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Texas homeowners pay an average of $251 per month to insure their homes. Lone Star State homeowners looking to save on homeowners insurance may want to check out Liberty Mutual or Mercury, which offer the lowest homeowners insurance quotes in the state.
With Texas homes exposed to many different natural disasters, like hurricanes, floods, and tornadoes, having the right types of coverage can make a huge difference if your home experiences major damage. Of course, homeowners insurance can also step in to solve other issues not caused by weather events.
Keep reading to learn more about the best home insurance in Texas.
Table of contents
- Best home insurance companies in Texas
- How much is homeowners insurance in Texas?
- What are the cheapest home insurance companies in Texas?
- How much homeowners insurance do you need in Texas?
- What are some of the biggest risks when owning a home in Texas?
- How can you save money on homeowners insurance in Texas?
- Average home replacement cost in Texas
- Texas homeowners insurance FAQs
Best home insurance companies in Texas
Many quality home insurance companies serve homeowners in Texas, and which home insurance company is best for you will depend on your unique needs, home, and budget. Here are some of the best insurance companies in Texas, based on Insurify’s analysis of recent home insurance quote data.
Best insurer for cheap rates: Liberty Mutual
Average monthly premium: $170
Liberty Mutual offers a variety of insurance types, which can make it easy to tackle all your insurance needs in one place. It also offers a lot of online tools that make it easy to manage policies digitally. In Insurify’s data analysis, Liberty Mutual offered the lowest average monthly rates of all insurers we evaluated.
Save by qualifying for four different homeowners insurance discounts, such as paperless and multi-policy discounts
Save more by making certain home upgrades, like adding a new roof
Variety of auto, property, and business insurance policies available for bundling discounts
Lower J.D. Power score (805) than many competitors
Water damage optional for an additional cost
Lackluster customer reviews
See Also: Homeowners Insurance Companies with the Cheapest Rates
Best large insurer: Nationwide
Average monthly premium: $208
Nationwide offers the third least-expensive average monthly homeowners insurance rates In Texas. The insurer earned a J.D. Power score of 816. Nationwide also offers a variety of discounts that can help you save more.
High J.D. Power score indicates an overall high rate of customer satisfaction
Offers a variety of other types of home insurance policies, making it easy to keep multiple policies with one insurer
Multi-policy discount available
Water backup damage not included in base coverage
Identity theft not included in base coverage
Far from the most expensive, but also not the cheapest
Best insurer for high-value homes: Travelers
Average monthly premium: $246
Travelers has a J.D. Power Score of 794 and offers insurance for high-value homes. It offers replacement cost coverage starting at $1 million.
Offers coverage for high-value homes, starting at $1 million
Discount available for having a “green home” certified by the Leadership Energy and Environmental Design (LEED) organization
Multiple insurance types make bundling discounts easy to qualify for
Fewer types of discounts than some competitors
Comparatively lower J.D. Power Score
Higher premiums than many other insurers
Best regional insurance company: Hippo
Average monthly premium: $247
While Hippo isn’t available in every state, it’s available in Texas and a handful of nearby states. Hippo offers landlord, HOA, HO-3, and fire insurance, which makes its insurance options relatively limited. But the company does provide a free smart home-monitoring system and a premium discount for activating monitoring against fire, water damage, theft, and other risks.
New-home discount available
Fast claims submission process
Computers and office equipment covered at much higher coverage limits than competitors
Doesn’t offer auto or life policies
Website can be difficult to navigate
Competitors offer more add-ons for customization of policies
Learn More: Hazard Insurance Guide for Texas Homeowners
Best for tornado coverage: Safeco
Average monthly premium: $354
Texas is prone to tornadoes, and Safeco provides tornado coverage. A policy through Safeco also covers hurricanes (but not flood damage caused by a hurricane), another weather event that can damage Texas homes.
To evaluate home insurance companies, Insurify data scientists and editorial team analyze multiple factors that reflect a company’s quality, reliability, and financial health. We consider industry ratings and information from sources like A.M. Best, Standard & Poor’s, Moody’s and Fitch, and J.D. Power. We evaluate customer service and satisfaction data, customer reviews, NAIC complaint indexes, claims payout rates, company reputation and proprietary quoting data.
How much is homeowners insurance in Texas?
Several factors influence home insurance prices in Texas, including your location in the state, your credit history, and the type of home insurance policy you select.
How your policy choices affect home insurance rates in Texas
Your policy choices can also affect how much you’ll spend on homeowners insurance.
Your policy form
The type of homeowners insurance policy you choose can affect your rates. Here are some common types of homeowners insurance:
HO-1: The most basic type of coverage, an HO-1 policy will generally cover the fewest perils (10). It’s typically cheaper than other types of homeowners policies but only covers your home and property for their actual cash value.
HO-2: This type of policy usually provides coverage for 16 specified perils. Any peril not specifically named in the policy isn’t covered.
HO-3: This is the most common type of homeowners policy, and it provides coverage for your home for all kinds of perils, except those the policy documents specifically named as excluded from coverage. It also covers your personal belongings, but only if they’re damaged by a peril specifically named in the policy.
HO-5: An HO-5 policy provides the most coverage and as a result costs more, but it can be a good fit if you have expensive personal property. It covers your home and personal property for all perils except those specifically excluded in the policy.
It’s important to always confirm which perils a home insurance policy covers and which it will exclude before making a purchase.
A peril is an event that causes damage to the home, and a named peril is the type you get coverage for. The more perils you have covered, the more your insurance policy will normally cost.
Your coverage level
The higher your coverage level is, the more your premium will cost. You can re-evaluate how much coverage you need from time to time to make sure you’re not overspending.
A deductible is the amount of money you pay after a covered event occurs before your insurance coverage kicks in. You can usually choose your deductible rate. Typically, the higher your deductible is, the less you’ll spend on home insurance each month. Be careful here — you need to choose a deductible you can afford to pay if you do ever have to file a claim.
Read More: Selecting a Home Insurance Deductible
How location affects home insurance rates in Texas
Different states, as well as different ZIP codes within a state, can yield different home insurance quotes. Even being close to a fire station can make a difference in how much you pay for homeowners insurance. Common factors that affect insurance costs include crime rates and weather events. For example, in Texas, areas with increased exposure to tornados and hurricanes are more likely to receive higher insurance costs.
Take a look at the following table to get an idea of how the average monthly cost of home insurance can change in different Texas cities.
|City||Average Monthly Quote|
Keep Reading: Homeowners Insurance Calculator: Find the Cheapest Quotes in Your Area
What are the cheapest home insurance companies in Texas?
Liberty Mutual, Mercury, and Nationwide all offer average quotes that are lower than the overall average for Texas of $251. Your specific insurance needs can lead to more expensive coverage, but these companies are a great place to start your research.
You can use the following table to learn more about cheap home insurance rates in Texas.
|Insurance Company||Average Monthly Quote|
How much homeowners insurance do you need in Texas?
If you take out a mortgage on your home, your mortgage company will usually require you to purchase a home insurance policy. If you don’t have a mortgage, no state-level or federal law requires you to buy it. But not having homeowners insurance could be financially devastating if disaster strikes.
When it does come time to buy a home insurance policy, you need to know exactly what you want covered so you don’t accidentally overspend on coverages you don’t need.
All homeowners insurance policies include a standard amount of coverage that you need to be aware of before you buy additional insurance.
What home insurance coverages should you buy in Texas?
Homeowners insurance generally offers four essential coverages:
Structure of the home: This type of coverage pays to repair or rebuild a home if a covered event leaves it damaged or destroyed.
Personal belongings: This coverage protects personal belongings damaged or destroyed by covered perils.
Liability protection: Liability protection provides financial protection against lawsuits for bodily injury or property damage caused by policyholders or family members to other people.
Additional living expenses: If you need to live somewhere else while your home undergoes repairs, this coverage takes care of additional living costs incurred as a result of a covered event.
What optional home insurance coverages should you buy in Texas?
A few additional types of insurance coverage could come in handy in Texas.
Flood insurance: Mark Friedlander, director of corporate communications at the Insurance Information Institute, explains that all Texans should consider purchasing flood insurance, even if they don’t live in a FEMA-designated floodplain, where coverage is mandatory when you have a mortgage. “If it rains at your house, it could flood,” Friedlander says. “In fact, 90% of U.S. natural disasters involve significant flooding. The good news is, consumers now have numerous choices to shop for flood coverage, just like they shop for home or auto insurance.” In addition to the federally backed National Flood Insurance Program, Friedlander shares that dozens of private insurers offer flood coverage in Texas.
Earthquake coverage: If you live in an area of the Lone Star State prone to earthquakes, such as West Texas, the III strongly recommends purchasing optional earthquake coverage. Many home insurers sell this coverage as an endorsement added to your standard policy.
Umbrella insurance: Another optional coverage Friedlander recommends that homeowners consider is personal umbrella insurance, which will provide you with a much higher level of liability protection than a standard policy. He notes that a $1 million umbrella policy typically costs less than $500 in annual premiums and provides additional protection for your auto policy liability levels as well.
How much home insurance coverage should you have in Texas?
No single home insurance policy will work for every homeowner, as each home has different risk factors. Because of this, you should consider quotes from at least three different insurers before settling on a policy that fits your needs. Your location, the value of your home, and the current cost of construction materials are all important factors to keep in mind when choosing a homeowners policy.
Friedlander says it’s essential that Texans have enough replacement cost coverage to rebuild their home in case of a catastrophe.
“In a standard home policy, this is called dwelling coverage or Coverage A,” Friedlander says. “With replacement costs running nearly double the U.S. inflation rate due to escalating costs of construction materials and labor, you want to make sure your policy limits are adequate. We advise conducting an annual insurance review with your agent, which is an ideal time to close the gaps and make any necessary adjustments to your home policy.”
What are some of the biggest risks when owning a home in Texas?
Texas homeowners need to be aware of — and protected against — several natural disasters that can affect their homes in the Lone Star State, including:
While homeowners insurance policies typically cover fire and hurricanes, you may need to purchase additional coverage for wildfires or to have enough coverage for hurricane damage. Additionally, homeowners policies won’t cover flooding — you’ll need flood insurance for that. And if hail or wind from a severe storm damages your property, your homeowners policy may not cover it unless you’ve added riders to account for that kind of storm damage.
Learn More: Private Flood Insurance vs. FEMA
How can you save money on homeowners insurance in Texas?
These are some steps you can take to save on home insurance in Texas.
Bundle home and auto insurance
If your chosen homeowners insurance company offers other types of insurance policies, like auto insurance, there’s a good chance it also provides a bundling discount for buying multiple policies from the same company.
Check Out: Compare Home and Auto Insurance Bundles
Alongside bundling discounts, many home insurance companies offer other discounts that can make it easy to save on your policy. For example, by enhancing your home security, you may qualify for a discount.
Keep your credit score high
The higher your credit score is, the more favorable your insurance rates are likely to be. Make sure to pay your bills on time and practice other good credit habits to keep your credit score nice and high.
Take your time researching your insurance options, and shop around to see which provider can offer you the best rate for the most coverage.
Average home replacement cost in Texas
The replacement cost of a home is the modern-day cost of reconstructing your home using the same types of building materials originally used. You want to make sure you have enough coverage to pay for the replacement cost when you buy a home insurance policy.
The following table examines the average rebuild cost of homes in popular Texas cities.
|City||Average Rebuild Cost|
Texas homeowners insurance FAQs
Here are answers to some commonly asked questions about homeowners insurance in Texas.
The average monthly cost of home insurance in Texas is $251 a month. However, it’s advisable to also buy flood insurance if you live in Texas, and that secondary coverage will likely affect the total cost you pay for home insurance.
A wide range of factors, including multiple types of natural disasters, likely affects the cost of homeowners insurance in the state. Texas homes are exposed to hurricanes, tornadoes, and other natural disasters that can cause a lot of costly damage.
Nationwide, Liberty Mutual, Safeco, Travelers, and Hippo are some of the best homeowners insurance companies for affordable policies and good customer service.
State Farm Lloyds holds the largest market share for homeowners insurance policies in Texas, according to the Texas Department of Insurance. State Farm Lloyds owns nearly 19% of the Texas homeowners insurance market. Allstate is the second-largest homeowners insurance provider in the state, with a market share of nearly 9%.
You typically have three coverage level options to choose from when purchasing home insurance in Texas. An actual cash value policy pays to replace the home or possessions minus a deduction for depreciation. A replacement cost policy pays the cost of rebuilding or repairing the home or replacing possessions without a deduction for depreciation. A guaranteed/extended replacement cost policy offers the highest level of protection and pays whatever it costs to rebuild the home as it was before the fire or other disaster — even if it exceeds the policy limit.
Homeowners insurance isn’t required by law, but your mortgage company will require it since it’s lending you money to buy the home. Even if you own your home outright, you don’t want to skip buying homeowners insurance. Not only can it pay to repair your home if it gets damaged or destroyed, but you also receive liability protection in the event that you’re liable for someone else’s injury or property damage.
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- J.D. Power. "Bundle Fumble? Rising Auto Insurance Premiums are Killing Home Bundles, J.D. Power Finds." Accessed January 30, 2023
- Hippo. "Homepage." Accessed January 30, 2023
- Safeco Insurance. "Get to know your homeowners coverage options." Accessed January 30, 2023
- Safeco. "File and track your claim online." Accessed January 30, 2023
- National Association of Insurance Commissioners. "A Shopping Tool for Homeowners Insurance." Accessed January 30, 2023
- Texas Department of State Health Services. "Texas Ready: Natural Disasters." Accessed January 30, 2023
- Insurance Information Institute. "12 Ways to Lower Your Homeowners Insurance Costs." Accessed January 30, 2023
- Texas Department of Insurance. "Top 40 List of Insurers in Texas." Accessed January 30, 2023