Overall, home insurance in Texas for most drivers is around $499 monthly or $5,989 per year. Compared to the national average, Texans can expect to pay $280 more per month or around $3,354 yearly. These rates make it the 2nd most expensive in the country.
Average Home Insurance Cost in Texas
Updated: April 25, 2025
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$220
High
$144
Average
$104
Low
Rates updated:
Apr 28, 2025
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Key Takeaways
Texas home insurance costs an average of $5,989 per year, with annual rates ranging from $2,151 to $19,040, depending on various factors.
Home insurance premiums in Texas are the 2nd most expensive in the country, with rates that are 127% over the national average.
To find the best home insurance in Texas, determine your coverage needs, research providers and costs, and gather multiple quotes.
How Much is Home Insurance in Texas?
| Texas Average | $499 | $5,989 | 4,900% |
| National Average | $220 | $2,635 | 4,900% |
*These rates represent a home built in 2000 out of frame with $250K Dwelling, $125K Personal Property, and $200K Liability coverage with a $1,000 deductible.
Average Home Insurance Cost By City
Depending on your city, various risk factors, including the age of your home, weather-related factors, and valuations of homes, change drastically, affecting home insurance costs. For example, average monthly home insurance costs for El Paso are around $207 per month, while for Dallas, it is much higher at $448 per month.
| Abilene | $513 | $6,162 |
| Allen | $461 | $5,533 |
| Amarillo | $586 | $7,032 |
| Arlington | $466 | $5,593 |
| Austin | $267 | $3,205 |
| Beaumont | $756 | $9,078 |
| Brownsville | $732 | $8,788 |
| Carrollton | $510 | $6,125 |
| College Station | $527 | $6,325 |
| Corpus Christi | $1,095 | $13,136 |
| Dallas | $448 | $5,372 |
| Denton | $528 | $6,333 |
| El Paso | $207 | $2,481 |
| Fort Worth | $457 | $5,484 |
| Frisco | $489 | $5,869 |
| Garland | $474 | $5,685 |
| Grand Prairie | $528 | $6,331 |
| Houston | $728 | $8,738 |
| Irving | $485 | $5,819 |
| Killeen | $284 | $3,406 |
| Laredo | $363 | $4,357 |
| League City | $919 | $11,029 |
| Lewisville | $478 | $5,738 |
| Lubbock | $481 | $5,777 |
| McAllen | $504 | $6,051 |
| McKinney | $466 | $5,592 |
| Mesquite | $474 | $5,690 |
| Midland | $457 | $5,479 |
| Odessa | $452 | $5,419 |
| Pasadena | $861 | $10,336 |
| Pearland | $861 | $10,336 |
| Plano | $449 | $5,385 |
| Richardson | $479 | $5,751 |
| Round Rock | $282 | $3,380 |
| San Angelo | $463 | $5,556 |
| San Antonio | $359 | $4,309 |
| Sugar Land | $777 | $9,318 |
| The Woodlands | $667 | $8,006 |
| Tyler | $371 | $4,449 |
| Waco | $377 | $4,526 |
| Wichita Falls | $642 | $7,704 |
*These rates represent a home built in 2000 out of frame with $250K Dwelling, $125K Personal Property, and $200K Liability coverage with a $1,000 deductible.
Why Is Home Insurance So Expensive in Texas?
Overall, the main reasons home insurance is so expensive in Texas is due to the rising number of claims in the state, high risk of damaging weather/natural disasters, rising material/labor costs, and current state insurance laws. Below, we will go into detail about each of these factors:
Rising Claims
Texas homeowners make more claims than average compared to the rest of the country. The Insurance Information Institute (III) reports that in 2023, the state recorded the 2nd highest total incurred insurance losses (claim value) in the country at 60.5 billion dollars, which leads insurers to charge more.
High Weather Risks
Due to high risks for major weather damages around the Gulf Coast and large population centers in Texas, the likelihood of expensive claims is higher. In 2024, weather-related risks accounted for at least 20 billion dollars in damages, mostly from severe storms and cyclones.
Rising Material and Labor Costs
Since 2020, the price index for construction materials for residential homes has soared by 38% compared to four years prior. Within this same period, wages for construction workers have risen 35%, making the costs of paying for damages higher, all contributing to higher claims costs for insurers.
State Insurance Laws
Currently, Texas operates under a file and use system, allowing insurers to notify state departments and raise insurance rates without full approval from the Texas Department of Insurance. In addition, home insurance is required if you’re getting a mortgage, and with most opting out of that market to keep renting due to the high expenses, it decreases the pool for insurers to pull funds from for claims, increasing the risk of insuring homeowners.
What Affects Texas Home Insurance Costs?
Like for most home insurance companies, regardless of state, pricing is mostly affected by these factors:
- Location
- Coverage chosen
- Home build details
- Provider Chosen
- Credit
- Claims history
Below, we'll highlight how much each factor affects rates specific to Texas for each of these major factors.
How Much Does Location Affect Home Insurance Costs?
Location is the biggest factor affecting home insurance rates in Texas, with rates varying by up to 117%. Weather risks, home value and population density in your area play a major role in determining costs.
| Lowest | El Paso | $227 | $2,728 |
| Highest | Corpus Christi | $1,242 | $14,903 |
How Much Does Coverage Affect Home Insurance Costs?
Coverage choices are the second most influential factor in Texas home insurance rates, averaging from $2,677 to $19,040 per year. Higher coverage limits and lower deductibles increase premiums, while lower limits and higher deductibles reduce costs.
| Lowest | $100K Dwelling / $50K Personal Property / $100K Liability | $2,000 | $223 | $2,677 |
| Highest | $1MM Dwelling / $500K Personal Property / $1MM Liability | $500 | $1,587 | $19,040 |
How Much Do Home Details Affect Home Insurance Costs?
Home details like age, construction materials and roof type are the third most influential factor in Texas homeowners insurance rates, averaging from $179 to $588 per month. These factors affect replacement costs and the risk of damage or theft, leading to significant rate differences.
| Lowest | New | Superior | Tile | $179 | $2,151 |
| Highest | Old | Frame | Shake-Treated | $588 | $7,058 |
How Much Does the Provider You Choose Affect Home Insurance Costs?
Your choice of insurer is the fourth most influential factor in Texas home insurance rates, with prices ranging from 49% below to 70% above the state average.
| Lowest | Farmers | $240 | $2,884 |
| Highest | IAT | $807 | $9,684 |
How Much Does Credit Affect Home Insurance Costs?
A higher credit score makes you appear more reliable, which can lower your home insurance costs. Premiums vary by up to 67%, with annual average rates ranging from $4,640 to $13,680.
| Lowest | Excellent | $387 | $4,640 |
| Highest | Poor | $1,140 | $13,680 |
How Much Does Claims History Affect Home Insurance Costs?
In Texas, claims history has a smaller impact on homeowners insurance premiums than other factors, affecting rates by up to 19% or about $1,304 annually. Filing more claims increases perceived risk, leading to higher premiums.
| Lowest | Claim free for 5+ years | $475 | $5,705 |
| Highest | 2 claims in past 5 years | $691 | $8,297 |
Tips to Save on Texas Home Insurance
Especially with high costs in the state of Texas, it is even more important to find ways to save on premiums if you want to buy a home or cut expenses for your current home. So below, we share some tips to help you find the best and cheapest home insurance in Texas for your situation.
- 1
Find How Much Coverage You Need Beforehand
Determining how much home insurance you need before buying allows you to frame how you search for coverage and avoid being oversold by agents. In addition to standard coverage options, you should also consider if you need add-ons to protect any additional items you own.
- 2
Research Costs and Discounts Beforehand
To know whether you’re actually getting a good deal, you’ll need to understand average costs for you and your home specifically. Also, be sure to ask about all home insurance discounts with agents since insurers are not required to apply some of their reductions unless you ask them for home policies.
- 3
Compare Multiple Providers Through Different Avenues
Once you are armed with research, compare multiple insurers apples to apples for the coverage you want. We also recommend using multiple different avenues such as online comparison sites, brokers, provider websites, and provider agents since quotes will vary widely between each method.
- 4
Consider Bundling Policies
Like all states, you can have significant savings when bundling policies. For example, if you bundle home and auto insurance in Texas, you can save up to 29% on home insurance and $1,188 per year for both policies.
- 5
Reduce Your Personal Risk Profile
To get cheaper premiums on your home, consider making improvements like adding storm shutters or home security systems. Also, improving your credit score can decrease premiums drastically. For example, moving from a fair to a good credit score can save you 28% on average.
- 6
See if You Are Eligible for State Programs
If you are denied by traditional insurers, Texas offers the TFPA policy to insure you. While TFPA plans don’t offer the same amount of coverage you get with traditional policies, it does satisfy mortgage requirements.
Texas Home Insurance Calculator: Bottom Line
Home insurance costs depend on several factors, with location and coverage level being the most important. To secure the best rates, research your needs and average prices, then use our estimate tool to find the best deal.
Homeowners Calculator Insurance Texas: FAQ
The cost of homeowners insurance in Texas depends on several factors. To help you estimate your expenses, MoneyGeek answers common questions about home insurance in the state.
How much does homeowners insurance cost in Texas?
Texas' average monthly home insurance cost is $499 for a dwelling coverage of $250K. However, your rate will depend on factors like your credit score, liability and property coverage limits and deductible.
How do I know how much dwelling coverage to get?
Homeowners can estimate their required dwelling coverage by calculating the cost to replace their home after damage, often with help from an appraiser. While this study uses a baseline coverage of $250K, you can use the MoneyGeek homeowners insurance calculator to find the best coverage limit for your needs.
What factors affect home insurance costs the most?
The biggest factors affecting home insurance costs are your location, chosen coverage level and provider. Your credit score and home details also play a crucial role.
How We Determined Our Texas Home Insurance Estimates
When determining the average cost of home insurance in Texas, we used a base profile for a simple estimate consistent with the following:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 liability coverage
- Home Built Year: 2000
- Construction type: Frame
- Roof type: Composition
- $1,000 deductible
- No claims in the past 5+ years
- Fire protection level of 3
However, rates will vary widely depending on factors such as coverage level, provider chosen, the age of the home, other features of the home, insured credit and claims history, among other factors. All other combinations presented in this article assume the home was built in 2000.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.