Cheapest homeowners insurance in Texas for 2022

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Homeowners insurance costs more in Texas than nearly every other state. So, it’s vital that you shop around and get quotes from home insurance companies to get the best rate for your home.

By shopping for home insurance, you could save more than $1,000 each year. The cheapest home insurance in Texas is Texas Farmers with an average rate of $2,690.

Suffering a loss on your property due to fire, storm, accident or otherwise can be financially devastating without the right protection in place. So, it’s crucial to insure your home properly. However, homeowners insurance premium quotes can vary widely, depending on several factors like your location, your home’s condition and your credit.

Let’s take a look at the cheapest homeowners insurance in Texas and how to find the best home insurance rates.

Cheapest homeowners insurance companies in Texas

Texas Farmers, Safeco and Farmers Insurance Exchange have the lowest average homeowners insurance rates in Texas.

Here are average homeowners insurance costs in Texas for a policy with $300,000 dwelling coverage and $300,000 liability protection with a $1,000 deductible.

Company	Average annual rate	Average monthly rate
Texas Farmers	$2,690	$224
Safeco	$3,023	$252
Farmers Insurance Exchange	$3,045	$254
Nationwide General Insurance	$3,233	$269
Travelers	$3,305	$275
USAA	$3,325	$277
Allstate Vehicle Property	$3,496	$291
State Farm	$3,805	$317
Nationwide Mutual Insurance	$3,848	$321
Nationwide Property Casualty	$3,938	$328
Foremost	$3,995	$333
Allstate Fire Casualty	$4,042	$337

Best homeowners insurance in Texas

What makes the best homeowners insurance company varies. Since this page is focused on the cheapest homeowners insurance in Texas, we’ll focus on that metric when gauging who’s best.

Now, let’s take a look at the three cheapest home insurance companies in Texas.

Texas Farmers

Headquarters: Woodland Hills, California
Founded: 1928
Contact: (888) 327-6335; Farmers.com/texas/home-insurance
Available: In all 50 states
Discounts available: Multi-policy, protective devices, non-smoker
Other types of insurance offered: Auto, life, renters, business, recreational vehicle, motorcycle, umbrella
Insure.com score: 3.5 stars
Better Business Bureau: A+
A.M. Best: A
J.D. Power: Slightly below average (score — 814 out of 1,000)

Farmers’ Smart Plan Home in Texas provides three packages that you can personalize to adjust coverage limits and types, including a standard package that offers reduced coverage for a lower price.

Standard policies include coverage for windstorms, hail, lightning strikes, fire, theft and vandalism, explosion, falling objects and water damage from burst pipes. Optional enhanced and premier policies provide higher coverage limits and extra features.

Safeco

Headquarters: Seattle
Founded: 1923 (acquired by Liberty Mutual Group in 2008)
Contact: (800) 332-3226; Safeco.com
Available: In all 50 states
Discounts available: Multi-policy, protective devices, new home, safe driver, anti-theft device, anti-lock brakes
Other types of insurance offered: Auto, recreational vehicle, motorcycle, renters, condo, landlord, umbrella, identity theft, business
Insure.com score: 4 stars
Better Business Bureau: A+
A.M. Best: A
J.D. Power: Below average (score — 82 out of 1,000)

Safeco, owned by Liberty Mutual, covers personal property, personal liability and dwelling protection in its standard policies.

Among customers polled by Insure.com, 95% said they planned to renew their policies with Safeco and 81% indicated they would recommend Safeco to a friend. This insurer has good to excellent financial strength ratings from the A.M. Best Company (A), Moody’s Investors Service (A2), and Standard & Poor’s (A-).

Farmers Insurance Exchange

Headquarters: Woodland Hills, California (parent company)
Founded: 1928
Contact: (888) 327-6335, Farmers.com
Available: In 36 states
Discounts available: Multi-policy, protective devices, non-smoker
Other types of insurance offered: Auto, life, renters, business, recreational vehicle, motorcycle, umbrella
Insure.com score: 3.5 stars
Better Business Bureau: A+
A.M. Best: A
J.D. Power: Slightly below average (score — 814 out of 1,000)

Technically owned by its policyholders, the Farmers Insurance Exchange is one of the insurance companies that’s part of Farmers Insurance Group. Farmers Insurance Exchange’s standard policies available to Texas homeowners include coverage for windstorms, hail, lightning strikes, fire, theft and vandalism, explosion, falling objects and water damage from burst pipes.

Cheapest homeowners insurance in Texas by city

Here’s a look at the average home insurance rates for seven Texas cities, including average homeowners insurance premiums by month and year.

City	Average annual rate	Average monthly rate
El Paso	$2,361	$197
Austin	$2,862	$239
San Antonio	$2,944	$245
Fort Worth	$3,739	$312
Dallas	$3,876	$323
Arlington	$3,953	$329
Houston	$4,263	$355

Home insurance rates vary from one city to another. But with Insure.com, finding the right home insurance policy is easy. Learn more about homeowners insurance costs for different cities below.

Home insurance rates in Texas by city

How much is homeowners insurance in Texas?

The average cost of homeowners insurance in Texas is $3,429 for $300,000 dwelling and $300,000 liability coverage with a $1,000 deductible. Texas homeowners insurance rates are the fifth most expensive state for home insurance, on average.

Texas is a huge state and insurance companies may offer much higher or lower rates depending on the ZIP code.

One reason for the high costs in Houston is that the cost of housing is more expensive than other parts of Texas. Major hurricanes have also hit the Houston area the last few years. Claims for hurricanes and other reasons make Houston a riskier area to insure than communities farther inland with fewer claims. Insurers base their rates partially on an area’s claims data, including claims for your home before you even owned it.

How much do claims increase home insurance costs?

Claims, especially a second claim or more, can make your home insurance premiums skyrocket. Here are the top average home insurance percentage premium increases based on claims:

Filing a second fire claim — 60%
Filing a second theft claim — 55%
Filing a second liability claim — 52%
Filing a second water damage claim — 50%
Filing a second medical claim — 34%
Filing a second weather claim — 29%
Filing a fire claim — 29%
Filing a theft claim — 27%
Filing a liability claim — 25%
Filing a water claim — 25%
Filing a medical claim — 18%
Filing a weather claim — 17%

Before filing a homeowners insurance claim, estimate how much it would cost for you to pick up the costs. For instance, if a burglar steals your 15-year-old TV, you’ll want to figure out if filing a claim is worth it. That’s especially true if you have actual cash value coverage. Actual cash value reimburses you for the value of the item when it’s damaged or stolen. So, a 15-year-old TV won’t likely get you much.

In that case, you might decide to buy a new TV and not file a claim. Filing a claim means you’ll have to pay the deductible and your home insurance rates could increase.

Keep that in mind before filing a homeowners insurance claim.

What does homeowners insurance cover in Texas?

Home insurance policies cover your structure and belongings, but it can also help you in other ways. Here’s typical home insurance coverage:

Dwelling
Personal belongings
Liability
Additional living expenses

You can get actual cash value or replacement cost. Actual cash value reimburses you for what damaged or stolen items were worth at the time of the loss. Replacement cost provides money to replace the items new.

One thing home insurance doesn’t usually cover is for flood damage.

How much does flood insurance cost in Texas?

The average annual flood insurance cost for Texas is $697.97 — that’s the eighth-lowest average cost in the U.S. The figure is based on dividing the number of policies and the total policy cost from the National Flood Insurance Program (NFIP).

If you don’t live near the coast or in a flood zone, you could pay much less for flood insurance. Properties in flood zones have higher rates, but those outside of flood zones often cost well below the state average. About 20% of flood insurance claims come from properties that are considered low or moderate risk, so it’s not a bad idea to explore flood insurance — even if you’re not in a flood zone.

Home insurance doesn’t typically cover flood damage from outside your home. So, a significant rain event that floods your basement is likely not covered by homeowners insurance.

Instead, you need to get a separate flood insurance policy. The NFIP and dozens of private insurers offer flood insurance policies.

NFIP policies provide $250,000 structural and $100,000 personal belongings protection. If you need more coverage, you can get quotes from private insurance companies to see how much it will cost to increase those limits.

Flood insurance premiums are standard based on a home’s risk. The Federal Emergency Management Agency estimates that more than 560,000 single-family homes in Texas are at risk in a Category 5 hurricane. Only Florida and Louisiana have more at-risk homes.

If you might want flood insurance, check with the NFIP or ask your home insurance company to see if it offers flood insurance policies.

How to get the cheapest homeowners insurance in Texas

Your best strategy to find the cheapest home insurance in Texas is to shop around. Damon Crossland, president/owner of Crossland Coverage insurance agency in El Paso, strongly recommends comparison shopping homeowners insurance policies, especially if it’s been a while since you’ve done so.

“Often, the cost you pay gets lost in your mortgage payment when you have an escrow account associated with paying your insurance,” he says. “You may not notice that prices have crept up in recent years — another reason to look around for better prices.”

Crossland adds that research by his agency found that home insurance carriers are beginning to limit or exclude ancillary coverage previously included in standard policies, including water damage under your foundation, cyber protection, service lines for utilities and mold remediation. By requesting fresh quotes from different insurers, you may find that their basic policies cover some or most of these items for no extra charge.

Stacy Caprio, a blogger for FiscalNerd.com, who recently purchased a duplex in Texas, agrees that it pays to do your due diligence as a consumer.

“I assumed I would get the lowest homeowners insurance premium by using my automobile carrier. That rate proved to be the highest one I ended up getting quoted,” she cautions. “I ended up getting a really great rate with a different insurance company. I’m so happy I shopped around and found a better deal.”

Crossland suggests following the rule of three.

“Shop three agencies and three or more insurance companies every three years as market conditions and prices may change in that time,” he explains.

To pocket the most savings on homeowners insurance, ask the carrier plenty of questions to learn if you’re eligible for discounts. Discounts may include a newer home, a new roof that was replaced within the last few years and recent electrical and plumbing updates.

“If you have a home alarm system, ask if you qualify for a discount. Also, indicate your level of education and employment to the company; if you have a Master’s or Bachelor’s degree or some form of higher education, that may trigger a lower rate,” advises Marissa Sweet, a commercial property and casualty insurance advisor for Houston-based PropertyCashin.com.

Some insurance companies also allow discounts for being affiliated with an alumni association or other large purchasing group, notes Crossland.

Bundling your home and auto policies can also save money. Bundling policies saves an average of 17% off your insurance.

Also, maintaining good credit and limiting smaller/non-weather-related claims are ways to keep down insurance premiums.

“And if you allow the insurer to send you documents like policies and ID cards electronically, they may also offer a discount for not having to print and mail that paperwork,” Crossland adds. “Similarly, if you agree to monthly electronic payments, many companies provide a further discount.”

Frequently asked questions by Texas homeowners

Is windstorm insurance required in Texas?

No, homeowners aren’t required to get windstorm insurance unless a mortgage lender demands it. A mortgage company may want you to have windstorm insurance if your home is along the coast and often gets battered by storms.

However, even if your mortgage company doesn’t demand it, windstorm insurance could still be a wise decision — especially if your home is at risk.

Private insurance companies offer windstorm coverage. If you can’t find coverage through a private insurer, the Texas Windstorm Insurance Association provides policies for at-risk properties. The average policy cost for those at-risk properties is about $1,500 per year.

Does homeowners insurance cover hail damage?

Yes, home insurance typically covers hail damage. However, companies limit coverage or charge you much higher home insurance rates in areas prone to hail.

Texas has the most hail damage claims in the U.S. — more than 600,000 hail claims between 2017 and 2019, according to the Insurance Information Institute. In 2020 alone, Texas experienced 601 major hail events, which was 13% of major hail events in the U.S.

Check your policy to make sure hail is covered and look for any coverage limits.

The Texas Windstorm Insurance Association (TWIA) offers wind and hail policies for homeowners who can’t get that coverage as part of a home insurance policy. These areas could include a property along the coast that experiences regular hail damage.

Does homeowners insurance cover hurricanes?

Yes, home insurance usually covers hurricane-related damage — except for flood damage and sometimes wind damage if it’s excluded from your policy.

You need a separate flood insurance policy to get covered for flood damage.

Texas is one of 19 states with hurricane deductibles, which is different from standard homeowners insurance deductibles. A hurricane deductible is between 1% and 5% of the dwelling coverage amount. Your policy decides the specific percentage.

Here’s how hurricane deductibles work — Let’s say you have $300,000 of dwelling coverage and a 1% hurricane deductible on your policy. That would mean you have to pay a $3,000 deductible if you file a hurricane-related claim. If the insurer approves the claim, the company would pick up the cost for the rest of the damage.

Does homeowners insurance cover termite damage?

No, home insurance typically doesn’t cover termite damage.

Home insurers believe homeowners can prevent termite damage by taking precautions, so they don’t usually cover that kind of damage.

Does homeowners insurance cover tree damage?

Yes, home insurance generally covers damage caused by a tree, such as a limb crashing through your roof. The policy may also cover you to remove the tree.

However, home insurance companies are leery about overhanging tree limbs. If a tree is hanging over your roof, your insurance company may ask that you cut those limbs to avoid a potential claim later.

Does homeowners insurance cover roof replacement?

It depends. If the damage was unforeseen, such as damaged in a storm or fire, an insurance policy will likely cover roof damage.

Home insurance may not cover replacing your roof if the issue is wear and tear. Homeowners insurance expects you to perform proper upkeep and that includes replacing your roof every 20 or 30 years.

A home insurance company may request that you replace a roof if the company notices roof damage during a routine check. Insurance companies occasionally send representatives to check insured properties from the street. If the person sees a crumbling roof, your insurer may request that you fix the roof or lose coverage.

What can you do if you can’t find Texas homeowners insurance?

Home insurance companies may deny coverage if they believe your property is too risky.

If you have trouble finding a policy, you can check about a Fair Access to Insurance Requirements (FAIR) Plan.

The program offers policies to high-risk properties that insurance companies won’t cover. You must show that at least two insurance companies denied you a policy.

How much is home insurance in other states

Alaska$1,799/Year

Alabama$2,981/Year

Arkansas$3,439/Year

Arizona$1,976/Year

California$1,166/Year

Colorado$3,082/Year

Connecticut$1,961/Year

Washington D.C.$1,488/Year

Delaware$1,521/Year

Florida$3,439/Year

Georgia$2,555/Year

Hawaii$499/Year

Iowa$2,540/Year

Idaho$1,842/Year

Illinois$2,201/Year

Indiana$2,423/Year

Kansas$3,931/Year

Kentucky$2,862/Year

Louisiana$3,270/Year

Massachusetts$1,920/Year

Maryland$1,518/Year

Maine$1,833/Year

Michigan$2,153/Year

Minnesota$3,010/Year

Missouri$3,111/Year

Mississippi$3,340/Year

Montana$2,809/Year

North Carolina$2,009/Year

North Dakota$2,601/Year

Nebraska$3,133/Year

New Hampshire$1,455/Year

New Jersey$1,744/Year

New Mexico$2,299/Year

Nevada$1,486/Year

New York$1,840/Year

Ohio$2,107/Year

Oklahoma$4,445/Year

Oregon$1,608/Year

Pennsylvania$1,720/Year

Rhode Island$2,125/Year

South Carolina$2,678/Year

South Dakota$3,172/Year

Tennessee$2,692/Year

Utah$1,378/Year

Virginia$1,956/Year

Vermont$1,212/Year

Washington$1,514/Year

Wisconsin$1,732/Year

West Virginia$2,486/Year

Wyoming$2,083/Year

Les Masterson

Contributor

Les, a former managing editor, insurance, at QuinStreet, has more than 20 years of experience in journalism. In his career, he has covered everything from health insurance to presidential politics.