Homeowners Insurance in Texas 2021

Last modified: September 27, 2021

Never let go of a home where you can picture yourself settling down with your family. However, don’t get lost in the excitement of setting up your new home without considering the importance of homeowners insurance.

Make sure you take active measures to protect your property and personal belongings by getting homeowners insurance. Here, we bring you a guide on how to find the top home insurance providers in Texas. We also covered the best car insurance companies in the state of Texas – in case that you want to make a home and car insurance bundle.

If you are planning to move outside of Texas, make sure to check on the best homeowners companies in the USA.

Is Homeowners Insurance Required in Texas?

You don’t need homeowners insurance as per Texas homeowners insurance laws. If you still have payments due on the house, your lender or lending agency may require that you purchase homeowners insurance.

Even if your lender does not ask you to purchase insurance, you should consider buying one as it protects your home and assets. The standard coverage includes:

  • Dwelling coverage – used for damages to the property if the reason for the damage is covered by your policy.
  • Loss of use coverage – covers living expenses in a hotel or a rented property while your house is undergoing repairs. It also covers extra costs you may incur living away from home, including food and fuel expenses, laundry, etc.
  • Personal property coverage – secures your furniture, clothing, electronic items, and other personal belongings that the policy covers.
  • Personal liability coverage – pays the cost of medication and expenses incurred by the person who gets injured on your property, including medical expenses, lost wages, rent, etc.
  • Additional structures coverage – if you have a detached garage or a shed in the backyard, additional structures coverage pays for the repairs of these structures.
  • Medical payments coverage – pays the medical expenses of the treatment of those hurt on your property.

Do not forget that dwelling, additional, and loss of use coverage are only applicable if the house is damaged due to a covered risk. Commonly covered risks include:

  • Fire
  • Lightning
  • Explosion
  • Damage caused by water or smoke
  • Vandalism
  • Damage caused with malicious intent
  • Civil unrest or riots
  • Damage caused by aircraft and vehicles
  • Hurricanes
  • Hailstorms
  • Windstorms

The exact risks covered will vary by your location. People living in coastal areas aren’t likely to get coverage for windstorms or hailstorms. Still, you should check with your insurance service provider to determine what risks are covered in your plan of choice. You may be able to get coverage for other risk factors not included in the standard policy.

Common Causes of Home Insurance Losses in Texas  

Texas has a pretty high insurance claims rate because it is a high-risk state. Some of the most common claims for home insurance in Texas include:

  • Wind and Hail Damage Hail damage is the most common natural disaster that damages properties in Texas. Tornadoes, hurricanes, and windstorms are also common.
  • Non-Weather-Related Property Damage – Vandalism, accidental and deliberate damage are also major reasons for claim filing in Texas.
  • Fire and Lightning – Lightning coverage also includes coverage for fire breakouts caused by lightning. Other damages included under house fires includes smoke damage, liability damage, and damage to other structures.
  • Water Damage and Freezing – Broken or burst pipes can cause severe damage to the structure of your house. Most homeowners insurance generally covers damage caused by burst pipes. They also cover the cost of repairing frozen pipes.
  • Theft and Burglary – even though Texas has a pretty low theft and burglary rate compared to other states, it does see quite a few burglaries every year. Homeowners insurance covers quite a lot of damages in case of theft.

These risks are a part of life in Texas. Thus, homeowners insurance is a major part of risk management in Texas.

How Much Is Homeowners Insurance in Texas?

The average home insurance cost, Texas is significantly higher than the national average. Home insurance in Texas costs around $3,300 annually, whereas the national average is $2,103, meaning the state average is around 61% higher than the national average. There are, however, different factors that affect the insurance rate, including the value of the property, location, potential weather-related risks, crime rate, safety features in the house, and so on.

You not only have to think about how much home insurance is in Texas, but you will also have to think about the coverage you want and the deductible amount you can afford. The deductible is the amount you have to pay before your insurance company start covering claims. It can be a set amount or a percentage of the home’s value.

As mentioned in this article, the average homeowners insurance cost in Texas is significantly higher than what it is in the rest of the country. If you want to get insurance that is easy on your pocket, you will have to look around and ask for multiple quotes from different insurance providers. Some of the leading insurance providers in Texas are:

Home Insurance Deductibles in Texas

As mentioned before, deductible stands for the amount paid prior to the insurance company payout on a claim. To compare homeowners insurance in Texas, it is important to understand how it works. Say that the damage on your home is worth $3,000, and you have opted for a $500 deductible. This means that you need to pay your insurance company $500 first, for them to pay $2,500.

While some deductibles rely on dollar amounts, others are on the basis of the home value percentage. For example, your home has insurance of $200,000, and you have signed up for a deductible of 2%. This means that before your insurance company chines in, you will owe $4,000.

You are allowed to choose the home insurance deductible amount, which will cover any damage to your home or belongings. However, this does not apply if someone gets injured in your home and you are being sued. It is vital to understand that by choosing a bigger deductible, you can save more on insurance premiums.

Even though most insurance companies will recommend a deductible of $500 at the very least, remember that if you raise it to $1,000, you can save up to 25% on your policy.

Bundle Discounts for Homeowners Insurance

The best bundles are those that offer great discounts on auto insurance, as well as home insurance. Below are some annual rates and bundling discounts from the most famous insurance companies in Texas.

According to the table below, Farmers and State Farm offered the biggest discounts, while Liberty Mutual offered the smallest.

Company Average car insurance rate per year Average homeowners insurance rate per year Discount Total
Nationwide $1,404 $1,143 4% $2,445
Farmers $1,249 $1,662 10% $2,620
Progressive $1,241 $1,649 5% $2,746
State Farm $1,372 $1,681 10% $2,748
Allstate $1,718 $2,494 5% $4,001
Liberty Mutual $2,360 $2,494 3% $4,708

 Cheapest Texas Homeowners Insurance Rates?

Depending on where you live, insurance companies will have different pricing policies. According to our research, the Gulf Coast City of Pasadena was the most expensive city in Texas, with a $3,892 average annual premium for $100,000-500,000 in coverage. The cheapest home insurance in Texas was in the Lone Star State in El Paso, where average premiums were $1437 for the exact amount of coverage.

The most expensive real estate in Texas is at 10000 Hollow Way Rd., Dallas 75229 for $135 million. The living space in the house is over 28,000 sq. Ft. 10 minutes away from downtown; this property is surrounded by trees and a beautiful creek. There are also trails, meadows, vegetable gardens, and a pond on the property. The best things about this 1938 estate are the tennis court and a helipad.

Homeowners insurance quotes in Texas by top cities:

City Cheapest Rate
Houston $4,363
San Antonio $2,944
Dallas $3,876
Austin $2,862

Top Homeowners Insurance Companies in Texas

Company Best for Coverage Discounts Pricing
Amica The variety of coverage
  • Property replacement
  • Earthquake
  • Flood coverage
  • Identity fraud protection

 

  • Credits when a new or remodeled home is insured
  • Burger or fire alarms
  • Automatic detection devices
$3,498
State Farm Financially strong
  • Nature
  • Random acts
  • Home and garden
  • Jewelry and hobbies
  • Multiple policy discount
  • Fire, smoke, and burglar alarms discount
  • Impact-resistant roof discount

 

$2,744

 

Allstate Online presence
  • Identity theft
  • Water backup
  • Sports equipment
  • Yard and garden
  • Early signing discount
  • Homebuyer discount
  • Hail-resistant roof discount

 

$2,343
Farmers Earthquake insurance
  • Furniture
  • Appliances
  • Clothing
  • Multi-line discounts
  • Non-smoker discount
  • Business group discount
$2,639
USAA Customer service

 

  • Home-sharing
  • Earthquake
  • Other structures
  • Save 10% if you bundle with auto
  • Claims-free 10% discount
  • Home security system discount
$2,732

Short Homeowners Insurance Companies Reviews

Amica

Known as one of the best insurance providers in the country, you can get any type of coverage you want from Amica. This includes property replacement, earthquake, flood coverage, and identity fraud protection.      

The company also allows members a dividend policy so that they get approximately 5-20% of their annual premium returned every year.

State Farm

This company provides more than just home insurance in Texas. Here, you can opt for car insurance, motorcycle insurance, life insurance, and much more. There are numerous coverage options that State Farm provides, along with flood coverage.

Their website is easy to navigate, and the company provides loads of discounts that customers can take advantage of. The costs here are higher than the average annual insurance premium in Texas.

Allstate

Initially, Allstate only provided auto insurance. Today you can also obtain home insurance from the company. If you are someone who looks for convenience, you will enjoy Allstate’s technology features. These include online bills payment, a rate calculator, an online claims application, a mobile app, and a household inventory tool.

Moreover, you can also include water backup, extended reimbursement limits, earthquake, scheduled personal property, sports equipment, extended coverage, and identity theft. There are loads of discounts that you can take advantage of to reduce your premium.

Allstate is known for its online presence. There are a number of tools and free resources provided for members and non-members. The prices are lower than average.

Farmers

Even though there are many home insurance companies in Texas, at Farmers, policyholders can pick customizable plans and include coverage for home contents, multi-policy, identity management, and eco rebuild.

Some customers can also take advantage of the multiple discounts that Farmers is known for. There are also some technical features that homeowners can use, including an online rate calculator, mobile app, online bills payment, online claim application, and a household inventory tool. The rates are less than average.

USAA

One of the top home insurance providers in Texas, this company offers insurance exclusively to active or former military members and their spouses. 

If you qualify, USAA should definitely be on your list. You can bundle and save, as well as select a number of coverage options that suit your need. Since USAA is member-owned, customers get paid dividends each year. The prices are lower than average.

Hippo

Hippo has the cheapest Texas homeowners insurance rates. With a dwelling coverage of $300,000, Hippo’s average quote is $2,143. When looked at the state-wide annual coverage of $2,854, we can deduce that Hippo is $700 cheaper.

If you are searching for brilliant coverage at low costs, you must definitely consider Hippo’s homeowner’s insurance.

Encompass

Do you want to maximize coverage to protect yourself from natural disasters and sudden hikes in rebuild costs? Consider investing in Encompass.

At Encompass, you will be offered three comprehensive tiers of coverage. The two highest coverage tiers consist of guaranteed replacement costs, along with a policy add-on that will ensure that the rebuild of your home is paid for, despite the expense.

State Auto

If you are a resident looking for a Texas home insurance company that provides discounts, look no further than State Auto. This company offers a range of nine different discounts, including bundling your home and auto insurance, fixing smart home devices in your home, and fortified home discounts.

Those residents who want to build their homes to stay secure when hurricanes, tornadoes, and hail storms hit Texas should pay attention to State Auto’s rate-saving opportunities.

Travelers

If you want to determine how financially stable a homeowner insurance company is, all you need to consider is their claims payout process. Travelers is one of the top companies in this regard. It has an A++ rating and has been known as an insurance company with the highest credits.

Standard & Poors, along with Moody’s- places that measure long-term financial stability have both graced Travelers with high marks. These places also give you an idea of the expected losses if the company were ever to go into default.

Chubb

Chubb insurance is one of the top home insurance companies in Texas. If you have a high-value home, you must opt for Chubb’s homeowners’ insurance policy. This ensures guaranteed replacement cost dwelling coverage, replacement cost coverage on personal items and properties, along with some extra services if you own a secondary home in the coastal county of Texas.

However, it must be kept in mind that to avail of Chubb home coverage, your property must have an insured value of more than $1 million.

 

Pros & Cons

The Pros

The Cons

Final Verdict

FAQs

Is homeowners insurance required in Texas?

Even though the law in Texas does not need you to have homeowners insurance, your lender will require you to have it if you still owe money on your home. Even though you are not required by the law to have home insurance, it might be a good idea to get it to protect your home and other belongings.

What is the cheapest homeowners insurance in Texas?

The cheapest home insurance in Texas is Universal North America in terms of dwelling coverage. The coverage baseline of $250,000 is $2,108. This is 37.8% less than the state average.