On average, Texans are paying $1,484 every month on homeownership costs. There are 11 million homes in the Lone Star State, 62% of which are occupied by owners.
- Population: 28,701,845
- Average value of homes that’s occupied by owners: $151,500
- Households: 9,430,419
- Average household income: $57,051
- High school grad or higher, percent of people age 25 years +: 83%
- Average travel time to work: 26 min
The average premium amount was sourced from the latest data of the Insurance Information Institute, and the statistical data from the U.S. Census Bureau.
Texas is the biggest state in the country, giving residents plenty of space to enjoy life. With summers in Texas being sunny and warm with average temperatures ranging from 80 – 100 degrees and terrains ranging from prairies to forests to hills to dry land and the coastline, we can see why Texas is a popular place to live.
According to Livability, the low cost of living (falling below the country’s average) is one of the main reasons why it’s attractive to live in Texas. Unemployment rates are also below the national average, plus, they do not have a personal or corporate income tax. Kindness is welcomed in Texas, which is known for its southern hospitality, which is rooted in treating neighbors with respect and generosity.
When it comes to insuring your home in-state, Texas is one of the most expensive states when it comes to homeowners insurance premiums. TX experiences natural catastrophes such as hurricanes, tornadoes, and wildfires which automatically spike up insurance rates. The disastrous Hurricane Harvey (2017) led to around 354,000 homeowners insurance claims last year and cost a whopping $17.7 billion for insurers. On top of that, Texas witnesses a high rate of property crimes as well. As per Statista records, Texas witnessed 2,562 property crimes per 100,000 residents in 2017. All these factors are comprehensively responsible for the high homeowners insurance premiums in Lone Star State.
Affordable insurance for your home is accessible virtually anywhere. To get the best deal and coverage around, it’s best if you compare quotes from as many different providers as you can. You can use our free comparison tool to start. By inputting your Zip code, we’ll be able to provide you with a list of insurers in your area. This will save you time and get you started in getting the cheapest rates around.
Texas home insurance premiums
According to the data published by Insurance Information Institute (III), Texas is the 2nd most expensive state in regard to homeowners insurance premiums in 2016(latest available data). The average annual home insurance premium in Texas is $1,937 which is considerably higher than the national annual average of $1,192. On the other hand, the monthly home insurance average for Texas homeowners is $161 in comparison to the national monthly average of $99. In such a situation, it’s extremely important for homeowners to check out more than one insurance company to find competitive rates.
Average Texas Home Insurance Premiums
|National annual average||$1,192||$1,173||$1,132|
Top three home insurance firms in TX
Here is a compact summary of 3 leading homeowners insurance companies in Texas. We reviewed their policies and included ratings from credible organizations: A.M. Best, S&P, and J.D. Power.
A.M. Best is a prestigious American credit rating agency that offers independent ratings and opinions regarding the financial strength of companies. S&P is a financial services company and is one of 3 well-known credit rating agencies. J.D. Power is a global marketing information services firm that extends unbiased ratings derived from independent feedback from vetted service & product owners.
State Farm is the biggest insurer in the country in regard to market share & premiums written. Certainly one of the most popular homeowners insurance firms in Texas, the company holds a 21 percent market share in the state’s home insurance space. It has received A++ (Superior) rating from A.M. Best and an AA (Very Strong capacity) from S&P. Both the ratings affirm solid financial hold of the company which is great news for policyholders. State Farm received a 3 (About average) Power Circles Rating from J.D. Power for its service regarding customer support, policy offerings, claims, and billing & payment.
In terms of coverage, State Farm caters to almost all kinds of dwelling units. It offers protection for damages caused by major catastrophes, which is much needed in a disaster-prone state like Texas. Add-on options are also available for valuables and identity theft coverage. Then, the company extends multi-line policy deals. And, of course, there is a large range of discounts for policyholders here. You will get discounts on your insurance premium if you install smoke, fire and burglar alarms. You will even save on your homeowners insurance from State Farm if you invest in impact-resistant roofing.
It’s to note here claim filing is extremely easy with State Farm. The company assures prompt response even at odd hours thanks to its 24/7 hotline. You can also report your claim through the insurer’s dedicated mobile app.
Allstate occupies 13 percent market share in the Texan homeowners insurance premium market. A highly sought-after home insurer, the company stands out with its coverage for just every kind of housing unit here. Allstate has received A+ (Superior) rating from A.M. Best that proves great financial security on the part of the company. It has further received a decent 3 (About average) from J.D. Power in terms of overall client satisfaction.
Allstate offers the House & Home policy for Texan homeowners which provides policyholders flexibility and more to choose from when deciding on the deductible, limits, and types of coverages they want for their home insurance. Allstate’s House & Home include standard coverage types which include: dwelling or structure of the home, other structures like sheds or stand-alone garage, personal belongings like furniture and bicycles, liability protection, guest medical protection, and additional protection. Additional protection may mean being covered for living expenses while your home is uninhabitable after a disaster strikes your home that’s covered under your policy.
Allstate also extends a broad spectrum of discounts on its homeowners insurance premiums. The different factors that will let you qualify for some discounts are installing a hail-resistant roof, a smoke-free household, storm shutters, and home security alarms. You will be eligible for a discount if you bundle your home insurance policy with another type of insurance policy from the company.
It’s to note here Allstate has come up with a high-end Premium Gauge feature that helps clients to check how the premiums may vary based on different variables. For example, you will be able to predict how much savings you will accumulate when making upgrades to your home.
Farmers is one of the oldest insurance companies in the nation that has been operating since 1926. The company holds an 11 percent market share in the Texas homeowners insurance market. It has received an A (Excellent) rating from A.M. Best as well as an A (Strong) rating from S&P. The high ratings definitely speak of the sound financial position of the company. The company has received a 3 (About average) out of 5 Power Circles Rating from J.D. Power’s 2018 U.S. Home Insurance Study.
The standard Farmers home insurance policy offers coverage for property, and possessions, as well as liability protection for those injured on the homeowner’s premises. Then, the policy also extends living expense coverage for 24 months for homeowners who have to live in a temporary shelter while their property is undergoing repair. In regards to add-ons, you can include coverage for identity theft & valuables protection plus more. Besides, the company offers discounts for upgrading heating, electrical and plumbing systems, smoke-free homes, and multi-line policies.
Texas Home Insurance Companies: Market Share and Summary of Ratings
|Rank||Insurer||Market Share %||AM Best||S&P||JD Power|
Source: Insurance Information Institute, AM Best, S&P, JD Power
Single-family housing repair loans & grants program
The USDA Rural Development in Texas oversees this program also known as the Section 504 Home Repair program. This program offers loans to extremely low-income homeowners in The Lone Star State who want to make improvements and modernize their homes. The grant is also available for senior citizens who are minimum 62 years of age and want to renovate their homes to eliminate safety and health hazards. Eligible homeowners can receive up to $20,000 in loans and $7,500 in grants, with a combined assistance total of $27,500. To learn more, please contact a USDA loan specialist at 254-742-9770. By helping homeowners repair and improve their homes, the community, and the local economy gets strengthened as families are able to accumulate savings over time living in a house of their own.
Tips on saving money
Insurance cover is something that protects an individual in case any accident takes place. Homeowners insurance is a necessity for many since it protects the pocket in the case that a home sustains costly damages from natural disasters and catastrophes. Home insurance is vital for any homeowner but what puts people off is the fact that it adds on to their monthly expenses. According to III, Texas is the second most expensive state to insure your home across the country. The good news is that affordable home insurance is accessible anywhere. Shopping around is your best bet in finding the cheapest rates, no matter where you are in Texas.
Here are some tips on how to save money on home insurance in TX.
Making home repairs
Texas has one of the highest premiums nationwide due to recorded severe weather conditions hitting the state. One of the ways to save money is to find out if your insurer will give you discounts on improving your home. Home repairs can help homeowners to save money. Investing time and money is a great way to save money in the long run. One can fix the heating systems, the roof, plumbing, and anything that needs repair. In doing so, the likelihood of filing a claim due to outdated elements in the home will be unlikely to the insurer. Furthermore, it’s possible that the insurance agent will lower the premium when a house has routine repairs done.
Discounts will help in reducing the Texas home insurance plan. One can ask the insurance agent if they offer discounts. Discounts are available in different ways. Some of the ways a person can get discounts are by installing smoke detectors, combining multiple policies, and buying with the same insurer. Since insurers won’t necessarily apply the discounts you qualify for automatically, it’s good to keep them updated on any changes you’ve made and always ask if you apply for any discounts.
If the deductible is higher, it will lower the premium. It is advisable for one to choose a deductible that they can afford as this is the amount of money you’ll have to pay first before your insurer will step in, in the event of a claim.
Saving on home insurance premiums is something that can be done without putting in a lot of effort. While the area you’re in and the condition of your home are the main factors that determine your rates, it’s sometimes the little things that one does around the home that will help you save on insurance. Texas homeowners insurance comes in handy for homeowners. However, through proper planning, one can reduce the amount of premium they have to pay. The above tips are just some of the ways to cut on the premium amount. Using the tips will help save a substantial amount on premiums. If you want to learn more about saving on home insurance, please read our detailed article here.
For more assistance, contact your local state department of insurance:
Texas Department of Insurance
Check out Texas’ neighboring states