The cheapest options for homeowners insurance in Texas

We did a comprehensive analysis of the price of homeowners insurance for every ZIP code in Texas and found which insurers provide the lowest rates. For our sample property, Chubb and USAA offered the absolute lowest price, with annual averages of $1,436 and $2,030, respectively.

However, the average homeowner may have some difficulty purchasing coverage from these two companies, as Chubb mostly sells insurance to owners of high-value homes, and USAA is limited to people affiliated with the U.S. military. For those who can't take advantage of these companies' special prices, the cheapest options are Progressive and Nationwide.

The most common homeowners insurance perils in Texas

As the largest of the 48 continental United States, Texas faces a wide range of homeowners insurance perils. For homeowners living near the Gulf of Mexico, the primary regional risk is damage from hurricanes and other storms; meanwhile, homes further inland are susceptible to wildfires and tornadoes.

How hurricanes and tropical storms are covered by insurance in Texas

Homeowners who live near the Gulf Coast are at risk of their home being hit by a hurricane or other major storm, and there are two major insurance perils associated with coastal storms: wind damage and flooding. The good news is that damage due to wind is essentially always covered by homeowners insurance — if wind breaks a window or leads to your roof needing repair, your homeowners insurance will cover the costs.

However, damage due to flooding, whether from a hurricane or another source, is almost never covered by homeowners insurance. To protect your home against flooding, you must buy a stand-alone flood insurance policy. If your home is at risk of flooding, you have two main options for flood insurance: an NFIP policy backed by the federal government (with standardized rates and coverage levels across every insurer) or a completely private policy where rates and coverage options differ by company.

Until recently, private flood insurance policies were prohibitively expensive, but they've become much more competitively priced. We recommend getting quotes for both publicly backed and private flood insurance companies in order to find the lowest prices.

How wildfires are covered by insurance in Texas

Wildfires are a particular concern for the western parts of Texas, where conditions tend to be drier and more susceptible to fire. Fortunately, fire damage is almost always covered by homeowners insurance, so you'll be protected by your policy so long as you have an adequate dollar amount of coverage.

How tornadoes are covered by insurance in Texas

Tornadoes are a common occurrence in Texas, especially during springtime. While tornadoes generally don't cause as much widespread damage as a hurricane, tornadoes can often appear with little or no warning. This means you won't have much time, if any, to prepare before one forms. And once they've formed, tornadoes generally have a travel speed of around 30 mph but can move up to 70 mph in the right conditions. So if you're in an area where a tornado watch or warning has been issued, stay inside in a protected area until the danger passes.

Fortunately, from an insurance perspective, tornadoes are relatively simple to cover. Most tornado damage is due to wind, which is covered by homeowners insurance. Other sources of tornado-related damage, like hail, generally are included, but can vary by insurer and region; so double-check your policy to understand what perils you're protected from.

Coronavirus and homeowners insurance in Texas

Homeowners insurance hasn't been affected by COVID-19 to the extent that car and health insurance have been. However, if you're having trouble making homeowners insurance payments due to financial hardship, you may be eligible to delay payment in order to avoid having your policy cancelled.

Unfortunately, you can also expect that any home insurance claims you do make during this time are likely to be delayed. The governor has suspended some claim handling deadlines, and insurers may have limited staff available to manage claims. There is also a good chance that you won't received an in-person visit from a claims adjuster; you're likely to file the claim digitally, instead.

Texas Department of Insurance COVID-19 main page

Texas homeowners insurance rates: City-by-city breakdown

In addition to a statewide price analysis, we also looked at the cost of homeowners insurance for the major cities in Texas. For every city with a population over 50,000, we calculated the typical price homeowners can expect to pay in that city, as well as how that price compares to the statewide average.

On average, it costs much more to insure a home in Texas than in the rest of the country. Like other coastal states exposed to hurricane activity, Texas must cope with increased risk of wind damage. The potential for tornadoes and wildfires in the state also make it an expensive market for home insurance.