The Cheapest and Best Homeowners Insurance in Austin
The Cheapest Home Insurance Companies in Austin
There are plenty of companies offering the same core coverages at varying prices, making it important to factor in the cost when looking for cheap homeowners insurance in Austin.
On average, for homeowners seeking policies with coverage of $250,000, the companies offering the cheapest homeowners insurance in Austin include:
- Universal North America: $984 per year
- Chubb: $1,429 per year
Pricier homes require higher dwelling coverage, which can increase the annual premium. For homeowners looking for $2 million in dwelling coverage, MoneyGeek has found that the cheapest options on average are:
- Chubb: $4,431 per year
- Universal North America: $5,500 per year
Take a look at how prices can change based on dwelling coverage limits in the table below.
The Cheapest Home Insurance in Austin, Ranked
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Prices on all sample policies include $100,000 in liability coverage. Prices gathered for policies with the baseline dwelling coverage include $100,000 in personal property limits, while policies with $2 million in dwelling coverage have $800,000 in personal property limits. All policies include $100,000 in liability coverage.
For those who live elsewhere in the state, MoneyGeek evaluated companies that offer the best and cheapest homeowners insurance in Texas.
The Average Cost of Homeowners Insurance in Austin for 2021
The average cost of homeowners insurance varies based on location. In Austin, home insurance costs an average of $2,341 per year. This is lower than the state average of $3,390 but higher than the national average of $2,103 per year.
Calculate the Cost of Home Insurance in Austin
On top of location, the cost of home insurance depends on a number of factors such as dwelling coverage, personal property limits, the homeowner’s credit score and more. MoneyGeek’s home insurance calculator can help compare home insurance quotes in Austin and elsewhere.
Home Insurance Calculator
These are annual estimates. Get a personalized quote to determine your costs.
The Best Home Insurance Companies in Austin
The cost of insurance is often a deciding factor for many, but it shouldn’t be the only one. Factors like quality of service and financial stability should also be considered. This is because claims are often made during times of stress. Having them processed quickly, fairly and reliably is important.
MoneyGeek found that the best homeowners insurance in Austin is offered by:
- Best Overall: USAA (only available for former and current military members and their families)
- Runner-Up: Chubb
MoneyGeek’s scoring system ranks home insurance companies based on three factors, including affordability, user satisfaction and financial stability.
Austin homeowners can enjoy unique coverages from USAA. For instance, the company lets residents add home-sharing coverage to protect against the costs that come with being a landlord. Policyholders who equip their home with security systems and are claims-free can also enjoy extra discounts on their premiums.
MoneyGeek’s top pick in Austin is USAA as it scores well across categories and perfectly in customer service. However, it is only available for current and former military members.Read MoneyGeek's USAA home Insurance Review
For homes that end up destroyed, Chubb also offers the option of cash settlement. This lets policyholders get money instead of rebuilding their homes. Policies also include complimentary risk consulting, where Chubb will assess your home to make sure you're fully protected against potential risks.
Chubb follows as MoneyGeek’s runner-up in Austin. It scores well across categories and is a standout in terms of affordability. Their policies let homeowners rebuild homes to their original condition even if it exceeds their limit.Read MoneyGeek's Chubb home Insurance Review
Cheapest Home Insurance Companies in Austin for Newly Constructed Homes
Newly constructed homes with modern materials are more resistant to damage and easier to replace, making them cheaper to insure. For example, new homes cost an average of $1,549 per year to insure, while homes built in 2000 cost an average of $2,341 per year to insure.
On average, the companies offering cheap homeowners insurance in Austin for newly-constructed homes with $250,000 in dwelling coverage include:
- Universal North America: $651 per year
- Nationwide: $836 per year
The Cheapest Home Insurance in Austin for New Homes, Ranked
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Cheapest Home Insurance Companies in Austin if You Have a Lot of Personal Property
Personal property coverage is part of every home insurance policy and helps homeowners protect their personal items. Adding personal property limits will cost more.
In Austin, a standard policy with $250,000 in personal property limits costs an average of $2,417 annually, while $100,000 in personal property limits costs $2,341 per year on average.
Companies offering cheap homeowners insurance in Austin with high personal property limits on average include:
- Universal North America: $1,016 per year
- Chubb: $1,429 per year
Cheap Companies in Austin for Extra Personal Property Coverage
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Cheapest Home Insurance Companies in Austin for High Deductibles
A policy’s deductible, which is how much a policyholder needs to pay out-of-pocket when making a claim, significantly affects the annual premiums. The higher the deductible, the lower the premiums and vice versa.
In Austin, it costs an average of $2,064 per year for policies with a $2,000 deductible, compared to an average of $2,341 for a $1,000 deductible.
MoneyGeek has found that, on average, the companies offering the cheapest homeowners insurance in Austin with high deductibles include:
- Universal North America: $868 per year
- Farmers: $1,310 per year
The Cheapest Companies in Austin for High Deductibles, Ranked
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Cheapest Home Insurance Companies in Austin if You Have Poor Credit
In Austin, insurance companies include credit score as a factor when it comes to determining insurance costs. Those with lower scores may pay more for home insurance annually, as they are perceived to file claims more often.
Austin homeowners with poor credit may pay an average of $4,864 yearly compared to roughly $2,341 for those with good credit. That’s a difference of $2,523 annually.
Fortunately, there are companies in Austin that still offer cheap insurance for those with poor credit. On average, these include:
- Universal North America: $1,535 per year
- Chubb: $2,461 per year
The Cheapest Companies in Austin for Poor Credit, Ranked
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Getting Online Homeowners Insurance Quotes in Austin
To get home insurance quotes, Austin homeowners need to prepare certain information to show insurers. This includes the following:
- The replacement cost of your home: Insurers will want to know how much it costs to rebuild a home since this will determine the dwelling coverage limits. For owners with older homes, construction professionals can give an estimate of the replacement cost.
- The value of your personal property: The value of items kept at home is needed to determine the necessary personal property coverage limits to include in the policy.
- Personal information: This includes information such as the home’s address, who lives in it, insurance history and other details.
- Information about your house: Aside from the replacement cost, insurers will also need details on the house itself. This includes when the house was built, its size, whether or not there are security systems and more.
Homeowners Insurance in Austin Analysis: Methodology
To get information on home insurance premiums in Austin, MoneyGeek analyzed ten companies in the area. Data was gathered in partnership with Quadrant, and quotes were collected for homes of varying coverage levels to calculate affordability scores. Customer satisfaction ratings were drawn from J.D. Power surveys.
A base sample homeowner profile was used while gathering data. The sample included a home built in 2000 with 2,500 square feet, along with $250,000 in dwelling coverage, $100,000 in personal property limits and $100,000 in liability coverage. All policies had a $1,000 deductible.
On top of the base sample profile, prices were also gathered for a variety of circumstances, including homeowners with newly-constructed homes, increased dwelling or personal property coverage, higher deductibles and poor credit scores.
About Mark Fitzpatrick