Texas Farm Bureau offers the cheapest homeowners insurance in Austin, with rates averaging $121 a month. While low prices are important, your insurance company also needs to provide coverage that matches your needs and prompt, responsive service, especially if you ever have to file a claim. With this in mind, here’s our guide to the best home insurance companies in Austin.
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How much is homeowners insurance in Austin?
The average cost of home insurance in Austin is $2,536 a year, or $211 a month, based on our analysis of quotes for a typical house in every Austin ZIP code.
The average price of home insurance in Austin is 30% less than Texas’ state average of $302 a month but 45% higher than the national average of $146 a month. Home insurance costs about 6% more, on average, in Austin than it does down I-35 in San Antonio.
| Location | Monthly rate |
|---|---|
| U.S. national average | $146 |
| San Antonio | $200 |
| Austin | $211 |
| Texas state average | $302 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Insurance companies evaluate several factors to determine your rate. The most common include:
- The age, location and construction features of your home
- The estimated cost of rebuilding your home, in the event of a total loss
- Your neighborhood’s fire risks, exposure to severe weather and crime rate
- Your credit and insurance claims history
- Any discounts you may be eligible to receive
Since each insurance company weighs these factors differently and offers different discounts, you may qualify for a significantly lower rate with one company than you do with others. This is why it’s best to compare quotes from multiple companies when you shop.
Find cheap home insurance in Austin
Which company offers the cheapest home insurance in Austin?
Texas Farm Bureau offers the cheapest home insurance in Austin, with rates averaging $121 a month. The next-best rates are available from Chubb, $133 a month, Farmers, $171 a month and State Farm, $176 a month.
| Company | Monthly rate |
|---|---|
| Texas Farm Bureau | $121 |
| Chubb | $133 |
| Farmers | $171 |
| State Farm | $176 |
| Allstate | $200 |
| Travelers | $206 |
| City average | $211 |
| UPC Insurance | $253 |
| Nationwide | $279 |
| Amica Mutual | $286 |
| Progressive | $288 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Best home insurance companies in Austin
Amica Mutual and Chubb have the best customer service ratings among Austin home insurance companies, while Texas Farm Bureau is best for saving money. Farmers offers the most-flexible coverage options.
Best customer service ratings: Amica Mutual and Chubb
Amica Mutual has the highest satisfaction score from J.D. Power, while Chubb has the lowest complaint rate with the National Association of Insurance Commissioners.
J.D. Power’s Overall Customer Satisfaction Index Ranking is based on customer reviews ranking insurance companies on interaction, policy offerings, price, billing process, policy information and claims.
Amica Mutual’s ranking of 854, on a 1,000-point scale, is highest among all eligible home insurance companies in the nation. Among the remaining companies in our analysis, State Farm, 835, and Allstate, 829, received the next-best scores.
| Company | Satisfaction index ranking |
|---|---|
| Amica Mutual | 854 |
| State Farm | 835 |
| Allstate | 829 |
| Segment average | 825 |
| Progressive | 821 |
| Farmers | 813 |
| Nationwide | 812 |
| Chubb | 801 |
| Travelers | 800 |
| Texas Farm Bureau | Not included |
| UPC Insurance | Not included |
| Source: J.D. Power 2021 U.S. Home Insurance Study | |
The NAIC Complaint Index compares insurance companies by confirmed complaints, which are complaints that lead to a finding of fault. The National Complaint Index is 1.0. A company with a 2.0 Complaint Index rating has twice as many confirmed complaints as expected for its size, while one with a 0.5 rating has half as many.
Among the companies in our analysis, Chubb has the lowest possible rating, 0.0. The next-best ratings belong to Texas Farm Bureau, 0.02, Farmers, 0.04, and State Farm, 0.08.
| Company | Complaint Index rating |
|---|---|
| Chubb | 0.0 |
| Texas Farm Bureau | 0.02 |
| Farmers | 0.04 |
| State Farm | 0.08 |
| Amica Mutual | 0.12 |
| Travelers | 0.13 |
| Progressive | 0.16 |
| Nationwide | 0.59 |
| National Complaint Index | 1.0 |
| Allstate | 1.23 |
| UPC Insurance | 10.59 |
| Source: National Association of Insurance Commissioners, 2021 data | |
Best for saving money: Texas Farm Bureau
With the lowest average prices in the city, Texas Farm Bureau is particularly well suited for those seeking basic homeowners insurance at an affordable price. The company’s strong Complaint Index rating shows its low rates don’t interfere with its ability to meet customer expectations.
However, low prices come with some limitations. For example, Texas Farm Bureau only offers named-peril coverage, which generally provides less coverage than an all-risks policy. While the list of named perils includes most common causes of damage, including fire, theft, wind, hail, burst pipes and falling objects, some uncommon events may not be covered.
Best for flexibility: Farmers
With coverage packages offered in three tiers, Standard, Enhanced and Premier, Farmers offers the most flexibility for customizing your coverage. For example, if you’ve just purchased your first home, a lower-cost Standard package may meet all your needs. On the other hand, the Premier package may be a better fit if you need higher limits for your personal property or more protection for your home.
Optional endorsements to cover water backups or damaged sewer lines allow you to further tailor your coverage to your specific needs. Since there are so many choices, it’s best to work with your agent to make sure you understand which policy options and endorsements work best for you.
Compare home insurance quotes from top companies
Home insurance for Austin’s fire and flood risks
The most common natural disasters in Austin include wildland fires, which are typically covered by homeowners insurance, and floods, which are typically excluded.
Austin’s wildfire risks
Austin ranks fifth among U.S. metro areas for homes with an elevated wildland fire risk, according to an analysis by Corelogic, and the area’s greatest fire risks are in and near Hill Country in west Travis County.
While standard homeowners insurance covers wildland fires, it’s important to make sure your policy’s dwelling limit matches your home’s replacement cost value. If a wildland fire destroys your home and the cost of rebuilding it exceeds your policy’s dwelling limit, the shortfall comes out of your pocket.
Austin’s flood risks
Austin does not receive direct hits from hurricanes, but powerful thunderstorms and other extreme rain events can cause flash flooding in many areas across the city. Although standard home insurance excludes flood damage, you can purchase flood insurance separately to protect your home and belongings from this specific peril.
If you apply for a mortgage in a high-risk flood zone, your lender is likely to require you to purchase flood insurance. If you live outside a high-risk zone and/or don’t have a mortgage, you can purchase flood insurance on an optional basis.
Most flood insurance is purchased through the government-backed National Flood Insurance Program (NFIP), but it’s also available from private companies.
The average cost of NFIP flood insurance in Travis County is $747 a year, or $62 a month. Rates are usually cheaper in low- and moderate-risk areas than they are in high-risk flood zones.
The NFIP is managed by the Federal Emergency Management Agency (FEMA), which also maps the flood risks in most communities across the nation. If you’re not sure of your home’s flood risk, or the flood risk of a home you’d like to purchase, you can look it up online by visiting FEMA’s Flood Map Service Center.
Frequently asked questions about home insurance in Austin
How much is home insurance in Austin?
The average price of home insurance for a typical house in Austin is $2,536 a year, or $211 a month.
Why are home insurance prices so high in Austin?
The rising cost of rebuilding homes is contributing to higher home insurance prices in cities such as Austin. When the cost of rebuilding homes increases, insurance customers need to raise their dwelling limits, which, in turn, makes premiums go up. A rise in insurance claims is also contributing to higher prices.
Who is the biggest home insurer in Texas?
State Farm is the biggest home insurer in Texas, according to the National Association of Insurance Commissioners. Allstate and USAA are the state’s next-largest home insurance companies, based on direct premiums written.
Methodology
We obtained quotes for a standard HO-3 homeowners insurance policy on a typical home in every ZIP code in Austin. Unless otherwise noted, standard policies include the following limits and deductibles:
- Dwelling coverage: $275,000
- Other structures: $27,500
- Personal property: $137,500
- Loss of use: $55,000
- Liability: $100,000
- Medical payments: $5,000
Sources:
Home insurance by city
- Houston
- Dallas
- Austin
- San Antonio
- El Paso
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