3 tips for shopping for home insurance in Texas
When looking at how much each home insurance company charges for different coverage levels and risks, you should also be aware of what your policy does and doesn’t cover.
Before you buy homeowners insurance in Texas, you should be sure you're protected against the state's severe weather and flooding.
Look into windstorm insurance through the Texas Windstorm Insurance Association
In many areas of Texas prone to tornadoes or hurricanes, many insurance policies have a wind and hail exclusion, meaning insurers won’t cover repairs to property damaged by wind or hail.
Since going without this coverage is a huge gamble, many Texas homeowners purchase additional windstorm insurance through the Texas Windstorm Insurance Association (TWIA) to fill this important gap in coverage.
The TWIA offers windstorm insurance in 14 coastal counties and parts of Harris County. To qualify for a TWIA policy, applicants must show proof of being denied coverage by at least one insurance company.
Here are the Texas counties eligible for windstorm insurance through the TWIA:
Aransas
Brazoria
Calhoun
Cameron
Chambers
Galveston
Harris
Jefferson
Kenedy
Kleberg
Matagorda
Nueces
Refugio
San Patricio
Willacy
If you need to get a TWIA policy, be sure you get coverage in advance of the Texas hurricane season, as it's not uncommon for insurance companies to put a moratorium on coverage in advance of a tropical storm.
Learn more >> Guide to windstorm insurance coverage
Consider buying flood insurance
Homeowners insurance does not cover water damage caused by flooding in Texas. There are approximately 700,000 homes in Texas at extreme risk of flooding, so you'll want to consider getting flood insurance if you purchase a house in one of these areas.
The average cost of flood insurance in Texas through the National Flood Insurance Program is $676 per year, making the Lone Star State one of the cheapest in the country for flood insurance.
Most home insurance providers in Texas offer NFIP flood insurance as a separate policy. Some companies also offer their own private flood insurance or flood insurance add-ons that you can add to your home insurance for an additional fee.
Learn more >> How much is flood insurance in Texas?
Look into wildfire insurance
In addition to hurricanes and tornadoes, Texas also experiences many wildfires. Texas ranks No. 2 on our list of the states with the most properties at risk of wildfire damage — only California has more, according to Verisk Analytics.
If you live in a wildfire-prone region of Texas, be sure you have enough dwelling coverage to fully replace your home in the event of a disaster and consider adding extended replacement or guaranteed replacement cost coverage to your policy.
Learn more >> What is wildfire insurance & how much do I need?
How to buy homeowners insurance in Texas
The cost of home insurance in Texas is above the national average, so comparing quotes from multiple companies is an excellent way to make sure you are getting the best coverage at the lowest possible rate.
Here are a few steps to follow as you shop for homeowners insurance in Texas:
1. Reach out to a licensed Policygenius insurance agent.
Our team of licensed insurance experts can help you figure out how much coverage you need and what company offers it at the best price. Our agents do this for free with no impact to your credit score.
2. Ask about the specific concerns you have.
Every situation is different, so you need to have an insurance policy that specifically addresses your unique needs. For example, if you have a swimming pool or certain dog breeds deemed “dangerous”, make sure to mention these things to your agent so they can help you find the right coverage for your needs.
3. If you’re unable to find homeowners insurance on the private market, ask about E&S insurers.
Excess and surplus insurance is designed for homes that are considered too high risk to insure on the standard market. This coverage tends to be more expensive than standard homeowners insurance and isn’t backed by the state, which means the company isn’t obligated to comply with insurance regulations in your state. This can be risky, but there are some situations where E&S insurance coverage may be your best option.
4. If you’re still struggling to find coverage, ask about your state’s FAIR Plan.
The Texas FAIR Plan is designed to be a last-resort coverage option for homeowners who are not able to secure insurance on the private market. The Texas FAIR Plan does not compete on the private market and homeowners must have two denials from other insurance companies to qualify for coverage.
5. Figure out how high of a deductible you can afford.
You’ll want to set your deductible to an amount you can afford to pay out of pocket in the event you need to file a claim.
6. Compare quotes from a Policygenius agent.
Once you’ve nailed down your coverage needs, limits, and deductibles, a Policygenius agent can walk you through your quotes to help you find the best policy for your coverage and budget needs.
7. Choose your policy, sign it, and pay your first premium.
After you’ve chosen the policy you want, your Policygenius agent will complete all of the paperwork for you, including canceling your old policy, if you had one. The only thing left to do is sign and pay your first premium.
Why is it so hard to get homeowners insurance in Texas?
One of the biggest factors in rising insurance costs in Texas and reduced availability of homeowners insurance is climate change. Texas has seen an increase in the severity of tornadoes, floods, wildfires, and other natural disasters over the years, which is causing insurance costs to go up and availability to go down.
Inflation is also causing an increase in home insurance costs. The cost of labor and supplies to repair or replace a damaged home has gone up significantly over the last few years, which means insurers are more cautious about taking on new customers and in turn are charging higher rates.
What if I can’t find home insurance coverage in Texas?
You have a few options to consider if you can’t find coverage in Texas:
Use an insurance marketplace. Insurance marketplaces like Policygenius partner with dozens of home insurance companies, including E&S insurers that specialize in offering coverage to homeowners who were denied coverage on the private market. One of our licensed agents can help you compare quotes from different insurers to find one who is willing to offer you coverage.
Ask if you can make home renovations to mitigate risk. If your insurance company is still writing policies in your area, but their underwriting requirements are stricter, ask if there are improvements you can make to your home that will make you more insurable. This might mean installing fire-resistant roofing or wind-resistant storm shutters to better protect your home against extreme weather.
Talk to your neighbors. If you live in an area at high risk of storm damage, odds are your neighbors are also having trouble finding coverage. Ask around to see if anyone had success with a specific insurance company.
Apply for home insurance through the Texas FAIR Plan. As a last resort, you’ll likely be able to get a policy through the Texas FAIR Plan. While it offers less coverage and is more expensive than traditional policies, it’s a good stop-gap until you’re able to find coverage on the traditional market.
