On average, your neighbors pay $166 a month.See Your Rates
Texas embodies the saying “Everything’s Bigger in Texas.” it's the largest state in the continental United States, and has the second largest population. The Lone Star State is associated with the cowboy. And it's a unique cultural mix of Southern Dixie, Western, and Mexican influences.
Texas also has many the largest metropolitan areas in the country, namely Houston, San Antonio, Dallas, and Austin. Yes, everything's bigger in Texas, including the home insurance hazards.
How much does home insurance in Texas cost? The average cost of homeowners insurance in Texas is much higher than the rest of the US. The average cost of home insurance in Texas was $1,991. The national average price was $1,173. Only Florida has higher average home rates than Texas.
|Texas Annual Average||$1,837||$1,947||$1,991|
|Texas Price Per Month||$153||$162||$166|
|US Annual Average||$1,096||$1,132||$1,173|
|US Cost Per Month||$91||$94||$97|
|Source: Facts + Statistics: Homeowners insurance|
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.
Choosing a home insurance company in Texas should be easier. Actually, it’s already easy. The key to finding the best rates is to compare home insurance quotes in Texas from multiple companies.
Last year, these were the most common home insurance companies reported by QuoteWizard users living in the state of Texas. Out of the 77,358 Texas homeowners that used QuoteWizard to request insurance quotes last year, 4,430 had no home insurance.
The above list shows the most popular home insurers in Texas 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:
|Rank||Company||Financial Rating||Market Share|
|1||Farmers Insurance Group||A||11.8%|
|7||Texas Farm Bureau Insurance||A_||2.8%|
|8||ARX Holding Co.||NR||2.4%|
Homeowners insurance rates are different for everyone. Your exact rate depends on multiple factors. Some depend on your personal details, while others impact all of Texas.
Home insurance rates vary quite a bit depending on house types. Material quality, construction styles, and finishes are different for every house.
Two deciding factors are a home’s age and roof. An old house usually comes with higher premiums. Why? Age makes a home more likely to have faulty issues that require major repairs. In other words, old homes are more susceptible to expensive home insurance claims.
Also, a well-maintained roof with region appropriate materials can be the difference maker between serious damage or little to no damage after inclement weather. So, your roof type and condition are a huge factor in your insurance premiums.
Lastly, your home’s replacement cost is a big factor. This is the dollar amount that it would cost to rebuild your home from the ground up. A high replacement cost, naturally, leads to higher premiums. You can get a rough estimate of your home’s replacement cost with some quick napkin math.
Important note: replacement cost does not directly correlate with a home’s market value. It’s possible that a $500,000 house in Austin has a lower replacement cost than a $200,000 house in Laredo, for example.
Your home’s replacement cost depends on these features:
It’s simple. Filing claims causes your rates to rise. That’s especially true if you file more than one claim within a few years. Claims usually stay on your record for five to seven years. Because of this, many homeowners do their best to avoid unnecessary claims.
Owning certain dog breeds or exotic pets can make it difficult to purchase home insurance. At best, you’ll face higher rates. At worst, you’ll have trouble finding a company to insure you. One study found that 44 percent of Texas homes have a dog, the ninth highest amount in the country.
A policy with standard coverage is going to cost less than a comprehensive policy loaded with all the options. A home insurance policy comes with plenty of coverage options. If you want extra coverage like high liability levels, riders for your belongings, or an umbrella policy, you’re going to pay more.
Did you know that home insurance costs more for people with bad credit? It’s a controversial practice, but it’s reality. Unfortunately, Texas has the sixth worst average credit score in America.
Texas is more prone to natural disasters than any other state. In fact, The Lonestar State has experienced the most natural disasters in the country recent history. The result? Sky high insurance rates.
Specifically, Hurricane Harvey led to 354,000 home insurance claims. And insurers paid out an estimated $15.7 billion after Harvey. Where does that money for these claims come from? Unfortunately, it comes from policyholders.
It’s not just hurricanes. Texas experiences the whole gamut of natural disasters. That includes:
No matter what you do, every Texan will pay higher rates be because of the weather-related insurance risk. But there are things you can do to make your higher insurance rates relatively reasonable. Securing your home can prevent damages before they happen:
If you do your part to protect your home from Texas’ bad weather, you may qualify for lower rates.
Living in an area with a high property crime rate makes home insurance more expensive. In 2017, Texas had a property crime rate of 2,562 per 100,000. That’s the 21st worst rate in the country.
But Texas is a big state, and not all areas have the same property crime rates. Here’s an example: in Plano, there are 19.15 property crimes per 1,000 residents. San Antonio, on the other hand, has 52.43 property crimes per 1,000 residents.
Like bad weather, there are steps you can take to avoid property crime. That includes installing security cameras, alarms, deadbolt locks, burglar bars, and more.
Homeowners have many policy options when shopping for home insurance. In Texas, homeowners can choose from the following insurance types:
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