The Best and Cheapest Home Insurance Companies in Texas (2024)
Mercury has the cheapest home insurance in Texas, with rates around $1,254 per year.
Find Cheap Home Insurance Quotes in Texas
Best Cheap Home Insurance in Texas
ValuePenguin gathered thousands of quotes from the largest insurance companies to find the best home insurance companies in Texas. Our experts also considered customer reviews and ratings, coverage options and availability.
Cheapest home insurance in Texas
Mercury has the most affordable homeowners insurance in Texas.
A policy from Mercury costs $1,254 per year for $350,000 of dwelling coverage. That's nearly one-third of the Texas state average.
Find Cheap Home Insurance Quotes in Texas
Mercury also has the cheapest insurance rates for expensive homes.
A policy with $500,000 of dwelling coverage costs $1,865 per year, while $1 million of coverage costs $3,816 per year. That's 63% and 58% less than the state average, respectively.
Cheapest homeowners insurance quotes in Texas by dwelling coverage limit
$200,000
$350,000
$500,000
$1 million
Company | Annual rate | ||
|---|---|---|---|
| Mercury | $761 | |
| Texas Farm Bureau | $1,727 | |
| Chubb | $1,861 | |
| Farmers | $2,279 | |
| State Farm | $2,387 | |
$200,000
Company | Annual rate | ||
|---|---|---|---|
|
| Mercury | $761 | |
|
| Texas Farm Bureau | $1,727 | |
|
| Chubb | $1,861 | |
|
| Farmers | $2,279 | |
|
| State Farm | $2,387 | |
$350,000
Company | Annual rate | ||
|---|---|---|---|
|
| Mercury | $1,254 | |
|
| Texas Farm Bureau | $2,506 | |
|
| Chubb | $2,897 | |
|
| State Farm | $3,269 | |
|
| Farmers | $3,630 | |
$500,000
Company | Annual rate | ||
|---|---|---|---|
|
| Mercury | $1,865 | |
|
| Texas Farm Bureau | $2,998 | |
|
| Chubb | $3,721 | |
|
| State Farm | $4,260 | |
|
| Farmers | $5,082 | |
$1 million
Company | Annual rate | ||
|---|---|---|---|
|
| Mercury | $3,816 | |
|
| Texas Farm Bureau | $4,144 | |
|
| Chubb | $5,778 | |
|
| State Farm | $7,516 | |
|
| Farmers | $9,078 | |
What home insurance do I need in TX?
Texas is prone to many types of natural disasters, including hurricanes, tornadoes and wildfires.
Homeowners insurance typically covers wind and wildfire damage. However, if the insurance company considers your home at high risk for wind or fire damage, it may limit your protection. In that case, you'll need to buy a separate wind or fire policy.
Home insurance doesn't protect against flood damage caused by hurricanes, heavy rains or overflowing rivers. Homeowners concerned about flood damage must buy a separate flood insurance policy.
Best home insurance in Texas for most people: Mercury
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Editor's rating
- Cost: $1,254/yr
Mercury has the cheapest quotes in Texas, along with reliable customer service and plenty of coverage add-ons.
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Cheapest rates in TX
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Few customer complaints
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Lots of discounts and coverage options
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Can't get home insurance quotes online
Mercury's home insurance rates are between 58% and 67% cheaper than the Texas state average, depending on how much coverage you need.
In addition, Texas homeowners are typically happy with the service they get at Mercury. The company gets 66% fewer complaints than an average insurance company of its size, according to the National Association of Insurance Commissioners (NAIC). That means you can count on Mercury to help get your house fixed quickly in an emergency.
Mercury also offers lots of ways to add extra protection to your policy.
For example, you can add coverage for hidden water leaks. Most home insurance companies place a time limit on leak claims. So if you don't notice a leak right away, you could end up paying for expensive repairs.
Best for bundling home and auto insurance: Texas Farm Bureau
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Editor's rating
- Cost: $2,506/yr
Texas Farm Bureau's cheap car insurance makes it the best company for bundling home and auto insurance in Texas.
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Affordable home insurance
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Cheapest auto insurance in TX
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Very low number of customer complaints
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Helpful local agents
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Can't compare rates online
Texas Farm Bureau offers some of the lowest home insurance rates in the state. At $2,506 per year, a policy from Farm Bureau is $1,188 cheaper than the Texas average.
Homeowners can save up to 15% when they bundle home and auto insurance with Texas Farm Bureau. In addition, it has some of the cheapest car insurance quotes in Texas. That makes it a great choice for Texans looking to use one company for all of their insurance needs.
Texas Farm Bureau also has excellent customer service reviews. The company gets 87% fewer complaints than an average company of its size, according to the NAIC. That means most customers are very happy with their experience at Farm Bureau.
Best insurance for expensive homes in Texas: Chubb
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Editor's rating
- Cost: $3,721/yr
Chubb offers coverage tailored to expensive homes at an affordable rate.
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Affordable rates
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Standard policy includes extra coverage
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Offers flood insurance
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Mixed customer service reviews
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No online quotes
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Only available for high-value homes
Chubb is the third-cheapest home insurance company in Texas. A policy with $500,000 of dwelling coverage costs $3,721 per year, and $1 million of coverage costs $5,778 per year.
While it's not the cheapest option, the extra protection included in its basic policy may be worth the additional cost.
For instance, Chubb policies include extended replacement cost, which pays to repair or replace your items even if they're worth less than when you got them.
You can also get a cash settlement if a covered incident, such as a fire, completely destroys your home. In other words, Chubb will cut you a check if you decide not to rebuild your home.
Chubb also offers flood insurance with much higher limits than you can get from the National Flood Insurance Program (NFIP). That's really important for expensive homes that can't get enough coverage from the NFIP.
One downside to Chubb is its mixed customer service reviews. As a whole, Chubb earned a subpar score on J.D. Power's customer satisfaction survey. However, its Texas branch gets 85% fewer complaints than similar-sized insurance companies, according to the NAIC. That can make it hard to predict what Chubb's claims process might be like after an emergency.
Average home insurance cost in Texas
The average cost of homeowners insurance in Texas is $3,694 per year.
That's $1,543 more per year than the national average, which makes Texas the fourth-most expensive state in the country for home insurance.
Dwelling coverage | Annual cost |
|---|---|
| $200,000 | $2,317 |
| $350,000 | $3,694 |
| $500,000 | $5,061 |
| $1,000,000 | $9,046 |
Texas home insurance rates are expensive, but quotes in neighboring states are also typically pricey.
Oklahoma has the most expensive home insurance in the country, at $4,799 per year. Louisiana, Arkansas, Mississippi and Alabama are also in the top 10 most expensive states for home insurance.
Texas home insurance rates by city
Taylor Lake Village, a waterfront town outside of Houston, has the highest home insurance rates in Texas.
Homeowners in Taylor Lake Village pay an average of $9,252 per year for insurance.
Homestead Meadows South, which is part of the El Paso metro area, has the cheapest rates. The average rate in Homestead Meadows South is $1,857 per year.
Average Texas homeowners insurance rates by city
City | Annual rate | % from avg. |
|---|---|---|
| Abbott | $3,570 | -3% |
| Abernathy | $4,157 | 13% |
| Abilene | $4,081 | 10% |
| Abram | $3,582 | -3% |
| Ace | $2,908 | -21% |
Rates are for a policy with $350,000 of dwelling coverage.
Homeowners insurance rates in Texas vary by over $7,000 per year depending on what part of the state you live in.
Homes near the Gulf of Mexico generally have higher home insurance rates due to hurricane activity. For example, the home insurance in Corpus Christi costs an average of $5,842 per year. That's 58% higher than the statewide average.
Best insurance companies in Texas
The best-rated homeowners insurance companies in Texas are State Farm and USAA.
Both companies earned high scores on J.D. Power's customer satisfaction survey and have very few complaints, according to the NAIC.
Top-rated insurance companies in Texas
Company |
Rating
|
Complaints
|
|---|---|---|
| State Farm | Low | |
| USAA | Low | |
| Mercury | Low | |
| Texas Farm Bureau | Low | |
| Texas FAIR Plan | Low |
When shopping for a home insurance policy, it's important to balance finding the best price with dependable service.
Companies with great service typically have an easy claims process and pay claims quickly after an emergency. Poor customer service could lead to a lot of back-and-forth with the insurance company. And you could end up paying more for repairs.
What homeowners insurance do I need in the state of Texas?
As the largest state in the contiguous U.S., Texas has a wide range of severe weather that affects its homeowners. Damage from hurricanes and other storms is the main risk for homeowners living near the Gulf of Mexico. Meanwhile, homes further inland are at risk for wildfires and tornadoes.
Does TX home insurance cover hurricanes and tropical storms?
There are two main types of damage caused by coastal storms: wind damage and flooding.
Homeowners insurance typically covers damage due to wind, but not flooding.
Is wind damage covered by Texas homeowners insurance?
A standard home insurance policy usually includes protection against wind damage.
So if the wind breaks a window or causes a tree to fall on your roof, your homeowners insurance will cover the costs.
However, if your home is near the coast or in Tornado Alley, the insurance company may consider it a high risk for wind damage. In that case, you may have to pay a separate wind deductible to fix damage caused by wind.
If insurance companies feel your home is too risky, they may not offer you wind coverage at all.
In this case, you can buy a wind policy from the Texas Windstorm Insurance Association (TWIA). The TWIA offers wind insurance in 15 counties across Texas.
Windstorms caused nearly $47 million in damage to Texas homes in 2023, not including hurricanes or tropical storms.
Does Texas home insurance cover flooding?
Homeowners insurance doesn't usually cover flood damage, whether from a hurricane, rainwater or an overflowing lake or river.
If your home is at risk of flooding, you'll need to buy a flood insurance policy. You have two main options for flood insurance: a National Flood Insurance Program (NFIP) policy or a policy from a private insurance company. You should compare quotes for both NFIP and private flood insurance to find the lowest prices.
Are wildfires covered by home insurance in Texas?
Homeowners insurance almost always covers fire damage.
So most people have protection against wildfire damage as long as their coverage limits are high enough.
If your home is in an area with a high risk of wildfires, insurance companies may not offer you fire insurance. In this case, you should buy a separate fire insurance policy so you have protection against wildfire damage.
Wildfires are most common in the western parts of Texas, where conditions tend to be drier and more susceptible to fire. Over the past five years, Texas had the 10th highest amount of wildfire-related property damage compared to other states, at $11 million.
Are tornadoes covered by insurance in Texas?
Homeowners insurance typically covers wind, which is the main cause of tornado damage.
Standard home insurance policies also usually cover other sources of tornado-related damage, such as hail. But coverage can vary by company and region, especially if you live in an area with frequent tornadoes. You should double-check your policy or talk to your agent to make sure you have the right protection.
Tornadoes are common in Texas, especially during springtime. Tornadoes generally don't cause as much widespread damage as a hurricane. But they often appear with little or no warning. This means you won't have much time, if any, to prepare before a storm hits.
Once tornadoes form, they generally travel at around 30 mph. But they can move at speeds up to 70 mph in the right conditions. If you're in an area under a tornado watch or warning, stay inside in a protected area until the danger passes.
How to find the best home insurance in Texas
The best home insurance companies in Texas offer excellent customer service and the coverage you need at an affordable price. To find the best company for you, start by deciding how much coverage you need. Then, compare quotes and look at customer service reviews.
Decide how much protection you need. Most basic home insurance policies come with the same types of coverage, but limits can differ by company.
For example, Texas Farm Bureau's loss of use coverage limit is only 10% of your dwelling coverage limit. In comparison, most major companies offer up to 40% of your dwelling limit.
In addition, not all companies offer the same coverage add-ons, like hidden water damage or flood coverage. If you need extra protection, make sure it's an option before you waste time going through the quote process.
Compare quotes from multiple companies. There's a difference of nearly $4,000 per year between the most and least expensive home insurance companies in Texas.
The cheapest company in the state may not be the least expensive option for you. Home insurance companies all calculate quotes differently. They take into account unique factors such as your home's building materials and your insurance history. That's why it's important to shop around for the best price.
Compare customer service reviews. You want a home insurance company that will make your life easier if you ever have an emergency. Companies with great reviews typically have a hassle-free claims process and pay you a fair price to fix damage.
You can start by reviewing ValuePenguin editor's ratings, which consider customer service scores, complaints, availability and overall value. If you'd like to do more research, you can look up the J.D. Power home insurance customer satisfaction study. You can also view a company's complaints at the National Association of Insurance Commissioners (NAIC) website.
Frequently asked questions
What is the average cost of homeowners insurance in Texas?
A homeowners insurance policy in Texas costs $3,694 a year, or $308 per month, on average. That's 72% higher than the national average, making Texas the fourth-most expensive state in the country for home insurance.
How much is home insurance in Dallas, TX?
The average cost of home insurance in Dallas is $3,888 per year. That's $194 per year more expensive than the Texas average.
Why is Texas home insurance so expensive?
Home insurance in Texas is expensive because weather damage is common across the state. Homes located near the coast and those in Tornado Alley have frequent wind damage, while Western Texas is prone to wildfires. This damage can be expensive, so insurance companies charge more to offset their costs.
Who has the cheapest homeowners insurance in Texas?
Mercury is the cheapest home insurer in Texas, with an average price of $1,254 per year. That's 66% cheaper than the state average.
What are the top three home insurance companies in Texas?
Mercury, Texas Farm Bureau and Chubb are the top home insurance companies in Texas. All three companies have affordable rates and minimal customer complaints.
Methodology
To find the best homeowners insurance in Texas, ValuePenguin collected thousands of insurance quotes from the largest homeowners insurance companies in Texas across every ZIP code in the state. Rates are for a 45-year-old married man with a good credit score and no prior insurance claims.
Quotes include the following coverage limits:
- Dwelling coverage: $200,000, $350,000, $500,000 or $1 million
- Personal liability: $100,000
- Medical payments: $5,000
- Deductible: $1,000
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurance company filings and should be used for comparative purposes only. Your own quotes may be different.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.