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. With these inflated prices, what can consumers now expect to pay for home insurance in Texas?
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.
Key Takeaways
Homeowners insurance in Texas is one of the most expensive in the United States at $4,400 annually.
Insurance prices can vary by insurance carrier, location, prior claims history, credit score, coverage amount, and the age of your home, among other factors.
Estimating the cost of home insurance is difficult as each company weighs these factors differently.
The best way to know how much you will pay for home insurance in Texas is to get quotes from multiple companies.
How Much Is Homeowners Insurance In Texas?
While the price of homeowners insurance in Texas can vary, the average cost is around $4,400 annually. Texas is one of the most expensive states to insure a home, with prices 130% higher than the national average. Homeowners in certain zip codes or with prior claims on their record can expect to potentially pay more than the average for their insurance.
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.
| Insurance Carrier | Average Annual Premium |
| Texas Farm Bureau | $2,506 |
| Universal Insurance | $2,527 |
| Progressive | $2,972 |
| State Farm | $3,436 |
| Farmers | $3,630 |
| USAA | $3,891 |
| Travelers | $4,528 |
| Allstate | $4,687 |
| Nationwide | $5,187 |
| Chubb | $7,966 |
Note: Independent agents are a great source to find the best policy for your budget. They typically work with a few companies and can price shop for you.
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.
| Number of Claims | Average Annual Premium |
| None | $5,171 |
| 1 | $6,254 |
| 2 | $7,467 |
Note: Filing multiple claims not only increases the price of your policy; it may also affect your eligibility with a company. Many companies look at claim frequency to determine whether they will write you a policy or continue to insure you.
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.
| Credit Score | Annual Average Premium |
| Poor (300-579) | $12,341 |
| Fair (580-669) | $8,653 |
| Good (670-739) | $6,675 |
| Very Good (740-799) | $5,171 |
| Excellent (800-850) | $4,195 |
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.
| Age of Home | Average Annual Premium |
| New | $2,561 |
| 10 | $3,760 |
| 20 | $5,171 |
| 30 | $9,001 |
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.
| Coverage Limit | Average Annual Premium |
| $100,000 | $2,825 |
| $250,000 | $4,310 |
| $500,000 | $9,302 |
| $750,000 | $12,811 |
| $1,000,000 | $16,329 |
| $2,000,000 | $30,948 |
| $3,000,000 | $45,674 |
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.
| City | Average Annual Premium |
| Amarillo | $5,826 |
| Austin | $2,876 |
| Brownsville | $6,764 |
| Corpus Christi | $10,478 |
| Dallas | $4,688 |
| El Paso | $2,336 |
| Fort Worth | $4,839 |
| Grand Prairie | $5,148 |
| Houston | $7,408 |
| Irving | $4,816 |
| Laredo | $3,452 |
| McKinney | $4,664 |
| Mesquite | $4,788 |
| Plano | $4,536 |
| Waco | $3,846 |
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.
Note: Some companies offer deductibles that are a percentage of your policy’s dwelling limit. While the lower price is usually appealing, be sure that you have the funds on hand to pay for any losses that may occur.
Note: Consider an umbrella policy if you need additional liability coverage, especially if you have numerous assets such as multiple cars and a home. These policies provide liability coverage above and beyond what your auto or home insurance policy will cover.
How To Buy Home Insurance In Texas
To begin the process of buying home insurance in Texas, consumers should follow the steps outlined below.
- Research Coverage – There are different types of policies, coverages, and limits that companies offer so you need to research the coverage you may need on your home before getting quotes. Determine the best coverage for your scenario by speaking to a licensed insurance agent or educating yourself on the various policies.
- Obtain Multiple Quotes – Call multiple companies to get quotes. You can either use an online quote aggregator or work with an insurance agent to get quotes from multiple home insurance companies. Be sure to quote the same coverage with each company to get a more accurate price comparison.
- Compare Quotes – Once you have multiple quotes, your next step is to compare them. In addition to looking at price, you should also compare additional coverages, deductible amounts, and discount offerings. You should also research each company to ensure they are financially stable and have good customer service, and claims handling.
- Sign Application – After you have decided on which company you would like to insure your home, your next step is to sign the application and in most cases, pay a deposit. If your home insurance is paid through your escrow account, your mortgage company will also need to be notified that you’re switching carriers.
- Review Policies – You should continually monitor your home insurance at every renewal to confirm it still meets your needs. If you would like to shop for new home insurance, the best time to do it is about 45 days prior to your renewal date. This allows you to compare your renewal policy with the insurance quotes and ensures you have enough time to switch prior to your renewal without any lapse in coverage.
Note: AM Best is a company that rates insurance companies based on their financial stability. You should choose a company that has a high rating to ensure they are financially solvent and can pay out claims.
FAQs
Why is homeowners insurance in Texas so expensive?:
Texas is one of the more expensive states in the US for homeowners insurance due to a few different factors. First, the severe weather in Texas such as wind and hail storms has made the cost of insuring homes there more expensive for insurance companies. Additionally, inflation and supply chain issues affect the insurance industry in the same way it affects the rest of the country.
How much is homeowners insurance per month in Texas?
Homeowners insurance in Texas can vary by location, the amount of coverage you have, your prior claims history, and many other considerations. But on average, homeowners in Texas can expect to pay around $367 per month.
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