Best Home Insurance Rates in Austin, Texas

On average, your neighbors pay $206 a month.

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With a great job market and quality of life, Austin, Texas is now one of America’s most desirable places to live

Austin is one of the fastest-growing metro areas in the country. This is great news for the local economy. But it takes a toll on the cost of homes and homeowners insurance in the area. The median sales price for a single-family home in Austin is well above the national average.

Do you own a home in Austin, TX? Are you planning to move to Austin in the future? You should know about the price of home insurance and the factors that affect your rates.

Average Austin Home Insurance Rates

The rising popularity of the Austin causes an influx in housing prices. The cost of homeowners insurance can rise with the cost of a house. So how much does homeowners insurance cost in Austin?

Using data from close to 1,300 QuoteWizard users from Austin, we created this 'average' home:

  • 2147 square foot home built in 1996
  • One story
  • 3 bedrooms and 2.5 bathrooms
  • Deadbolt locks and fire extinguishers
  • Composite shingle roof

Using this average home, we got quotes from several insurance companies. Don’t forget, home insurance is unique to each person and their needs. Your house and insurance rates may vary. Below are the average rates for a homeowners insurance policy in Austin:

$206.41/mo.

$2,477.00 annually

The graph below shows the change in average Texas home insurance rates from 2011 to 2015, the most recent year the data is available. According to the III, Texas homeowners insurance rates increased from $1,578 in 2011 to $1,947 in 2015, a jump of $413 dollars, or 26.17 percent.

Texas average homeowners insurance rates

QuoteWizard helps consumers compare quotes from both national insurance companies and local agents. QuoteWizard can help you find affordable home insurance rates near Austin, Texas.

Last year, 1,300 people used QuoteWizard to compare compare home insurance quotes in Austin, TX from multiple companies.

Best Home Insurance Companies in Austin, TX

Most Popular Insurance Companies

According to QuoteWizard users, these are the most popular home insurance companies in Austin, TX:

  1. State Farm
  2. Farmers
  3. Allstate
  4. Geico
  5. Liberty Mutual
  6. Progressive
  7. Nationwide
  8. MetLife
  9. Safeco
  10. 21st Century
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Best Homeowners Insurance Companies

The above list shows Austin’s most popular home insurers according to our users. But popular doesn’t always mean best.

Our study on the Best Homeowners Insurance Companies focuses on top of the line companies. In no particular order, these companies stand out among the rest:

  1. Amica: Best Overall
  2. MetLife: Best for Bundling
  3. Allstate: Best for Local Agents
  4. Hartford: Best for Seniors
  5. State Farm: Best for Pet Owners
  6. Travelers: Best for Flexible Policies
  7. Nationwide: Best Replacement Coverage
  8. Farmers: Best for Eco-Friendly Homes
  9. Liberty Mutual: Best for Quick and Easy Quotes
  10. Auto Owners Insurance: Best Claims Experience
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Austin Home Insurance Rate Factors

Insurance underwriters use many factors to price your home insurance rates. Here are some of the most common factors that decide your monthly premium:

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  1. Your home's age. Older houses require more upkeep, and many aren’t up to modern building codes. That’s why homeowner’s insurance is more expensive for older homes. Luckily, the average home in Austin was built in 1996. This is relatively new – especially for a house. With Austin’s continued growth, many new houses are under construction.
  2. Natural disasters. Living in a disaster or hazard prone-area raises the cost of insurance. Texas and most southern states have a lot of hazards to be weary of. In Austin, the three most common disasters are floods, wildfires, and hailstorms.

    Flooding is the most serious hazard for the Austin area and is a threat across the entire city year-round. Many people think that flooding only happens near creeks and floodplains. But flooding can occur anywhere in Austin. Wildfires are possible as well. In 2011, nearly 500 Austin-area houses were destroyed by wildfire. Hailstorms are quite frequent as well.

    These natural disasters can cause considerable damage to your roof over time. A serious disaster can even destroy your entire house. Since insurance pays for most of these damages, companies charge more in disaster-prone areas.
  3. Proximity to emergency services. Living near a fire department means help arrives quickly in the event of a fire. Insurance companies factor your proximity to emergency services into your home insurance rates. Homeowners pay more for coverage in areas outside of fire station service zones. In 2016, Austin received the highest possible fire protection rating from the Insurance Services Office. ISO ratings directly affect residential and commercial insurance rates. Communities with a Class 1 rating benefit from lower insurance prices.
  4. Dogs and pets. Austin isn’t just popular among people. In 2014, Austin was named America’s best city for dogs. But beware, Austin dog owners: owning a pet can cause your home insurance rates to rise. In 2015, there were 15,000 liability claims filed by homeowners due to dog bites and injuries. Statistics like this are part of the reason insurers charge dog-owners more for liability coverage. Some breeds are seen as ‘high-risk’ and cost more to insure than other breeds.
  5. Your home’s replacement costs. Your insurance company assigns a replacement cost value to your house. You receive this amount if your home is destroyed by a covered incident like fire or a windstorm. As the name suggests, replacement cost is the monetary amount needed to rebuild your home.When gathering quotes for the ‘average’ Austin home, one insurance quoted a replacement cost of $243,000 for a home worth $355,000. Sometimes the replacement cost can leave homeowners with the short end of the stick. This is particularly risky for homebuyers with loans and mortgages.
  6. Credit history. Your credit history and credit score are big factors whenever you want to make any large purchase. Insurers use your credit score to see how likely you are to pay your monthly premium. It’s unfortunate, but if you have bad credit history you’re guaranteed to pay more for home insurance. Out of 100 large cities, Austin has the 30th best credit scores. Residents of Austin have an average credit score or 682. According Experian, that’s a good credit score.
  7. Previous claims. Filing claims often impacts your home insurance rates. There’s a reason so many homeowners file claims sparingly. But did you know that even claims filed by the previous owner can hurt your insurance rates? If your insurance company notices you file claims often, they may label you or your house as a high-risk. This results in higher rates or even a cancellation in coverage.
  8. Coverage amounts. The amount of coverage you need may raise the cost of your home insurance. More coverage means higher rates. You can buy a policy that covers the bare-essentials. But, this could mean extra out-of-pocket costs for you if something happens to your home. Your preferred coverage levels depends on you, your house, your belongings, your finances, and your risk-level.
  9. Home security and crime. A key factor in the cost of your home insurance rates is the crime rate in the area. Luckily, Austin is one of the safest cities in the U.S. In 2017, Austin reported just under 40,000 crimes. Of these 40,000 crimes, 36,405 were property crime. You have 1 in 26 chances of becoming a victim of property crime in Austin. Luckily, there are some safety measures residents can take to lower their premiums.

Types of Homeowners Insurance

There are many different types of home insurance, and Texas has state-specific home insurance forms. Listed below are the most common insurance types of insurance in the Texas-area:

  • HO3 – This is the most common policy in the nation, which includes coverage on an open peril basis. This means you are covered for all unforeseen damages, unless otherwise stated.
  • HOA - This is a basic insurance policy specific to Texas. These policies offer actual cash value. This means as your home and belongings get older and lose value, the lower the cash value goes.
  • HOA+ - This is a policy that expands off the HOA policy.
  • HOB -This policy provides the same coverage as an HO3, but provides more water damage coverage.

8 Ways to Save Money on Homeowners Insurance in Austin

Find below some of the tried and true ways to lower your homeowners insurance premium:

  1. Raise your deductibles. Having little to no out-of-pocket costs in the event of an incident is great. But raising your deductible helps you save on your monthly home premium. Please keep in mind there are many things that need to be factored in prior to raising ones deductible.
  2. Bundle. Insurance companies love customers that purchase more than one insurance policy with them. Just by bundling your home insurance with your auto insurance you can save anywhere between 10 and 20 percent on your insurance rates.
  3. Avoid claims. As mentioned earlier, filing multiple claims can designate you and your home as a high-risk. It’s not practical to think that you will never have to file a claim. But if you can pay for small issues out-of-pocket, this will keep your premium from increasing.
  4. Shop around. Shopping for insurance is a long and involved process. However, a great tactic to saving money on home insurance is shopping around. Each company uses different methods to price an insurance plan. If you don’t shop around you don’t know what else is out there or what savings you may be missing. Start saving money in Austin and compare homeowners quotes.
  5. Improve your credit score. Improving your credit score can help lower your rates. Austin residents have a decent average credit score. But you can always raise your score, and even a few points can help. An easy way you can improve your credit score is to always pay bills on-time.
  6. Add technology. Austin has a very low crime rate. Homeowners don’t necessarily have to worry about this property crime when it comes to insurance rates. But if Austin residents install high-tech security systems and alarms this can help drop their insurance rates even lower.
  7. Redo Your Roof. You homes roof protects your home from inclement weather. With Austin being prone to hailstorms and downpours, a high-quality roof is your first layer of protection from inclement weather. Check on your roof regularly to make sure it is in mint condition.
  8. Be a Senior. Homeowners over the age of 65 have more than just retirement to look forward to. Seniors also get a lot of discounts, and that includes discounts on home insurance. Austin has a growing popularity amongst millennials and seniors currently, with the current senior population at close to 11 percent.

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