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
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.

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.

Most Popular 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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Best Homeowners Insurance Companies in Texas

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:

  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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Texas Home Insurance Company Market Share

Source: Insurance Information Institute
Rank Company Financial Rating Market Share
1 Farmers Insurance Group A 11.8%
2 Allstate A+ 11.6%
3 USAA Insurance A++ 8.7%
4 Liberty Mutual A 7.8%
5 Travelers Companies A++ 3.8%
6 Nationwide Mutual A+ 3.3%
7 Texas Farm Bureau Insurance A_ 2.8%
8 ARX Holding Co. NR 2.4%
9 Chubb Corp. A++ 1.9%
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Texas Homeowners Insurance Rate Factors

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.

Your Personal Rate Factors

Your House

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:

  • General shape and style
  • Exterior features and finishes
  • Interior features and finishes

Claims History

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.

Pets

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.

Coverage

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.

Credit Score

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 Rate Factors

Weather

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:

  • Windstorms
  • Hail
  • Floods
  • Tornados
  • Wild fires
  • Thunderstorms

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:

  • Install storm windows
  • Trim nearby trees to avoid damage from falling branches
  • Buy flood insurance
  • Maintain your roof
  • Clear your gutters
  • Check for foundation cracks

If you do your part to protect your home from Texas’ bad weather, you may qualify for lower rates.

Property Crime

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.

Types of Home Insurance Policies

Homeowners have many policy options when shopping for home insurance. In Texas, homeowners can choose from the following insurance types:

  • HO-1: Basic insurance policy. Covers normal damages.
  • HO-2: Broad homeowners insurance. Covers everything in HO-1 plus falling objects and damages to AC units, pipes, and other household systems.
  • HO-3: Covers damage from all perils unless specifically excluded. Also covers unattached structures.
  • HO-5: Comprehensive policy like HO-3, but comes with expanded coverage and less limitations for property claims. This is considered a premium policy.
  • HO-6: Covers possessions and provides liability for condo owners.
  • HO-7: Similar coverage as HO-3, but for mobile homes.
  • HO-8: Designed specifically for older homes. This policy provides similar coverage as HO-3. Customizable to unique needs of older homes.

Texas Department of Insurance

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

Sources:

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