If you’re shopping for cheap homeowners insurance in Texas, consider Armed Forces Insurance (AFI), Nationwide and Chubb.
The average cost of homeowners insurance in Texas is $2,959 per year, which is higher than the national average.
Home insurance can protect you financially against losses to your house and assets, and it’s important to find a policy that fits your needs. With home insurance costs on the rise nationwide, it’s important to shop around to find affordable coverage.
We evaluated rates from 19 homeowners insurance companies to find the cheapest homeowners insurance in Texas.
Compare the best home insurance quotes 2024
Why trust our home insurance experts
Our team of experts evaluates hundreds of insurance products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about ourmethodologybelow.
- 2,616 rates reviewed.
- 140 coverage details evaluated.
- 5 levels of fact-checking.
Cheap homeowners insurance company comparison in Texas 2024
Home insurance costs $2,959 per year on average in Texas, according to our analysis of home insurance rates in Texas. The cheapest home insurance company in Texas is Armed Forces Insurance (AFI), but you can only qualify for a policy if you are in the military, a veteran or part of the military community. If you don’t qualify for AFI, consider Nationwide to get the cheapest home insurance in Texas.
| TEXAS HOME INSURANCE COMPANY | AVERAGE COST OF HOME INSURANCE IN TEXAS |
|---|---|
Armed Forces Insurance | $1,906 |
Nationwide | $2,073 |
Chubb | $2,102 |
State Auto | $2,215 |
Republic Indemnity | $2,455 |
Progressive | $2,580 |
IAT Insurance | $2,713 |
USAA | $2,723 |
State Farm | $3,127 |
Universal Insurance | $3,096 |
AmGUARD Insurance | $3,243 |
UPC Insurance | $3,246 |
Farmers | $3,050 |
Texas Farm Bureau Group | $3,021 |
Republic Indemnity | $3,719 |
Amica | $6,079 |
Homeowners insurance rates in Texas are based on the average cost of home insurance policies with dwelling coverage of $200,000, $350,000, $500,000 and $750,000. Source: Quadrant Information Services
Homeowners insurance in Texas costs
The average cost of homeowners insurance in Texas ranges from an average of $1,633 to $4,518 per year, but you may be able to find cheaper home insurance with companies like AFI, Nationwide and Chubb.
Looking at average costs for home insurance can give you a better idea of how much you can expect to pay with different companies. It’s important to remember that your actual cost can depend on several factors, including the age of your house and the amount of home insurance coverage you choose.
Homeowners insurance in Texas — cost by dwelling coverage limit
| TEXAS HOME INSURANCE COMPANY | $200,000 DWELLING COVERAGE | $350,000 DWELLING COVERAGE | $500,000 DWELLING COVERAGE | $750,000 DWELLING COVERAGE |
|---|---|---|---|---|
Armed Forces Insurance | $1,181 | $1,560 | $2,045 | $2,837 |
Nationwide | $1,094 | $1,630 | $2,287 | $3,279 |
Chubb | $1,198 | $1,849 | $2,366 | $2,994 |
State Auto | $1,554 | $2,007 | $2,338 | $2,959 |
Republic Indemnity | $1,235 | $1,950 | $2,759 | $3,875 |
Progressive | $1,465 | $2,110 | $2,766 | $3,977 |
IAT Insurance | $1,611 | $2,164 | $2,829 | $4,248 |
USAA | $1,459 | $2,241 | $2,985 | $4,208 |
State Farm | $1,896 | $2,552 | $3,340 | $4,719 |
Universal North America | $1,748 | $2,593 | $3,339 | $4,703 |
AmGUARD Insurance Company | $1,724 | $2,649 | $3,523 | $5,076 |
UPC Insurance | $1,819 | $2,662 | $3,386 | $5,117 |
Farmers | $1,759 | $2,667 | $3,467 | $4,307 |
Texas Farm Bureau Group | $1,922 | $2,801 | $3,357 | $4,004 |
Republic Indemnity | $1,799 | $2,936 | $4,127 | $6,013 |
Amica | $2,662 | $4,839 | $6,839 | $9,974 |
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.
What does home insurance cover in Texas?
Home insurance is designed to financially protect you against covered problems in your policy that damage your house and belongings. A standard homeowners insurance policy covers any problems that are not excluded, such as floods. You’ll need to buy flood insurance for that.
If you live on the Texas coast or in Harris County on Galveston Bay, your home insurance policy also won’t cover wind and hail damage. The Texas Windstorm Association (TWIA) sells wind and hail coverage separately for coastal homeowners.
In Texas, standard homeowners policies include six types of coverage.
- Dwelling. The dwelling portion of a home insurance policy pays to repair or rebuild your house if it’s damaged or destroyed by a covered event, like a house fire.
- Other structures. Other structures are structures on your property that are not attached to your house. You can file a claim for covered repairs to things like detached garages or sheds, gazebos and fences if they are damaged by a covered problem.
- Personal property. Personal property coverage extends to your personal belongings, which includes things like furniture, clothing and electronics. Standard home insurance pays out for your belonging’s actual cash value, meaning depreciation is subtracted from your claim payout. Ask your insurer about replacement cost coverage if you want to be paid out at today’s prices for your stuff.
- Additional living expenses. If you’re temporarily unable to live in your house because it’s damaged by a covered event, your policy can reimburse you for additional out-of-pocket living expenses, like a hotel stay or pet boarding.
- Personal liability. Liability coverage pays for another person’s property damage repairs or medical expenses if you’re found to be at fault for injury or damage, like if your dog attacks someone at the park and they need surgery. It also pays for your own legal costs if you’re sued following an accident.
- Medical payments to others. Medical payments to others pays for small medical bills for other people after an incident, regardless of who was at fault. You can typically only get up to $5,000 in this type of coverage.
Each type of coverage has a set dollar limit which represents the maximum amount that the insurance company will pay out. It’s important to read your policy carefully to know how much coverage you have.
What doesn’t home insurance cover in Texas?
Most home insurance policies exclude certain events from coverage. In Texas, typical exclusions include damages caused by:
- Flooding.
- Continuous water leaks or mold.
- Termites, insects or vermin.
- Earthquakes or earth movement, such as landslides or sinkholes.
- Wind or hail (depending on where you live).
- Wear and tear.
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.
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:
- Hurricanes.
- Floods.
- Wildfires.
- Tornadoes.
- Severe thunderstorms.
- Winter storms.
These types of events can cause damages to houses and detached structures. They can also increase the risk of consequential impacts like damage caused by erosion, sinkholes or hail.
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 endorsem*nt 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 endorsem*nt takes it a step further than extended replacement cost — repairing your house no matter how far it exceeds your original dwelling coverage limit.
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.
Methodology
Average rates for homeowners insurance in Texas were calculated using data from Quadrant Information Services.
Homeowners insurance rates in Texas are based on the average cost of home insurance policies with dwelling coverage of $200,000, $350,000, $500,000 and $750,000.
Cheap 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 across all dwelling coverage limits is $2,959.
Based on the average cost of coverage across all dwelling coverage limits, the top three cheapest home insurance companies in Texas are Armed Forces Insurance, Nationwide and Chubb. The average premiums for each one are $1,906, $2,073 and $2,102, respectively.
