Why you can trust The Zebra

Author profile picture

Ava Lynch

Insurance Analyst

Credentials
  • 7+ years of Experience in the Insurance Industry

Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior insurance contributor, providing insights and data a…

Author profile picture

Bill Mense

Partner, United Heartland Insurance

William Mense has amassed 45 years of insurance experience in a family-owned agency begun in 1914 by his grandfather. That agency is now in its 3rd g…

Author profile picture

Kristine Lee

Insurance Analyst

Credentials
  • Licensed Insurance Agent — Property and Casualty
  • 4+ years of Experience in the Insurance Industry

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer. Before joining The Zebra, she was a…

Home insurance in Texas: what you need to know

The average cost for home insurance in Texas is $2470 or $206 per month.[1] This makes home insurance in Texas 63% more expensive than the national average of $1515. For Texas homeowners looking for the cheapest company, our data shows Texas Farm Bureau has the lowest rates in 2024 at $1,794.

If you're a homeowner who prefers reputation over price, State Farm is the most popular provider for Texas homeowners and boasts a high overall customer satisfaction according to the Texas Department of Insurance and JD Power.[8] [7] 

We've highlighted the important things all Texans should know about their home insurance — including average costs, coverage against natural disasters and important state-specific information.

logo of the cheapest home insurance company in texas, texas farm bureau
The cheapest home insurance in Texas
The best home insurance in Texas
The best homeowners in Texas
icon for texas farm bureau, best home and auto insurance in Texas
The best home and auto insurance in Texas

Natural disasters and Texas home insurance

FEMA, via the National Flood Insurance Program, is the major insurance provider for hurricane and other flooding areas in Texas. For other common natural disasters such as hail, wildfires and windstorms, Texans can look to their home insurance company for coverage.

Learn more about protecting your home against common natural disasters in Texas ↓

What are the cheapest home insurance companies in Texas?

Since 2019, home insurance rates in Texas have increased by 16%[1] — namely due to claims from hurricanes, wildfires and other natural disasters.

While how much you pay for home insurance is very specific to you, our Dynamic Insurance Rating Tool allows us to source annual rate filings to see which company is the cheapest homeowners insurance in Texas.

For a dwelling value of at least $300,000, which 39%[2] of Texas homeowners carry, Texas Farm Bureau ($1,794/year), Chubb ($1,893/year) and USAA ($2,202/year) are the cheapest homeowners companies in Texas.

Logo of the cheapest company in texas, texas farm burueau
Cheapest home insurance in Texas — Texas Farm Bureau

Compared to the state average of $2470, Texas Farm Bureau offers the cheapest premium at $1,794 per year.

Pros
  • Lowest premium for home insurance in Texas

  • Local agents available

Cons
  • Lack of customizations for home insurance coverage

  • Only available in Texas

Begin your search for cheap homeowners insurance by reviewing the most affordable Texas companies, listed below. Then, see our list of home insurance carriers consumers rated the best for customer satisfaction.

Company Avg. Annual Premium
Texas Farm Bureau $1,794
Chubb $1,893
USAA $2,202
Nationwide $2,519
State Auto $2,585
Farmers $2,637
State Farm $2,799
AmGUARD Insurance Company $2,834
Texas Fair Plan Association $3,120
Universal Ins Co of N. America $3,161
Foremost $3,202
Occidental/Acceptance Group $3,286
ASI $3,287
United P&C $3,618
Amica Mutual $3,780

The Zebra’s Dynamic Insurance Rating Tool data methodology

The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.

The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.

For a comprehensive understanding, see our detailed methodology.

What are the cheapest home companies in Texas for new homes?

The age of your home can greatly impact any quotes you get for homeowners insurance. Depending on when and where your home was built, outdated plumbing and building practices can make insuring an older home more expensive.

According to our data, home insurance quotes in Texas for a new build are considerably cheaper than an older home — $1,682/yr versus $2470 for a home built before 2011.[1] 

Logo of Nationwide, the cheapest company in TX for new homes
Cheapest insurance in TX for new homes — Nationwide

The average cost for insuring a new house with Nationwide is 35% cheaper than the state average. $1,115 for an annual policy versus $1,805.

Company Avg. Annual Premium
Nationwide $1,157
USAA $1,381
ASI $1,402
Chubb $1,430
Lighthouse Prop Ins Corp $1,480
Farmers $1,601
State Auto $1,680
United P&C $1,680
Republic Indemnity $1,717
State Farm $1,765
Universal Ins Co of N. America $1,777
AmGUARD Insurance Company $1,880
Occidental/Acceptance Group $1,956
Texas Farm Bureau $2,019
Amica Mutual $2,878
Texas Fair Plan Association $3,120
Foremost $3,202

While our data shows Nationwide as the cheapest home insurance company in Texas for new construction, consider this data as a jumping-off point. Use it directionally in your search for home insurance and compare as many companies as possible.

Compare and find the cheapest home insurance quotes in Texas with The Zebra

Location pin icon
No junk mail. No spam calls. Free quotes.

What are the best companies for home insurance in Texas?

What determines the "best" will vary greatly among Texans. Whether you're looking for claims management, coverage options or even the best price, we recommend paying close attention to state and city-specific reviews — not just national ratings from JD Power and AM Best.

Below we've broken down the best homeowners companies in Texas based on overall ratings, by bundling and for high-value homes.

State farms logo, the best overall home insurance company in texas
Best overall home insurance in Texas — State Farm

The latest data from the Texas Department of Insurance show State Farm as the most popular company for Texans with almost 20% of the market share. On a national level, JD Power ranked State Farm the 5th best home insurance company — 829/1000 for overall customer satisfaction.[7] 

Pros
  • Low compliant score from the National Association of Insurance Commissioners

  • Local agents are available

Cons
  • Higher than average costs for home insurance

  • Fewer discounts available to offset higher premiums

Company Avg. Annual Premium Avg. Monthly Premium
USAA $2,202 $183
Nationwide $2,519 $210
State Farm $2,799 $233

Best companies for home and auto insurance bundles in Texas

Bundling your home and auto insurance can be a great way to reduce your overall premium and the number of insurance companies you have to deal with. Our data indicates the average bundle discount for Texas homeowners is $202 or 7% per year.[1]  

Texas farm bureau icon for best bundling options
Best home and auto insurance in Texas — Texas Farm Bureau

Texas Farm Bureau offers the best bundle discount according to our data. On average, customers lowered their home insurance quote by 15%.

Company Bundled Home Insurance Quotes Non-Bundled Quotes Savings
State Farm $1,977 $2,799 $822
Amica Mutual $3,024 $3,780 $756
Nationwide $2,183 $2,519 $336
Farmers $2,346 $2,637 $291
Texas Farm Bureau $1,556 $1,794 $238
Chubb $1,698 $1,893 $195
United P&C $3,429 $3,618 $189
AmGUARD Insurance Company $2,686 $2,834 $148
USAA $2,080 $2,202 $122
Occidental/Acceptance Group $3,198 $3,286 $89
State Auto $2,505 $2,585 $80
ASI $3,272 $3,287 $15
Foremost $3,202 $3,202 $0
Universal Ins Co of N. America $3,161 $3,161 $0
Texas Fair Plan Association $3,120 $3,120 $0

Best home insurance companies for high-value homes

Like the idea of "best company," a "high-value" home can be subjective. If you're not sure if you have a high-value home, consider the following:

  • Property value greater than $750,000
  • Extensive collection art, jewelry, musical instruments or other valuable collectible
  • Pools, guest homes or other expensive structures apart from your home

Although our data shows Texas Farm Bureau as the cheapest company, we recommend Chubb because of its unique coverage options for a high-value home.

Chubb icon, best home insurance in texas for high-value homes
Best home insurance for high-value homes — Chubb

Chubb is our pick for the best high-value home insurance in Texas because of their Masterpiece® Homeowners Insurance. Chubb customers can insure their high-value assets with on-property risk consulting, asset appraisal and extended replacement cost coverage.

Company Avg. Annual Premium
Texas Farm Bureau $3,059
Chubb $3,836
USAA $4,163
State Auto $4,534
Republic Indemnity $4,897
State Farm $4,974
Lighthouse Prop Ins Corp $4,982
Farmers $5,424
Nationwide $5,623
AmGUARD Insurance Company $5,990
Universal Ins Co of N. America $6,313
Occidental/Acceptance Group $7,109
Texas Fair Plan Association $7,356
ASI $7,664
Foremost $7,712
United P&C $8,739
Amica Mutual $9,668

Find your best match by comparing home insurance quotes in Texas

Location pin icon
No junk mail. No spam calls. Free quotes.

Best home insurance in Texas for natural disasters

Generally, any flooding-related damage will not be covered by a standard home insurance policy. But damage from wind, hail, fire or tornadoes is often included or can be added on.

Does home insurance cover hurricanes in Texas? — Partially

Coverage after a hurricane will apply depending on if the damage was caused by water or wind. Any flooding-related damage from a hurricane is not covered by a typical homeowners policy — but wind damage will often be covered.

Because of the cost, most insurance companies are unwilling to take on the full financial risk of a hurricane. If your home is damaged by wind during a hurricane, your standard home insurance policy should apply. However, any water-related damage would fall under a FEMA policy — which is discussed below.

Depending on where you live in Texas, your insurance company may offer a separate hurricane deductible if you reside in a region especially susceptible to wind storms. These deductibles are separate from your standard homeowners deductible and can work slightly differently. 

Company Avg. Annual Premium
USAA $2,131
Lighthouse Prop Ins Corp $2,217
Texas Farm Bureau $2,460
Nationwide $2,519
Farmers $2,551
State Auto $2,619
State Farm $2,799
AmGUARD Insurance Company $2,834
Universal Ins Co of N. America $3,146
ASI $3,156
Foremost $3,229
Texas Fair Plan Association $3,255
Occidental/Acceptance Group $3,286
United P&C $3,480
Amica Mutual $3,960
Chubb $5,529
Hurricane Deductible Avg. Annual Premium
None $2,442
2% $2,728
1% $2,803

In Texas, most hurricane and wind/hail deductibles are percentage-based — other deductibles, such as deductible you pay after a theft claim are dollar-based. The percentage, usually between 1%-5%, is based on the dwelling amount of your home. For example, if your home's dwelling coverage is insured at $189,000 and you have a 5% hurricane deductible, you would need to pay $9,450 before your insurance coverage is applied. 

There are many reasons why insurance companies in Texas use percentage-based deductibles but the big reason is cost. For more information, read our full guide on how percentage-based deductibles work.

Does home insurance cover floods in Texas? No.

Damage via flooding — no matter the circumstances under which it occurs — is not covered by homeowners insurance policies. To protect your home, acquire coverage through FEMA's National Flood Insurance Program (NFIP) or a private insurer. Coverage details from private insurance companies vary but can be more customizable than a FEMA policy.

If you purchase flood insurance through NFIP, you'll receive:

  • $250,000 structural coverage
  • $100,000 personal property coverage

If the value of your personal property and home exceeds these limits, consider purchasing a flood insurance policy from our partners at Neptune for additional protection.

Do I need flood insurance?

If you have a mortgage or some type of lender, they will often inform you whether or not you're required to carry flood insurance. If you're unsure, you can use FEMA's Flood Map Service Center to see if you live in a floodplain. If you're not directly in a flood plain, both FEMA and the Texas Department of Insurance strongly encourage protection if you're near one. According to FEMA, 65% of disaster assistance in Texas is from people living outside of flood hazard areas.[3]

Does Texas home insurance cover wildfire damage? — Yes

Most insurance companies will cover damage caused by a wildfire under a standard homeowners policy. However, it is crucial for Texas homeowners to thoroughly read their policies to ensure they're not subject to any coverage limitations or restrictions. This is especially important if you live in wildfire-prone areas — dry areas with high seasonal winds that can be found throughout the state. 

 

Does home insurance cover hail damage in Texas? — Yes

Depending on where you live, hailstorms can lead to varying levels of property damage. In Texas, homeowners policies typically come with hail coverage to cover the physical structure of your home if it suffers damages in a hail event.

If you live in a part of Texas that is especially prone to hail forecasts, we recommend double-checking your homeowner's policy to see if you have any hail-related restrictions. 

Some insurance companies designate higher deductibles in hail-prone areas and make exclusions for cosmetic damage. This means that if your battered house is still functional despite aesthetic flaws after a hailstorm, your insurer will likely refuse to pay for its repair.

Does home insurance cover tornadoes in Texas? — Yes

In Texas, damage from tornadoes is covered by the windstorm part of a typical homeowners insurance policy. 

If you live in a particularly high-risk area in Texas, like Tornado Alley, you might have a separate deductible for tornadoes. We recommend double-checking your policy to ensure you're adequately covered.


Texas-specific home insurance legislation and programs

Like car insurance, home insurance is regulated at the state level. As such, Texas has a few state-specific coverage options and legislation you should be aware of.

Texas-specific homeowners insurance policy names

Below you’ll find corresponding policy names used by some home insurance companies in Texas:

  • HO-A (or HO-1): Provides basic coverage and covers home and property against named perils.
  • HO-A+ (or HO-2): Provides the same as HO-1 but expands coverage to include additional named perils.
  • HO-B (or HO-3): Covers the home against open perils and your contents against named perils.
  • HO-C (or HO-5): Covers the home and its contents against all perils unless specifically listed.

An HO-B and HO-C are the most popular home insurance policies in Texas.

Texas Windstorm Insurance Association (TWIA)

The TWIA is a state-run insurance agency in Texas that provides "last resort" wind and hail coverage. It was established in 1971 after Hurricane Celia left much of the Texas Gulf Coast without adequate insurance protection. Texas residents who meet the requirements can apply for coverage through TWIA.[5]

  • Properties must be in the designated catastrophe area
  • Applicants must have been denied coverage by at least one authorized insurer
  • Properties must be certified to building codes, with limited exceptions
  • Properties must have proof of flood insurance coverage if required
  • Properties must meet underwriting requirements

Texas FAIR Plan Association (TFPA)

Fair Access to Insurance Requirements, or FAIR, is a marketplace where Texans can get home insurance if unable to in standard markets. Typically, those with a TFPA policy meet the following conditions:

  • Have a home in a high-risk area
  • Have conditions in their property that make it too risky to insure
  • Other underwriting conditions

While a TFPA policy does not cover theft or liability coverage, it does provide dwelling, and personal property coverage and can provide coverage against wind, hail and vandalism.[6]

Like the TWIA, it is considered a "last resort" option for home insurance and only certain Texans will qualify. To get coverage through TFPA, a homeowner must be denied coverage by at least two insurance companies and meet basic home safety requirements. 

Home insurance quotes in Texas by most populated cities

How much you pay for home insurance will largely depend on the regional specifics of your city. If your city has a history of hurricanes or other natural disasters, like Houston, your insurance needs will be different than that of Austin.

Below are the most populated cities in Texas with the average rate for home insurance.

City Avg. Annual Premium
San Antonio $1,782
Plano $2,915
Laredo $1,674
Houston $2,933
Fort Worth $2,963
El Paso $1,468
Dallas $2,828
Corpus Christi $2,757
Austin $1,607
Arlington $2,956

Frequently asked questions about home insurance in Texas

The cost of home insurance in Texas has increased 16% since 2019 due to costly claims from natural disasters. Hurricanes, wildfires and hail have all led to significant property damage and insurance claims throughout the state.

For a dwelling value of at least $300,000 Texas Farm Bureau ($1,794/year), Chubb ($1,893/year) and USAA ($2,202/year) are the cheapest homeowners companies in Texas.

Our data indicates Texans pay $2,470 per year for home insurance. This is 63% more expensive than the national average.

The state of Texas doesn't require home insurance. If you have a lender or a mortgage on your home, it might be required as part of your loan agreement. Even if you don't, we still recommend getting home insurance to protect your property from covered losses.

Compare home insurance quotes near you with The Zebra

Location pin icon
No junk mail. No spam calls. Free quotes.
Sources
  1. Data Methodology. The Zebra’s Dynamic Insurance Rating Tool

  2. Anonymized User Surveys. The Zebra

  3. You live in a floodplain. Texas Department of Insurance

  4. NOAA'S National Weather Service

  5. Get Windstorm Coverage. Texas Windstorm Insurance Association

  6. Coverage eligibility. Texas Fair Plan Association

  7. 2023 US Home Insurance Study. JD Power

  8. Top Home Insurance Companies in Texas. Texas Department of Insurance

Interested in learning more about home insurance?

See what other questions The Zebra's licensed insurance agents have answered!

Is the type of siding on a house, like vinyl, a rating factor for insurance premiums?

There is no straight-forward answer to what building materials you use for your house and the homeowners insurance rate you will end up with. Here's a tip to keep in mind that may help you make a decision: brick, stucco, and concrete are preferred by most insurers because they tend to be flame…
Sep 2, 2019 Athens, GA

What is O&L coverage and why do I have it?

O and L stands for Ordinance and Law. Though your agent said that it wouldn't cover code upgrades, perhaps he meant that if a code went into law, your insurance isn't going to accept claims to upgrade the home and bring it up to code — unless your home suffers a loss. What this coverage d…
Jan 21, 2020 Franklin, KY

Claims that would be covered under a HO3 and not covered HO2?

One example of an HO2 claim that would not be covered under an HO-2 would be any water damage relating to water backup, foundation, or slow leaks. As you mentioned, the HO-2 is a named peril policy. The HO-2 covers 16 perils which are: fire, lightning, wind, hail, explosion, riot/civil commotion, a…
Oct 11, 2018 Sikeston, MO

Does my son-in-law's military status (Marine) qualify me as USAA member?

It is my understanding that USAA eligibility flows "downstream" – which means you need to be a child or spouse of an established member to get a USAA policy. Therefore parents, or in your case in-laws, of USAA members are likely not eligible to get their own policy. This applies to all in…
Feb 15, 2018 Austin, TX

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.