No matter where you call home — an urban hideaway inside the Dallas-Fort Worth beltway or an expansive ranch in Amarillo, the right home insurance policy can cover your house, and everything in it. MoneyGeek put together a list of Texas’s top insurance companies, helping homeowners find the right balance between coverage and monthly premium using a unique ranking system based on three factors. From high-value homes and properties with pools to homeowners who have bad credit, MoneyGeek can help you compare prices and give you the edge in finding the best and cheapest insurance policy.
The Best Homeowners Insurance Companies and Cheapest Quotes in Texas for 2022
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.
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
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.
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
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
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?
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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.
Home Insurance Calculator
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
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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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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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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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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.
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.
Expert Advice on Home Insurance in Texas
- What advice would you give for first-time buyers looking for homeowners insurance in your state?
- How do regulations and laws in your state impact the amount or type of coverage a homeowner should buy?
- Are there any environmental factors homeowners should consider when selecting a home insurance plan in your state?
Commercial Property and Casualty Insurance Consultant at PropertyCashin.com
Certified Financial Planner Professional & Personal Finance Professor at the Bauer College of Business at the University of Houston
Assistant Professor of Finance at The University of Texas - Rio Grande Valley
Associate Professor - Finance, Insurance & Real Estate at Baylor University
Associate Professor of Finance at The Texas A&M University
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
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- Insurance Information Institute. "Facts + Statistics: Hurricanes." Accessed July 10, 2020.
- Insurance Information Institute. "Facts + Statistics: Wildfires." Accessed July 10, 2020.
- J.D. Power. "Homeowners’ Satisfaction with Property Claims Reaches Record High as Insurers Focus on Relationship Management, J.D. Power Finds." Accessed July 27, 2020.
- Verisk. "Wildfire Risk Analysis." Accessed July 10, 2020.