Best cheap home insurance in Houston

The best home insurance companies in Houston

Homeowners insurance in Houston, Texas, is relatively expensive, costing an average of $5,157 per year for a policy with a $300K dwelling limit. Extreme wind damage is a concern here, according to Risk Factor, with 96 percent of all Houston homes at risk. Plus, the city’s position near Galveston Bay and the Gulf of Mexico puts it at risk for other natural disasters like hurricanes. To help homeowners financially protect the investment they’ve made in their homes, Bankrate’s insurance editorial team has researched and identified the best home insurance companies in Houston. Based on our findings, USAA, Nationwide, State Farm, Foremost and Farmers offer some of the best policies in the area.

The cheapest home insurance companies in Houston

Home insurance in Houston costs 39 percent more than the Texas statewide average, which can make finding cheap home insurance harder — but not impossible. Bankrate’s insurance editorial team evaluated average rate data from Quadrant Information Services and found that the following insurers write some of the cheapest home insurance policies for a $300K dwelling limit. We’ve also included the cheapest home insurance in Houston for other coverage limits.

How much is home insurance in Houston, Texas?

In Houston, the average cost of home insurance is $5,157 per year for a policy with $300,000 in dwelling coverage. This is more expensive than the national average cost of home insurance, which is $2,304 per year. In addition, Houston homeowners pay 33 percent more than the average Texan for home insurance; the statewide average annual rate is $3,884. However, home insurance premiums are highly personalized, so factors like your claims history, the age of your home and the size of your home may cause your premium to be cheaper or more expensive. Home insurance quotes in Houston may vary by provider, even using the same coverage parameters. It’s helpful to get at least three quotes to find the policy that best meets your needs at the cheapest price.

Houston rates by credit tier

Building credit doesn’t happen overnight, but taking steps to boost your credit might help you earn a lower home insurance premium. Homeowners with poor credit are statistically more likely to file claims, which in turn costs the insurance company money. To account for the added financial risk, most home insurance companies charge homeowners with poor or average credit higher rates than homeowners with good or excellent credit.

To compare, Houston homeowners with poor credit pay an average of 65 percent more than homeowners with excellent credit. Making sure to pay your bills on time, keep old accounts open and removing negative or outdated credit information are a few ways you may be able to raise your credit over time to lower your Houston home insurance premiums. The table below details some cheap Houston home insurance companies and different average rates based on credit tier.

Houston rates by home age

Houston home ages generally vary by neighborhood, with some homes dating back over a century. Older homes, particularly those with older roofs, usually cost more to insure. An older home is more likely to be built with materials that are succumbing to age, more expensive to replace or harder to source, which could drive up the cost of repairs after a covered claim. Below, we’ve collected average rates from some cheap home insurance companies to show how premiums vary by home age.

Houston rates by deductible amount

The average cost of home insurance in Houston is pretty high, but choosing a high-deductible home insurance policy may help get you a more affordable rate. Your home insurance deductible is the amount of money you are financially responsible for after filing a claim. By choosing to take on greater financial responsibility, your home insurance provider may reward you with a cheaper rate. Keep in mind that it’s risky to increase your deductible beyond what you could reasonably afford in the event of an emergency or at a moment’s notice. In the table below, you can see how rates vary based on the deductible amount.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze November 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:

• Coverage A, Dwelling: $300,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $30,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $150,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $60,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000, $1,500, $2,000 or $5,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our homeowners: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining home insurance rates: California, Maryland, Massachusetts.

Year built: Rates were calculated based on the following years built for homes and assigned to our homeowners: “1959, 1982, 1992, 2010, 2016 (base) and 2020.”

Bankrate Score

Our 2024 Bankrate Score considers variables our insurance editorial team determined impact policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.