When it comes to the variety and frequency of natural disasters, Texas ranks first in the nation. The state has it all—flooding, tornados, hurricanes, wildfires, sinkholes, and hailstorms. Homeowners insurance is the first defense against protecting your home and its contents, and for residents of Texas, Allstate offers the best option. In our research, Allstate distinguished itself for its affordability, extensive policy offerings, and discounts that most homeowners can qualify for.
To select the best homeowners insurance companies in Texas, we looked at the largest providers by market share and compared their prices, customer service, financial strength, and offerings using data from their websites, J.D. Power, AM Best, Moody’s, and S&P.
The 4 Best Homeowners Insurance Companies in Texas
|Allstate||USAA||State Farm||Amica Mutual Insurance|
|Our review||Our review||Our review||Our review|
|AM Best Financial Strength Rating||A+||A++||A++||A+|
|J.D. Power 2019 Overall Customer Satisfaction Score||814/1000||878/1000||831/1000||845/1000|
|Online Quote Tool||✓||✓||✓||✓|
Average Cost of Homeowners Insurance in Texas
Homeowners insurance premiums in Texas surpass the national average of $1,211 by a hefty $608. The sky-high prices come from the higher number of claims filed in the state due to its numerous natural disasters. While nature’s whims are just one factor, other determiners like your home’s proximity to a flood zone, location, size, age, and surrounding crime rates also play a role.
Home Insurance Add-Ons That Will Further Protect You
Flood insurance isn’t a requirement in Texas, though if you’re in a high-risk flood zone, your mortgage lender requires it before you can purchase the home. Floods occur more often on the state’s coast and Flash Flood Alley but can happen outside designated flood zones as well. The average policy costs $700 per year and is provided separately from your homeowners insurance through the National Flood Insurance Program.
Additionally, it’s not a bad idea to purchase windstorm insurance if you’re near the coast. Most policies offer this as an add-on or you can buy it through the Texas Windstorm Insurance Association.
Helpful Resources for Texas Homeowners
The Texas Department of Insurance has home insurance guides and tips to help residents figure out the best type of coverage for them, understand their rates, create an inventory checklist, and much more. The Insurance Council of Texas also breaks down what’s covered and excluded from homeowners, windstorm, and flood insurance so that you can make sure you have the right coverage for your needs.
It’s easy to get the quote process started online with most homeowners insurance companies, but you can usually also do so over the phone or at a local branch. Working with an insurance broker is also a possibility and is free for you since they work on commission. The homeowners insurance company will come out and inspect your home before approving your policy.
To choose the top four homeowners insurance companies in Texas, we took the biggest 18 providers by market share and then evaluated them based on J.D. Power and BBB ratings to gauge customer service and overall quality. We also looked at a company’s financial strength using AM Best, Moody’s, and S&P ratings to judge if it would be capable of paying out claims even after large-scale natural disasters.
We worked with Quadrant Information Services to provide data on the home insurance rates, considering the company, state, and age of home. Quadrant uses rate data that insurers are required to file with the state Department of Insurance to make the information available. The rates are based on a sample profile created by Reviews.com for comparative purposes.
Best Texas Homeowners Insurance Companies
- Dedicated local service agents
- Easy-to-get discounts
- Average customer service
With Allstate almost all Texas homeowners can save money on their policies. The company offers discounts of 5% with automatic payment, 25% when bundling home and auto policies, and 20% when switching to Allstate without a recent home insurance claim.
If you have to file a claim, you can do so online or have your assigned local service agent help you. Despite the personalized service, Allstate’s overall customer service still ranks as average, according to the most recent J.D. Power home insurance study. It’s also the lowest rating of the four companies reviewed.
- Highest J.D. Power rating
- Offerings catered to military members
- Unique coverage
- Only available to present and past military members and their families
USAA would be our top pick in Texas if it wasn’t only available to military personnel, veterans, and their families. On J.D. Power’s 2019 Home Insurance Study, USAA blew 23 other homeowners insurance companies out of the water by scoring a perfect 5 stars in all categories and earning the highest customer satisfaction score of all.
Its unique coverage offerings, such as the replacement of lost or stolen military uniforms for active military people, are a hit with members. Its user-friendly mobile app is also well-loved for letting customers swiftly file and handle claims.
- Top AM Best rating
- Robust mobile app
- Online quotes unavailable for mobile or manufactured homes
State Farm is a widely known and well-respected Insurance company in Texas. With an excellent financial rating from AM Best and an above-average customer service rating with J.D. Power, it’s equipped to handle claims of all sizes with little frustration to homeowners.
The company makes it simple to start a quote online for your house unless you have a mobile or manufactured home. Those who do can only request quotes through a local State Farm agent. On the plus side, once you have your policy, the robust mobile app allows you to manage almost all aspects of your homeowners insurance.
- Elite J.D. Power rating
- Up to 20% savings when bundling home and car insurance
- High premiums
Amica may be the smallest company on this list, but it makes up for its small size by excelling in almost every other area. It’s a J.D. Power’s Award recipient, scoring 5 out of 5 stars on policy offerings, claims handling, billing and process policy information, and interaction.
The only place it received a less-than-perfect rating was on price. At $3,518, it’s one of the most expensive homeowners insurance companies in Texas that we compared. But you can save up to 20% if you insure your home and car together.
The Cheapest Homeowners Insurance Companies in Texas
|Largest Companies by Market Share in Texas||Average Annual Premium|
|Texas Farm Bureau Mut Ins Co||$533.00|
|First Community Ins Co||$555.00|
|United Prop & Cas Ins Co||$934.00|
|Universal N Amer Ins Co HO-B||$2,018.00|
|Armed Forces Ins Exch||$2,185.00|
|Texas Fair Plan Assn||$4,754.00|
|Age of Home (years)||Sample Annual Premium|
|Average Across Ages||$2,351|
Top 3 Cheapest Homeowners Insurance Companies in Texas
- Texas Farm Bureau Insurance – $533
- First Community Insurance – $555
- United Property & Casualty Insurance – $934
Top 3 Most Expensive Homeowners Insurance Companies in Texas
- Texas Fair Plan Association – $4,754
- Foremost Insurance – $4,309
- Amica – $3,518
Coming in as the least expensive homeowners insurance companies in Texas are Texas Farm Bureau Insurance, First Community Insurance, and United Property & Casualty Insurance. On the other end of the spectrum, Texas Fair Plan Association, Foremost Insurance, and Amica have the highest premiums of the companies we surveyed.
All rates are based on general profiles, so it’s best to ask for individualized quotes to determine which policies offer the best value for the coverage you want.
Homeowners Insurance in Texas FAQ
Is homeowners insurance required in Texas?
Texas laws don’t require homeowner’s insurance, but your lender requires it if you still have a mortgage.
What is the cheapest homeowners insurance in Texas?
Texas Farm Bureau Insurance has the cheapest homeowners insurance in Texas, though prices for your home may be higher or lower based on several circumstantial factors. You can discover which company offers you the best price and value by asking for and comparing personalized quotes from various companies.