Getting a reasonable rate on home insurance is a top concern for most homeowners. Your best bet to finding an affordable price is by comparison shopping. We analyzed average costs for large insurers to help you locate the best homeowners insurance in Texas.
Cheap Home Insurance in Texas Cost Comparison
| Company | Average annual premium in Texas |
|---|---|
|
IAT Insurance Group
|
$2,257
|
|
$2,268
|
|
|
$2,495
|
|
|
$2,502
|
|
|
$2,701
|
|
|
$2,723
|
|
|
State Auto Mutual
|
$2,739
|
|
UPC
|
$2,820
|
|
$2,895
|
|
|
$3,437
|
|
|
$3,496
|
|
|
$3,669
|
|
|
Amica
|
$5,169
|
It makes financial sense to find a good deal on your home insurance. But don’t rely on price alone. The best home insurance company for you will also provide the coverages and discounts that match your homeowner profile.
Texas Homeowners Insurance Cost Factors
Your ability to find cheap home insurance in Texas will depend on several cost factors, including:
- The cost to rebuild the house
- The materials your house is made of
- The age of the house
- Your personal claims history
- The claims history at your property
- The fire rating of your location
- The amount of coverage you choose
- Your policy limits
- Your deductible amount
- Your credit
What Does Texas Homeowners Insurance Cover?
A standard home insurance policy is also called an HO-3. It covers your house for any problems that are not excluded in the policy, such as floods.
Your home insurance policy covers your personal belongings for specific “perils” which is insurance jargon for problems. Vandalism, theft, fires, explosions and tornadoes are just a few examples of problems covered by home insurance.
It’s a good idea to review how home insurance works to protect you so you can best determine how much home insurance you need.
Here are the main coverage types you’ll find in a standard home insurance policy:
- Dwelling: This pays to rebuild or repair your house if it’s damaged. It also covers your attached structures, like a porch or garage.
- Other structures: This pays to replace or repair structures that are not attached to your house, like a shed or fence.
- Personal property: This pays to replace or repair your personal belongings after a problem like fire or theft. This includes items such as your furniture, artwork, clothing, kitchen appliances, rugs and other items.
- Liability: This pays for property damage and injuries you accidentally cause to others. For example, if someone trips on your sidewalk, liability insurance can pay for medical bills, legal costs, judgments and court settlements.
- Medical payments to others: This covers smaller medical claims made by people who do not live in your household, no matter who is at fault. For example, if a guest stubs their toe on your coffee table, medical payments coverage could pay for their visit to urgent care. Coverage amounts are usually small, such as $1,000.
Compare Home Insurance Quotes
1
Lemonade
Excellent
Average
2
Erie
Very good
Low
3
Chubb
OK
Very low
What’s Not Covered by Texas Homeowners Insurance?
Your home insurance policy won’t cover every problem that happens to your home. Common exclusions in a standard home insurance policy include problems like floods, sinkholes, earthquakes, nuclear hazard, power failure, wear and tear, war, intentional loss and insect and vermin infestations.
Make sure you read your policy closely so you understand what is covered and what is excluded from coverage.
Flood Insurance in Texas
A standard home insurance policy won’t cover you for flood damage. Considering Texas has hundreds of floods each year, it’s a good idea to have flood insurance.
Financial assistance from the government after a flood can be limited or unavailable. Your best bet is to have your own flood insurance to rely on. Most folks who buy flood insurance get it from the National Flood Insurance Program, a federal program. You can also buy flood insurance on the private market.
FEMA’s Individuals and Households Program (IHP) can provide monetary and direct assistance after an emergency or major disaster (such as a flood), if you qualify. This program helps people find housing after a problem directly caused by a disaster, provided it’s not covered by insurance or other sources.
Tips for Buying Homeowners Insurance in Texas
First time homebuyers and longtime homeowners want the same thing: good coverage for a reasonable price. Here are some tips for buying home insurance in Texas:
- Get multiple quotes. Insurers price their policies differently, which is why it’s key to get home insurance quotes from multiple insurance companies before you buy a policy.
- Know how much it will cost to rebuild. Your dwelling coverage should be adequate enough to cover the cost to rebuild your home. Ask a trusted contractor or your insurance company what the cost would be to rebuild your home based on equitable materials and the labor costs in your area.
- Evaluate your assets. Your liability coverage should be adequate enough to cover what you could lose in a lawsuit (such as your savings) if you were sued because of an accident.
- Assess your high-value items. A standard home insurance policy usually has sub-limits for certain types of valuable items. It’s a good idea to schedule personal property so your pricey possessions are insured for what they are worth.
- Fill coverage gaps. Your home may have specific needs that aren’t covered by a standard home insurance policy alone, but you can often buy additional coverage to close coverage gaps. For example, you may want to add water backup or sewer coverage to pay for damage from drain and sewer backups.
- Ask for discounts. You might be delighted to learn that features in your home qualify you for discounts, such as home safety devices. You can also snag a multi-line discount if you bundle your auto and home insurance.
Methodology
Average home insurance rates were calculated using data from Quadrant Information Services. Rates are based on a policy with dwelling coverage of $300,000 and liability coverage of $100,000.
