We can help you find the best home and flood insurance companies in your area, learn about the average cost of home insurance where you live, and more with our ultimate guide to home insurance in Texas.
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Texas home insurance crisis
Texas might seem like it’s in the middle of the same kind of home insurance crisis as California, Florida, and Louisiana, but that might not actually be the case. Despite home insurance companies raising rates and deciding not to offer coverage in some high-risk areas anymore, they aren’t exiting Texas completely.
Although Texas’s insurance company-friendly regulatory environment has helped it avoid a crisis, home insurance companies in Texas will continue to face serious headwinds in the near future caused by a variety of factors.
For one, Texas gets a lot of costly severe weather: It averaged 10.1 disasters per year from 2018 to 2023 that cost over a billion dollars in damage, after seeing an average of 5.5 per year from 2010 to 2017, and 2.5 per year from 2000 to 2009. [1] And compared to other states, Texas experiences lots of different types of severe weather, which can lead to big losses year-round, including:
Hurricanes: With 64 hurricanes making landfall in Texas since 1854, hurricanes are one of the state’s leading causes of home insurance claims. In 2022, hurricanes in the U.S. caused an estimated $53 billion in insured losses.
Tornadoes: Texas averages the most tornadoes annually of any U.S. state — averaging 136 per year. The 160 tornadoes in Texas in 2022 ranked second to only Mississippi, which had 184.
Hailstorms: Despite having fewer hailstorms compared to 2021, the 458 hail events in 2022 were more than any other state. And in 2023, losses from hailstorms in May alone are estimated to be over $1 billion, and the wave of storms in September 2023 also have the potential to surpass $1 billion.
Wildfires: As of 2022, Texas has the third highest number of homes at risk of severe wildfires, behind only Florida and California.
Ice storms: While ice storms in Texas are relatively rare, in recent years they’ve become both increasingly common and destructive. In 2021, Texas home insurers paid out $10.5 billion in losses to customers, with an estimated 83% of those losses attributed to the state’s extreme cold snap in February 2021 that left millions without power. And in late January 2023, Winter Storm Mara left around 170,000 homes without power and caused significant damage in Central Texas.
Billion-dollar disasters, and unusual disasters like ice storms and freezing spells, have led reinsurance companies (which provide insurance to insurance companies) to raise their own rates for insurance companies, who in turn pass a portion of these costs onto policyholders.
All of these variables combined with Texas’s booming construction market (as recently as 2023, [2] Texas built more new homes than any other state) and growing home replacement costs (the amount to rebuild a home if it’s destroyed) means future severe weather events will likely lead to even higher expenses for insurers — and more uncertainty for Texas homeowners. [3]
Average cost of home insurance in Texas
The average cost of home insurance in Texas is $2,919 per year, but according to our Policygenius Home Insurance Pricing Report, it’s even more expensive. Twenty-seven percent of the policyholders who renewed their coverage in 2023 faced higher premiums. Rates are likely to continue to go up due to severe weather — including tornadoes, hurricanes, wildfires, and ice storms — and inflation-driven increases to the cost of rebuilding damaged homes.
Learn more >> Average cost of home insurance in Texas
Best home insurance in Texas
The best homeowners insurance company in Texas is State Farm, which we gave 4.8 out of 5 stars for its price, coverage options, and customer service experience.
Company | Best for … | Average annual cost | Policygenius rating | |
---|---|---|---|---|
Overall | $2,743 | 4.8 out of 5 | ||
Policy perks & discounts | $484 | 4.5 out of 5 | ||
Comprehensive coverage options | $4,456 | 4.5 out of 5 | ||
Bundling home & auto insurance | $5,102 | 4.5 out of 5 | ||
Basic coverage at low rates | $722 | 3.9 out of 5 |
Learn more >> Best home insurance companies in Texas in 2024
Cheapest home insurance in Texas
The cheapest homeowners insurance company in Texas is Farmers, which offers coverage for an average of $484 per year — 83% cheaper than the statewide average.
Company | Average annual cost | Policygenius rating | |
---|---|---|---|
$484 | 4.5 out of 5 | ||
$665 | 4.9 out of 5 | ||
$722 | 3.9 out of 5 | ||
Lighthouse Property Insurance | $1,353 | N/A | |
$2,201 | 4.4 out of 5 | ||
$2,703 | 4.9 out of 5 | ||
$2,743 | 4.8 out of 5 | ||
$2,760 | 4.1 out of 5 |
Learn more >> Cheapest home insurance companies in Texas in 2024
Texas home insurance rates by city
Looking at the 20 largest cities in Texas, El Paso has the cheapest average rates. El Paso’s citywide average is about 46% less than Texas’s statewide average.
City | Average annual cost | |
---|---|---|
Amarillo | $3,649 | |
Arlington | $3,378 | |
$2,158 | ||
Brownsville | $2,109 | |
$2,466 | ||
$3,284 | ||
Denton | $3,223 | |
El Paso | $1,679 | |
$3,258 | ||
Frisco | $2,833 | |
Garland | $3,210 | |
Grand Prairie | $3,360 | |
$2,936 | ||
Irving | $3,307 | |
Killeen | $2,170 | |
Laredo | $2,277 | |
Lubbock | $3,257 | |
McKinney | $3,217 | |
Plano | $3,228 | |
$2,365 |
How to buy home insurance
When buying home insurance in Texas, make sure that you get enough coverage (and the right kind of insurance) to protect your home from the state’s many types of severe weather.
Look for windstorm insurance through the Texas Windstorm Insurance Association.
Shop for flood insurance if you live in a low-lying area.
Get wildfire insurance if you live in a high-risk area.
Learn more >> How to buy home insurance in Texas
Flood insurance in Texas
A regular homeowners insurance policy doesn’t cover flood damage. If your home sits in an area of Texas that’s at risk of flooding, your mortgage lender will require you to purchase flood insurance. Here’s what you should know:
About 7% of homes in Texas have a high risk of experiencing flood damage.
The average cost of flood insurance in Texas is $56 a month or $676 per year.
Coverage is most expensive in Galveston ($1,444 per year) and cheapest in Fulshear ($474).
Most flood insurance policies are sold by the National Flood Insurance Program (NFIP), but you can also get flood insurance from a private insurer.
Learn more >> Compare quotes for flood insurance in Texas
Mobile home insurance in Texas
Mobile or manufactured home insurance is different from regular homeowners insurance. In Texas, some of the top insurance companies offering mobile home insurance include American Modern, Progressive (through partnering insurance companies), and Foremost.
Company | Policygenius rating | |
---|---|---|
4.9 out of 5 | ||
4.5 out of 5 | ||
4.2 out of 5 |
Learn more >> Mobile home insurance companies in Texas
Landlord insurance in Texas
You need insurance for your rental property if you lease an apartment or home to long-term tenants or AirBnB guests. Three of the top insurers offering landlord insurance in Texas are State Farm, Farmers, and Allstate.
Company | Policygenius rating | |
---|---|---|
4.8 out of 5 | ||
4.5 out of 5 | ||
4.4 out of 5 |
Learn more >> Landlord insurance companies in Texas
When is storm season in Texas?
Texas has at least two serious storm seasons you should prepare for. Hurricane season typically lasts from the start of June until the end of November, while tornado season lasts from April to June —though it’s possible for tornadoes to happen throughout the year.
You can prepare your home for hurricanes and tornadoes by:
Clearing dead trees and other debris from your property
Installing a storm-resistant roof, garage door, and shutters
Making an emergency kit with food and water, batteries, a radio, and other essentials
Having a plan in case you have to evacuate or shelter in your home
Buying windstorm and flood insurance if you’re in a high-risk area