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Whether you’re a new homeowner or looking to buy insurance for your current home, securing the right homeowners’ insurance is crucial. Rates may vary depending on your insurance company and the coverage limits you choose.
According to Insure.com’s data analysis, the average cost of homeowners insurance in Texas is $3,844 a year.
Continue reading to learn more about homeowners insurance rates in Texas by ZIP code and insurer.
Key Takeaways
- Homeowners insurance costs an average of $3,844 a year, based on Insure.com analysis.
- Of all the ZIP codes in Texas, 79905 has the most affordable home insurance rates at around $2,017 annually.
- In Texas, State Farm provides the most affordable home insurance at an average annual premium of $3,718.
Average home insurance cost in Texas by coverage level
The average cost of homeowners insurance in Texas is $3,844 per year for the coverage limits of $300,000 dwelling coverage and $100,000 liability with a $1,000 deductible.
However, if you increase the dwelling coverage limit from $300,000 to $400,000, you will pay $4,736 per year for homeowners insurance in Texas for $100,000 in liability protection and $1,000 deductible. Below, you can find the average cost of homeowners insurance in Texas for dwelling coverage of $300,000, $400,000 and $500,000.
| Coverage | Average annual rate | Average monthly rate |
|---|---|---|
| $200,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible | $2,944 | $245 |
| $200,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible | $2,951 | $246 |
| $300,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible | $3,844 | $320 |
| $300,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible | $3,851 | $321 |
| $400,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible | $4,736 | $395 |
| $400,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible | $4,744 | $395 |
| $600,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible | $6,794 | $566 |
| $600,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible | $6,804 | $567 |
| $1,000,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible | $10,459 | $872 |
| $1,000,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible | $10,469 | $872 |
Homeowners insurance companies in Texas decide rates based on risk. They consider your location, claims history, credit history and coverage limit when calculating premiums.
If your neighborhood has seen many claims over the past few years, you can expect to pay higher home insurance rates than an area with few to no claims. Your credit score can also play a role in determining your home insurance costs.
According to S&P Global Market Intelligence’s RateWatch application, the average homeowners insurance premium for owner-occupied homes nationwide increased by over 11% in 2023.
Best homeowners insurance companies in Texas
It’s always a good idea to shop around and compare prices before purchasing homeowners insurance. Several factors come into play when choosing the best homeowners insurance company.
We evaluated homeowners insurance providers in Texas by comparing their NAIC scores and AM Best ratings and compiled a list of the top insurers in the state. Based on Insure.com’s analysis, State Farm received the lowest NAIC score and an AM Best rating of A++. A lower NAIC score signifies fewer complaints relative to the company’s size, indicating greater customer satisfaction.
| Company | Average annual premium | AM Best rating | NAIC Complaint Index | Overall score |
|---|---|---|---|---|
| State Farm | $3,718 | A++ | 0.95 | 5 |
| Farmers | $3,860 | A | 0.54 | 4.82 |
| Nationwide | $5,483 | A+ | 0.87 | 3.89 |
| Progressive | $4,085 | A+ | 8.45 | 3.46 |
Average homeowners insurance cost by company in Texas
State Farm provides the most affordable homeowners insurance in Texas, with an average annual premium of $3,718. Farmers and Progressive also offer cheap home insurance rates.
Shopping around for homeowners insurance can help you save hundreds of dollars annually.
Here are the average annual and monthly insurance rates for homeowners in Texas with a policy that provides $300,000 in dwelling coverage, $100,000 in liability protection, and a $1,000 deductible.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| State Farm | $3,718 | $310 |
| Farmers | $3,981 | $332 |
| Progressive | $4,318 | $360 |
| Nationwide | $5,708 | $476 |
| USAA | $3,311 | $276 |
Texas homeowners insurance rates by ZIP code
Insurance providers in Texas factor in the risk of a given location when determining rates. ZIP codes with higher crime rates or frequent natural disasters are typically classified as high-risk, leading to increased premiums. Additionally, the cost of rebuilding or repairing homes in that area can affect your homeowners insurance costs.
To get the best deal on homeowners insurance rates in Texas, take the time to shop around and compare quotes from multiple insurers. Additionally, don’t forget to ask about potential discounts, like bundling policies or a smart home discount.
Most affordable ZIP codes for home insurance rates in Texas
Not every area in Texas has the same home insurance cost. How much you pay for homeowners insurance in Texas depends on many factors, including your ZIP code. Our data shows that 79905 ZIP has low-cost home insurance rates in Texas, at about $2,017 a year or $168 monthly.
Below you can find homeowners insurance rates for some of the most affordable ZIP codes in Texas.
| ZIP code | Average annual rate | Average monthly rate |
|---|---|---|
| 79905 | $2,017 | $168 |
| 79915 | $2,022 | $169 |
| 79907 | $2,032 | $169 |
| 79925 | $2,040 | $170 |
| 79938 | $2,044 | $170 |
| 79836 | $2,050 | $171 |
| 79927 | $2,052 | $171 |
| 79928 | $2,057 | $171 |
| 79903 | $2,066 | $172 |
| 79936 | $2,073 | $173 |
Most expensive ZIP codes for home insurance rates in Texas
Your ZIP code plays a significant role in determining the cost of your homeowners insurance. In Texas, some areas face higher premiums due to factors like high crime rates, greater risk of natural disasters and higher living expenses.
In Texas, 77586 has the highest homeowners insurance rates, at $14,018 per year.
Here, we’ve highlighted some of the most expensive ZIP codes in Texas for homeowners insurance:
| ZIP code | Average annual rate | Average monthly rate |
|---|---|---|
| 77586 | $14,018 | $1,168 |
| 77550 | $13,495 | $1,125 |
| 77551 | $12,719 | $1,060 |
| 77554 | $12,541 | $1,045 |
| 77590 | $11,384 | $949 |
| 77507 | $11,307 | $942 |
| 77650 | $10,872 | $906 |
| 77571 | $10,693 | $891 |
| 77623 | $10,567 | $881 |
| 77617 | $10,391 | $866 |
Home insurance rates vary from one city to another. But with Insure.com, finding the right home insurance policy is easy. Learn more about homeowners insurance costs for different cities below.
Home insurance rates in Texas by city
Home insurance rate trend in Texas
We analyzed home insurance rate trends in Texas and found that homeowners insurance rates experienced an overall increase of 13% or $433, from 2022 to 2023.
The data below shows how much homeowners insurance rates have changed since 2019.
| 2019 rates | 2022 rates | 2023 rates |
|---|---|---|
| $3,511 | $3,411 | $3,844 |
To choose the right homeowners insurance, it’s important to conduct thorough research and compare rates from various insurers, as each evaluates risk differently. Comparing quotes from at least three companies can help you secure the most affordable coverage in Texas.
Resources & methodology
Source
S&P Global. “US homeowners insurance rates jump by double digits in 2023.” Accessed September 2024.
Methodology
Insure.com worked with Quadrant Information Service to get homeowners insurance data. We analyzed 20,739,560 insurance quotes from 82 national and regional insurance companies across 34,588 ZIP codes to determine the average premiums.
The insurance rates are based on a sample profile of a homeowner with good credit and the following coverage level:
- $300,000 dwelling coverage
- $100,000 liability protection
- $1000 deductible
We have taken into account 3 important factors such as average annual cost, NAIC score and AM Best rating, to determine the list of best homeowners insurance companies. The quoted insurance rates are for comparison purposes, and your individual rates may vary.
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