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Marissa Sweet
Marissa SweetCommercial Property and Casualty Insurance Consultant at PropertyCashin.com

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.

moneygeek-logo

Home Insurance Calculator

State

Texas

Dwelling Coverage

$250,000

Deductible

$500

Liability

$300,000

Personal Property

$150,000

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
Company
Amountper year
1. Universal North America
In 2020, Universal North America ranked #1 for the cheapest homeowners insurance with $250,000 in dwelling coverage in Texas.
$2,108
2. Chubb
In 2020, Chubb ranked #2 for the cheapest homeowners insurance with $250,000 in dwelling coverage in Texas.
$2,191
3. Farmers
In 2020, Farmers ranked #3 for the cheapest homeowners insurance with $250,000 in dwelling coverage in Texas.
$2,459
4. Nationwide
In 2020, Nationwide ranked #4 for the cheapest homeowners insurance with $250,000 in dwelling coverage in Texas.
$3,144
5. Allstate
In 2020, Allstate ranked #5 for the cheapest homeowners insurance with $250,000 in dwelling coverage in Texas.
$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
Company
Amountper year
1. Chubb
In 2020, Chubb ranked #1 in Texas for the cheapest homeowners insurance for high-value homes.
$6,664
2. Farmers
In 2020, Farmers ranked #2 in Texas for the cheapest homeowners insurance for high-value homes.
$8,681
3. Universal North America
In 2020, Universal North America ranked #3 in Texas for the cheapest homeowners insurance for high-value homes.
$12,094
4. USAA
In 2020, USAA ranked #4 in Texas for the cheapest homeowners insurance for high-value homes.
$15,505
5. Allstate
In 2020, Allstate ranked #5 in Texas for the cheapest homeowners insurance for high-value homes.
$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
Company
Amountper year
1. Chubb
In 2020, Chubb ranked #1 in Texas for the cheapest homeowners insurance for homes with a pool.
$2,302
2. Farmers
In 2020, Farmers ranked #2 in Texas for the cheapest homeowners insurance for homes with a pool.
$2,316
3. Nationwide
In 2020, Nationwide ranked #3 in Texas for the cheapest homeowners insurance for homes with a pool.
$3,025
4. Allstate
In 2020, Allstate ranked #4 in Texas for the cheapest homeowners insurance for homes with a pool.
$3,206
5. USAA
In 2020, USAA ranked #5 in Texas for the cheapest homeowners insurance for homes with a pool.
$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
Company
Amountper year
1. Universal North America
In 2020, Universal North America ranked #1 for the cheapest homeowners insurance for owners with poor credit in Texas.
$3,352
2. Chubb
In 2020, Chubb ranked #2 for the cheapest homeowners insurance for owners with poor credit in Texas.
$3,781
3. Nationwide
In 2020, Nationwide ranked #3 for the cheapest homeowners insurance for owners with poor credit in Texas.
$4,533
4. USAA
In 2020, USAA ranked #4 for the cheapest homeowners insurance for owners with poor credit in Texas.
$5,162
5. Amica Mutual
In 2020, Amica Mutual ranked #5 for the cheapest homeowners insurance for owners with poor credit in Texas.
$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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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.

  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.

  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.


Marissa Sweet
Marissa SweetCommercial Property and Casualty Insurance Consultant at PropertyCashin.com

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.

Sources