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
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.
How We Found the Best Homeowners Insurance in Texas
With such steep premiums, it’s important to get homeowners insurance from the best providers in Texas. We found the five biggest providers in the state by market share and ranked them using the methodology we developed for our nationwide homeowners insurance review.
We checked their financial stability, looked at customer satisfaction ratings, and compared lists of discounts and additional coverage options. We even requested quotes online to compare rates, although only two of these insurers actually gave us prices up front; the others suggested we contact an agent directly. Of course, there isn’t one best provider for everyone. Price varies by company, so it’s important to compare quotes and find your best rates.
Allstate – Best Texas Homeowners Insurance Companies
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, and earned a ‘Very Good’ from Consumer Reports. 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, having a hail-resistant roof, keeping a smoke-free household, bundling policies, and setting up autopay.
State Farm is the most popular homeowners insurance provider in Texas, and for good reason: It has an A++ from A.M. Best 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 also like the fact that State Farm’s mobile app allows you to contact an agent, submit a claim or get roadside assistance. However, the app doesn’t let you upload property damage photos — you’ll have to do that on State Farm’s website.
If you’re a USAA member — or if you’re eligible to become one through a military association — 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. USAA also has a mobile app, so you’ll be able to check in on your homeowners insurance at any time.
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.
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. Texas has over 100 options — so we recommend starting the online quote process to see if your university or employer qualifies.
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.
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, policy bundling, smoke-free homes, and updated plumbing, electrical, or heating systems.
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 random articles that don’t all relate to insurance. Farmers’ mobile app also offers fewer features than Allstate or Liberty Mutual’s.
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.
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.
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.
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.
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.
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.
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.