The Best and Cheapest Home Insurance in Texas for 2022

We analyzed the cheapest rates and top companies for home insurance across the Lone Star State.
Apr 19, 2022

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The saying "everything's bigger in Texas" doesn't just apply to a plot of land or a rib-eye steak. It turns out it's true for homeowners insurance, too.

The average cost of home insurance in Texas is $3,341 per year, or about $278 per month, according to a NerdWallet rate analysis. Texas is the fourth-most-expensive state for homeowners insurance in the U.S., trailing only Nebraska, Oklahoma and Kansas.

NerdWallet analyzed rates from more than a dozen different insurers in the state to find the best and cheapest home insurance in Texas.

Why you can trust NerdWallet

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data, and may update rates for accuracy as new information becomes available.

We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.

The best homeowners insurance in Texas

If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the Best Homeowners Insurance Companies.

Company

Average annual rate

NerdWallet star rating

$2,082

5.0

NerdWallet rating 

$4,155

4.5

NerdWallet rating 

$4,919

5.0

NerdWallet rating 

$2,615

4.5

NerdWallet rating 

*USAA homeowners policies are available only to active military, veterans and their families.

More about the best home insurance companies in Texas

Chubb: Chubb homeowners insurance policies come with lots of extras. For example, they’ll cover water damage from backed-up sewers and drains, and pay to bring your home up to the latest building codes during reconstruction after a claim. (Many insurers charge more for these types of coverage.)

Chubb offers policyholders a free HomeScan service, which uses infrared technology to check your house for potential problems such as leaks or lack of insulation. Texas homeowners can also sign up for complimentary Wildfire Defense Services. These services include an assessment of your home’s risk and deployment of firefighters to your home if a wildfire is approaching.

High net worth homeowners will appreciate Chubb’s lofty coverage limits, including personal liability coverage up to $50 million.

Amica: Rhode Island-based Amica stands out for its customer service and broad range of coverage options. The company has drawn significantly fewer consumer complaints to state regulators than expected for an insurer of its size, according to the National Association of Insurance Commissioners, or NAIC.

You can customize your policy with extra coverage above your dwelling limit, in case your house costs more to rebuild than expected. You may also want to add coverage for identity theft expenses or valuable items such as jewelry.

Amica offers several homeowners insurance discounts. You may be able to save by bundling your home and auto policies, having a newer roof and setting up autopay on your policy.

Get more information in our Amica homeowners insurance review.

Nationwide: This company may not be your cheapest option in Texas, on average, but you might still want to consider it if you’re looking for an insurer with broad coverage and a robust online presence.

Nationwide’s standard homeowners policies include “ordinance or law” coverage, which pays to bring your home up to the latest building codes after a covered claim. They also include coverage for unauthorized credit or debit transactions. For an extra cost, you can add coverage for things like water backup, identity theft and stronger materials to replace your roof.

The Nationwide website offers plenty of ways to manage your policy, including filing and tracking claims, paying bills and getting quotes. It’s also got educational articles on a variety of insurance topics.

USAA: USAA serves the military community, including active members, veterans and their families. If you fall into one of these categories, you may want to give USAA home insurance policies a look.

Standard USAA homeowners policies include replacement cost coverage for your personal belongings. That means if your stuff is stolen or destroyed, the company will pay enough for you to buy brand-new replacements. (Many companies pay less for older, less valuable items.) USAA also covers military uniforms with no deductible for active or deployed members.

Beyond coverage, USAA generally keeps its policyholders happy. The company drew significantly fewer complaints to state regulators than expected for an insurer of its size, according to the NAIC.

Get more info in our USAA homeowners insurance review.

The cheapest home insurance in Texas

Texans have plenty of home insurance companies to choose from. Below are the insurers we found with average annual rates below the Texas average of $3,341.

Company

Average annual rate

NerdWallet star rating

$2,082

5.0

NerdWallet rating 

Mercury

$2,267

3.5

NerdWallet rating 

$2,368

4.0

NerdWallet rating 

$2,821

4.0

NerdWallet rating 

$2,848

4.0

NerdWallet rating 

Guard

$3,332

Not rated

Armed Forces Insurance*

$2,410

3.5

NerdWallet rating 

$2,615

4.5

NerdWallet rating 

*Armed Forces Insurance and USAA generally serve the military community. Their policies are not available to all homeowners.

More about the cheapest companies

Mercury: Based in Los Angeles, Mercury not only is one of the cheapest homeowners insurers in Texas, on average, but it also offers several ways to save on your premium. You may be eligible for discounts for bundling your home and auto policies, living in a newer home or having a burglar alarm. However, the company receives more consumer complaints than expected for an insurer of its size, according to the NAIC.

Texas Farm Bureau: If you prefer a local option, consider the Texas Farm Bureau, which has hundreds of agents around the state. You don’t need to be a farmer to get a policy, but you do need to become a member of the Texas Farm Bureau. (It may cost $35 to $50, depending on your county.) Discounts may be available for bundling policies, having an impact-resistant roof or installing a central alarm system. Learn more about Texas Farm Bureau insurance.

State Farm: One of the biggest homeowners insurers in Texas, State Farm is worth considering for its financial strength and many coverage options. The company also offers policyholders a free Ting smart device. It monitors your home for electrical problems that could cause a fire or other damage. The Ting service includes up to $1,000 toward the cost of necessary repairs. Read our full State Farm homeowners insurance review.

Farmers: Farmers policyholders in Texas can choose from three packages, depending on how much they want to spend and how much coverage they need. Discounts are available for nonsmokers, homeowners with multiple Farmers policies and those whose homes have protective devices like burglar alarms or sprinkler systems. Read our Farmers homeowners insurance review.

Guard: This company is a subsidiary of Berkshire Hathaway (also the parent company of Geico). It sells policies for a variety of home types, including houses used for vacation rentals. You may be able to add coverage for identity theft, the breakdown of major appliances and damage to your home’s service lines. If you buy multiple Guard policies, you may be eligible for a bundling discount.

Armed Forces Insurance: As its name suggests, Armed Forces Insurance serves the military and their families. AFI is both an insurance company and an agency — which means it can issue you a policy or shop around for insurance from partner companies. You may be better off going with the latter option, as Armed Forces Insurance isn’t rated as highly by credit rating agency AM Best as many of its partners.

The best Texas homeowners insurance for different scenarios

The ideal homeowners insurance company for you depends on your circumstances. Some companies offer better rates for those with poor credit, a past claim or a newer house. Here are the best companies for a few common scenarios.

The best Texas homeowners insurance if you have poor credit

In Texas, insurance companies can use a credit-based insurance score to help determine your homeowners insurance rates. This score is similar but not identical to a standard credit score — and it can make a big difference in what you pay.

Below are the most affordable companies for Texas homeowners insurance if you have poor credit.

Company

Average annual rate

NerdWallet rating

Texas Farm Bureau

$3,389

4.0

NerdWallet rating 

Mercury

$5,176

3.5

NerdWallet rating 

American Strategic

$5,314

Not rated

Armed Forces Insurance*

$3,750

3.5

NerdWallet rating 

USAA*

$4,484

4.5

NerdWallet rating 

*Armed Forces Insurance and USAA generally serve the military community. Their policies are not available to all homeowners.

The best Texas homeowners insurance if you have a history of claims

After you file a claim, it’s common for insurance companies to raise your rate. Below are the companies that charge the least, on average, after a single water damage claim.

Company

Average annual rate

NerdWallet rating

Chubb

$2,318

5.0

NerdWallet rating 

Texas Farm Bureau

$2,447

4.0

NerdWallet rating 

Mercury

$2,717

3.5

NerdWallet rating 

USAA*

$2,632

4.5

NerdWallet rating 

Armed Forces Insurance*

$2,641

3.5

NerdWallet rating 

*Armed Forces Insurance and USAA generally serve the military community. Their policies are not available to all homeowners.

The best Texas homeowners insurance for new homes

Newer houses tend to be cheaper to insure than older ones, especially if you choose one of the companies below. Rates displayed are for a home built in 2021.

Company

Average annual rate

NerdWallet rating

Nationwide

$1,002

5.0

NerdWallet rating 

Mercury

$1,234

3.5

NerdWallet rating 

State Farm

$1,461

4.0

NerdWallet rating 

Armed Forces Insurance*

$1,345

3.5

NerdWallet rating 

USAA*

$1,407

4.5

NerdWallet rating 

*Armed Forces Insurance and USAA generally serve the military community. Their policies are not available to all homeowners.

The best Texas homeowners insurance for those with a high deductible

Choosing a higher deductible means you’ll have to pay a bigger share of any claims you file. If you’re willing to take the risk, you’ll generally pay less in annual premiums. Below are the cheapest companies for a Texas homeowners policy with a $2,500 deductible.

Company

Average annual rate

NerdWallet rating

Chubb

$1,920

5.0

NerdWallet rating 

Mercury

$2,015

3.5

NerdWallet rating 

Farmers

$2,185

4.0

NerdWallet rating 

Armed Forces Insurance*

$2,085

3.5

NerdWallet rating 

USAA*

$2,357

4.5

NerdWallet rating 

*Armed Forces Insurance and USAA generally serve the military community. Their policies are not available to all homeowners.

Average homeowners insurance cost in Texas by city

Texas' size means your rates can vary greatly depending on where you live in the state. Below are the average annual homeowners insurance rates for some of the state’s largest cities.

Company

Average annual rate

Average monthly rate

Amarillo

$4,247

$354

Arlington

$3,897

$325

Austin

$2,321

$193

Brownsville

$2,883

$240

Conroe

$3,266

$272

Corpus Christi

$3,471

$289

Dallas

$3,887

$324

Denton

$3,748

$312

El Paso

$1,727

$144

Fort Worth

$3,813

$318

Garland

$3,888

$324

Grand Prairie

$3,938

$328

Houston

$3,695

$308

Irving

$3,873

$323

Katy

$3,751

$313

Laredo

$2,371

$198

Lubbock

$3,734

$311

McKinney

$3,799

$317

Midland

$3,449

$287

Pasadena

$3,551

$296

Plano

$3,842

$320

Round Rock

$2,227

$186

San Antonio

$2,443

$204

Spring

$3,447

$287

Sugar Land

$4,034

$336

What to know about Texas homeowners insurance

Homeowners in Texas should be aware of several different types of severe weather that could put their homes at risk.

Hurricanes

Texas' large coastline means it's vulnerable to hurricanes, with the second-highest number of landfalls in the U.S., behind only Florida. Homeowners insurance typically covers damage caused by wind, but in Texas you may pay a separate insurance deductible for any wind or hail damage.

Depending on where you live, your insurer may decline to provide windstorm coverage as part of your homeowners insurance policy. Should that happen, you can purchase separate windstorm insurance. If you're rejected by a private insurer, you can usually get coverage from the Texas Windstorm Insurance Association as long as you live in a designated coastal county.

Hurricanes can also cause flood damage, which is not covered by a standard homeowners insurance policy. Learn more about flood insurance and how to buy it.

Hail

Hailstorms can wreak havoc on roofs, but fortunately for homeowners, hail damage is covered by a typical home insurance policy. It's a good thing, too: Texas easily leads the U.S. in hail-related insurance claims.

As noted above, some Texas policyholders may not be able to get wind and hail coverage with their homeowners insurance, depending on where they live. In these cases, the Texas Windstorm Insurance Association may be able to help.

When the time comes to replace your roof, you may want to consider choosing impact-resistant materials that are less likely to be damaged by hail. In addition to preventing damage, this could also earn you a discount from your insurer.

Tornadoes

Texas' unique geography makes it especially prone to tornadoes. A standard homeowners insurance policy covers damage caused by a tornado, along with any additional living expenses you might have if you're temporarily displaced from home because of tornado damage.

But as with hurricanes and hail, you may need extra insurance to cover tornado damage if your homeowners insurance doesn’t cover windstorms in your area.

Wildfires

Texas experiences thousands of wildfires each year. A standard home insurance policy will cover wildfire damage and pay for you to live elsewhere if you’re unable to stay in your own house during repairs.

How to get the best home insurance

The best home insurance for you will give you the coverage you need at a price you can afford. Here are a few tips to help you find it.

Estimate your coverage needs. A standard homeowners policy includes the following types of coverage:

Coverage type

What it does

Typical amount

Covers damage to the home and attached structures, such as a porch.

Enough to rebuild your home.

Covers stand-alone structures on your property, such as a fence or shed.

10% of dwelling coverage.

Pays to repair or replace belongings that are stolen or damaged in a covered event.

50% to 70% of dwelling coverage.

Helps pay temporary living expenses while your home is being repaired.

20% of dwelling coverage.

Pays if you injure someone or cause property damage unintentionally or through neglect.

$100,000 to $500,000.

Medical payments

Pays to treat someone injured on your property, regardless of who’s at fault. Also pays if you, a family member or a pet injures someone elsewhere.

$1,000 to $5,000.

To better understand these coverage types and figure out how much you need, see our guide to homeowners insurance coverage.

Shop around. We recommend getting home insurance quotes from at least three different companies. You can do so online or by having an independent insurance agent shop around on your behalf. When evaluating quotes, make sure they all have the same coverage options and deductibles so you know you’re getting a fair comparison.

Read reviews. The cheapest company may not necessarily be the one with the best coverage and customer service. See NerdWallet’s homeowners insurance reviews for our ratings of more than a dozen popular companies.

Texas Department of Insurance

Got a complaint about your insurer or a question about your policy? Turn to the Texas Department of Insurance, which oversees the state’s insurance industry. You can call the department at 800-252-3439.

Your insurance company is required to give you a copy of the TDI’s Consumer Bill of Rights when it issues you a homeowners policy. Among other things, this document explains how the claims process works and under which circumstances an insurer can cancel your policy.

Looking for more insurance in Texas?

Frequently asked questions
Why is homeowners insurance so expensive in Texas?

Texas is at risk for a variety of natural disasters, including hurricanes, wildfires, tornadoes and hail — all of which could cause expensive damage to your home. Insurance companies generally charge higher prices for homes they consider to be at higher risk of damage.

Do you have to have homeowners insurance in Texas?

If you have a mortgage on your home, your lender will probably require you to buy homeowners insurance. If you don’t have a mortgage, getting homeowners insurance is likely your choice. Unless you could afford to rebuild your home after a disaster, buying a homeowners policy is generally a wise choice.

How much is home insurance per month in Texas?

The average cost of home insurance in Texas is about $278 per month, according to a NerdWallet rate analysis. Your own rate may vary depending on where you live, the characteristics of your home and the amount of coverage you need.

Methodology

NerdWallet averaged rates for 40-year-old homeowners from a variety of insurance companies in every ZIP code across the state. Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1997. They had a $1,000 deductible and the following coverage limits:

  • $300,000 in dwelling coverage.

  • $30,000 in other structures coverage.

  • $150,000 in personal property coverage.

  • $60,000 in loss of use coverage.

  • $300,000 in liability coverage.

  • $1,000 in medical payments coverage.

We used the same assumptions for all other homeowner profiles, with the following exceptions:

  • For homeowners with a claims history, we added a single water damage claim.

  • We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for homeowners with poor credit.

  • To see the effect of changing your deductible, we raised the deductible from $1,000 to $2,500.

  • For homeowners with newer homes, we changed the year the house was built to 2021.

These are sample rates generated through Quadrant Information Services. Your own rates will be different.

Star rating methodology

NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverages, discounts, online experience and more. Our “ease of use” category looks at factors such as website transparency and how easy it is to file a claim. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

Complaint methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2020. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

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