Best Homeowners Insurance in Texas (2025)

State Farm is the best home insurance company for most Texas homeowners, earning a MoneyGeek score of 4.9 out of 5.0 with average annual premiums of $4,457. We evaluated national and regional providers operating in Texas on affordability, customer experience and coverage options to determine the best options for homeowners like you.

USAA earned a perfect 5.0 rating for military families, offering comprehensive coverage with strong customer service, though it ranked No. 2 due to its eligibility restrictions. Mercury Insurance provides the most affordable rates for budget-conscious homeowners, while Chubb delivers exceptional customer experience for those prioritizing premium service. Nationwide rounds out our top picks with solid coverage options across the state.

*Although USAA earned the highest rating from our team, we didn't rank it No. 1 for Texas homeowners due to its eligibility requirements.

Your best home insurance option depends on your specific situation. Here are our top picks for key homeowner categories:

Your location within Texas determines your home insurance costs and coverage needs. Houston and Galveston homeowners pay higher premiums due to hurricane risk, while Austin and San Antonio face wildfire exposure and hail damage. We analyzed home insurance providers across several Texas cities, evaluating overall value, affordability and coverage options based on local risk factors.

Your best choice depends on whether you prioritize comprehensive coverage, affordable rates or balanced value. Coastal cities require strong wind and hail protection, while inland areas need coverage for severe storms and occasional flooding. Find insurers that understand your city's specific risks and offer competitive rates for your area below.

Home insurance in Texas costs $6,854 per year on average, 93% higher than the nationwide average of $3,548. Texas homeowners face steep premiums due to hurricanes, hailstorms and severe weather that drive frequent claims and high rebuilding costs. Your actual premium depends on your home's value, age, location and personal factors like credit score and claims history. Newer homes built in 2020 cost $4,195 annually to insure, while older homes from 1980 average $6,757 per year. Your dwelling coverage limit significantly impacts costs, with $100,000 coverage averaging $3,622 annually compared to $11,358 for $500,000 in coverage.

Your credit score and claims history create the widest cost variations among Texas homeowners. Homeowners with excellent credit pay $5,056 annually, while those with poor credit face premiums of $11,527 — a 128% increase for the same coverage. A recent claim raises your average cost to $8,137 per year, $1,283 more than homeowners without claims.

State Farm offers the best overall value for most Texas homeowners at $4,457 annually, combining competitive rates with strong customer service. USAA delivers unbeatable premiums and satisfaction scores for military families at $4,243, while Mercury provides the cheapest rates at $3,025 for budget-conscious homeowners.
Texas home insurance costs significantly more than the national average due to severe weather and frequent claims. Maximize savings by bundling policies, maintaining good credit, staying claims-free and comparing quotes from multiple insurers to find the best coverage for your home.

To help you find the best insurer for your needs, we’ve answered common questions about selecting a homeowners insurance provider in Texas.

Texas homeowners face some of the country's highest insurance costs due to hurricanes, hailstorms and severe weather. We evaluated major insurers operating in Texas to find which companies deliver the best combination of affordable rates, reliable customer service and strong coverage options for the state's unique risks.

Our Research Approach

We analyzed home insurance providers based on three core factors that matter most when choosing coverage: affordability, customer experience and coverage options. Each factor received equal weight in our evaluation, ensuring companies excel across all areas rather than just offering low prices or great service alone.

Affordability Analysis

We gathered premium quotes for Texas homeowners across different profiles, including various home values, ages and locations throughout the state. Our rate analysis covered both minimum required coverage and enhanced protection levels to understand pricing at different coverage tiers. We calculated average annual premiums for each insurer and compared them against the Texas state average of $6,854 to identify which companies offer the most competitive rates.

Customer Experience Evaluation

We reviewed J.D. Power's 2025 U.S. Home Insurance Study scores to measure customer satisfaction with claims handling, policy offerings and customer service. Companies with scores above the industry average earned higher ratings in our methodology. We also considered AM Best financial strength ratings to ensure recommended insurers maintain the financial stability needed to pay claims reliably, particularly after major weather events affecting multiple policyholders simultaneously.

Coverage Options Assessment

We examined each insurer's standard policy features and available endorsements, focusing on Texas-specific needs like water backup coverage, windstorm protection and service line coverage. Companies offering flexible customization options, separate flood and earthquake policies, and innovative features like technology protection or home systems coverage scored higher. We prioritized insurers that let you tailor coverage to your home's location and risk profile rather than forcing one-size-fits-all policies.

Standard Profile Details

Our baseline quotes represent a typical Texas homeowner to make cost comparisons meaningful across insurers. We used homeowners ages 41 to 60 with $250,000 in dwelling coverage, homes built in 2000, good credit scores and no previous claims. This profile reflects middle-income Texas homeowners with established homes and solid insurance histories, letting you gauge whether your situation will cost more or less than our quoted averages.

Why This Matters for Texas Homeowners

Our balanced approach helps you find insurers that won't leave you scrambling during claims or force you to overpay for basic coverage. The best home insurance company for your neighbor might not work for you. Your home's age, location near the coast or in tornado alley, and personal priorities like local agent access versus digital tools all influence which insurer fits best.