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Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.
Homeowners insurance is an important financial protection to have, but it doesn't come cheap, especially in Texas. The average person can expect to pay over $2,600 per year for Texas homeowners insurance, and some can pay a lot more than that. Here's a look at which companies offer the cheapest rates for some of the most common scenarios.
Those seeking the cheapest homeowners insurance in Texas should give Texas Farm Bureau Insurance a closer look. While the state's average annual home insurance premium was $2,646 per year, Texas Farm Bureau customers only pay about $450 per year.
These companies also offer some of the best homeowners insurance in Texas:
Texas Farm Bureau Insurance also offers some of the best Texas home insurance rates on new construction with its average annual premium coming in around $362. That's about a quarter of the state average $1,400 premium for new homes.
Those seeking cheap homeowners insurance in Texas on a new home should also look into these companies:
Those who own older homes can also find affordable coverage with Texas Farm Bureau Insurance. Its average Texas home insurance premium for a home built in 1971 was just $362 -- the same as its rate for new construction. That could save homeowners over $2,000 compared to paying the state average premium of $2,526 per year for older homes.
These insurers also make the list of the best homeowners insurance companies in Texas for older homes:
While homeowners who have filed a claim previously can expect to pay about $2,800 per year for Texas home insurance on average, those who go with Texas Farm Bureau Insurance can get coverage for a much more affordable $360 per year.
These companies are also affordable options for Texas homeowners who have filed a claim in the past:
Texas homeowners insurance rates are above average in virtually every category compared to the national average. This can make it challenging to find affordable coverage. However, costs vary significantly by home type, location within the state, and other factors. Here's a look at how the average Texas home insurance premium for several common scenarios stacks up to the national average.
| Average Rate Category | Texas | National Average |
|---|---|---|
| Overall | $2,646 | $1,725 |
| New home construction | $1,400 | $943 |
| Older homes | $2,526 | $1,658 |
| When making a claim | $2,800 | $1,803 |
Here's some things homeowners ought to know about Texas home insurance.
The typical home in the United States costs about $293,349. But the average home in Texas costs just $247,210, according to The Ascent's research on average house costs by state. Lower-cost homes typically cost less to insure than more expensive homes, but there are other factors that influence rates as well.
Texas sees the most major hail events of any state in the country. It's also among the top five states at risk of storm surge, tornadoes, and wildfires. Those who live near the coast may experience hurricanes as well. The increased likelihood of so many natural disasters undoubtedly plays a part in Texas's above-average home insurance rates.
Here are some of the most common Texas home insurance claims:
With its position in Tornado Alley and its proximity to the coast, Texas is battered by hurricanes and tornadoes every year. These tend to bring a lot of hail and wind damage. Between 2017 and 2019, Texans filed nearly 638,000 hail damage claims, according to the Insurance Information Institute. That's the most of any state in the country.
Heavy rains and storm surges can cause flooding in residential areas. These claims can get expensive in a hurry, but they're usually not covered under traditional home insurance. Homeowners who live in flood-prone areas will need to invest in flood insurance as well to ensure they're fully protected.
In 2020, Texas filed 4,675 claims for lightning losses. That's the third-most of any state in the country. Lightning strikes can sometimes lead to fires, but fires can start on their own too for any number of reasons.
Here's a look at how certain coverage options and home insurance discounts can affect the cost of a Texas home insurance policy.
The average cost of home insurance for Texans who have sprinklers installed is $2,376 per year. That's about 10% less than the state average. Those who just have smoke alarms in their homes will also save, though not quite as much. They pay about $2,432 per year on average.
A roof upgrade brought the average Texas home insurance premium down to $2,119 per year. That's about $527 less than the state average. Those planning to replace their roof should make sure their insurance company knows about it so they can take advantage of these savings.
Bundling home and auto insurance brought the typical Texas home insurance premium all the way down to $2,194 per year. That's why it's usually a good idea to get home and auto insurance from the same company whenever possible.
Here's a look at which cities offer the most affordable average homeowners insurance premiums in Texas.
| City Name | Average Home Insurance Rate |
|---|---|
| Biggs Field | $1,202 |
| Clint | $1,341 |
| San Elizario | $1,348 |
| El Paso | $1,353 |
| Fort Bliss | $1,354 |
These five cities have some of the most expensive Texas home insurance premiums.
| City Name | Average Home Insurance Rate |
|---|---|
| Galveston | $5,564 |
| Bolivar Peninsula | $5,054 |
| Seabrook | $4,456 |
| Gilchrist | $4,380 |
| Texas City | $4,073 |
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.
