10 Best Homeowners Insurance In Texas in 2024

Homeowners insurance is an essential type of property insurance that covers your home and belongings against damages and losses from events like fires, storms, theft, and more. It’s required by mortgage lenders and helps provide financial protection for one of your most valuable assets – your home.

Choosing the right homeowners insurance policy and provider is important to ensure you have adequate coverage at an affordable rate. Rates and coverage options can vary significantly among insurers in Texas. With over 100 companies providing homeowners insurance in the state, it can be challenging to compare policies and find the best value.

This guide examines the 10 best homeowners insurance companies in Texas to help you make an informed decision. We evaluate each insurer on price, coverage, discounts, customer service, financial strength and other factors to determine the best options for Texas homeowners.

Things to Know About Homeowners Insurance in Texas

The cost and coverage for homeowners insurance can vary widely in Texas due to the risk of hazards like hurricanes, hail storms, tornadoes and wildfires in certain parts of the state. Here are a few key facts about homeowners insurance in Texas:

• The average annual premium for a Texas homeowners insurance policy is $2,027, which is 29% higher than the national average of $1,249.
• Texas has the 14th highest average homeowners insurance rates in the nation.
• Coastal regions like Galveston and Houston generally have the highest rates due to increased hurricane risk. Inland areas like Austin and Dallas tend to have lower premiums.
• The minimum liability coverage required by lenders in Texas is $100,000. Higher limits of $300,000 to $500,000 are recommended.
• Texas does not require mortgage lenders to enforce hurricane or windstorm insurance. However, it may be required in coastal areas.
• Major causes of homeowners insurance claims in Texas are wind/hail damage, water damage and theft.
• Texas law requires companies to cover damage from a hurricane starting at speeds of 74 mph.

Understanding these factors will help you evaluate the typical coverage and costs for your area as you shop for the best policy.

10 Best Homeowners Insurance Companies in Texas

1. Amica Mutual

U.S. News Rating: 4.1/5

Average Annual Premium: $5,698

AM Best Rating: A+

Pros

• Dividend payouts return up to 20% of premium to policyholders
• Policyholders may qualify for dividends which can reduce your premium
• Platinum Choice policy includes enhanced coverage options

Cons

• No local agents, claims handled by phone
• Standard policy only covers named perils for personal property

Amica Mutual stands out with exceptional customer service and policies that can be tailored to your needs. As the highest rated insurer in the J.D. Power 2019 U.S. Home Insurance Study, it provides great value through high-quality coverage, competitive rates and dividends for eligible policyholders.

Amica’s Platinum Choice policy includes limited coverage for home-based businesses, credit card/identity theft protection and more. The company has paid dividends to policyholders every year since 1968. Amica makes the claims process easy by assigning a dedicated representative to handle your entire claim from start to finish.

2. State Farm

Reviews Score: 4.0/5

Average Annual Premium: $3,845

AM Best Rating: A++

Pros

• Largest insurer in Texas with local agents across the state
• Competitive rates and discounts for multi-policy, claims-free history
• Quality customer service and fast claims process

Cons

• No remodeled home discount
• Limited online quotes and policy management

State Farm is the largest home insurer in Texas with over 16% market share. It offers the basics like fire, theft and liability coverage along with options to add water backup, service lines and increased coverage for valuables.

State Farm makes it easy to bundle policies together to save money. It provides many ways to lower your costs like discounts for impact-resistant roofs in hurricane zones. The huge network of local agents provides personalized service for your policy and claims.

3. USAA

Reviews Score: 3.9/5

Average Annual Premium: $3,784

AM Best Rating: A++

Pros

• Highly competitive rates for members
• Good option for military families and veterans
• Replacement cost coverage included

Cons

• Membership eligibility restrictions
• Fewer coverage add-ons than some insurers

USAA is consistently ranked as one of the top insurers for price and claims satisfaction. The company offers affordable premiums by providing specialized coverage only to military members, veterans and their families. Rates can be much lower compared to big name insurers.

Policies from USAA automatically include replacement cost coverage in case of a total loss. Other perks include identity theft protection and complimentary home inventory software. The company has excellent financial strength and customer service reputation. Keep in mind membership restrictions prohibit many families from getting a policy with USAA.

4. Allstate

Reviews Score: 3.9/5

Average Annual Premium: $2,867

AM Best Rating: A+

Pros

• Wide selection of extra coverage options
• Bundling with auto insurance can save up to 25%
• Digitally submitted claims often processed in just one day

Cons

• No online quotes or application
• Reports of slow claims for some customers

Allstate features affordable bundled insurance plans and modern conveniences like quick claims service through its mobile app. Discount opportunities like the multiple policy, pay in full, and autopay can help reduce your costs.

You can also get protection for rental property with Allstate’s HostAdvantage program. Allstate falls behind some insurers for technology like online quotes and policy management. But local Allstate agents provide personalized service when you need to file a claim or make changes.

5. Lemonade

U.S. News Rating: 3.7/5

Average Annual Premium: $2,554

Pros:

• Fully digital insurance experience through user-friendly mobile app
• Claims filing, customer support and policy management available 24/7 through app
• Fast and efficient claims processing and payouts
• Giveback program donates unused premiums to charities selected by customers

Cons:

• No in-person agents available for personalized service
• Very limited phone customer service support

Lemonade provides an innovative, app-based homeowners insurance experience with no agents involved. Customers can easily and conveniently purchase, manage and file claims completely digitally 24/7 through the highly rated Lemonade app. Instant coverage, bot-powered support and fast claims resolution make Lemonade efficient to deal with.

However, homeowners who prefer more personalized service or want to speak to someone over the phone will need to look at other insurance providers. Lemonade’s business model is built entirely around digital experiences, with very limited human customer support available by phone. But for digital-first customers, Lemonade delivers an unparalleled experience.

6. Travelers

Reviews Score: 3.6/5

Average Annual Premium: $6,668

AM Best Rating: A++

Pros

• Coverage for older homes and those in disrepair
• Option to add flood insurance through Neptune partner
• Package discounts when bundling auto and home

Cons

• Limited tech features and lackluster mobile app
• No discounts for paperless billing or autopay

With over 160 years of experience, Travelers provides the bedrock insurance products Texas homeowners depend on. They earn excellent financial strength ratings from A.M. Best and Moody’s. Travelers offers coverage for common Texas perils like hail storms and tornadoes.

Policies feature adjustable coverage limits so you can raise limits on valuables like jewelry and art. Bundling home and auto insurance unlocks Travelers’ competitive package discounts. Lacking discounts for paperless billing and loyal customers are two downsides.

7. Liberty Mutual

Reviews Score: 3.6/5

Average Annual Premium: $2,850

AM Best Rating: A

Pros

• Customizable coverage including valuable possessions
• Plenty of discounts like multi-policy, claims-free, new home
• Strong financial ratings from A.M. Best

Cons

• Mixed customer service reviews
• Quoting and managing your policy can be difficult online

Liberty Mutual gives homeowners the freedom to tailor policies to their needs. With the right options and discounts, Liberty Mutual offers strong coverage for a reasonable price. Add-ons like scheduled personal property and water backup insurance protect valuables and basements.

Liberty Mutual has paid dividends to qualifying policyholders for over 100 years. Look out for policy limitations like not covering freezing pipes and Liberty’s lackluster online experience.

8. Nationwide

Reviews Score: 3.5/5

Average Annual Premium: $2,650

AM Best Rating: A+

Pros

• Helps cover the full cost to rebuild with Building Code coverage
• Identity theft and credit card coverage included
• Streamlined claims process with online tracking

Cons

• Fewer discounts than competitors
• $1,000 hurricane deductible for coastal homes

Nationwide stands out helping homeowners fully repair or replace their property according to current building codes. This Building Code Upgrade coverage is included at no extra cost. Customers report very positive experiences with claims representatives.

Nationwide provides standard coverage for fire, theft, wind and hail with optional upgrades like guaranteed replacement cost. File a claim 24/7 by phone or online. Just be aware that discount opportunities are fewer compared to other top insurers.

9. Safeco

Reviews Score: 3.4/5

Average Annual Premium: $2,960

AM Best Rating: A

Pros

• Discounts for smart home devices and security systems
• Coverage includes damage from identity theft
• No deductible for roof repairs from wind/hail

Cons

• High minimum hurricane deductible of $2,500
• Fewer coverage options than other national insurers

Safeco delivers reliable homeowners insurance suited for the Lone Star State. Wind and hail damage are covered since these risks affect much of Texas. Safeco was actually one of the first insurers to remove the hurricane deductible for wind claims – a great benefit.

The insurer features useful modern discounts like dropping your rates for installing a security system. While fewer endorsements are available to customize your policy, Safeco offers solid protection with excellent financial backing from parent company Liberty Mutual.

10. Chubb

U.S. News Rating: 3.7/5

Average Annual Premium: $4,142

AM Best Rating: A++

Pros:

• Own private flood insurance available as an alternative to government’s NFIP
• Valuable loss settlement options like cash payout for total loss
• Coverage for risks excluded by many competitors like floods, earthquakes

Cons:

• Chubb only sells through independent insurance agents
• No direct online quotes available

Chubb also offers their own private flood insurance policies that can provide broader protection compared to the government’s National Flood Insurance Program. Insureds can potentially receive higher coverage amount limits and save money under Chubb’s policies.

For total losses, Chubb allows the flexibility to take a cash settlement payout instead of having to rebuild. This allows the insured to move elsewhere if desired. Chubb stands out for covering unique risks and flexible payout options. The trade-off is that you have to work through independent agents to get a Chubb policy, as online quotes are not available.

What Does Homeowners Insurance Cover in Texas?

The typical homeowners insurance policy in Texas provides the following standard coverages:

• Dwelling – Covers damage to the physical structure of your home up to the rebuilding cost.
• Other Structures – Detached garages, fences, gazebos (up to 10% of dwelling limit).
• Personal Property – Furniture, appliances, electronics, clothing etc (up to 50% of dwelling limit).
• Loss of Use – Additional living expenses if home is unlivable due to a covered loss (up to 20% of dwelling limit).
• Personal Liability – Covers injuries for which you are legally responsible.
• Medical Payments – Others’ medical bills from injuries on your property.

Most insurers in Texas also automatically include coverage for damage from wind, hail, lightning, tornadoes, winter storms, fire and more depending on your policy. Carefully review the listed perils to understand what is covered. Flood and earthquake damage typically requires separate add-on policies.

Average Homeowners Insurance Rates in Texas

Home insurance rates can range dramatically based on your location in Texas, size and age of your home, and other factors like credit score. According to 2021 data, the average annual premium for Texas homeowners insurance is $2,027 which is nearly $800 higher than the U.S. average.

Average Annual Premiums by Region in Texas:

• Houston – $4,851
• Dallas/Fort Worth – $3,258
• Austin – $2,158
• San Antonio – $3,801
• El Paso – $1,890

Coastal areas like Houston and Galveston have the highest average rates, while major metros toward the west see much lower premiums on average. Small towns and rural areas also tend to have lower premium costs compared to urban areas.

Important Factors That Affect Homeowners Insurance Costs in Texas

Many elements influence what you’ll pay for homeowners insurance in Texas. The major ones include:

• Location – Coastal and urban areas cost more due to hurricane, flood and crime risks. Inland and rural areas are cheaper.
• Age of home – Newer homes with modern materials and electrical are less risky to insure.
• Construction type – Wood frame homes are more expensive than brick and concrete which resist fire and wind damage.
• Claims history – Frequent past claims will increase your premiums.
• Credit score – Better scores typically get better rates from insurers.
• Deductible amount – Higher deductibles lower your premiums but increase out-of-pocket costs when you file a claim.
• Discounts – Taking advantage of discounts like bundling can significantly reduce your costs.

Analyzing these factors in your situation will give you a better idea of what coverage costs to budget for.

How to Minimize Homeowners Insurance Costs in Texas

Here are some top ways to get cheaper homeowners insurance in Texas:

• Shop around – Get quotes from multiple insurers as rates can vary by hundreds of dollars.
• Compare coverage – Avoid over insuring and only pay for coverage you need. Drop earthquake or flood insurance if at low risk.
• Raise deductibles – Increasing deductibles by $500 or $1,000 can lower premiums 15% or more.
• Improve credit – Maintaining excellent credit can save hundreds per year.
• Add security – Installing alarm and sprinkler systems can qualify for big discounts.
• Seek discounts – Take advantage of every discount like claims-free history and bundling.
• Maintain home – Keep your home updated with repairs to avoid risk of damage.

Putting in the effort to shop smart, improve security and leverage discounts can lead to substantial homeowners insurance savings for Texas property owners.

Best Homeowners Insurance Discounts in Texas

• Multi-policy – 5-15% discount for bundling home with auto or life insurance from the same provider.
• Claims-free – Up to 20% off for 5+ years with no claims filed.
• New home – Around 10% off for newly constructed homes meeting modern building codes.
• Security system – Up to 15% off for a qualifying burglar or fire alarm system.
• Smoke detector – Average 3-8% discount for installing monitored smoke detectors.
• Sprinklers – Around 5% off for adding a qualifying sprinkler system.
• Paperless – Up to $50 off each year for electronic document delivery vs mail.
• Paid in full – Around 10% lower premium when you pay 100% upfront rather than monthly.

Ask your insurer about any extra discounts they offer to Texas policyholders when getting a quote. Taking advantage of just a couple can lead to significant savings.

How to Claim Homeowners Insurance in Texas

If your home suffers damage from a covered cause of loss, here are the basic steps to file an insurance claim in Texas:

1. Document damage – Take photos/video of property damage before making repairs.
2. Notify your agent – Call your insurance company or agent right away to alert them of the claim.
3. Make emergency repairs – Take reasonable steps to prevent further damage like covering broken windows.
4. Compile documents – Have your policy declaration page, receipts for repairs/housing costs, and damage estimates ready.
5. Inventory your belongings – Make a detailed list of damaged or destroyed personal property.
6. Allow inspection – Insurer will send an adjuster to evaluate damage, take measurements and document details.
7. Get estimate – Claims agent will present a repair estimate and settlement offer for damages minus your deductible.
8. Accept payment – Review the estimate and accept payment once you agree with the determined amount.
9. Complete repairs – Hire contractors to start restoring your home based on claim payment amount.
10. Follow up on delays – Contact your adjuster if payment processing or repairs are lagging.

Following these steps helps ensure you receive proper reimbursement for a covered loss according to your Texas homeowners insurance policy terms.

Conclusion

Finding the best homeowners insurance in Texas requires comparing insurers on price, coverage, discounts, technology, service and more. While rates run higher than many states, there are proven ways to keep your premium affordable.

We recommend getting quotes from our top picks like Amica, USAA, Allstate, State Farm and Travelers. Look for an insurer that includes essential coverages for Texas weather risks and offers ways to save through bundling and relevant discounts.

With a bit of shopping smarts, Texas homeowners can secure a quality policy that provides robust protection for your home and belongings without breaking the bank. Carefully weighing the pros and cons of each company can lead you to great long-term value on your coverage.

Frequently Asked Questions