Updated: July 1, 2026
Advertising & Editorial Disclosure
Amarillo homeowners get the best coverage from State Farm, while other top-rated home insurance companies include USAA, Farmers, Chubb and Mercury Insurance for local residents.
Mercury Insurance provides Amarillo's most affordable home insurance according to our research, with rates averaging $2,766 per year for typical coverage.
Compare quotes from multiple insurers after deciding your coverage needs and researching companies to find affordable home insurance in Amarillo.
State Farm ranks as Amarillo's best home insurance company after we evaluated insurers considering affordability, coverage options and customer experience ratings. Our analysis identified providers offering the best value and service for local homeowners.
| State Farm | 4.61 | $371 | -40% |
| USAA | 4.9 | $398 | -36% |
| Farmers | 4.44 | $472 | -24% |
| Chubb | 4.32 | $1,307 | 111% |
| Mercury Insurance | 4.25 | $230 | -63% |
*Rates are for a 2,500-square-foot home built in 2000, with $250,000 of dwelling coverage and a $1,000 deductible.
**Although USAA earned the highest score from our team, we ranked it No. 2 because coverage isn't available to all Amarillo residents.
Average Annual Premium
J.D. Power Customer Satisfaction Score
Number of Discounts
For $250,000 in dwelling coverage, Amarillo home insurance costs $620 per month on average, which is 11% higher compared to the Texas average cost of $560. Amarillo homeowners pay elevated premiums because of frequent tornadoes and severe weather events, plus increased hail damage risk from the local climate. Mercury offers the most affordable rates at $230 per month, saving Amarillo residents $390 monthly compared to the city average.
Mercury consistently offers the most affordable rates across most Amarillo homeowner profiles, though your actual rate depends on coverage needs, credit score and claims history.
This guide shows you how to find cheap homeowners insurance that meets your needs.
Building materials in Amarillo influence your dwelling coverage needs. Getting the right amount protects your investment without paying for more coverage than you need.
Basic policies usually cover wind and hail damage, but you'll want to verify your limits are high enough to cover rebuilding costs after severe weather.
Review J.D. Power scores for claims handling, the NAIC complaint index and customer reviews on Trustpilot.
Request quotes from at least three insurers using the same coverage levels. Rates vary widely for the same protection, so shopping around saves money.
Higher deductibles lower your premiums but increase out-of-pocket costs when you file a claim. Pick an amount you can actually afford to pay if storm damage hits.
Home values and construction costs change, which can affect how much coverage you need. A yearly review lets you adjust limits for current replacement costs and any improvements you've made.
Review your coverage after any major home improvement or large purchase. Amarillo's rising construction costs mean dwelling coverage from three years ago may no longer cover full replacement today.
Standard policies cover wind damage from hurricanes, but water damage requires separate flood insurance. Wind damage deductibles run 1% to 5% of your dwelling coverage amount. Flood claims are subject to their own deductible structure under the National Flood Insurance Program.
Actual cash value pays claims after factoring in depreciation, so older items like roofs or appliances pay out less than their original cost. Replacement cost coverage pays today's full price to rebuild or replace damaged property, regardless of age or wear. For most homeowners, replacement cost coverage offers better financial protection.
Roof age is a major rating factor for Amarillo insurers. Expect higher premiums once your roof hits 15 years old. Some insurers won't cover roofs older than 20 years at all. A professional inspection showing good condition can help you secure coverage and avoid steep rate increases.
We analyzed home insurance premiums from 10 companies in Amarillo using data from Quadrant Information Services. Customer satisfaction scores came from J.D. Power surveys to identify insurers with low rates and reliable claims service.
Base Profile Details
Rates are based on a standard Amarillo homeowner profile:
Why This Matters for Your Decision
Comparing identical coverage levels across companies shows which insurers offer the best value. A company advertising low rates might only be cheap for homeowners with excellent credit or newer homes. Our multi-scenario approach shows what you'll actually pay based on your situation, not just advertised rates that don't apply to most people.
About Mark Fitzpatrick
Mark Fitzpatrick, a licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has spent nearly a decade analyzing the market, first at LendingTree and now at MoneyGeek, where he produces original research on hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
He covers economics and insurance at MoneyGeek, and his work has been featured in The Washington Post, The New York Times and NPR, among other outlets.
Like all MoneyGeek analysts, he draws on independent cost and consumer experience data. No insurance company partnership influences his recommendations.
Mark holds a B.A. from Boston College and an M.A. in Economics and International Relations from Johns Hopkins University. He started his career in financial risk management at State Street and is also a five-time “Jeopardy!” champion.
