiums can be higher than some other home insurance companies
Discounts and Endorsem*nts
Discounts:On-time payment, claim-free history, protective devices like alarm systems, welcome discount for new customers, auto-pay, loyalty, bundling with other policies, early signing
Endorsem*nts:Roof surfaces, water backup, green improvements, building codes, identity theft protection, jewelry, watches, furs
USAA
Best for military members and veterans
4.6
Cost: 4.6/5
Customer Experience: 4.6/5
Industry Standing: 4.3/5
Coverage: 5/5
Our Review
A.M. Best J.D. Power Annual Cost
Why We Chose USAA
USAA, which is headquartered in San Antonio, is a great selection for qualifying U.S. Armed Forces members, veterans and their families. Policyholders have access to a variety of financial services, tools and benefits, including home insurance, car insurance, banking, loans and local discount coupons.
If you’re not eligible for a USAA membership,use this formto find other home insurance providers near you.
Pros and Cons
Pros Its website features an online chat for customer service Offers an add-on for military uniform replacement Provides multi-policy bundling discounts Cons Only available to service members and their families To get a quote, you must show proof of military membership and submit detailed personal information
Discounts and Endorsem*nts
Discounts:Payment history, weather-resistant roofing, new building or renovations, home protection devices and systems, multi-policy bundling, adjustable deductible
Endorsem*nts:Identity theft, earthquake insurance, increased coverage limits for personal property and dwelling, military uniform replacement
Liberty Mutual
Best for finished basem*nts
4.4
Cost: 4.4/5
Customer Experience: 4.7/5
Industry Standing: 4/5
Coverage: 4.6/5
Our Review
A.M. Best J.D. Power Annual Premium
Why We Chose Liberty Mutual
One of the main factors that play a role in the price of homeowners insurance is your location — and states at a high risk of disaster like Texas have more expensive premiums. Liberty Mutual can make home insurance coverage more affordable by offering a host of discounts you can apply to your policy.
While most home insurance providers offer some discounts, Liberty Mutual goes above and beyond, offering nearly a dozen ways to save. From enrolling in autopay to keeping a security system in your home, Liberty Mutual incentivizes you to save by taking preventative steps against home loss or damage. You might also be able to claim a special discount by having a roof inspection that predicts your chance of sustaining wind damage. These discounts can quickly stack up, helping make sometimes-expensive Texas home insurance more affordable.
Pros and Cons
Pros Has a generous list of discounts Proprietary mobile app allows you to file claims on-the-go Offers inflation protection that automatically adjusts coverage over time Cons Must submit your Social Security number to get a quote Lower J.D. Power rating than some other providers on our list
Discounts and Endorsem*nts
Discounts: Claims-free, security system, early shopper, newly purchased home, newly renovated home, new roof, wind mitigation credit, multi-policy bundling, insured to value, prepared payment and paperless policy
Endorsem*nts: Hurricane damage, water backup, additional living expenses and inflation protection
Hippo
Best for quick quotes
4.1
Cost: 4.1/5
Customer Experience: 4.5/5
Industry Standing: 3.6/5
Coverage: 4.4/5
Our Review
A.M. Best J.D. Power Annual Cost
Why We Chose Hippo
If you’re moving into your new home sooner rather than later, you might need to sign onto coverage quickly. Hippo stands out thanks to its easy and intuitive online quote process. Simply answer a few questions about yourself and your property on the company website, and you will see a list of quotes from Hippo’s trusted partners. You can then directly compare quotes from a few top providers in your area, click on the coverage that fits your needs, and take advantage of Hippo’s unique, tech-forward bonuses and endorsem*nts.
Pros and Cons
Pros Easy, streamlined quote system can offer quotes in 60 seconds Offers extended coverage for tech and domestic workers Unique discounts for both new and experienced homeowners Cons Brokers insurance services through partners Online quotes not available in all parts of Texas
Discounts and Endorsem*nts
Discounts: Early bird, recent home purchase, no mortgage, homeowner’s association member and home security systems
Endorsem*nts: Home office, domestic worker liability coverage, water backup, extended electronics coverage, extra coverage for jewelry and watches, and equipment breakdown
What Is the Average Homeowners Insurance Cost in Texas?
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.
Cheapest Homeowners Insurance in Texas
Cost is an important factor in selecting a home insurance company, so we have compiled a list of the most affordable providers in Texas to help you find the best coverage at the lowest cost. The cheapest provider in the state is Mercury Insurance at $1,294 annually.
Provider | Annual Premium |
---|---|
Mercury Insurance | $1,294 |
Chubb | $3,195 |
State Farm | $3,570 |
Farmers | $3,861 |
Hippo | $4,230 |
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We at the Guides Home Team gathered 2024 home insurance quotes for the providers in this article using data from Quadrant Information Services. Quadrant is a leading source of property and casualty insurance solutions and data.
Our sample homeowner is a 40-year-old single male with good credit and no prior claims history. Our sample policies featured a $1,000 deductible and the following coverage and limits:
- Dwelling: $350,000
- Other Structures: $25,000
- Personal Property: $150,000
- Loss of Use: $50,000
- Liability: $300,000
- Medical Payments: $1,000
For each provider, we gathered a quote for 50% of the ZIP codes in every state it is licensed in. We used the most populous ZIP codes for our study. We took the average of these individual quotes to calculate national and state average premiums for each provider. Our sample rates are for informational purposes only. Actual premiums will vary.
What Factors Affect Home Insurance Rates in Texas?
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).
How To Save Money on Texas Home Insurance
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.
Common Causes of Home Insurance Claims in Texas
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.
How To Insure a Coastal Home in Texas
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.
Frequently Asked Questions
The most common type of homeowners policy in Texas is an HO-3. This policy covers your home, belongings, liability, medical payments and additional living expenses if you are displaced from your home by a covered claim.
Based on 2024 premium data from Quadrant Information Services, the average home insurance rate in the state of Texas was $5,162, which is double the national average of $2,728 due to the state’s high exposure to a variety of severe weather hazards.
Homeowners insurance in Texas is not required by law, though it is still extremely important and necessary when purchasing a home. If you are financing the home, your mortgage lender is legally allowed to require you to carry homeowners insurance coverage until the loan is satisfied.
Although some homeowners insurance companies may require you to contact an agent for a quote, most providers offer policy details and pricing through online quote tools without requiring much personal information.
Mold would only be covered by your homeowners insurance policy if it was caused by a covered event. For example, if a storm with heavy rainfall caused water to leak into your house, soaking your walls or floors and causing mold to form, the damage would be covered. Some companies offer extra mold and fungus protection as an endorsem*nt with additional premium.
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Methodology: Our System for Ranking the Best Home Insurance Companies in Texas
Our team surveyed dozens of home insurance providers and created a scoring system to assess and compare each company’s quality and service. Here are the factors that account for our provider scores according to our home insurance rating methodology:
- Coverage (28%): We analyze the comprehensiveness of each provider’s standard home insurance policy and compare optional policy endorsem*nts to determine the quality of coverage.
- Cost (27%): We compare cost data for homes nationwide to assess how competitively priced each provider is. We also consider each company’s available discounts when determining its overall cost of coverage.
- Availability and ease of use (25%): We evaluate each company’s customer service options, such as live chat, a customer support phone line, and multiple channels for filing claims and generating quotes. Similarly, we score providers based on their digital resources, such as a mobile app or online customer portal.
- Brand trust (20%): We gauge reputation by evaluating consumer reviews and third-party financial strength and customer experience ratings, including from J.D. Power, AM Best and customer review aggregators.
Companies with the best customer service exhibit 24/7 availability, useful digital tools and a quick claims-filing process. Providers that offer extensive discount options, endorsem*nts, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.
AM Best Disclaimer
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.