Home Insurance in Texas


UPDATED: DEC 2020 | 3 MIN READ

Texas is #3 on the “most expensive” list when it comes to homeowners insurance rates in the country. While property values are manageable and income is just below the national median, the wide variety and unpredictability of environmental perils make it difficult to insure your home on the cheap. That being said, it’s still important to make sure you have adequate coverage, just in case the worst happens. 

  • Fun fact – Did you know that there are more species of bats living in Texas than in any other state in the US?! Holy frijoles, Batman! 

Average Rates in Texas

Song at number three on the list of most expensive States for homeowners insurance, you might not be surprised that average annual premiums for Texas homeowners are around $1,893. This is almost $700 more than the national average of $1,211. The only other states in the union that are more expensive than Texas are Louisiana and Florida. Oklahoma and Kansas are slightly less expensive, and all of those states make up the top five most expensive for homeowners insurance.

It should come as no surprise that renters insurance for Texas citizens is similarly expensive. Instead of paying $180 a year to protect their belongings, Texas renters are paying $232 on average. That’s an extra $52 per year! 

Texas Legal Insurance Requirements

Eva Texas homeowner, you might be happy to learn that there is no governmental law forcing you to purchase homeowners insurance. However, the vast majority of homeowners are still in the process of making payments on their home loan. Because you still owe money to the bank, that bank is legally entitled to force you to purchase homeowners insurance. It’s both for their protection, and yours. If you own your property and your home structure out right, you don’t technically need to purchase insurance for it – however, given how frequently severe weather could damage your structure, sharing the financial burden of repairing and replacing the damage with an insurance company is a fairly sound financial investment. 

Common Risk Factors in Texas

Hurricanes, sinkholes, tornadoes, hail, wind, flash floods, earthquakes, and wildfires are all common problems for Texas homeowners. Texas is a very large and geographically diverse state, which explains the laundry list of dangerous and expensive perils Texans have to deal with. That’s why it’s #3 as far as most expensive homeowners insurance rates. Texans will have to purchase NFIP, earth movement, and earthquake insurance separately from their HO policy in order to sufficiently protect themselves from all possible perils. 

FAIR plans are available in Texas for homeowners who can’t get traditional homeowners insurance coverage. But it’s important that homeowners try their best to find conventional coverage, since these plans tend to be priced much higher than most other available plans. For more information, be sure to consult the Texas Windstorm Insurance Association to see how accessible FAIR insurance is in your area. 

Insurance Demographics/Statistics in Texas

As much of a threat as severe weather is, it’s not the only factor that can impact your annual premiums. There’s a lot more to it than that. In fact, the following factors also have an impact on your annual premium: 

  • Home Prices – The average Texas home costs around $211,199, which is slightly below the national average. And guess what? That can help you save a little bit of money, since you only have to purchase enough coverage to cover the replacement cost of 80% of your home.  
  • Crime Rate – Property crime in Texas is slightly more common than the national average at a rate of 23.67 per 1,000 residents (that’s a 1 in 42 chance of becoming a victim of property crime in TX, compared to the national average of 1 in 43).
  • Income – Texas households are, on average, bringing home $60,629 per year, which is $1,308 lower than the average US median household income. The more money you make, though, the more likely you are to get a discount on your insurance rates.
  • Education 29% have a bachelor’s degree or better, which is below the national average of 32%. But did you know that having a bachelor’s degree or better can usually get you a discount? So if you’re in a position to go back to school, know that this can be one of its many benefits. 

Where To Purchase Home Insurance in Texas

Start with us! We have a simple online form you can fill out that can get you started today. It only takes a few minutes for us to find free, accurate quotes from providers near you. Only 17% of homeowners bother to shop around for better insurance deals online – but the potential savings are enormous. 

More than half of all homeowners stick with the same company and policy year after year. And, of course, loyalty rewards are something to think about. But whether you shop around online or locally, you could be missing out on some serious savings by not looking. So why not give it a try?

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