By Nicole Dieker

The Best Texas Homeowners Insurance

Allstate and State Farm stand out as the top homeowners insurance companies in Texas. And if you’re eligible, we also highly recommend USAA. These insurance providers received high ratings by customers and market research firms for their affordable prices, extensive coverage options and reliable customer service. To evaluate these companies, we looked at a variety of important factors when choosing homeowners insurance including price, policy options, discounts and customer service.

The 5 Best Homeowners Insurance Companies in Texas

The Best Texas Homeowners Insurance: Summed Up

  J.D. Power Overall Satisfaction Score A.M. Best Financial Strength Rating  
Allstate 3/5 A+ Compare rates
State Farm 4/5 A++ Compare rates
USAA 5/5 A++ Compare rates
Liberty Mutual 3/5 A Compare rates
Farmers 3/5 A Compare rates

Average Cost of Homeowners Insurance in Texas

Purchasing homeowners insurance in the Lonestar State isn’t cheap. In fact, it’s the third most expensive state for homeowners insurance. The average cost for a premium in Texas is about $1,893 per year, according to the Insurance Information Institute. In 2015, the national average homeowners insurance premium cost just $1,173—more than $700 less than Texans pay.

The actual cost of your homeowners insurance depends on a number of factors, including the city you live in, your age, your gender, your credit score and the size of your home. You might also qualify for certain discounts through your insurance provider that could lower your premium.

Home Insurance add-ons that will further protect you

Every year, parts of Texas get hit with extreme weather events, like hurricanes and tornadoes. The good news is, most insurance coverage includes damages from windstorms and water damage resulting from hurricanes.

However, keep in mind that homes in areas that are prone to extreme weather, like the Gulf Coast, might require extra coverage or a higher deductible. It’s best to contact insurance companies individually to determine what specifically is covered under their policies in your area.

Some insurance companies offer separate catastrophe coverage specifically for natural disasters, as well as hurricane coverage. Remember that private homeowners insurance policies do not cover flood or earthquake damage, so you’ll want to purchase a separate policy if that’s a concern in your area.

Helpful Resources for Texas Homeowners

If you’re in the market for homeowners insurance, start by looking at the Texas Department of Insurance's homeowners insurance resources. You’ll find helpful articles about choosing the right amount of insurance, handling claims and more. You can also use HelpInsure.com to compare Texas homeowners insurance prices and shop for a new policy.

The process of getting homeowners insurance in Texas is pretty simple. Start by visiting each insurance provider’s website to make sure they offer coverage in your area. Most insurance companies—including the five on our list—offer online quotes, so there’s typically no need to call or visit an agent.

To get an insurance quote, you’ll need to answer a few questions about yourself and your home. For instance, you’ll be asked to submit your name, home address, marital status, gender and claims history. Additionally, you may also need to know when your house was built, the materials it’s built with, what the roof is made of, if it has a fire detection or anti-theft system, and more.

Check your windstorm deductible

Many Texas homeowners insurance policies include two deductibles: one that covers general damage to your home, and one that specifically covers damage from windstorms. You might even have a third deductible for “named storms” or “tropical cyclones” (think Hurricane Harvey).
If your insurance policy includes multiple deductibles, you’ll need to pay the relevant deductible in full before your insurer will pay any related claims. Any money you paid towards your other deductibles doesn’t count towards your payout for the other.

Make a home inventory

Texas also has an above average property crime rate. Make sure you have a current home inventory and photos of any valuables in case you need to file a theft claim. Keeping track of serial numbers is also helpful, both for your insurers and for the police — if they recover the item, the serial number can prove that it’s yours. You can use the Texas Department of Insurance’s Home Inventory Checklist to get started.

Am I required to have homeowners insurance in Texas?

No, unlike auto insurance, you are not technically obliged by law to have proof of homeowners insurance. However, lenders and banks will often require proof of homeowners insurance when it comes to getting a loan or mortgage.

What's an average homeowners insurance rate in Texas?

Texas homeowners insurance is pricey: On average, Texans pay almost twice as much to insure their homes as most Americans — think $2,000 per year versus $1,100. That said, your annual premium will vary depending on your home’s size, your assets, and your address. You can use our tool at the top of the page to find your best rates.

What is the cheapest homeowners insurance in Texas?

There isn’t one insurance company in Texas that offers the cheapest premiums across the board. Homeowners insurance premiums are highly personalized, and they vary significantly based on unique circumstances. Your gender, age, zip code and the size of your home are all factors that determine how much you’ll pay. As a result, we recommend shopping around for multiple quotes so you can get the best value.

Can you get flood insurance in Texas?

Flood insurance is available to all Texas homeowners. You’ll most likely get it through the National Flood Insurance Program, a government-backed service that provides extra coverage to homeowners in flood-prone areas, including Texas. If your home is at risk, ask your insurance agent to help get you set up; you can’t buy flood insurance directly from the NFIP, but your insurer can.

How much does flood insurance cost in Texas?

The average cost of flood insurance purchased through the NFIP for Texas is around $595 per year. However, this is not a fixed cost and a number of factors can cause that estimate to rise or plummet, from your home’s location (Laredo vs. Plano) to its construction (materials, age, etc.). As with any other insurance, how much you’ll pay will depend on your unique situation, which is why it’s important to get a quote and consider your options.

Can you get wildfire and tornado coverage in Texas?

Yes, you can get wildfire and tornado coverage in Texas. Specifically, Nationwide and USAA partner with the Wildfire Defense System (WDS) to protect homes in at-risk areas at no charge to the customer. However, unless you live close to Oklahoma, you probably don’t need it. Most insurance companies in Texas already cover fire and wind damage under basic homeowner insurance policies.

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