Homeowners Insurance in Texas

Your neighbors pay as little as $185 a month.

Best Cheap Homeowners Insurance Companies in Texas

Texas has some of the highest homeowners insurance rates in the country, with an average monthly rate of $271. Reasons for this include above-average hailstorms, hurricane activity in many parts of the state as well as an abnormal amount of wildfires. We found that Texas Farm Bureau, USAA and Chubb have the cheapest home insurance rates and some of the best policies.

Cheapest home insurance rates in Texas by company

Texas Farm Bureau comes in with the cheapest home insurance rate in Texas at $185 a month. USAA and Chubb are close behind, while Nationwide tops out at an average $367 a month.

 

Get affordable insurance for your house in Texas

Cost of homeowners insurance in Texas by city

Cities in northern and western Texas tend to see higher homeowners insurance rates than the rest of the state. This is in part due to extreme weather that tends to occur in those regions. Fort Worth has the highest average rate, $320 a month, while El Paso has the lowest, $156.

Home insurance rates in Texas, by city
City Monthly rate Difference from state average
Arlington $319 18%
Austin $195 -28%
Corpus Christi $312 15%
Dallas $316 17%
El Paso $156 -42%
Fort Worth $320 18%
Houston $254 -6%
Laredo $185 -32%
Plano $318 17%
San Antonio $185 -32%
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Best home insurance companies in Texas

We looked at policies, quotes and customer service rankings from the best home insurance companies in Texas. Based on what we found, the leading home insurance providers in Texas are:

  • Best customer service: Amica
  • Cheapest rates: Texas Farm Bureau
  • Best for military: USAA

Best customer service: Amica

Amica has the best combination of low complaint rates and high customer satisfaction among the companies in Texas we researched. The insurer received a low 0.04 in the 2020 NAIC Complaint Index. The average national Complaint Index is 1.0. The lower an insurer’s Complaint Index, the better its performance.

Amica also has a high customer satisfaction rating. In J.D. Power’s most recent home insurance study, Amica received a rating of 853 out of 1,000. This puts the company well above the national rating of 823.

Factors such as complaint rating and customer satisfaction are important to consider when looking for a home insurance policy. While you should consider the prices of policies, the quality of coverage and service you’ll get once you pay your premium is crucial. Looking at an insurance company’s history of claim complaints and customer satisfaction gives a solid reflection of how you’ll likely be treated.

Cheapest rates: Texas Farm Bureau

Texas Farm Bureau has an average annual home insurance rate of $2,226, or $185 a month. This puts the insurer at 31% below the average home insurance premium in Texas of $3,255, or $271 a month.

We found that Texas has the second highest home insurance rates in the country, behind only Oklahoma. This makes finding an affordable quote important. To give you an idea of how Texas Farm Bureau home insurance rates stack up, the table below shows the company’s average monthly premiums across 10 major cities in Texas:

 

Best home insurance for current and retired military: USAA

USAA is considered the cream of the crop of insurance companies. It has an average monthly home insurance rate of $186 in Texas, well below the state average of $271, and its customer satisfaction rating is 889 out of 1,000. It's the best home insurance for military members and their families.

USAA isn’t part of J.D. Power’s overall customer satisfaction ranking because USAA is only available to active and veteran military personnel and their families. USAA offers many home insurance benefits tailor-made for those in the military, including:

  • Military uniform coverage in the event of loss.
  • Worldwide property insurance coverage, including war zones, which are typically excluded from standard home insurance.

Homeowners insurance options in Texas

The top home insurance companies in Texas are largely national providers, plus a few regional ones. The table below shows the most popular home insurers in Texas, along with their market share percentage, Complaint Index and customer satisfaction ratings when available.

Company Market share Complaint index(lower is better) Customer satisfaction rating
Allstate 13% 3.5% 829
Amica N/A 0.04% 853
ASI N/A 0.2% N/A
Chubb 2.1% 0.01% 778
Farmers 10% 0.18% 814
Homeowners of America N/A 0.06% N/A
Nationwide 2% 0.12% 808
State Farm 18% 0.7% 829
Texas Farm Bureau 2.5% 0.03% N/A
USAA 10% 0.8% 889

National and regional providers have different advantages. National home insurance companies tend to have great financial stability and are better known. Regional home insurers, on the other hand, often have a better idea and understanding of their policyholders’ localized coverage needs.

Average cost of homeowners insurance in Texas

The average annual home insurance rate in Texas is $3,255. This puts the state 88% over the national average home insurance cost of $1,726 a year

Cost of home insurance in Texas

  Texas U.S.
Yearly rate $3,255 $1,726
Monthly rate $271 $144
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Why is homeowners insurance in Texas so expensive?

Texas home insurance rates are so high largely due to the extreme weather conditions that homeowners have to deal with. Hail, hurricanes and wildfires are consistent threats to Texas homes, and home insurance providers increase rates accordingly to cover the risk.

Hurricanes

Since the 1850s, Texas has seen at least one hurricane on average every three years. III data shows that Texas came in fifth for reconstruction cost value for at-risk homes. Home insurance companies servicing the state of Texas are all too familiar with what hurricanes can do there, and calculate their rates accordingly.

You should know that there isn’t such a thing as “hurricane insurance”. For effective hurricane coverage, you need to have a combination of standard homeowners insurance and flood insurance. In addition, the state of Texas doesn’t require windstorm insurance, but your mortgage lender probably will require it as part of their lending agreement.

In the event of a category 1 or higher hurricane making landfall, a hurricane deductible may be activated. This deductible is what you’re required to pay on top of your standard homeowners insurance deductible before your insurer covers the damage. The average hurricane deductible in Texas can be 5% or more of your homeowner insurance policy’s dwelling coverage limit.

Hail

Texas, and particularly the northern part of the state, sees plenty of hail storms. According to the Insurance Information Institute, Texas had 601 major hail storms in 2020. This accounted for 13% of the hail events in the U.S. that year.

Hail can significantly damage the structure of your home. A major hail storm can wreck a roof, which costs upwards of $15,000 to replace. Texas homeowners see high home insurance costs due to this. Hail damage is usually covered by standard home insurance, but make sure your policy limits are high enough.

Similar to hurricanes, a windstorm deductible can apply to wind and hail damage due to any sort of storm.

Wildfires

Wildfires are a real risk in the state. In 2020, Texas experienced 6,713 wildfires that destroyed 256,826 acres. You can add wildfires to the list of risks that home insurance providers consider when calculating your rate.

Texas doesn’t require homeowners to carry wildfire insurance, but this is very different from you having sufficient coverage should one occur. Make sure to look over your homeowners policy and understand what’s covered in the event of a wildfire. If your coverage is insufficient and your current insurer doesn’t offer options to change it, take this opportunity to compare quotes from multiple home insurance providers. You may be able to get the wildfire coverage you need at a better price.

Methodology

We used Quadrant Information Services to generate thousands of home insurance quotes from every ZIP code in Texas. Our sample home used to generate quotes was built in 2000 and used the following policy specifications:

  • Dwelling coverage: $275,000
  • Personal property coverage: 50% of dwelling ($137,500)
  • Other structures coverage: 10% of dwelling ($27,500)
  • Loss of use coverage: 20% of dwelling ($55,000)
  • Liability coverage: $100,000

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