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Best cheap home insurance in Houston in 2024
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
The best home insurance companies in Houston in 2024
Home insurance in Houston, Texas is relatively expensive, costing an average of $4,973 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 floods. 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.
Bankrate Score
Avg. annual premium
$300K dwelling coverage
JD Power
Why USAA made our list: USAA typically earns the highest score in the annual J.D. Power Home Insurance and Property Claims Satisfaction studies. However, because it is only available to military members, veterans and qualifying family members, it is not officially ranked in those studies. USAA’s standard home insurance package is fairly robust, with replacement cost coverage and identity theft protection already included for no extra cost. This, coupled with its A++ (Superior) financial strength rating from AM Best, helped it tie for the Best Home Insurance Company Overall in the Bankrate Awards for the third year running.
Why USAA may be the best for military-focused coverage: Military members stationed at Ellington Field Joint Reserve Base may be interested in USAA’s home insurance coverage options specially catered to the military community. USAA policyholders can insure military gear and clothing at no deductible, with coverage extending to uniforms, headsets, body armor and more. USAA also offers more standard home insurance add-ons like extended dwelling coverage, water backup and flood insurance.
| Bankrate Score | 4.7 |
| J.D. Power | 881/1,000 |
| AM Best score | A++ |
Bankrate Score
Avg. annual premium
$300K dwelling coverage
JD Power
Why Nationwide made our list: Nationwide home insurance comes with some less common coverage types built into the policy like credit card coverage and ordinance or law coverage (the latter helps with the added cost of getting your home up to code after a covered loss). Policies are also customizable with earthquake, flood, identity theft, water backup and added financial protection for value items. Considering Houston’s extreme risk of wind damage, Houston homeowners may be particularly interested in Nationwide’s Better Roof Replacement program, which can rebuild your roof with higher-quality materials after a covered loss.
Why Nationwide may be the best budget home insurance company: Nationwide is the 2024 Bankrate Awards winner for Best Budget Home Insurance Company for its low national rates and lengthy list of discounts. Data from Quadrant Information Services shows that, on average, Nationwide’s rates are 47 percent less than the Houston average for a $300K dwelling policy. Nationwide policyholders may find additional savings through the carrier’s discounts, which include (but are not limited to) bundling, protective devices, roof rating, gated community, claims-free and smart home.
| Bankrate Score | 4.3 |
| J.D. Power | 812/1,000 |
| AM Best score | A+ |
Bankrate Score
Avg. annual premium
$300K dwelling coverage
JD Power
Why State Farm made our list: State Farm is the largest home insurance company in the country by market share and dominates more than 8 percent of the market in Texas. State Farm boasts high ratings from J.D. Power for customer and claims satisfaction, but its AM Best rating recently declined from an A (Excellent) to a B (Fair). Although its other third-party financial ratings like those from Moody’s and Standard & Poor remain unchanged, its lowered AM Best rating could rule out State Farm for homeowners with mortgages that require higher AM Best ratings.
Why State Farm may be the best for policy management options: Homeowners who do not want to choose between having local agent offices nearby and robust digital tools may be interested in State Farm. State Farm was one of two insurers that scored above average in the shopping and service categories of the J.D. Power 2023 U.S. Insurance Digital Experience Study, signaling that customers were satisfied with managing their State Farm policies online. State Farm also has a vast network of 19,000 agents across the country, with multiple office locations spread throughout Houston.
| Bankrate Score | 4.2 |
| J.D. Power | 829/1,000 |
| AM Best score | A++ |
Bankrate Score
Avg. annual premium
$300K dwelling coverage
JD Power
Not rated
Why Foremost made our list: Foremost may not be as well known as the other insurance companies on our list of the best home insurance in Houston, but the insurer is licensed to sell home insurance in all 50 states. The company is not included in J.D. Power studies, but it does have an A (Excellent) rating from AM Best. Information on its NAIC Complaint Index is harder to consolidate, considering Foremost uses different underwriting companies depending on the state. In Texas, a Foremost insurance policy may be underwritten by Farmers, but contacting an agent can provide more information.
Why Foremost may be best for seasonal or vacation homes: Homeowners in Houston who use their property as a vacation home may be interested in a seasonal home policy from Foremost. Vacant homes can also be insured with Foremost, which could appeal to homeowners completing extensive home renovations or those about to move.
| Bankrate Score | 3.7 |
| J.D. Power | |
| AM Best score |
Bankrate Score
Avg. annual premium
$300K dwelling coverage
JD Power
Why Farmers made our list: The Farmers Flex home insurance policy may appeal to homeowners looking to take some of the guesswork out of home insurance. The policy combines some of the more standard home insurance coverage types with extras like identity theft protection, emergency mortgage assistance, sewer backup, guaranteed replacement cost coverage and more. Earthquake, flood and umbrella policies are also available.
Why Farmers may be best for local agents: Farmers scored far below average in the service category of the J.D. Power U.S. Insurance Digital Experience Study, which could mean its online tools need some improvement. However, Farmers has multiple offices in Houston, which could make it a better fit for homeowners who prefer in-person service.
| Bankrate Score | 3.6 |
| J.D. Power | 800/1,000 |
| AM Best score | A |
Bankrate's trusted insurance industry expertise
Read our full methodologyBankrate looks at multiple factors when making our selections for the best home insurance companies. These include customer service ratings, third-party financial strength ratings, discount availability, coverage options and average rate data from Quadrant Information Services. To ensure that our information is up to date, we refresh the average rates you see on this page each month.
46
years of industry experience
122
carriers reviewed
34.5K
ZIP codes examined
1.2M
quotes analyzed
The cheapest home insurance companies in Houston
Home insurance in Houston costs 33 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 Armed Forces, State Farm, Nationwide, USAA and Farmers write the cheapest home insurance policies for a $300K dwelling limit. We’ve also included the cheapest providers for other coverage limits.
| Company | Average monthly premium* | Average annual premium* |
|---|---|---|
|
Armed Forces
|
$153
|
$1,833
|
|
$216
|
$2,589
|
|
|
$218
|
$2,618
|
|
|
$359
|
$4,302
|
| Company | Average monthly premium* | Average annual premium* |
|---|---|---|
|
Armed Forces
|
$168
|
$1,833
|
|
$235
|
$2,589
|
|
|
$251
|
$2,618
|
|
|
$412
|
$4,302
|
| Company | Average monthly premium* | Average annual premium* |
|---|---|---|
|
Armed Forces
|
$197
|
$2,359
|
|
$276
|
$3,315
|
|
|
$291
|
$3,488
|
|
|
$519
|
$6,231
|
| Company | Average monthly premium* | Average annual premium* |
|---|---|---|
|
Armed Forces
|
$339
|
$4,067
|
|
$407
|
$4,882
|
|
|
$507
|
$6,088
|
|
|
$728
|
$8,738
|
How much is home insurance in Houston, Texas?
In Houston, the average cost of home insurance is $4,973 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 $2,230 per year. In addition, Houston homeowners pay 33 percent more than the average Texan for home insurance; the statewide average annual rate is $3,726. 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.
Houston rates by credit tier
Building credit doesn’t happen overnight, but taking steps to boost your credit score might help you earn a lower home insurance premium. Insurance companies generally view homeowners with poor credit as 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 60 percent more than homeowners with excellent credit. The table below details some cheap Houston home insurance companies and different average rates based on credit tier.
| Company | Poor Credit | Average Credit | Good Credit | Excellent Credit |
|---|---|---|---|---|
|
Armed Forces
|
$2,739
|
$1,935
|
$1,833
|
$1,717
|
|
$6,831
|
$3,044
|
$2,589
|
$1,875
|
|
|
$3,872
|
$2,777
|
$2,618
|
$2,266
|
|
|
$4,970
|
$4,333
|
$4,302
|
$4,193
|
|
|
$6,845
|
$4,759
|
$4,624
|
$4,254
|
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.
| Company | 1959 | 1982 | 1992 | 2010 | 2020 |
|---|---|---|---|---|---|
|
Armed Forces
|
$2,633
|
$2,589
|
$2,570
|
$2,157
|
$1,561
|
|
$3,355
|
$3,355
|
$3,355
|
$3,259
|
$1,870
|
|
|
$6,907
|
$6,911
|
$7,027
|
$4,317
|
$1,955
|
|
|
$6,529
|
$6,573
|
$6,522
|
$5,277
|
$4,063
|
|
|
$7,085
|
$7,160
|
$7,190
|
$5,449
|
$4,127
|
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. In the table below, you can see how rates vary based on the deductible amount.
| Company | $1,500 Deductible | $2,000 Deductible | $5,000 Deductible |
|---|---|---|---|
|
Armed Forces
|
$1,833
|
$1,584
|
$1,448
|
|
$2,589
|
$2,589
|
$2,454
|
|
|
$2,575
|
$2,503
|
$2,147
|
|
|
$4,038
|
$4,038
|
$3,507
|
|
|
$4,513
|
$4,411
|
$3,661
|
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze July 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
- Coverage C, Personal Property: $150,000
- Coverage D, Loss of Use: $60,000
- 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, 2015 (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.
-
Cost & ratings 50%
-
Coverage & savings 30%
-
Support 20%
- 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.
