Everything’s bigger in Texas, including homes — the state’s houses rank in the top 10 in the country for largest average square footage. No matter the size of your home in The Lone Star State, you’ll want to protect it with a solid homeowners insurance policy.

Unfortunately, shopping for insurance can sometimes feel like reading in another language. Between long lists of uncovered exceptions and dozens of options for add-ons, it’s an overwhelming process. We’ve spent hours learning the language, and now we’re here to act as your translator.

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The Best Homeowners Insurance in Texas

Freshome’s Top Recommendations: State FarmAmicaLiberty MutualTravelers InsuranceAllstateAmerican FamilyChubbGEICO.

The smartest decision you can make when it comes to home insurance is to apply for several quotes right off the bat. Getting a quote online won’t affect your credit, and it only takes about 10 minutes, so dedicate an hour or two to finding as many quotes as you can.

Once you have a handful of quotes, you’ll have a much better sense of which insurance provider is right for you. Maybe there are a couple whose rates are much higher than average. And there might even be one whose quote is so low that it seems too good to be true. You’ll be able to quickly eliminate these outliers, so you’re left with a few solid options.

When you’ve narrowed down your choices, give each company a call on the phone. You can find out exactly what your coverage looks like, make sure you’re comparing apples to apples, and get a sense of their customer service. Remember that these are the people who you’ll be dealing with in the event of a home emergency, so you should find a provider who can earn your trust.

For the purposes of obtaining quotes, we said we were purchasing a two-bedroom home in Dallas for around $170,000. Since the cost of rebuilding is often higher than the total value of the property, we requested dwelling coverage for $200,000. Keep in mind that quotes vary widely from person-to-person, so take these numbers with a grain of salt.

Our Quotes
Amica$2,446 per year
State Farm$2,028 per year
Liberty Mutual$1,407 per year

The most important factor in a quality insurance company is their ability to pay your claim should disaster strike. That means they need to be in great financial standing for you to consider giving them your money. All of our top recommendations do business in Texas and meet the following minimum criteria:

Price is important, but what’s really crucial is that your insurance provider has your back. Paying a few extra dollars today could save you from financial chaos down the road.

“Many times homeowners shop for insurance based on the amount of the premium, but it’s more important that homeowners look more at what is covered vs. not covered when comparing policies. A policy may be cheaper today but could cost significantly more in the event of a loss if there is no coverage or inadequate coverage.” Jeramy Sibley, Sure Start Coordinator for Rainbow International

What You Should Know Before Getting a Quote

How do rates compare in Texas?

Everything’s bigger in Texas, and unfortunately, that includes homeowner’s insurance premiums. While the average American pays $1,096 a year for their policy, Texas rates clock in at an astronomical $1,837. That gives the Lone Star State the honor of having the second highest rates in the nation, just after Florida.

Insurance premiums in Texas are 68 percent higher than average due to the likelihood and variety of natural disasters, like hurricanes, tornados, and severe thunderstorms. You’ll find a wide variety of rates across the state, so in some locales, you may be able to score a better deal.

What do I need to prepare?

When applying for homeowner’s insurance quotes, you’ll be asked a lot of questions about your house’s construction and upkeep. Keep a copy of your listing sheet nearby so you can easily look up building materials and installation dates.

If you’ve made a claim on your home insurance before, you’ll need some details, so have that information handy. We’ll talk later about how that may impact your rate, but no matter what, you need to be upfront and honest with your new insurance provider.

Don’t worry if you don’t know all of the answers on your first pass. Make your best guess if you’re unsure; you can always revise your information before it’s time to buy.

Is a low deductible worth the cost?

If you can afford a high deductible (usually around $2,000–$5,000) in the event of a disaster, you could see significant savings in the cost of your annual premium. However, that also means that for smaller claims, it might not even be worth it to try to recoup losses through your insurance.

But here’s why that might make sense — you should always avoid making claims unless the damage to your home is significant. Every claim you make can raise the rate you pay for insurance, and could cost you more down the line than paying for small property damage upfront. And if you make too many claims, your provider could drop you. Unfortunately, if you’ve been dropped by your insurance, rates at other companies won’t exactly be competitive.

If paying several thousand dollars in the event of catastrophic damage to your home just isn’t in the cards, it’s okay to pay a little more in monthly or annual premiums to secure a low deductible. Take a look at your finances and figure out what number makes sense for you. You might also want to consider putting the money you save with a high-deductible plan into an emergency fund.

Will my credit score affect how much I pay?

If you’re in the process of buying a new home, you already know how important it is to maintain a high credit score. A low score will cost you big time in Texas, with rates for folks with “Fair” credit about 55 percent higher than those with “Excellent” credit.

If your credit score isn’t great, and you need homeowner’s insurance now, make sure to talk to your insurance provider and get a revised quote once your score is back on top.

What else is covered under my homeowner’s insurance policy?

Your homeowner’s insurance doesn’t just cover the structure of your house — it includes everything inside it, too. But while the actual dollar amount listed on your policy may look like plenty to cover your belongings, beware that certain possessions need to be specifically listed in your insurance coverage.

“Typically, coverage for personal belongings is automatically calculated as a percentage of the structural coverage. Homeowners can run into trouble with this calculation if they have some special or higher dollar items (e.g., jewelry, art, furs). These high-dollar items should be called out on the policy and not lumped into general personal belongings. In looking at insurance policies, you must also look to see if coverage is Actual Cash Value or Replacement Cost. Replacement Cost covers the cost to replace an item while Actual Cash Value is decreased by depreciation. On more expensive items, this could be a significant difference in the amount of money received from an insurance company.” Jeramy Sibley, Sure Start Coordinator for Rainbow International

Your insurance policy also covers liability insurance in the event that you’re sued and can also help out if your home is too damaged to live in. Sibley continues: “Additional living expenses (ALE) coverage is meant to pay costs associated with having to live away from your home if you are displaced because of an insured disaster. It covers the hotel, food and other miscellaneous costs.”

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FAQs

What type of policy should I look for?

An HO3 policy will offer the most protection and peace of mind. While other types of insurance coverage exclude every scenario that isn’t listed in your policy, HO3 covers everything except for specifically outlined exemptions. That means if something isn’t covered, you’ll know about it upfront.

When you apply for insurance quotes, most online tools will default to this option. In fact, it’s the only type of policy offered by many insurers. But before you buy, make sure you ask an insurance agent if it’s HO3, just in case.

What are common gaps in home insurance coverage?

Make sure you don’t confuse your home insurance with your home warranty. Both cover completely different things, but figuring out who is responsible for what can be confusing. Generally, your homeowner’s policy covers damage due to outside forces, while your warranty covers problems like faulty installations and bad wiring. Check out this guide to home warranties for more clarification.

Whether it’s coming from the sky, the ground, or your pipes, water can severely damage your home. But when it comes to water damage, insurance companies are pretty picky.

“A common item that people think is covered but isn’t is damage from water in two forms: rising water and damage from a slow leak. On many policies, water damage is covered when it occurs from a sudden and accidental discharge. However, if there is a slow leak that causes damage over time, that may not be covered. For natural disasters or heavy storms, if you have rain coming in through a broken window or hole in the roof which occurred from a storm, that may be covered. However, damage from rising water is typically not covered.” – Jeramy Sibley, Sure Start Coordinator for Rainbow International

So how do I get flood insurance?

Flood insurance isn’t covered by your home insurance policy. This is a pain, because a flood seems like exactly the type of disaster that would make you grateful for insurance. If you live in a floodplain, you’ll have to purchase flood insurance separately from the federal government. Just ask your real estate agent if it’s a purchase you need to make.

How can I lower my premium?

Each insurance provider tabulates rates based on a different set of qualifications. So what gets you a discount at one insurer might not make a difference at another. But in general, there are a few things that pretty much always raise your rate, and a few others that will usually shave dollars off your premium.

Swimming pools, trampolines, and pets will all add to your home insurance costs, as will smoking, which increases the likelihood of a fire in your home. And as we mentioned before, previous claims on your insurance and a low credit score can significantly raise your rates.

If you’re looking for ways to pay less when it’s time to write that annual check, consider installing deadbolt locks, an indoor sprinkler system, and burglar alarms and smoke detectors that report to a central station. And if you also need auto insurance, bundling together will save you a ton. Most companies offer a discount for paying annually instead of monthly, so take them up on that offer — it’s one less monthly bill to worry about.

Take Action

While homeowner’s insurance rates in Texas are considerably higher than the national average, it’s not impossible to get a good deal on your policy. The key is to pick the right policy for your situation, and to get as many quotes as possible from different insurance providers. With more to choose from, you’ll have a better chance of finding a bargain.

Now that you’ve read this guide, you’re in a great place to begin shopping for home insurance, so get started with one of the many providers available in Texas.

Freshome’s Top Recommendations: State FarmAmicaLiberty MutualTravelers InsuranceAllstateAmerican FamilyChubbGEICO.

Compare Homeowners Insurance Rates

To quickly find and compare rates in your area, enter your ZIP code below.

Enter Your ZIP Code: