Cheapest Home Insurance in Texas (2026 Rates)

Mercury Insurance has the cheapest home insurance in Texas at $3,025 a year for our base profile, 55% less than the $6,715 state average and $1,430 less than State Farm, the next-cheapest company. Nationwide's $7,306 and IAT Insurance Group's $8,990 sit $591 and $2,275 above that state average, which makes the spread between the cheapest and fifth-cheapest company $5,965 a year.

The extra $1,430 for State Farm buys a better service record. J.D. Power's 2026 U.S. Home Insurance Study scores State Farm at 665 out of 1,000, which is 76 points above Mercury's 589 and 21 above the 644 study average. State Farm works through local agents and online, while Mercury sells policies only through a network of local independent agents. A homeowner who weighs claim handling after a hail season or a hurricane above $119 a month should price State Farm; one who would rather bank the $1,430 and hold it as a larger emergency fund should start with Mercury.

Mercury is the cheapest company in 39 of the 52 Texas cities we compared, but the Gulf Coast and the Houston area break the pattern. Nationwide is the cheapest in nine cities, from Brownsville and San Benito at $2,650 to Corpus Christi at $3,054 and Beaumont at $4,096, while State Farm is the cheapest in Friendswood, Houston, Pasadena and Webster at $4,457. 

Hurricane exposure adds a second layer on the coast: Hurricane Beryl came ashore near Matagorda Bay as a Category 1 storm in July 2024, and by October of that year the Texas Windstorm Insurance Association had received 31,383 claims and paid $268 million, with another 9,833 claims and $75 million paid by the Texas FAIR Plan.

The cheapest rate runs from $1,360 in El Paso to $4,457 in the four Houston-area cities where State Farm is the cheapest, a gap of $3,097 or 228%. Homeowners in the 14 coastal counties and part of Harris County should price the home policy and the wind policy together, because the Texas Department of Insurance says a home policy there will likely exclude windstorm coverage and that coverage has to be bought separately from TWIA, which insured 283,333 coastal properties as of September 2025.

Flood is the larger gap statewide. After the July 2025 Hill Country floods, FEMA reported that more than 90% of homes in ten affected Central Texas counties had no National Flood Insurance Program policy, and a standard home policy does not pay for flood damage. Wherever you live in Texas, request a flood quote alongside your home quote and start it at least 30 days before you need it, because a new NFIP policy takes that long to take effect.

For city-specific coverage, explore MoneyGeek's analysis of the best and most affordable home insurance in Texas cities.

Mercury holds the lowest price at every dwelling coverage level from $100K to $1MM, so Texas has no crossover where a different company becomes the cheapest as the home gets larger. The state average climbs from $3,550 at $100K to $19,332 at $1MM, and State Farm stays the runner-up the whole way. Mercury's price advantage over State Farm is smallest at $500K ($1,272, or 23%) and largest at $1MM ($5,520, or 52%).

Owners of smaller homes can treat State Farm's $556 premium over Mercury at $100K as the price of its 665 J.D. Power score. At $750K and above, Mercury's $2,617 and $5,520 advantages over State Farm are large enough that the better move is to start with Mercury, which offers Extended Replacement Cost for rebuilding costs, and use a State Farm quote to confirm the gap.

Texas lets insurers use credit information to decide whether to sell you a policy and what to charge, and the Texas Department of Insurance says the state's rules are among the strongest in the country. An insurer cannot refuse, cancel or nonrenew a policy based solely on credit, models must be filed with TDI, and a company has to tell you how to dispute inaccurate credit information. 

The price effect is large: the Texas state average rises from $6,715 with good credit to $11,274 with poor credit, a jump of $4,559 or 68%, while excellent credit drops it to $4,915, $1,801 below good. Mercury is the cheapest company in every tier shown, and its own poor-credit premium is $1,592 (53%) above its good-credit price, a smaller percentage penalty than the state average carries.

Texas homeowners pay 94% more than the national average, but these steps to save can be worth several hundred dollars a year.

Mercury is the cheapest company across Texas: statewide at $3,025, at all five coverage levels, in every credit tier and in 39 of 52 cities, while State Farm is the cheapest in four Houston-area cities and Nationwide is the cheapest in nine along the Gulf Coast and in the Rio Grande Valley. Get quotes from Mercury and State Farm at minimum, add a third from the company that is the cheapest in your city, and price wind coverage and flood insurance as separate line items before you decide. You can also use MoneyGeek's Texas home insurance calculator to get an idea of what you might pay.

MoneyGeek analyzed Texas rates to identify which companies offer the lowest premiums for homeowners across the state.

We gathered quotes from major insurers through Quadrant Information Services for a standard Texas home profile. The data shows which companies price competitively for typical homeowners.

Sample Home Profile

We gathered quotes using these specifications to represent a common Texas homeowner:

• $250,000 dwelling coverage
• $125,000 personal property coverage
• $200,000 liability coverage
• Home built in 2000
• $1,000 deductible
• No claims in the past 5+ years

This profile reflects a moderately valued home with a clean claims history. Newer homes (built after 1990) get better rates than older properties with outdated electrical and plumbing systems. The $1,000 deductible balances affordable premiums with reasonable out-of-pocket costs when filing claims.

To learn more, see our home insurance methodology.