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  • Marissa Sweet
    Marissa Sweet

The 5 Best Homeowners Insurance Companies in Texas

When searching for the best policy, price is not the only factor you have to consider. While cheap homeowners insurance policies in Texas can be attractive, it is still necessary to ensure that what you are getting is suitable for your needs and circumstances. Comparing companies based on their price, ability to pay claims, customer service and coverage options can help you find the best option for your home.

To help you select the best homeowners insurance in Texas, MoneyGeek ranked the top 10 companies and compared them using their J.D. Power customer satisfaction, ability to pay claims based on AM Best’s financial stability rating and the cost of their policies in Texas.


1

FarmersScore: 91

4.8/5

Affordability

4.6/5

User Satisfaction

4/5

Financial Stability


For Farmers homeowners insurance, policyholders can choose customizable plans and add coverage for home contents, multi-policy, identity management and eco rebuild. It also offers multiple discounts for certain customers. Additionally, they also have useful technology features like an online rate calculator, mobile app, online bills payment, online claim application and a household inventory tool.

Read MoneyGeek's Farmers Home Insurance Review

2

USAAScore: 91

4.1/5

Affordability

5/5

User Satisfaction

5/5

Financial Stability


Generally, USAA offers affordable prices and top-of-the-line customer service. You can bundle policies to save money and complete most transactions with their mobile app. However, the company has strict membership qualifications. Only current and former members of the military and their family qualify for their policies and rates.

3

NationwideScore: 87

4.3/5

Affordability

4.3/5

User Satisfaction

4.5/5

Financial Stability


Choosing Nationwide can help you get standard coverage. You can also find additional coverage options like replacement cost plus, identity theft or fraud, equipment breakdown, earthquake, roof replacement and backup of sewer, drain or sump pump. You can also get discounts depending on what you purchase.

Read MoneyGeek's Nationwide Home Insurance Review

4

AllstateScore: 85

4.2/5

Affordability

4.2/5

User Satisfaction

4.5/5

Financial Stability


Allstate started with auto insurance, but it eventually branched out to include home insurance in its line of services. Allstate policyholders can enjoy convenience with the company’s technology features, which include a rate calculator, mobile app, online bills payment, online claims application and household inventory tool. Aside from the standard coverage, you can also add items like reimbursement extended limits, water backup, scheduled personal property, extended coverage, sports equipment, earthquake and identity theft. The company also offers certain discounts that can lower your premium.

Read MoneyGeek's Allstate Home Insurance Review

5

TravelersScore: 83

4/5

Affordability

3.9/5

User Satisfaction

5/5

Financial Stability


Travelers also offers standard coverage options. You can add coverage items and options such as replacement and additional replacement cost, special coverage for contents, valuable items plus, personal articles floater, water backup, identity fraud and green home. While it also has a rate calculator, mobile app, online bills payment and online claims application, Travelers does not have a household inventory tool.

Read MoneyGeek's Travelers Home Insurance Review

What Is the Average Cost of Homeowners Insurance in Texas?

$0
$0

home insurance is 0.0% more than the average.

Home insurance in Texas for a dwelling coverage baseline amount of $250,000 costs an average of $3,390 per year. In comparison, this annual premium is 61.2% higher than the $2,103 national average. Carriers estimate homeowners insurance in Texas based on the risks associated with the policyholder. It may include home value, crime rate and exposure to various calamities and weather conditions.

Home Insurance Calculator: Estimate the Cost of Homeowners Insurance in Texas

Individual circumstances and area-related factors can have an impact on the cost of your homeowners insurance. Carriers estimate homeowners insurance in Texas based on a variety of determining factors, such as the dwelling value, a home’s age, roof quality, credit score, frequency of claims, deductibles and personal property.

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Home Insurance Calculator

State

Texas

Dwelling Coverage

$250,000

Deductible

$500

Liability

$300,000

Personal Property

$50,000

Credit Score

Excellent
moneygeek-logo

low end

on average

high end

These are annual estimates. Get a personalized quote to determine your costs.

The Cheapest Homeowners Insurance Quotes in Texas

Generally, Texas homeowners pay higher annual premiums than the national average. However, that does not mean you can’t find affordable home insurance in Texas.

One factor that helps carriers estimate homeowners insurance in Texas is dwelling coverage. This is the portion of a policy pertaining to the cost of rebuilding and/or repairing a home in the event that it suffers from damages due to covered circumstances, such as hail, fire, hurricane or other factors. For the dwelling coverage baseline amount of $250,000, the cheapest option from MoneyGeek’s study is Universal North America. The company’s annual premium for a dwelling coverage baseline of $250,000 is $2,108, which is 37.8% less than the state average.

Cheapest Homeowners Insurance by Dwelling Coverage

Dwelling Coverage:

$250,000

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  • Company
    Amountper year
  • 1. Universal North America
    $2,108
  • 2. Chubb
    $2,191
  • 3. Farmers
    $2,459
  • 4. Nationwide
    $3,144
  • 5. Allstate
    $3,296

Best Cheap Homeowners Insurance Companies for Expensive Homes

While cheap homeowners insurance can be a good option for a standard policy, it may not be the best choice for you. This is especially true if you own a high-end residential home. For a $2 million home, the most affordable option in Texas is Chubb. The average policy with Chubb has an annual premium of $6,664. Similar policies with other companies can range higher than $40,000 a year, so comparing home insurance quotes can result in significant savings.

Cheapest Homeowners Insurance Companies for High-Value Homes

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  • Company
    Amountper year
  • 1. Chubb
    $6,664
  • 2. Farmers
    $8,681
  • 3. Universal North America
    $12,094
  • 4. USAA
    $15,505
  • 5. Allstate
    $18,274

Best Homeowners Insurance Companies if You Have a Pool

A pool can be an attractive addition to your property. However, owning one can have an impact on how much your homeowners insurance in Texas will be. A pool may increase the amount of coverage you need and your costs. Texas homeowners insurance rates for pool homes with an average dwelling cost of $250,000 vary depending on the insurance provider. Differences can reach up to thousands of dollars. Chubb offers the cheapest insurance option for pool homes with an average cost of $2,302 per year.

Cheapest Homeowners Insurance for Pool Home

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  • Company
    Amountper year
  • 1. Chubb
    $2,302
  • 2. Farmers
    $2,316
  • 3. Nationwide
    $3,025
  • 4. Allstate
    $3,206
  • 5. USAA
    $3,457

Cheapest Home Insurance in Texas if You Have Poor Credit

In many states, a homeowner’s credit score is used as one factor to determine insurance rates. In fact, having poor credit can result in premium hikes as insurance carriers consider this factor when determining a homeowner’s ability to pay their insurance premiums.

In Texas, you can find a policy that caters to people with poor credit. The cheapest option comes from Universal North America. For a dwelling coverage baseline amount of $250,000, Texas homeowners with a low credit score pay an average of $3,352 per year through Universal North America.

Cheapest Homeowners Insurance for Poor Credit

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  • Company
    Amountper year
  • 1. Universal North America
    $3,352
  • 2. Chubb
    $3,781
  • 3. Nationwide
    $4,533
  • 4. USAA
    $5,162
  • 5. Amica Mutual
    $6,262

How to Get Homeowners Insurance Quotes in Texas

When looking for home insurance in Texas, you’ll need to prepare certain information that insurance providers need to calculate your annual premium. You may need to disclose your address, the age of your home, what it is made of, the type (single-story, two-story, etc.), its condition, estimated cost to rebuild it, its current market value, if you have a home loan, if you have a security system in place, recreational items, location and your distance to a fire department. You may also need to discuss the insurance coverage that you want to have. This includes the amount of coverage, whether you have valuable items that need separate coverage and the total value of all other possessions. The best way to find the most accurate policy is to compare personalized quotes from multiple providers.

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Ensure you're getting the best rate for your home insurance. Compare quotes from the top insurance companies.

Other Considerations for Homeowners Insurance in Texas

Other factors that affect your annual premium include those related to where you live. Insurance providers will check the average home value, crime statistics and even the weather risks. For instance, Texas ranks 24th in terms of crime. According to the FBI, violent crimes in the state totaled 117,927 in 2018. In terms of property crime, Texas reported a total of 679,430 cases in the same year.

Texas ranks 28th among all states in the country for home value. The typical cost of homes in the state is $207,301. Hazardous weather conditions can pose a significant risk, especially if your home is located in an area prone to hurricanes, tornadoes or other severe conditions. Make sure you are aware of how often natural disasters strike in your area and ensure that you are prepared by having the proper coverage.


Do You Need Flood Insurance in Texas?This is an icon

Many Texas properties may also suffer from flood damage. Around 9.5%, or roughly 1,150,000, homes are at risk for flood damage in Texas. Since carriers may not offer flood insurance, you may need to find government-sponsored National Flood Insurance Program (NFIP) coverage if your community participates. This coverage ensures that your community meets or exceeds Federal Emergency Management Agency (FEMA) requirements.

Do You Need Hurricane Insurance in Texas?This is an icon

Hurricanes may also lead to serious damage to many Texas homes. The state ranks seventh among all states in terms of the number of homes at risk. Around 555,569 homes are at risk of suffering from damages due to a Category 5 storm, which can cause an average of $113,419 in repair costs.

Do You Need Hail Insurance in Texas?This is an icon

If you live in Texas, you may want to include coverage for hail damage. Among the 50 states, it ranks first when it comes to the total recorded number of hail events, losses and claims.

Expert Advice on Home Insurance in Texas

  1. What advice would you give for first-time buyers looking for homeowners insurance in your state?

    The best thing to do is find an agent who can be educational and informative on what each coverage is meant to do, while having a good grasp on what carrier would be the best fit for the home they are planning to purchase.

    • Talk with an Expert, preferably a “Fiduciary” Financial Advisor who is a CFP® Practitioner instead of an insurance sales professional. Shop around before you buy.

    • Understand the difference between an Agent and a Broker.

    • I was a State Farm Agent for many years and in my experience, a well-trained agent is a great place to start the learning process (many agents are retired teachers and coaches).

    • An Independent Broker will provide a better price, but they may not offer much service (especially when it comes time for a claim).

    • Your home is probably your most valuable asset, so a little insurance education can go a long way in terms of getting the best bang for your dollar

    The state of Texas is famous for several types of natural disasters including hurricanes, flooding, tornados, and wildfire. My specific area, which is Rio Grande Valley in south Texas is especially famous for flooding. Homeowners should use the maps provided by Federal Emergency Management Agency (FEMA) while shopping for a house in order to identify flooding zones. FEMA classifies areas into high flood risk, moderate flooding risk, and areas outside the flooding zone. If buying a house in a high flooding zone is not avoidable, buyers must shop for good flooding insurance, which could be required by their mortgage lender. Similarly, homebuyers in coastal counties and counties with a higher risk of hurricanes should consider buying hurricane insurance and insurance against the damage of windstorms and hail. These types of insurance are provided by the Texas Windstorm Insurance Association (TWIA).

  2. How do regulations and laws in your state impact the amount or type of coverage a homeowner should buy?

    The state does not require you to have homeowners insurance, but if you owe money on the home, the lender will require you to have it.

    Texas had a big bout of mold a few years back, which prompted the state legislature to make amendments to the Texas Homeowners Policy Forms — excluding coverage for mold, water seepage, and water damage related to foundation movement.

    After hurricane Katrina, a few insurance companies were sued for the purpose of including coverage for wind damage (Katrina created devastating wind damage over much of the coast and the premise of these lawsuits was that wind was the proximate cause vs. the flood which came after the wind…). Due to these lawsuits, Texas started to exclude wind on the homeowners' policy, which resulted in the need for homeowners to purchase wind coverage (windstorm, hurricane, and hail are excluded in many of the coastal counties).

    When it comes to the insurance policies provided by Texas Windstorm Insurance Association (TWIA), Texas residents should be aware of few regulations. For example, to acquire insurance from TWIA, a homeowner should get at least one denial of insurance from a private insurance provider. Further, a homeowner cannot purchase a TWIA insurance policy once a hurricane enters the Gulf of Mexico. Another regulation that affects residents in Texas is related to the amount of coverage you must buy for your property. In general, mortgage lenders require homeowners to purchase insurance. However, in the state of Texas, a mortgage lender cannot require homeowners to purchase a coverage that exceeds the replacement value of their property and personal belongings, regardless of the total amount of the loan acquired. Also, if your property is in a flood zone, your lender has the authority to require you to acquire flood insurance. One more example, although it does not affect all homeowners, the Texas Legislature passed the house bill 1774 on September 1st, 2017, that limits homeowners’ ability to file lawsuits against insurance providers and reduces the amount of penalty that a private insurer has to pay from 18% to 10%.

  3. Are there any environmental factors homeowners should consider when selecting a home insurance plan in your state?

    Location is the biggest one. If you live closer to the Texas coast, you can expect higher premiums for homeowners insurance and wind exclusions within your homeowners policy due to the storm potential. Age of the home can also matter, including items such as roofing, electrical, plumbing and heating. Additionally, the building materials can also affect rates.

    • In Texas, we have a lot of moisture (especially in the coastal areas), so it is critical to have the right level of air conditioning (don’t install more AC than you need or your home may build up mold which is not covered under most policies).

    • Flood insurance is not covered.

    • If you’re in a coastal area, you may be surprised to learn that windstorm, hurricane, and hail is excluded — which means you need a “Wind Policy”.

    • Texas is hot and the extreme heat can cause a roof to deteriorate more quickly which is another reason to make sure you hire an inspection specialist that has your best interest in mind (and not the seller’s…).

    Absolutely. The biggest one of these is the risk of flooding. Do your research on this matter, and if there is a non-negligible risk of a flood, buy coverage against it.


Marissa Sweet
Marissa SweetCommercial Property and Casualty Insurance Consultant at PropertyCashin.com
Jim Munchbach, CFP
Jim Munchbach, CFPCertified Financial Planner Professional & Personal Finance Professor at the Bauer College of Business at the University of Houston
Ahmed Elnahas
Ahmed ElnahasAssistant Professor of Finance at The University of Texas - Rio Grande Valley
Adam Kolasinski
Adam KolasinskiAssociate Professor of Finance at The Texas A&M University

Methodology

MoneyGeek analyzed homeowners insurance premiums from 16 of the top insurance companies in Texas that were provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across Texas. Quotes were gathered with an average home profile of 2,500 square feet, built in 2000, with an average dwelling coverage value of $250,000, liability coverage of $100,000 and personal property coverage of $100,000.

About the Author


expert-profile

The MoneyGeek editorial team has decades of combined experience in writing and publishing information about how people should manage money and credit. Our editors have worked with numerous publications including The Washington Post, The Daily Business Review, HealthDay, and Time, Inc., and have won numerous journalism awards. Our talented team of contributing writers include mortgage experts, veteran financial reporters, and award-winning journalists. Learn more about the MoneyGeek team.


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