Is Texas Homeowners Insurance a Requirement?

No, the state of Texas does not technically require homeowners insurance by law. However, your lender will require it if you still owe money on your home.

What Does Homeowners Insurance in Texas Cover?

Under a typical homeowners insurance policy, coverage in Texas includes a few basic things: <ul> <li>Dwelling coverage: This will help pay for the repair of the physical structure — and attached structures like garages — of your home as long as it’s a “covered hazard.” </li> <li>Personal property: Personal poverty coverages help cover damages of your personal items, like clothing or furniture. </li> <li>Personal liability: Liability coverage protects against any damages or injuries sustained by others that you or your household are responsible for. </li> <li>Additional living expenses: This helps pay for any expenses you take on should you not be able to live in your home due to things like fire damage, etc. </li> </ul> As always, shop around and make sure to ask insurance agents what is included in basic coverage plans and what additional coverages or exclusions are present.

Which Additional Coverages Are Recommended in Texas?

When shopping around for insurance quotes, it’s important to ask specific questions on what may — or may not — be included in your standard policy. As mentioned, Texas is a large state prone to many natural disasters, so experts usually recommend adding the below coverage types as well: <ul> <li>Flood insurance: To make sure you’re covered, you’ll need a separate flood insurance policy and separate policy to protect your personal belongings against flood damage. If you're in a flood zone, your lender will require it. Talk to your agent about getting from the National Flood Insurance Program. </li> <li>Wind or hail coverage: You can purchase this type of coverage through the Texas Windstorm Insurance Association (TWIA). It’s especially important for those who live near the coast. </li> <li>Seepage and leakage: Though most insurance policies cover sudden or accidental water damage, there are coverage limits here. Gradual leeks, seepage, and mold from flooding is required under a separate flood policy. </li> </ul> A few other important notes about Texas homeowners insurance: <ul> <li>Most insurance policies will pay to repair your home based on its current cost (replacement cost coverage). However, some insurance companies offer actual cash value (ACV) settlement clauses for wind and hail damage. The latter usually cost less, but pay less when you have a claim depending on the age and condition of your home.</li> <li>Texas has separate deductibles for certain losses.</li> </ul>

How Do I File a Complaint?

For insurance claims and complaints, contact the Texas Department of Insurance at 800-252-3439 or <a href="https://www.tdi.texas.gov/consumer/homeowners-renters-insurance-complaint.html">file a complaint online</a>.

The Best Homeowners Insurance in Texas [2023]

Find a top-ranked Homeowners Insurance Agency in your area

You know the saying, “Everything’s bigger in Texas.” Well, that goes for the cost of homeowners insurance as well. Compared to the national average, home insurance coverage plans in Texas can be close to 20–50% larger.

In a state prone to tornadoes, hail, thunderstorms, and other natural disasters, it’s important to ensure your home and family are safe and prepared.

We at Expertise.com have analyzed a handful of home insurance companies. We’ll uncover everything to know about homeowners insurance in Texas, and help you find the most comprehensive, cheapest coverage to suit your needs.

Skip to section to learn more.

Average Cost of Homeowners Insurance in Texas
Texas Homeowners Insurance Rates by City
The Best Homeowners Insurance in Texas
Cheapest Homeowners Insurance in Texas
FAQs
How to Reduce Homeowners Insurance Costs in Texas
Texas Insurance Options In Your City

Average Cost of Homeowners Insurance in Texas

The average cost of homeowners insurance in Texas is $3,429 per year according to Insurance.com. This is in the top five states with the highest cost of home insurance.

Why do Texas policyholders pay such high premiums? This is due in large part to a large number of hail storms, devastating hurricanes, wildfires, and an unfortunate amount of fraud. However, the cost of homeowners insurance in Texas can differ vastly based on a few key factors:

The age of your home: Is your Texas home an older home that is at risk of more structural wear and tear?
The square footage of your home: How big is your home? In general, larger homes will cost more to insure.
The materials used to build your home: Was your Texas home built using materials prone to things like rotting or structural damage?
Building costs in your area: Because insurance deals with repairs and replacement, coverage increases with increased building costs.
The location in which you live: What are crime rates like? How close are you to a fire department?
Any additional features: Does your house have a swimming pool or hot tub that could pose a potential risk to guests? Do you have pets, and if so, what are their breeds? Surprisingly, insurers will look at these things when assessing prices.

Your deductible: A higher deductible will decrease your premium, but could cost you more if you file a claim. Talk to your insurance provider about diminishing deductibles to get the best plan that suits your payment needs.

Texas Homeowners Insurance Rates by City

Texas is home to some of the biggest cities in the United States, so it’s no surprise that costs of homeowners insurance vary vastly from city to city.

Below is a breakdown of the average annual rate based on the largest Texas cities:

City	Average Annual Rate
Houston	$4,3634363 out of 4363
San Antonio	$2,9442944 out of 4363
Dallas	$3,8763876 out of 4363
Austin	$2,8622862 out of 4363
Fort Worth	$3,7393739 out of 4363
El Paso	$2,3612361 out of 4363
Arlington	$3,9533953 out of 4363

The Best Homeowners Insurance in Texas

After extensive research, we at Expertise.com found the following insurance agencies to provide the best, comprehensive coverage in Texas:

USAA

Average Annual Rate: ~ $2,000

Notes: A great option for active-duty military members

State Farm

Average Annual Rate: ~ $2,700

Notes: A viable option for new homeowners

Chubb

Average Annual Rate: ~ $1,350

Notes: Good claims assistance for natural disasters like hurricanes and flooding

Nationwide

Average Annual Rate: ~ $2,900

Notes: Good for extended coverage options

Farmers

Average Annual Rate: ~ $1,400

Notes: Long list of discounts

Allstate

Average Annual Rate: ~ $2,200

Notes: Good for extended coverage plans

Lemonade

Average Annual Rate: ~ $2,500

Notes: Everything can be managed online or through the app making it one of the fastest claims option

Texas Farm Bureau

Average Annual Rate: ~ $1,650

Notes: Best option for bundling

Cheapest Homeowners Insurance in Texas

The cheapest homeowners insurance in Texas can depend on a variety of factors (many listed above), so it’s important to shop around. Based on our research, the following providers have some of the cheapest coverage options in the state of Texas:

Chubb
Mercury
Texas Farm Bureau
Amica
Farmers

Find Cheap Homeowners Insurance in Your Area

FAQs

Below, we tackle some common questions to help you make a more informed decision about which homeowners insurance to choose in Texas specifically.

How to Reduce Homeowners Insurance Costs in Texas

As we’ve pointed out, the price you pay for homeowners insurance can vary substantially across insurers.

Here are a few ways to reduce costs:

Increase your deductible. This will help reduce monthly costs to your insurer, but it may mean paying more out of pocket should you need to make a claim. Similarly, paying your 6-month or 1-year premium in full will drive down monthly costs.
Bundle policies. Bundling your home and auto insurance can help you save 5–15% on your premiums. Talk to your insurance provider about home and car insurance bundling options and how that helps you save.
Take the necessary steps to make your home disaster-resistant. Some examples include:
- Install a smoke detector and/or fire alarm.
- Get a burglar alarm and/or dead-bolt locks.
- Install a sprinkler system.
Nix the high-risk accessories. Similar to the above point, rid your home of things that are considered “high risk.” For example, did the kids go off to college? Time to throw out that trampoline that’s sitting in the backyard.
Seek out other discounts. Some things to look into:
- Do you work from home? Insurance providers may feel you’re less prone to theft or may spot a fire or flood sooner.
- Are you retired? You may qualify for a discount.
- Does your employer offer a group deal?
- Even something as simple as choosing paperless billing can help you save!
Keep good credit. Insurers will look at policyholders’ credit history and charge less for those with good financial strength and standings.

As always, consult your insurance agent to see which of the above discounts you qualify for.

Texas Insurance Options In Your City

At Expertise.com, our goal is to connect Texas residents with the best local experts and agencies, so you can find the home insurance policy that safely insures your home and most prized possessions.

View our list of the 17 best homeowners insurance agencies here.

Learn more about the best homeowners insurance options in your respective Lone Star State cities below:

Our methodology evaluates each provider based on the quality and quantity of their reviews, their presence on multiple review sites, and their average minimum rating.

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