Home Insurance in Texas

Home insurance in Texas: what you need to know

The average cost for home insurance in Texas is $2470 or $206 per month.^[1] This makes home insurance in Texas 63% more expensive than the national average of $1515. For Texas homeowners looking for the cheapest company, our data shows Texas Farm Bureau has the lowest rates in 2024 at $1,794.

If you're a homeowner who prefers reputation over price, State Farm is the most popular provider for Texas homeowners and boasts a high overall customer satisfaction according to the Texas Department of Insurance and JD Power.^[8] [7] 

We've highlighted the important things all Texans should know about their home insurance — including average costs, coverage against natural disasters and important state-specific information.

What are the cheapest home insurance companies in Texas?

Since 2019, home insurance rates in Texas have increased by 16%^[1] — namely due to claims from hurricanes, wildfires and other natural disasters.

While how much you pay for home insurance is very specific to you, our Dynamic Insurance Rating Tool allows us to source annual rate filings to see which company is the cheapest homeowners insurance in Texas.

For a dwelling value of at least $300,000, which 39%^[2] of Texas homeowners carry, Texas Farm Bureau ($1,794/year), Chubb ($1,893/year) and USAA ($2,202/year) are the cheapest homeowners companies in Texas.

Begin your search for cheap homeowners insurance by reviewing the most affordable Texas companies, listed below. Then, see our list of home insurance carriers consumers rated the best for customer satisfaction.

What are the cheapest home companies in Texas for new homes?

The age of your home can greatly impact any quotes you get for homeowners insurance. Depending on when and where your home was built, outdated plumbing and building practices can make insuring an older home more expensive.

According to our data, home insurance quotes in Texas for a new build are considerably cheaper than an older home — $1,682/yr versus $2470 for a home built before 2011.^[1] 

While our data shows Nationwide as the cheapest home insurance company in Texas for new construction, consider this data as a jumping-off point. Use it directionally in your search for home insurance and compare as many companies as possible.

What are the best companies for home insurance in Texas?

What determines the "best" will vary greatly among Texans. Whether you're looking for claims management, coverage options or even the best price, we recommend paying close attention to state and city-specific reviews — not just national ratings from JD Power and AM Best.

Below we've broken down the best homeowners companies in Texas based on overall ratings, by bundling and for high-value homes.

Best companies for home and auto insurance bundles in Texas

Bundling your home and auto insurance can be a great way to reduce your overall premium and the number of insurance companies you have to deal with. Our data indicates the average bundle discount for Texas homeowners is $202 or 7% per year.^[1]  

Best home insurance companies for high-value homes

Like the idea of "best company," a "high-value" home can be subjective. If you're not sure if you have a high-value home, consider the following:

• Property value greater than $750,000
• Extensive collection art, jewelry, musical instruments or other valuable collectible
• Pools, guest homes or other expensive structures apart from your home

Although our data shows Texas Farm Bureau as the cheapest company, we recommend Chubb because of its unique coverage options for a high-value home.

Best home insurance in Texas for natural disasters

Generally, any flooding-related damage will not be covered by a standard home insurance policy. But damage from wind, hail, fire or tornadoes is often included or can be added on.

Does home insurance cover hurricanes in Texas? — Partially

Coverage after a hurricane will apply depending on if the damage was caused by water or wind. Any flooding-related damage from a hurricane is not covered by a typical homeowners policy — but wind damage will often be covered.

Because of the cost, most insurance companies are unwilling to take on the full financial risk of a hurricane. If your home is damaged by wind during a hurricane, your standard home insurance policy should apply. However, any water-related damage would fall under a FEMA policy — which is discussed below.

Depending on where you live in Texas, your insurance company may offer a separate hurricane deductible if you reside in a region especially susceptible to wind storms. These deductibles are separate from your standard homeowners deductible and can work slightly differently. 

Does home insurance cover floods in Texas? No.

Damage via flooding — no matter the circumstances under which it occurs — is not covered by homeowners insurance policies. To protect your home, acquire coverage through FEMA's National Flood Insurance Program (NFIP) or a private insurer. Coverage details from private insurance companies vary but can be more customizable than a FEMA policy.

If you purchase flood insurance through NFIP, you'll receive:

• $250,000 structural coverage
• $100,000 personal property coverage

If the value of your personal property and home exceeds these limits, consider purchasing a flood insurance policy from our partners at Neptune for additional protection.

Does Texas home insurance cover wildfire damage? — Yes

Most insurance companies will cover damage caused by a wildfire under a standard homeowners policy. However, it is crucial for Texas homeowners to thoroughly read their policies to ensure they're not subject to any coverage limitations or restrictions. This is especially important if you live in wildfire-prone areas — dry areas with high seasonal winds that can be found throughout the state. 

Does home insurance cover hail damage in Texas? — Yes

Depending on where you live, hailstorms can lead to varying levels of property damage. In Texas, homeowners policies typically come with hail coverage to cover the physical structure of your home if it suffers damages in a hail event.

If you live in a part of Texas that is especially prone to hail forecasts, we recommend double-checking your homeowner's policy to see if you have any hail-related restrictions. 

Some insurance companies designate higher deductibles in hail-prone areas and make exclusions for cosmetic damage. This means that if your battered house is still functional despite aesthetic flaws after a hailstorm, your insurer will likely refuse to pay for its repair.

Does home insurance cover tornadoes in Texas? — Yes

In Texas, damage from tornadoes is covered by the windstorm part of a typical homeowners insurance policy. 

If you live in a particularly high-risk area in Texas, like Tornado Alley, you might have a separate deductible for tornadoes. We recommend double-checking your policy to ensure you're adequately covered.

Texas-specific home insurance legislation and programs

Like car insurance, home insurance is regulated at the state level. As such, Texas has a few state-specific coverage options and legislation you should be aware of.

Texas-specific homeowners insurance policy names

Below you’ll find corresponding policy names used by some home insurance companies in Texas:

• HO-A (or HO-1): Provides basic coverage and covers home and property against named perils.
• HO-A+ (or HO-2): Provides the same as HO-1 but expands coverage to include additional named perils.
• HO-B (or HO-3): Covers the home against open perils and your contents against named perils.
• HO-C (or HO-5): Covers the home and its contents against all perils unless specifically listed.

An HO-B and HO-C are the most popular home insurance policies in Texas.

Texas Windstorm Insurance Association (TWIA)

The TWIA is a state-run insurance agency in Texas that provides "last resort" wind and hail coverage. It was established in 1971 after Hurricane Celia left much of the Texas Gulf Coast without adequate insurance protection. Texas residents who meet the requirements can apply for coverage through TWIA.^[5]

• Properties must be in the designated catastrophe area
• Applicants must have been denied coverage by at least one authorized insurer
• Properties must be certified to building codes, with limited exceptions
• Properties must have proof of flood insurance coverage if required
• Properties must meet underwriting requirements

Texas FAIR Plan Association (TFPA)

Fair Access to Insurance Requirements, or FAIR, is a marketplace where Texans can get home insurance if unable to in standard markets. Typically, those with a TFPA policy meet the following conditions:

• Have a home in a high-risk area
• Have conditions in their property that make it too risky to insure
• Other underwriting conditions

While a TFPA policy does not cover theft or liability coverage, it does provide dwelling, and personal property coverage and can provide coverage against wind, hail and vandalism.^[6]

Like the TWIA, it is considered a "last resort" option for home insurance and only certain Texans will qualify. To get coverage through TFPA, a homeowner must be denied coverage by at least two insurance companies and meet basic home safety requirements. 

Home insurance quotes in Texas by most populated cities

How much you pay for home insurance will largely depend on the regional specifics of your city. If your city has a history of hurricanes or other natural disasters, like Houston, your insurance needs will be different than that of Austin.

Below are the most populated cities in Texas with the average rate for home insurance.

Frequently asked questions about home insurance in Texas