The Best and Cheapest Home Insurance Companies in Texas
The Best and Cheapest Home Insurance Companies in Texas
Chubb and Farmers have the best cheap homeowners insurance in Texas at $1,362 per year and $1,443, respectively.
Find Cheap Home Insurance Quotes in Texas
Best cheap home insurance in Texas
We gathered thousands of quotes from the largest insurers to determine the best home insurance companies in Texas. We also considered customer reviews and ratings, coverage options and availability.
Cheapest homeowners insurance companies in Texas
Chubb and Farmers offer the best home insurance rates in Texas, with annual averages of $1,362 and $1,443, respectively.
The average cost of homeowners insurance in Texas is $2,532 per year, or $211 per month.
Find Cheap Home Insurance Quotes in Texas
Company | Annual cost | |
|---|---|---|
| Chubb | $1,362 |
| Farmers | $1,443 |
| Texas Farm Bureau | $1,661 |
| USAA | $2,169 |
| Allstate | $2,229 |
Best Texas home insurance overall: Farmers
-
Editor rating
-
Annual rate
$1,443 ?
Pros and cons
Our recommendation for most homeowners in Texas is Farmers. With an average of $1,443 per year, rates from Farmers are 43% below the average price statewide. The company has solid customer service reviews. According to the National Association of Insurance Commissioners (NAIC), Farmers receives significantly fewer complaints than expected for a company of its size.
Farmers offers three tiers of home insurance coverage, so most homeowners can find an option that fits their needs. The top-tier package, premier, allows homeowners to add guaranteed replacement cost coverage, which pays 100% of the costs to rebuild your home in the event of a total loss, regardless of your coverage limits.
Other optional coverages include identity theft protection, replacement cost for personal property and eco-rebuild coverage, which provides additional funds to upgrade your home with green materials after a covered loss.
Best for bundling home and auto insurance: Texas Farm Bureau
-
Editor rating
-
Annual rate
$1,661 ?
Pros and cons
Texas Farm Bureau offers some of the lowest home insurance rates in the state. At $1,661 per year, a policy from Farm Bureau is 34% cheaper than the statewide average. Additionally, it offers a 15% companion policy discount for bundling a home and auto insurance policy.
While its home insurance policy lacks bells and whistles, but homeowners looking for extra coverage can choose from a number of add-ons, including glass coverage, watercraft liability and windstorm coverage.
The company also offers excellent customer service. Texas Farm Bureau scored 0.52 on the NAIC complaint index, meaning that it only receives about half as many complaints as expected relative to its size and other insurers.
Best for high-value homes: Chubb
-
Editor rating
-
Annual rate
$1,362 ?
Pros and cons
Chubb is well known for its excellent customer service, financial strength and coverages tailored to high-value homes. For instance, Chubb policies include extended replacement cost, which will help repair or replace your items even if they're worth less than when you purchased them. Policyholders can also opt for cash settlements if their homes are completely destroyed. In other words, Chubb will cut you a check if you decide not to rebuild your home. It also offers higher personal liability limits than most insurers — homeowners can get up to $100 million of coverage.
Additionally, Chubb offers the cheapest home insurance in Texas and has excellent customer service reviews. A policy costs $1,362 per year, which is $1,170 less expensive than the statewide average.
Best company for customer support: Amica
-
Editor rating
-
Annual rate
$2,643 ?
Pros and cons
Amica offers the best customer service experience for Texas homeowners. It earned top marks on J.D. Power's customer satisfaction survey and only receives about half as many complaints as a typical insurer of its size, according to the NAIC.
A home insurance policy from Amica costs $2,643 per year, which is $1,281 more than the cheapest insurer, Chubb. However, the company does offer a handful of discounts to help lower premiums, including an autopay discount, alarm system discount and new or remodeled home credit.
Texas homeowners insurance rates: City-by-city breakdown
Homeowners in Galveston pay the highest home insurance rates in Texas. The cheapest rates can be found in Homestead Meadows.
Homeowners insurance rates in Texas also vary by over $5,000 per year depending on what part of the state you live in. Homes located along the Gulf of Mexico generally have higher home insurance rates due to hurricane activity.
City | Average annual cost | Percent from average |
|---|---|---|
| Abbott | $2,505 | -1% |
| Abernathy | $2,989 | 18% |
| Abilene | $3,092 | 22% |
| Abram | $2,085 | -18% |
| Ace | $2,278 | -10% |
Best-rated home insurance companies in Texas
The best-rated homeowners insurance companies in Texas are Amica, Texas Farm Bureau and USAA.
When shopping for a home insurance policy, it's important to balance finding the best price with dependable service. We rated Texas insurers based on J.D. Power's customer satisfaction survey, complaint data from the National Association of Insurance Commissioners (NAIC) and our own editor's ratings.
Company |
Home insurance rating
|
|---|---|
| Amica | |
| Texas Farm Bureau | |
| USAA | |
| Chubb | |
| State Farm | |
| Farmers | |
| Nationwide | |
| State Auto | |
| Travelers | |
| Allstate | |
| Progressive | |
| UPC |
The most common homeowners insurance perils in Texas
As the largest state in the continental U.S., Texas faces a wide range of homeowners insurance perils. Damage from hurricanes and other storms is the primary regional risk for homeowners living near the Gulf of Mexico. 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 major windstorm. There are two main insurance perils associated with coastal storms: wind damage and flooding. Damage due to wind is covered by homeowners insurance — if the wind breaks a window or leads to your roof needing repair, your homeowners insurance will cover the costs.
Damage due to flooding, whether from a hurricane or another source, is usually not covered by homeowners insurance.
If your home is at risk of flooding, you'll need to purchase a stand-alone flood insurance policy. You have two main options for flood insurance: a National Flood Insurance Program (NFIP) policy backed by the federal government (with standardized rates and coverage levels across every insurer) or a policy from a private insurer, where rates and coverage options differ by company.
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. Fire damage is almost always covered by homeowners insurance, so you'll be protected by your policy as long as you have adequate coverage limits.
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, they often appear with little or no warning. This means you won't have much time, if any, to prepare before a storm hits. Once they've formed, tornadoes generally have a travel speed of around 30 mph, but they can move at speeds 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.
Most tornado damage is due to wind, which is covered by homeowners insurance.
Other sources of tornado-related damage, like hail, are generally included but can vary by insurer and region, so double-check your policy to understand what perils you're protected from.
Frequently asked questions
How much is home insurance in Texas?
A homeowners insurance policy in Texas costs $2,532 per year, or $211 per month, on average.
How much is home insurance in Galveston, Texas?
Galveston has the highest home insurance rates in the state, with an average annual cost of $6,407. That's $3,875 more expensive than the statewide average.
Is windstorm insurance required in Texas?
Windstorm insurance is not required in Texas. However, your mortgage lender may require you to purchase a windstorm insurance policy if you live in a high-risk area.
Who has the best homeowners insurance in Texas?
Amica is the best-rated home insurer in Texas. Its rates are slightly above average, but Amica makes up for it with excellent customer service and coverage options tailored to Texans' needs.
Who has the cheapest homeowners insurance in Texas?
Chubb is the cheapest home insurer in Texas, with an average price of $1,362 per year — $1,170 cheaper than the state average. However, Chubb has a minimum dwelling coverage requirement that varies based on where you live. Homeowners who don't qualify for a policy with Chubb should consider Farmers.
Methodology
For our analysis, we collected hundreds of insurance quotes from the largest homeowners insurance companies that operate in Texas, for every ZIP code in the state. Our sample property is a single-family home built in 1988 with $279,100 of dwelling coverage.
We gathered rates from the following companies:
- Allstate
- Amica
- Chubb
- Farmers
- Nationwide
- Progressive
- State Auto
- State Farm
- Texas Farm Bureau
- Travelers
- USAA
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.