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Texas home insurance rates are significantly higher than the national average of $2,601 at $3,851 annually. That’s for a policy that includes $300,000 in dwelling and liability coverage with a standard deductible of $1,000 and a 2% hurricane deductible. Rates may be much higher in some parts of the state.

Homeowners insurance is high in Texas for many reasons. These include a higher-than-normal number of claims due to the state’s susceptibility to natural disasters, and pricey building and labor costs. 

Our Texas homeowners insurance calculator can help you estimate what you can expect to pay based on your needs.

Texas home insurance calculator

See how the average annual home insurance rates vary with the options chosen.

Average Annual Home Insurance Rates In Texas
$4,082 Average rate
$9,999 Highest
rate
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$1,054 Lowest
rate

Home insurance companies in Texas

Company Average annual rate
USAA $3,263
State Farm $3,718
Farmers $3,860
Progressive $4,085
Nationwide $5,483

Key Takeaways

  • The average cost of home insurance in Texas is $3,851 for a policy that includes a 2% hurricane deductible.
  • Texas homeowners insurance is higher than average due to the high risk of multiple types of severe weather, including hurricanes.
  • Wind insurance isn’t included for homeowners on the Gulf Coast, and standard homeowners insurance doesn’t include flood insurance.

How to use the Texas home insurance calculator

Average homeowners insurance rates vary based on location, specifics of the home and coverage limits. Use the home insurance calculator below to see the average costs in Texas.

  • Choose how much dwelling coverage you would like. Make sure it’s high enough to cover rebuilding your home if necessary; choose the amount that is closest to your home’s actual replacement cost.
  • Choose your liability coverage limit, which covers medical costs and other expenses if you are responsible for injuries to someone else and expenses if you damage someone else’s property.
  • Choose your deductible. The deductible is the amount you’re responsible for when you file a claim against your home insurance policy. A higher deductible means lower rates, but you should be prepared to pay it if necessary.

How does dwelling coverage affect homeowners insurance in Texas?

Dwelling coverage is the most important part of a home insurance policy. It pays for damage to your home, whether it’s repairs or replacement. Although rates are higher for increased coverage, you need enough coverage for the replacement cost of your home, which is how much it would cost to rebuild at today’s prices.

“[Insure] your dwelling for its replacement cost value (what a local builder would charge to rebuild it) or paying for “Extended Replacement Cost” coverage as a cushion, having enough “Additional Living Expense” (temporary rent benefits) to last at least two years if needed,” says Amy Bach, executive director of United Policyholders, a nonprofit consumer organization.

The table below shows average home insurance rates in Texas at various dwelling coverage levels, so you can see how the coverage amount affects costs. Each rate includes $300,000 in liability coverage with a $1,000 deductible and a 2% hurricane deductible.

Dwelling coverageAverage annual rateAverage monthly rate
$200,000$2,951$246
$300,000$3,851$321
$400,000$4,744$395
$600,000$6,804$567
$1,000,000$10,469$872

What is a hurricane deductible, and how does it impact home insurance rates in Texas?

In Texas, home insurance can and often does include a hurricane deductible. This deductible applies only to damage caused by a hurricane. If you don’t have a hurricane deductible on your policy, you may pay more for coverage since the insurance company is taking on more of the cost of a potential claim. You may also not have hurricane coverage at all; in areas on the Gulf Coast, windstorm coverage must be purchased separately.

The hurricane deductible can vary, and some insurers charge a percentage of the home’s value instead of a flat fee. This table shows average Texas homeowners insurance rates with and without a hurricane deductible. 

Average annual rates with hurricane deductibleAverage annual rates without a hurricane deductible
$3,851$4,583

Average homeowners insurance cost in Texas

The average homeowners insurance cost in Texas is $3,851, based on $300,000 in dwelling and liability coverages with a $1,000 deductible, with a 2% hurricane deductible. Texas rates are significantly higher than the national average of $2,601.

Home insurance rates in Texas are significantly influenced by factors such as labor shortages, costly building materials and the prevalence of natural disasters like hurricanes, floods and tornadoes. 

Dwelling coverageLiabilityAverage annual rateDifference compared to the national average
$300,000$300,000$3,851$1,250

Average cost of home insurance in major Texas cities

Home insurance rates vary significantly in Texas cities based on factors like weather, crime rates, age of homes and building costs. However, even San Antonio, the cheapest city in Texas, is still more expensive than the national average.

The table below breaks down average home insurance rates in major Texas cities.

CityAverage annual rateAverage monthly rate
Arlington$4,244$354
Austin$2,609$217
Corpus Christi$4,741$395
Dallas$4,129$344
El Paso$2,144$179
Fort Worth$4,226$352
Houston$5,860$488
Lubbock$3,911$326
Plano$4,090$341
San Antonio$2,721$227
expert

What our expert says

Q: What coverage do homeowners need?

expert-image
Amy BachExecutive Director of United Policyholders
“Insuring your dwelling for its replacement cost value (what a local builder would charge to rebuild it) or paying for "Extended Replacement Cost" coverage as a cushion, having enough "Additional Living Expense" (temporary rent benefits) to last at least two years if needed [is important].”

Methodology

Insure.com commissioned home insurance rates from Quadrant Data Services in late 2023 for a homeowners insurance policy with dwelling coverage levels ranging from $200,000 – $1 million and liability coverage of $100,000 and $300,000. Sample rates were requested using a $1,000 deductible and a 2% hurricane deductible where applicable. 

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