Best homeowners insurance companies in Texas for 2024

Compare the best homeowners insurance companies in Texas

Our research shows that some of the best homeowners insurance companies in Texas include USAA, Chubb, State Farm, Nationwide and Farmers. These companies showcase a mix of low rates (compiled from Quadrant Information Services), high J.D. Power customer satisfaction scores, strong financial strength ratings from AM Best, robust coverage offerings and substantial discounts. When shopping for the best home insurance in Texas, property owners in the state may want to consider getting quotes from these carriers.

The top 5 home insurance companies in Texas

Additional Texas home insurance companies to consider

How Bankrate chose the best home insurance companies in Texas

To find the best home insurance companies in Texas, Bankrate first analyzed average homeowners insurance premiums obtained from Quadrant Information Services for the largest insurance providers in the state by market share. However, because the price is only one feature of a home insurance policy, we also reviewed each company’s coverage offerings, discounts, customer satisfaction scores, complaint indexes, financial strength ratings and digital tools.

We combined each of these metrics into our proprietary Bankrate Score model. The Scores are on a scale from 0.0 to 5.0, with higher scores indicating that a company scored more highly within the individual metrics. Our methodology was specifically created to help you gain a well-rounded view of each company.

Cheapest home insurance companies in Texas

When it comes to safeguarding your Texas home, balancing quality coverage with affordability is key. As mentioned, the Lone Star State can pose some challenges for homeowners seeking insurance. However, there are still insurance providers that offer competitive rates without compromising on coverage. Below, we've compiled a table showcasing some of the most cost-effective home insurance companies in Texas to help you make an informed decision.

How to get cheap Texas home insurance

Finding the best home insurance in Texas for your needs at a cheap rate may take extra research. Texas homeowners are well aware of the weather differences that can happen in the state. From ice storms and tornadoes in the north to wildfires and hurricanes in other parts of the state, home insurance coverage needs and prices may vary drastically depending on the risk in your area. But even living in an area that has greater risk does not mean finding cheap home insurance in Texas is impossible. There are some strategies you can use to help you find a lower premium:

• Understand your coverage needs: Having the right homeowners insurance coverage helps protect you financially should disaster strike your home, but making sure you are not overinsuring yourself is equally important to finding the cheapest coverage for your needs. For example, if you decide to pay out of pocket for a smaller claim, you may want to consider increasing your homeowners insurance deductible to save on premium costs. Just make sure that the deductible you choose is an amount you feel comfortable paying out of pocket.
• Shop around: Getting quotes from multiple insurance companies can help you find cheap coverage since rates can vary widely by company. Remember, cheap coverage can also include good customer service. It is possible to find cheap coverage with many outstanding companies. Shopping online, working with an insurance broker or local agent, or calling around are a few ways to get home insurance quotes.
• Apply discounts: Many insurance companies offer discounts, and these savings can help reduce your premium cost. While many carriers offer common discounts, some may be unique to certain companies. When quoting, check out what discounts are available with each company to maximize savings.
• Safeguard your home: You may be able to get a cheaper premium if you have a home security system, fire alarms and other safety features installed on your property. These risk-mitigation measures are often rewarded by homeowners insurance companies because they reduce your likelihood of needing to file a serious claim. Even a DIY security system with window alarms and cameras could help you nab savings.

Best home insurance discounts in Texas

Discounts are an easy way to lower your homeowners insurance premium. Below are some common discounts Texas homeowners may qualify for:

How to save on home insurance policy renewals in Texas

Year after year, as homeowners confront policy renewals, many wonder how they might obtain better rates or discounts without sacrificing crucial coverage. In Texas, with its unique set of challenges and risks, leveraging certain strategies could result in potential savings on home insurance renewals. Here are some actionable steps you can consider:

• Shop around: Don't just auto-renew without taking a moment to consider other potential insurance options. Compare rates from different insurers to ensure you're getting the best deal. Remember, insurance markets evolve and premiums can vary from one provider to another.
• Bundle policies: Many insurers offer discounts if you bundle multiple policies with them, such as auto and home insurance.
• Increase your deductible: Opting for a higher deductible can reduce your premium, but ensure it's an amount you can afford out of pocket in case of a claim.
• Inquire about discounts: Ask your insurer about discounts for security systems, storm shutters or even being a long-term policyholder. An insurance provider might even give a discount if you’ve been claims-free for a specific period of time. Sometimes, savings are available but not automatically applied.
• Review your coverage: Ensure you're not over-insured. As the value of possessions depreciates or if you've made home improvements, adjust your coverage accordingly.
• Maintain good credit: Insurers often use credit data to determine premiums. Having a positive credit history might get you a better rate, so taking steps to improve your credit-based insurance score can be worthwhile.

How much is home insurance in Texas?

Texas residents pay an average of $3,884  for $300,000 in dwelling coverage for home insurance. Texas homeowners insurance premiums are higher on average than in other states, possibly due to loss costs from natural disasters, which includes hurricanes and tornadoes. Insurance premiums are largely based on risk, and if an area has a greater likelihood of homes being damaged, the premiums are generally higher so that insurance companies can prepare for a potential claims payout.

Texas homeowners pay 69 percent more than the national annual average cost of home insurance, which is $2,304 per year for $300,000 in dwelling coverage.

Texas homeowners insurance rates by city

Within Texas, insurance rates can fluctuate from one city to another. Factors like local crime rates, vulnerability to natural disasters and the overall housing market could play a role in these variations. While some cities could have more affordable premiums, others, due to their unique challenges, may see higher rates. To provide a clearer picture of these disparities, we've provided a map and a searchable data table below. By exploring this information, homeowners can get a better understanding of insurance costs across different Texas cities.

*Rates are for $300,000 in dwelling coverage.

What does home insurance cover in Texas?

Homeowners face a unique set of challenges and risks in Texas. Insurance policies in the state are usually crafted to address these specific threats, but it's crucial for homeowners to be aware of what their policies cover. Understanding the standard coverage types can help Texas residents identify gaps in their protection and consider additional policies tailored to their specific needs.

Standard Texas home insurance policies typically cover these common perils:

• Wind and hail damage: This coverage can financially protect against the tornadoes or severe convective storms that can be frequent in certain parts of Texas.
• Fire and smoke damage: This kicks in for damage caused by wildfires in drier regions or household accidents.
• Theft and vandalism: This provides coverage for burglaries or intentional property damage.
• Liability coverage: This coverage is important in case someone gets injured on your property or if you cause damage to others.
• Water damage: This typically covers sudden incidents, but it's essential to note this doesn't always include flooding from external sources. Many insurers require separate flood insurance for claims regarding natural disasters.
• Loss of use: If your home becomes uninhabitable due to a covered event, this can assist with temporary living expenses that align with your typical costs. You may not be able to stay in a five-star resort, but your insurer will cover a local hotel and groceries.

Additional home insurance coverage types in Texas

In addition to the standard insurance coverage types, Texas homeowners may want to consider some additional endorsements and even separate policies to gain more coverage:

• Flood insurance: You may want to consider buying a separate flood insurance policy to help repair damages if your home floods. You may be required to purchase flood insurance in some cases. Flood insurance is offered through the federally backed National Flood Insurance Program and many private flood insurers. Understanding your flood insurance requirements prior to moving could help you make informed decisions.
• Wind/hail coverage: If you live near the coast or in another wind-prone area, your policy might exclude wind coverage due to the increased risk of related damage to your home. In cases where you cannot get coverage through your insurance company, the state-backed Texas Windstorm Insurance Association (TWIA) can help provide coverage.
• Seepage and leakage: This endorsement may cover damage from slow leaks or seepage from cracks.

Additionally, some insurance experts have noted a recent trend in Texas where insurance companies offer “ACV only” settlement clauses for wind and hail damage. ACV stands for actual cash value, which means the market value of the item minus depreciation. While an ACV clause or policy will be less expensive than replacement cost value (RCV) coverage, it will also mean lower coverage for whatever items are covered under that clause or policy. Check for exclusions for roof damage caused by hail and consider purchasing additional coverage if needed.

Texas also has separate deductibles for certain losses. In this state, natural disasters, like named tropical cyclones and hailstorms, may have a separate deductible from your policy deductible. This is usually a percentage deductible of your dwelling coverage amount — typically between 1 and 5 percent.

For example, if your home is insured with $300,000 in dwelling coverage and you have a 2 percent wind deductible, you are responsible for $6,000 of a wind or hail damage claim while your insurer will pay toward the rest.

If you have any questions about a policy, consulting with an insurance agent may be a good idea. A licensed insurance professional can review your policy and help identify areas where you may need to purchase separate coverage or adjust your current coverage.

Common Texas home insurance problems

Acquiring home insurance in Texas isn't always straightforward. Given the state's predisposition to various natural calamities and its vast territorial expanse, insurers may often approach policies with caution. This unique blend of factors can sometimes make it challenging for homeowners to find comprehensive coverage at affordable rates.

Some common issues Texas homeowners might encounter include:

• Higher premiums: Homeowners may see increased rates due to frequent natural disasters like hurricanes, tornadoes, and hail storms.
• Flood insurance gaps: Standard policies usually don't cover flooding, which is common throughout Texas, necessitating separate flood insurance.
• Limited coverage in certain areas: Insurers might offer limited coverage or charge higher premiums in areas particularly prone to events like wildfires or coastal storms.
• Claim delays: After widespread events, the sheer volume of claims might lead to delays in processing and payouts.
• Policy non-renewals: In high-risk areas, some insurers may decide to nonrenew policies, forcing homeowners to seek coverage elsewhere.

Frequently asked questions

Additional profiles:

• Coverage A, Dwelling: $150,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $35,000, $45,000, &75,000
• Coverage C, Personal Property: $75,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

Bankrate Scores 

Our Bankrate Score considers variables our insurance editorial team determined impacts 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.