How Much Is Home Insurance In Texas?

Texas homeowners have seen significant increases in their insurance within the past few years. According to S&P, Texas had a 23.3% increase in home insurance rates in 2023, making it one of the largest increases in the US. The average annual rate for home insurance in Texas is $4,400.

Having been in the industry for over 20 years, I can attest that the price of home insurance has never been higher. But with some preparation and research, you can find an affordable carrier. Here’s everything you need to know about the price of home insurance in Texas.

Average Home Insurance Cost In Texas By Insurance Carrier

The price of home insurance varies widely based on numerous different factors. Additionally, each insurance carrier weighs these various factors differently. Therefore, the price you are quoted with one company can be different with another. Here are some examples of average home insurance prices by insurance carrier.

Average Home Insurance Cost In Texas By Claims History

One of the factors that will impact the cost of your home insurance is your claims history. Those with no prior homeowner claims on their record will pay less for their insurance than someone with a claim or two. Homeowners with just one prior homeowner claim pay 21% higher on average than someone with no claims.

Average Home Insurance Cost In Texas By Credit Score

Those with a higher credit score don’t just get lower interest rates. They also get lower insurance rates. Homeowners insurance for those with poor credit can be as much as 194% higher for the same home insurance coverage. The better your credit score, the lower your home insurance rates will be.

Average Home Insurance Cost For New Homes In Texas

Newer homes often cost less to insure because the risk of a major system failing is lower, such as heating, electrical, or roofing. Consumers with newer homes pay as much as 53% less for home insurance than those with a home older than 10 years. The average cost of home insurance for a Texas property built in 2023 is $2,561 annually.

Average Home Insurance Cost In Texas By Coverage Amount

The amount your home is insured for is generally one of the biggest drivers of your insurance price. The higher your coverage limit, the more expensive your policy will be. The average cost of a home in Texas insured for $250,000 is $4,310 per year.

Average Home Insurance Cost For Different Cities In Texas

Rates for home insurance can also vary between cities within Texas. Some may be more rural and further away from emergency personnel like firefighters, or in a more populated area where crime is higher. Either way, the location of your home is significant when it comes to the price you pay for your insurance.

For example, the average price of home insurance in Austin is $2,876 annually versus Corpus Christi, which is $10,478 per year. Below are a few examples of rates you can expect in various cities within Texas.

How To Estimate Your Homeowners Insurance Policy Cost

Homeowners’ insurance carriers base the price of your policy on a few different factors. While almost all companies use the same factors, they each weigh them differently. Therefore, it’s difficult, if not impossible, to determine the price of your home insurance policy without getting a quote from the company directly.

Some of the major factors that companies use to determine your insurance price are as follows:

• Location – The location of a home is important for rating because some areas are riskier to insure than others. For example, if your home is located close to a fire hydrant or fire station, you are less likely to have a total fire loss in your home. Similarly, a home located in a city is generally more costly to insure than a home in the suburbs due to higher construction costs, increased risk of theft, and natural disasters.
• Dwelling Coverage – The amount you insure your home for will greatly impact the price of your policy. Understandably, the more coverage you have on your home, the more expensive your policy will be.
• Deductible – A deductible is your out-of-pocket expense before your insurance policy pays for a loss. As such, the higher your deductible is, the lower your insurance price will be.
• Credit Score – Many companies use a credit-based insurance score to base the rates of your insurance policies. Homeowners with a high credit score can typically see lower insurance premiums.
• Personal Property – In addition to your dwelling coverage, the coverage for your personal property will also impact the price of your policy. While it is usually a percentage of your dwelling limit, your personal property coverage can be increased for a price depending on your specific needs.
• Liability – The standard liability limit on a homeowner’s policy is typically $100,000. Homeowners can usually increase this limit to $1,000,000 for an additional premium.