The average home insurance rate in Texas is $4,142 a year or $345 a month. That’s $113 more monthly than the national average of $232. Despite the higher cost, you can still get affordable home insurance in Texas by comparison shopping.
The cheapest home insurance companies in Texas are USAA and Progressive; for most coverage levels Progressive has the lower rates, although USAA is cheapest at a dwelling coverage of $200,000. USAA also ranked at the top of our best companies list, but it's only open to military families. Farmers is the best home insurance company in Texas that's open to everyone.
Texas home insurance rates are on the rise, affected by severe weather, including hurricanes, hail, and, in recent years, ice storms. These and other factors make Texas homeowners insurance rates some of the most expensive in the nation. Houston is the most expensive of Texas' major cities, while El Paso has lower than average rates.
Read on for everything you need to know about Texas homeowners insurance. We've gathered the average cost of coverage in Texas for homeowners insurance by company, ZIP code, and coverage level, as well as expert tips for getting cheaper home insurance in Texas.
Key takeaways
- The average cost of home insurance in Texas is $4,142 annually for dwelling coverage of $300,000 and liability coverage of $300,000.
- Texas homeowners near the coast should consider coverage for hurricanes before buying a home insurance policy.
- If you're having trouble getting homeowners insurance, the Texas Fair Plan Association (TFPA) can help.
- How much is home insurance insurance in Texas?
- Best home insurance companies in Texas
- Cheapest home insurance in Texas
- Average home insurance rates in Texas by coverage level
- How much is home insurance in Texas per month?
- Average home insurance cost by ZIP code in Texas
- Texas home insurance calculator
- Average home insurance rates for the largest cities in Texas
- Texas home insurance discounts
- How deductibles affect your insurance rate
- Dwelling coverage, liability, and medical payments limits
- Texas home insurance: Frequently asked questions
- Methodology
How much is home insurance insurance in Texas?
The average cost of home insurance in Texas is $4,142 a year, making Texas the fifth most expensive state in the country for homeowners insurance. The average cost in Texas is $1,361 more than the national average of $2,777 for the coverage level of:
- $300,000 dwelling coverage
- $1,000 deductible
- $300,000 liability
When buying a home insurance policy, you will need to choose coverage amounts for the following:
- Dwelling
- Liability
- Medical payments
You normally don’t have to choose the limits below. Instead, they are set as a percentage of your dwelling coverage.
- Other structures – 10%
- Personal property – 50-70%
- Loss of use – 20%
When shopping for homeowners insurance, the type of coverage you choose will have an impact on your rates. Texas homeowners have a few special considerations when buying a homeowners insurance policy, including the possibility of hurricanes. Your rates will also vary based on the amount of coverage you need.
Best home insurance companies in Texas
Cheap home insurance is often a big priority, especially when you’re on a budget. But sometimes cheaper isn’t better. It’s important to look at other features such as claims handling, the types of coverage offered, what type of customer service is available, and more.
While there are a lot of ways to rank home insurance companies, we used a few simple but important rating factors to choose the best homeowners insurance companies in Texas. The Insurance.com score in the table below is calculated based on AM Best rating for financial stability, NAIC complaint ratio, and average annual rates.
Based on our ranking, USAA is the top home insurance company in Texas, but is only available to military families. Farmers is the top home insurance company for non-military members.
| Company | AM Best | Average annual rate | NAIC Complaint Ratio | Insurance.com score |
|---|---|---|---|---|
| USAA | A++ | $ 3,183 | 0.41 | 4.81 |
| Farmers | A | $ 4,422 | 0.33 | 3.98 |
| Progressive | A+ | $ 2,972 | 1.38 | 3.8 |
| State Farm | A++ | $ 4,390 | 0.75 | 3.55 |
| Nationwide | A+ | $ 5,777 | 0.75 | 3.03 |
It should be noted that while USAA ranked as the top insurer, it offers coverage only to military members, veterans and their families.
Cheapest home insurance in Texas
The following home insurance rates are categorized by company for six coverage sets. Based on our rate analysis, you’ll see USAA, Progressive and Farmers Insurance are among the cheapest home insurance companies on average.
Six different dwelling coverages are shown, all with a $300,000 liability limit and a $1,000 deductible. Note that while USAA is cheaper at a lower dwelling coverage of $200,000, Farmers beats its rates for all other coverage levels.
| Company | $200,000 | $300,000 | $400,000 | $500,000 | $600,000 |
|---|---|---|---|---|---|
| USAA | $2,375 | $3,183 | $3,886 | $4,482 | $4,986 |
| Progressive | $2,586 | $2,972 | $3,297 | $3,860 | $4,487 |
| Farmers | $3,247 | $4,422 | $5,457 | $6,238 | $6,085 |
| State Farm | $3,542 | $4,390 | $5,288 | $6,211 | $7,194 |
| Nationwide | $4,260 | $5,777 | $6,122 | $6,093 | $6,145 |
Average home insurance rates in Texas by coverage level
Here is the average annual cost of home insurance in Texas for dwelling coverage levels of $200,000 to $600,000 with $1,000 deductible and liability coverage of $100,000 and $300,000.
| Coverage level | Average annual rate |
|---|---|
| $200,000 with $1,000 Deductible and $100,000 Liability | $3,519 |
| $200,000 with $1,000 Deductible and $300,000 Liability | $3,525 |
| $300,000 with $1,000 Deductible and $100,000 Liability | $4,136 |
| $300,000 with $1,000 Deductible and $300,000 Liability | $4,142 |
| $400,000 with $1,000 Deductible and $100,000 Liability | $4,523 |
| $400,000 with $1,000 Deductible and $300,000 Liability | $4,529 |
| $500,000 with $1,000 Deductible and $100,000 Liability | $4,972 |
| $500,000 with $1,000 Deductible and $300,000 Liability | $4,979 |
| $600,000 with $1,000 Deductible and $100,000 Liability | $5,318 |
| $600,000 with $1,000 Deductible and $300,000 Liability | $5,323 |
How much is home insurance in Texas per month?
How much is homeowners insurance in Texas per month? Based on Insurance.com's rate analysis, the average home insurance cost in Texas is $345 per month. This rate is for $300,000 in dwelling coverage with a $1,000 deductible and $300,000 of liability protection. The table below shows the average Texas home insurance rates per month for various coverage limits.
| Coverage level | Average cost per month |
|---|---|
| $200,000 with $1,000 Deductible and $100,000 Liability | $293 |
| $200,000 with $1,000 Deductible and $300,000 Liability | $294 |
| $300,000 with $1,000 Deductible and $100,000 Liability | $345 |
| $300,000 with $1,000 Deductible and $300,000 Liability | $345 |
| $400,000 with $1,000 Deductible and $100,000 Liability | $377 |
| $400,000 with $1,000 Deductible and $300,000 Liability | $377 |
| $500,000 with $1,000 Deductible and $100,000 Liability | $414 |
| $500,000 with $1,000 Deductible and $300,000 Liability | $415 |
| $600,000 with $1,000 Deductible and $100,000 Liability | $443 |
| $600,000 with $1,000 Deductible and $300,000 Liability | $444 |
Average home insurance cost by ZIP code in Texas
Insurance.com analyzed home insurance rates from major insurance companies in nearly every ZIP code in Texas.
ZIP code 77471 in Rosenberg is among the most expensive places to insure a home in Texas, topping out at an average of about $6,638. That’s over $4,461 more than in Brownsville, the cheapest neighborhood in the state for home insurance.
For $300,000 dwelling coverage with a $1,000 deductible and $300,000 liability limits, the average rate of $6,638 for ZIP code 77471 is the highest for Rosenberg. ZIP codes for Brownsville, Laguna Heights, and South Padre Island with rates of $2,177, $2,232, and $2,365 respectively, are among the cheapest Texas home insurance rates by ZIP code.
Texas home insurance calculator
By entering your ZIP code in the homeowners insurance calculator below, you’ll see the average home insurance rate for that area and the highest and lowest premiums fielded from major insurers. This will give you an idea of how much you can save by shopping around.
For example, the highest rate ($6,560) for Houston ZIP 77504 is $1,355 more than the lowest ($5,205). You can save nearly $1,400 by comparing rates and shopping around. Rates are for coverage of $300,000 with a $1,000 deductible and $300,000 liability limits.
HOME INSURANCE CALCULATOR
Average home insurance rates in CALIFORNIA
AVERAGE RATE: $797
Most & least expensive zip codes for homeowners insurance in California
Most Expensive
| Zip Code | City | Highest Rate |
|---|---|---|
| 92325 | Crestline | $1,450 |
| 92391 | Twin Peaks | $1,426 |
| 92321 | Cedar Glen | $1,425 |
| 92352 | Lake Arrowhead | $1,423 |
Least Expensive
| Zip Code | City | Lowest Rate |
|---|---|---|
| 94086 | Sunnyvale | $742 |
| 94085 | Sunnyvale | $743 |
| 94087 | Sunnyvale | $743 |
| 95051 | Santa Clara | $743 |
Average home insurance rates for the largest cities in Texas
The following are average rates for some of the state's largest cities for a policy with $300,000 dwelling coverage, a $1,000 deductible, and $100,000 in liability protection.
- Houston -- $4,827
- San Antonio -- $3,551
- Dallas -- $4,424
- Austin -- $3,419
- Fort Worth -- $4,263
- El Paso -- $3,059
- Arlington -- $4,334
Most home insurance policies come with $100,000 in personal liability insurance but this is rarely enough coverage. Most experts recommend upping your limits to at least $300,000.
Medical payments pay for injuries to guests in your home but differs from liability in that it applies to injuries regardless of who is at fault. It is for minor incidents, with much lower coverage limits than liability insurance. Medical payments coverage is typically for $1,000 or $5,000.
Texas home insurance discounts
There are several ways to reduce your Texas home insurance costs. Bundling your home and auto, for example, can cut your costs by 18% on average, according to Insurance.com's analysis of the best home insurance discounts.
You can also cut your costs by making your home more disaster-resistant and by doing upgrades. Installing a new roof, updating wiring or plumbing, and installing hurricane glass or accordion shutters might net you a discount.
Other common discounts include:
- Installing smoke detectors, dead-bolt locks, and having a fire extinguisher (5%)
- Installing a sprinkler system or a fire and burglar alarm (15%)
- Loyalty discounts (5-8%)
How deductibles affect your insurance rate
A deductible is the amount of money you pay before your insurance company pays out on a claim. For example, if your home sustains damage of $3,000 and you have a $500 deductible, you pay the first $500, and your insurer pays $2,500.
Some deductibles are a flat dollar amount. Others are a percentage of your home's dwelling coverage. If your home is insured for $200,000 and your deductible is 2%, you will owe $4,000 before insurance coverage kicks in.
You typically choose your home insurance deductible amount, which applies to claims for damage to your home or belongings, but not if you’re sued or a medical claim is filed by someone injured in your home. Deductibles typically range from $500 to $2,500.
Understanding the implications of the deductible you choose when buying homeowners insurance is important. A higher deductible means you'll save more on insurance premiums.
The savings can be significant. Michael Barry, a spokesman for the Insurance Information Institute (Triple-I), a trade group, says that most insurers recommend a deductible of at least $500, which may be ok for you. But raising that to $1,000 will save as much as 25% on your policy. Of course, that's $1,000 out of your pocket if there are major problems, so it's a bit of a balancing act.
Dwelling coverage, liability, and medical payments limits
When buying home insurance, you should insure your home based on its replacement cost, which is the amount you need to rebuild it if damaged or destroyed, and not its market value, which is what you could sell your home for in its current condition. Replacement cost offers more protection because the cost of building a home often exceeds its market value.
The dwelling coverage portion of your policy should equal or exceed the replacement cost of your home. Using online calculators or hiring an appraiser to give you a replacement cost valuation will save you time.
Liability insurance applies to incidents in which you’re at fault for damages to a guest in your home or on your property. It covers medical expenses, as well as damage caused to neighbors’ property. Personal liability also covers legal fees if you are sued, as well as any resulting judgments from a lawsuit, up to your policy limits.
Texas home insurance: Frequently asked questions
Is home insurance expensive in Texas?
Though many factors will affect what you pay, in general, home insurance in Texas costs more than in many other states. Texas home insurance rates are 28% higher than the national average.
Do I need windstorm and hail insurance in Texas?
Not all perils are automatically covered by a homeowners insurance policy — and if they are, there may be limits. Texas has a high incidence of hurricanes and hail storms, making it a good idea to consider adding additional coverage.
In Texas, 14 coastal counties or parts of Harris County on the Galveston Bay are prone to windstorms (including hurricanes) and hail damage. The counties are Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kennedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio, and Willacy.
The Texas Windstorm Insurance Association (TWIA) is a state-sponsored group that serves as the insurer of "last resort" for these areas. It provides coverage for wind and hail damage only.
What is a hurricane deductible?
Texas is one of 19 states with a hurricane deductible. Texas law states that a windstorm deductible applies to windstorm or hail damages from any type of wind, not just named storms.
This type of deductible is separate and is not a flat rate. Costs typically range from 1% to 5% of a home’s insured value and can be even higher in coastal areas.
How do I buy flood insurance in Texas?
Flood insurance is usually optional. However, it’s essential for many Texas residents. Storm surge is a major threat to homeowners who live on the Texas coast.
The National Flood Insurance Program (NFIP) was created to provide property owners with flood insurance that is typically not covered under standard policies. Texas homeowners who live in flood-prone areas, like coastal communities, may need to buy this protection, which they can get through most standard insurance companies.
What if I have trouble getting home insurance in Texas?
The Fair Access to Insurance Requirements (FAIR) Plan is a state-mandated program that can provide insurance for individuals who are having trouble protecting their property because insurers consider them high risk. In Texas, the Texas Fair Plan Association (TFPA) provides homeowners insurance when no one else will.
How do I file a complaint about a Texas insurance company?
If you have a dispute that you cannot resolve, you can file a complaint with the Texas Department of Insurance. To file a complaint, use the Texas Department of insurance (TDI) online complaint system. The system allows you to attach up to 24 pages of supporting documents.
If you have questions, call the TDI Help Line at 800-252-3439 from 8 a.m. to 5 p.m. Central time.
Methodology
Insurance.com commissioned Quadrant Information Systems in 2022 to field home insurance rates from major insurers in each state for nearly all ZIP codes in the country for 10 coverage levels based on various dwelling and deductible limits. The homeowner profile is a 35-year-old married applicant with an excellent insurance score and based on a new business HO-3 policy for a house built in 2000 with frame construction and composition roof. Other Structures: 10%. Loss of Use defaulted: 10%. Personal Property defaulted: 50%. Guest Medical limit: $5,000. Personal property: 50% of dwelling coverage for actual cash value. Content is updated for 2023.
