By Nicole Dieker

The Best Texas Homeowners Insurance

The best Texas homeowners insurance provides coverage for all the catastrophe-related damage from tornadoes, hurricanes, wildfires, and other natural events. Financial stability is also important because you don’t want an insurance provider that doesn’t have the funds to settle your claims. These are some of the things we looked for when comparing the top providers Lone Star State including overall customer satisfaction.

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

The 5 Best Homeowners Insurance Companies in Texas

Allstate - Best Texas Homeowners Insurance Companies

Best Companies For
Texas Homeowners Insurance

We were impressed right off the bat by Allstate's high financial strength and customer satisfaction ratings. This company holds an A+ from A.M. Best, meaning it’s financially stable enough to meet its current obligations (including paying out on your policy, if need be). Allstate also earned a ‘Very Good’ from Consumer Reports; customers find its claims process easy to navigate and attest that payments are delivered on time. Where Allstate really stands out, though, are its comprehensive policy options and discounts.

Along with the standard homeowners insurance — flood, fire, storm, etc. — Allstate lets you customize your policy with additional coverage. You can get add-ons to cover water damage or sewer backups, insure your valuables, and even guard against identity theft. Our other providers don’t offer nearly as many options for additional protection.

We especially loved Allstate’s long list of discounts. For example: You can bring your insurance cost down by installing a home security system or storm shutters, for having a hail-resistant roof, or for keeping a smoke-free household. There are deals on multi-line policies (like if you insure both your car and your home through Allstate), and you can even get a discount for setting up autopay. All told, there are plenty of ways to save on that pricey Texas premium.

State Farm

Best Companies For
Texas Homeowners Insurance
State Farm

State Farm is the most popular homeowners insurance provider in Texas, and for good reason: It has an A++ from A.M. Best — meaning rock-solid financial backing — and is labeled ‘Very Good’ by Consumer Reports. Customers say its claims process is both easy and efficient.

As for coverage, State Farm offers some of the same add-ons as Allstate. We were happy to see options like identity theft insurance and valuables coverage. The company also gives multi-line policy deals, as well as discounts for burglar, fire, and smoke alarms, and impact-resistant roofing. That said, State Farm only has about half the total number of discounts that Allstate does, so you may end up spending more on your policy.

We recommend getting a quote from State Farm to see how the prices stack up. It’s still one of the best homeowners insurance providers in Texas, with customer service, financial scores, and coverage that are hard to beat. Don’t forget to download State Farm’s app so you can use it to contact an agent or submit a claim. Our only complaint? The app doesn’t let you upload property damage photos — you’ll have to do that on State Farm’s website.

USAA - Best Texas Homeowners Insurance Companies

Best Companies For
Texas Homeowners Insurance

If you’re a USAA member — or if you’re eligible to become one, which usually means being associated with the military or part of a military family — consider USAA as your homeowners insurance provider. It carries an A++ rating from A.M. Best and was the only provider we considered that earned an “Excellent” ranking from Consumer Reports. That means that policyholders are exceptionally pleased with USAA’s claims process, speedy payments, and customer service.

The only qualm we have with USAA is that its website is pretty bare-bones. It doesn’t provide a lot of information on coverage and discounts, although we did see that you can save up to 10% for bundling homeowners and auto insurance. Our suggestion? Get in touch with an agent, find out if you’re eligible, and see if the coverage and premium are right for you. If they are, you’ll be able to take advantage of this association’s highly-ranked customer service and speedy claims process. USAA also has a mobile app, so you’ll be able to check in on your homeowners insurance at any time.

Liberty Mutual

Best Companies For
Texas Homeowners Insurance
Liberty Mutual

Ratings-wise, Liberty Mutual falls squarely in the middle of the pack. Consumer Reports gives it a “Very Good” for customer satisfaction, which is on par with State Farm and Allstate, and it has a slightly lower A rating from A.M. Best. This is still an “Excellent” financial score — but it’s not quite as rock-solid as our other top picks.

Along with all the standard coverage, Liberty Mutual offers nearly as many discounts as Allstate. It even has one unique opportunity: You can get a price cut for being affiliated with certain universities, companies, or government employers. The list is extensive — Texas alone has over 100 options — so we recommend starting the online quote process to see if your university or employer qualifies. Members of professional associations may be eligible for discounts as well.

Liberty Mutual has some standout resources, too. Its MasterThis online courses, which were developed in partnership with HowStuffWorks. These 15 to 20-minute classes explain the different types of coverage, and teach you how to both protect and increase the value of your home.

We’d suggest plugging your information into Liberty Mutual’s quote tool to see what discounts you qualify for — although it doesn’t actually offer quotes online; you’ll have to call and finish the conversation with an agent to get a final price.


Best Companies For
Texas Homeowners Insurance

Farmers Insurance is tied for ratings with Liberty Mutual: It carries an A from A.M. Best and a “Very Good” ranking from Consumer Reports. As for coverage and discounts, it’s on par with State Farm. That means additional coverage options for valuables and identity theft, and rate cuts for people with multi-line policies, smoke-free homes, and updated plumbing, electrical, or heating systems. All in all, these are decent, comprehensive insurance offerings.

That said, we found the Farmers Insurance website to be less helpful or informative than many of the other providers we reviewed. Its Learn From Experience section doesn’t cover the basics of homeowners insurance; instead, it offers articles about travel bucket lists and animal antics. (Learning that a moose once got stuck in a homeowner’s swingset is fun, but it won’t really help you make smart decisions about your insurance policy). Farmers’ mobile app also offers fewer features than Allstate or Liberty Mutual’s. You can’t upload photos to accompany a claim, and you can’t create a home inventory.

It’s worth getting a quote from Farmers if you don’t mind doing without some of the extras that our top-ranked providers can offer. If Farmers offers the best package and rates for your needs, you can work around some of its missing features — like by building your own home inventory instead of creating one via the app.

Guide to Texas Homeowners Insurance

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 — so if you deal with a sewer backup in February and then a windstorm hits in August, you’ll have to pay against both your primary deductible and your windstorm deductible.

Make a home inventory

Storms aren’t the only threats you have to worry about; 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 of your own. 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.

Keep a “go bag”

When a flood, tornado, or hurricane approaches, you’re going to want to get to safe ground fast — and you’ll want to have your insurance information along with you. This means agent names and contact numbers, as well as a copy of your policy and a recent home inventory. You should upload additional copies of this information to a cloud service like Google Drive or Dropbox, along with current photos of your home so you can easily prove which areas of your property were damaged in the event.

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.

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.

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