Best Home Insurance Rates In Texas

On average, your neighbors pay $166 a month.

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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.

Average Texas Home Insurance Rates

How much is home insurance in Texas? 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 Average Annual Home Insurance Rates
  2013 2014 2015
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
National Rank 2 2 2

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

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.

Best Texas Home Insurance 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.

  1. Allstate
  2. Farmers
  3. Geico
  4. Progressive
  5. Liberty Mutual
  6. USAA
  7. Nationwide
  8. AAA
  9. Safeco
  10. 21st Century
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Why contact every company in Texas to get a homeowners quote? Save time and money with QuoteWizard. Just answer a few questions about your home and desired coverage to get competing quotes in minutes.

Texas Home Insurance Company Market Share

Source: Insurance Information Institute
Rank Company Direct Premiums Written (in thousands) Market Share
1 Farmers Insurance Group of Cos. $851,139 11.8%
2 Allstate $841,027 11.6%
3 USAA Insurance Group $625,471 8.7%
4 Liberty Mutual $566,059 7.8%
5 Travelers Companies Inc. $271,938 3.8%
6 Nationwide Mutual Group $234,812 3.3%
7 Texas Farm Bureau Insurance Co. $204,699 2.8%
8 ARX Holding Co. $172,032 2.4%
9 Chubb Corp. $136,570 1.9%

Financial Strength Ratings of Texas Home Insurers

Source: A.M. Best (Ratings as of 8/5/2015)

  • Farmers Insurance Group of Cos.: A
  • Allstate: A+
  • USAA Insurance Group: A++
  • Liberty Mutual: A
  • Travelers Companies Inc.: A++
  • Nationwide Mutual Group: A+
  • Texas Farm Bureau Insurance Co.: A-
  • ARX Holding Co.: NR
  • Chubb Corp: A++
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Rating Guide

Texas Property & Casualty* Insurance Company Market Share

Source: National Association of Insurance Commissioners
Rank Company Direct Premiums Written (in thousands) Market Share
1 Farmers Insurance Group of Cos. $2,921,105 6.6%
2 Allstate $2,748,588 6.2%
3 Liberty Mutual $2,106,618 4.7%
4 United Service Automobile Assurance Co. $1,904,819 4.3%
5 American International Group $1,697,215 3.8%
6 Progressive Group $1,561,146 3.5%
7 Travelers Companies Inc. $1,528,920 3.4%
8 Geico $1,519,233 3.4%
9 Nationwide Mutual Group $1,306,979 2.9%
*Represents both home and auto insurance

Home Insurance Rate Factors

Many factors come into play when insurance companies calculate the cost of home insurance. Some, like the age of your home, are within your control. Others, like crime rates or natural disasters, are beyond your control. Here are some factors that affect the cost of home insurance in Texas.

Average Home Listing Prices

Home prices can greatly affect the cost of insurance in any given state. A higher average home price usually means higher premiums in that state. For Texas, the average listing price is $297,136 as of July 2015, only slightly higher than the national average of $284,748.

Average Burglary Rates

Burglary is a serious property crime. States with more burglaries have higher average home insurance rates. The reason is that people in these states file more claims. The burglary rate in Texas was 721.8 per 100,000 people in 2013. The national average was 610.0 per 100,000.

States with more law enforcement per capita tend to be safer than states with fewer police officers. In Texas, there are 30.1 officers per 100,000 total people. This is only slightly lower than the national median of 32 per 100,000.

Home Insurance Hazards

Texas has many extreme homeowners insurance hazards, as it experiences tornadoes and hurricanes at unprecedented rates. Because Texas is so huge, its climate and geography vary greatly. Some parts have weather typical of The South. Other parts are closer to the Great Plains. And further west, the climate is more typical of the Southwest.

Hot, humid summers: Texas is the fourth hottest state on average, and summers are no exception. Average high temperatures hit 80 degrees by April, and stay at least that high until October. While all of summer can be incredibly hot, on average July is the hottest month throughout Texas. To the north, the Dallas-Ft. Worth area has an average July high of 96 degrees. Further south, Austin and San Antonio also both average 96 degrees for their July high. These trends continue in East Texas and the Gulf Coast regions, though West Texas can be even hotter. At Big Bend Park, for example, the average July high is 101 degrees.

Humidity also contributes to the famously hot Texas summers. In August, the average humidity is 83%. This high humidity can damage your home when moisture is trapped inside. This can lead to mold and mildew development.

Thunderstorms: Texas is no stranger to thunderstorms, but rainfall steadily increases moving from west to east within the state. Central Texas averages 75 days of rain per year. For instance, Austin averages 88 days of rain per year, and about 34 inches annually. In East Texas, they experience much more rain. For example, at the Toledo Bend Reservoir Dam, the average rainfall is 115 days per year, and about 55 inches of rain. The Gulf Coast region is similar to East Texas. Houston averages 104 days of rain a year, and 50 inches annually. West Texas is the driest region, with El Paso receiving only 53 days of rain per year, and about 10 inches annually.

Overall, Texas experiences an average of about 50 days per year with some thunderstorm activity. Thunderstorms are most common in northern and eastern portions of the state, and are most prevalent during spring and summer. Houston is ranks sixth for most days per year of heavy rain, at 15.1 days. Houston is also ranks sixth most days per year of thunderstorm activity, with 60.9 days. Thunderstorms bring about heavy rains, strong winds, lightning, and sometimes hail. They can also create tornadoes. Extremely frequent thunderstorms such as these create a big risk for flooding.

Texas has the largest annual number of flood-related deaths of any state. And the state sees some level of flooding almost every year. It's important to note that the only way to obtain flood insurance is through the National Flood Insurance Program. Learn more about the NFIP Homepage.

Tornadoes: Tornado season runs from April to June, but tornadoes can occur in any month. While the entire state is vulnerable, the northern and eastern parts areas are most likely to be hit. That's because they’re located in Tornado Alley. Texas averages 137 tornadoes per year, the most of any state. Accounting for its size, Texas sees almost three times as many twisters as the #2 state, Florida. Even weak or mild tornadoes can cause major property damage. So be sure to discuss this concern with your insurance agent.

Hurricanes: Texas’ location on the Gulf Coast ensures periodic hurricanes. Texas has received a direct hit from 64 hurricanes. Of these, 19 were “major,” meaning category 3 or more. Major hurricanes are most likely to occur in August or September.

Hurricane Ike, the costliest natural disaster in the state’s history, hit Texas on September 13, 2008. Ike cost billions of dollars in damage, forced millions to evacuate, left millions more without power, damaged Houston, and nearly destroyed Galveston Bay. Many areas were flooded, and in some places, the water was up to 12 feet high. Hurricanes are a hazard to keep in mind.

Texas Office of the Insurance Commissioner

Insurance Commissioner:
David Mattax
Insurance Hotline:
(800) 252 -- 3439
Office Hours:
Monday - Friday
8:00 am to 5:00 pm
File a Consumer Insurance Complaint
Complaint Page

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