The Best Homeowners Insurance in Texas

We analyzed the cheapest rates and top companies for home insurance across the Lone Star State.
Doug SiborJul 27, 2021

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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.

With an average annual rate of $3,007, Texas home insurance is the third-most expensive in the United States, trailing only Nebraska and Oklahoma.

The Lone Star State’s high home insurance premiums are due in large part to its severe weather, including hailstorms, hurricanes and windstorms. Texas also recently saw major winter storm damage across the entire state.

NerdWallet analyzed rates from 19 different insurers in the state to get an idea of how much you'll pay for home insurance in Texas.

The cheapest home insurance in Texas

Based on NerdWallet's analysis, these 10 companies offer, on average, the cheapest home insurance rates in Texas:

Company

Average annual premium

Houston General

$1,658

Chubb

$1,808

Texas Farm Bureau

$1,845

Armed Forces Insurance

$2,416

Homeowners of America

$2,468

State Farm

$2,551

Allstate

$2,610

USAA*

$2,700

Lighthouse Insurance

$3,041

Republic Group

$3,044

*USAA is available only to active military, veterans and their families.

Of the insurers in Texas with lower-than-average annual premiums, the following ones are featured in NerdWallet’s best home insurance companies for 2021:

Company

NerdWallet rating

Average annual premium

Chubb

5.0

NerdWallet rating 

$1,808

State Farm

4.5

NerdWallet rating 

$2,551

USAA*

4.5

NerdWallet rating 

$2,700

*USAA is available only to active military, veterans and their families.

Average homeowners insurance cost in Texas

Texas' size means your rates can vary greatly depending on where you live in the state. In fact, according to NerdWallet's analysis, your location can affect your average home insurance cost by over $3,700 per year.

Here are the average home insurance rates in the 10 largest cities in Texas, according to the Texas Demographic Center:

City

Average annual premium

Houston

$3,493

San Antonio

$2,169

Dallas

$3,609

Austin

$2,045

Fort Worth

$3,664

El Paso

$1,686

Arlington

$3,716

Corpus Christi

$3,779

Plano

$3,454

Laredo

$2,005

Why is home insurance in Texas so expensive?

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

  • Hurricanes. Texas' large coastline means it's vulnerable to hurricanes, with the second-highest number of landfalls in the United States, 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, or 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.

  • Flooding. Texas has experienced significant flooding over the years, but since flood damage isn't covered by homeowners insurance, you'll likely need a separate flood insurance policy.

  • 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 events and hail-related insurance claims.

  • 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.

  • Wildfires. Texas experiences a large number of wildfires, with over 6,000 occurring in 2020 alone. A standard home insurance policy will cover wildfire damage.

Methodology

NerdWallet averaged rates for 40-year-old men and women 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 1983. 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.

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

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