Average Cost of Home Insurance in Texas (2026)

Texas homeowners pay an average of $6,715 annually, or $560 monthly, for a policy with $250,000 in dwelling coverage. That’s $3,248 more than the national average cost of home insurance. Texas sits in one of the country’s most active hail corridors, and its long Gulf Coast adds hurricane risk on top of that. That premium lands on owners who are already stretched: 23.8% of Texas owner households spent at least 30% of their income on housing in 2024, up from 21.3% in 2014, according to USAFacts.

Where you live in Texas can change your premium by more than $13,000 a year, with Gulf Coast towns at the top and inland cities like El Paso and Austin at the bottom.

Port Aransas and Corpus Christi sit directly on the Gulf in Nueces County, where hurricane wind exposure is highest. Webster, Pasadena and Pearland surround Galveston Bay. That bay exposure helps explain why Houston averages $9,453 and Dallas averages $6,025. If you're moving from Houston to Austin, the same coverage costs $5,327 less a year. If you're buying near the coast, get insurance quotes before you make an offer.

Texas homeowners who need more than $250,000 in dwelling coverage pay well over $10,000 a year once they reach $500,000 in limits.

Doubling dwelling coverage from $250,000 to $500,000 adds $4,412 a year in Texas. That's a 66% increase for twice the coverage. If your home would cost $500,000 to rebuild and you insure it for $250,000, you save $4,412 a year but take on a $250,000 shortfall after a total loss. Your price also depends on your home and ZIP code, and MoneyGeek's home insurance calculator estimates it.

Texas premiums run higher than the national average. A higher deductible saves more dollars here than it does for the average U.S. homeowner.

Raising your deductible from $1,000 to $2,000 saves $660 a year in Texas. The same change saves $341 nationally. If a $2,000 out-of-pocket expense after a claim wouldn't strain your budget, it's the better tradeoff at Texas' rate level. If you're still carrying a $500 deductible, you're paying $1,148 more a year than you would at $2,000.

Among the Texas insurers we compared, annual rates range from $3,025 to $10,571 for the same policy with $250,000 in dwelling coverage.

Mercury is the cheapest of the Texas insurers we compared, at $3,025 annually. Progressive is the most expensive at $10,571. If you’re with Progressive, staying put costs you $7,546 more a year for the same policy. Chubb policyholders pay $6,328 more than Mercury Insurance charges, and Nationwide policyholders pay $4,281 more.

State Farm is the next-cheapest option open to most homeowners, at $4,455 annually. If you or a family member served in the military, USAA averages $4,233. Regional carriers not in this table may price differently in parts of the state, so add one to your quotes. MoneyGeek’s ranking of the best homeowners insurance companies weighs claims service and coverage options alongside price.

A newer home costs $2,592 a year less to insure in Texas than a middle-aged one, a 39% discount. Older homes average $6,661, only $54 below the $6,715 middle-aged figure.

Texas housing skews newer than the country’s, with a median build year of 1992 against 1980 nationally, according to BestNeighborhood’s analysis of Census ACS data. If you’re choosing between a newer and a middle-aged home, the newer build saves $216 a month on insurance. Age isn’t what’s driving the rate on an already-owned older home, since those homes average just $54 a year less than middle-aged ones. 

Texas logged 902 major hail events in 2025, so your roof’s condition is the better place to focus than your home’s age.

One claim in the past five years raises a Texas premium by about 16%, the same percentage as the national increase, but on Texas’s higher base it costs $1,069 a year, or $517 more than the $552 the same claim adds nationally.

A second claim brings the gap to $1,968 a year, or $164 a month, above a claim-free Texas homeowner. Hail makes small roof claims common in Texas. A payout only a little above your deductible can cost more than it returns. Over a five-year window, a $1,069 annual increase adds up to as much as $5,345, so the claim should pay out well beyond that figure before filing makes sense.

Credit creates a wider price range in Texas than claims history, deductible or home age.

If your credit is poor, you’re paying $11,274 a year on average in Texas. That’s $6,359 more than a homeowner with excellent credit pays for the same policy. Texas lets insurers use credit to set home insurance rates. If your credit is fair, protecting it is especially important because dropping to below-fair adds $1,866 a year. That’s the largest jump between any two credit levels.

Texas sits in one of the country's most active hail corridors, with storms hitting from the Panhandle through Central Texas each spring. Insurers build those repeat roof claims into the price of every Texas policy. Along the Gulf Coast, hurricanes add wind and storm surge risk on top of hail.

Insurers price a policy around what it would cost to rebuild your home. Rising home values and construction costs in fast-growing metros like Houston, Dallas and Austin push those rebuild estimates higher. Many carriers compete for Texas homeowners, and the highest- and lowest-priced carriers differ by $7,546 a year for the same home.