State Farm offers reliable local agent support and competitive rates at $371 monthly, earning a MoneyGeek score of 4.5 out of 5. USAA earned the highest score at 4.9 for military families and veterans, but didn't earn the No. 1 spot in our ranking because of its eligibility requirements. USAA, Farmers, Chubb and Mercury complete our top five rankings for the best home insurance providers in the area.
Best Cheap Home Insurance in Waco, Texas
Updated: March 12, 2026
Advertising & Editorial Disclosure
Compare the Best Home Insurance Companies in Waco
| State Farm | 4.5 | $371 |
| USAA | 4.87 | $314 |
| Farmers | 4.43 | $336 |
| Chubb | 4.32 | $806 |
| Mercury Insurance | 4.25 | $191 |
*Rates are for a 2,500-square-foot home with $250,000 in dwelling coverage and a $1,000 deductible, built in 2000.
Our Top 3 Recommendations for Waco Homeowners Insurance
State Farm
Best for Waco Homeowners
MoneyGeek Rating
4.5/ 5
4.7/5Affordability
4.4/5Customer Experience
4.2/5Coverage
J.D. Power Customer Satisfaction Score
657/1,000From the J.D. Power 2025 U.S. Home Insurance Study, which examines customer satisfaction based on responses from 14,511 homeowners and renters. The average score is 642/1,000.Average Monthly Premium
$371Based on our methodology's base profile of a policy with $250K in dwelling coverage, $125K in personal property coverage and $200K in liability coverage with a $1,000 deductible.
USAA
MoneyGeek Rating
4.9/ 5
4.8/5Affordability
5/5Customer Experience
5/5Coverage
J.D. Power Customer Satisfaction Score
737/1,000From the J.D. Power 2025 U.S. Home Insurance Study, which examines customer satisfaction based on responses from 14,511 homeowners and renters. The average score is 642/1,000.Average Monthly Premium
$314Based on our methodology's base profile of a policy with $250K in dwelling coverage, $125K in personal property coverage and $200K in liability coverage with a $1,000 deductible.
Farmers
MoneyGeek Rating
4.4/ 5
4.7/5Affordability
4.3/5Customer Experience
3.6/5Coverage
J.D. Power Customer Satisfaction Score
631/1,000From the J.D. Power 2025 U.S. Home Insurance Study, which examines customer satisfaction based on responses from 14,511 homeowners and renters. The average score is 642/1,000.Average Monthly Premium
$336Based on our methodology's base profile of a policy with $250K in dwelling coverage, $125K in personal property coverage and $200K in liability coverage with a $1,000 deductible.
How Much Does Waco Home Insurance Cost?
Waco's home insurance costs $429 monthly on average for $250,000 dwelling coverage, $125,000 personal property protection and $200,000 liability limits, compared to the Texas average of $560. Your rate varies based on factors like your home's age, construction materials and deductible choice compared to Texas's average.
Waco's Central Texas location drives up premiums due to tornado risk from severe weather patterns and flood exposure from its proximity to the Brazos River. These factors increase the likelihood of damage claims, resulting in higher home insurance costs.
| $100K Dwelling / $50K Personal Property / $100K Liability | $207 | $2,480 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $429 | $5,144 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $715 | $8,576 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $993 | $11,919 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | $1,256 | $15,068 |
Who Has the Cheapest Home Insurance in Waco?
Mercury offers the lowest home insurance rates in Waco at $191 monthly, which saves homeowners 55% compared to the city's $429 average. USAA ranks second for affordability at $314 per month, giving a 27% discount from Waco premiums while maintaining strong coverage options.
| Mercury Insurance | $191 | -55% |
| USAA | $314 | -27% |
| Farmers | $336 | -22% |
| State Farm | $371 | -13% |
| Progressive | $425 | -1% |
COMPARE COVERAGE, NOT JUST COST
Getting adequate coverage means looking beyond the cheapest rates available to Waco homeowners. Look at coverage limits, deductibles and satisfaction ratings along with premiums so you get the protection you need. Find out about top providers in our best homeowners insurance companies in Texas review.
How to Get the Best Cheap Home Insurance in Waco
Homeowners in Waco need to balance savings with proper coverage for the area's risks.
Compare quotes from multiple insurers
Ask for quotes from at least three companies since rates vary, with average premiums ranging from $191 to $806 monthly among top-rated Waco insurers.
Bundle home and auto policies
Most Waco insurers give 10% to 25% discounts when you combine policies, with companies like Allstate and State Farm providing multi-policy savings.
Maintain a strong credit score
Texas insurers use credit-based insurance scores when calculating premiums, and improving your credit can lower rates over time.
Upgrade your home’s safety features
Installing monitored security systems, smoke detectors, fire sprinklers and storm shutters can qualify you for discounts of 5% to 20% depending on the improvements.
Best Home Insurance in Waco: Bottom Line
Waco's home insurance costs average $429 per month, and rates range from $191 to $806 across leading insurers, depending on coverage needs. At $371 monthly, State Farm offers the best mix of affordability and service, while Mercury has the cheapest home insurance rates at $191.
Waco Home Insurance: FAQ
Common questions for Waco homeowners include coverage requirements and reducing insurance costs.
Does home insurance cover wind damage in Waco?
Waco's severe storms and tornadoes can cause wind damage, but standard home insurance policies cover these incidents. Policies cover roof, siding, window and structure repairs from wind damage, after you pay your deductible.
What doesn't home insurance cover?
Home insurance doesn't cover earthquakes, flood damage, normal wear and tear and damage from lack of maintenance. Waco residents in flood-prone areas need separate flood insurance through the National Flood Insurance Program.
Is home insurance required in Waco?
Texas doesn't legally require home insurance, but lenders require coverage until you've paid off your mortgage. Even without a mortgage, homeowners should keep insurance to protect against financial losses from severe thunderstorms and hail, tornado activity and other risks common in Waco.
What discounts are available for Waco homeowners?
Multiple savings opportunities exist for Waco homeowners, including bundling home and auto policies for 10% to 25% off, installing security systems (5% to 15% discount), upgrading to fire-resistant roofing materials (up to 20% savings) and maintaining a claims-free history for three or more years.
Our Methodology: Determining the Best Cheap Home Insurance Companies in Waco
We analyzed premium data from Quadrant Information Services for 10 major insurers serving Texas, then evaluated their coverage options and customer experience to identify companies with the best combination of affordability, financial strength and service for Waco homeowners.
Our base profile used a 2,500-square-foot home built in 2000 with $250,000 dwelling coverage, $125,000 personal property coverage and $200,000 liability coverage. All policies included a $1,000 deductible to make sure we compared rates accurately. We also analyzed rates for newly constructed homes, increased dwelling coverage limits, higher deductibles of $2,500 or $5,000 and homeowners with poor credit scores to understand how insurers price coverage across different risk profiles.
We combined affordability scores (weighted 55%), customer satisfaction data from J.D. Power surveys and customer reviews (weighted 30%) and coverage add-on availability (weighted 15%) to calculate each company's final MoneyGeek score.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.