Cheapest Homeowners Insurance Companies In Texas

Chubb is the cheapest home insurance company in Texas.

min read
Updated: 23 January 2024
Written by
Bob Phillips
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Living in Texas can pose weather challenges all year round, with scorching heat and high humidity during summers and occasional freezing temperatures in January and February.

Residents along the Gulf Coast also need to be wary of hurricanes between May and October. If you own a home in Texas, it’s crucial to stay prepared for all possible rough weather conditions by having the best cheap home insurance coverage in the Lone Star state.

Homeowners in Texas are always on the hunt for the top home insurance companies. If you need help finding the right property insurance provider, you’ve found the perfect place!

As a resident of Texas since 2013, I know how challenging it can be to choose a reliable company to protect your home and belongings. After conducting thorough research and based on my personal experience, I recommend Chubb as the top cheap home insurance provider in the state. However, you should also explore our reviews of other home insurance companies in Texas and make an informed decision based on your needs and preferences.

Cheapest Home Insurance Companies In Texas

Cheapest Home Insurance, {Y}

Compare The Cheapest Home Insurance Companies In Texas

Overall Rating AM Best Rating J.D. Power Customer Satisfaction Rating Online Experience Rating (10.0 Best) Cheapest/Best For Get A Quote
State Farm
4.8

A++

829

9/10

Seniors

Instant Quote
Farmers
4.6

A

792

9/10

High Deductible

Instant Quote
Chubb
4.9

A++

809

7/10

Cheapest Overall / High Value Homes

Instant Quote
Texas Farm Bureau
4.5

A

Not Rated

8/10

Older homes / History Of Claims

Instant Quote
Allstate
4.6

A+

815

9/10

Poor Credit

Instant Quote
Progressive
4.5

A

801

8/10

Newly Constructed Homes

Instant Quote
Scroll to see comparisons

Methodology

To determine the best cheap home insurance companies in Texas, I relied on objective data from rating services AM Best (financial strength) and J.D. Power (customer satisfaction). In addition, I took into account data from various consumer sites, as well as my personal experience as a former insurance agent and consumer..

When reading these reviews, keep in mind that I’m recommending the “best cheapest” home insurance companies. In some categories, you’ll see that my recommendation is not necessarily the cheapest but what I believe is the best company for that particular category.

47

Quotes Analyzed

15+

Years Of Industry Experience

18

Brands Reviewed

28+

Research Hours

Reviews Of The Cheapest Home Insurance Companies In Texas


Cheapest For High Deductibles

Overall Rating
4.6

Key Statistics

9/10 Affordability
6/10 Customer Reviews
7/10 Claims/Payouts
9/10 Coverage Level

Why We Like Them

Like every insurer, Farmers, like all insurers, continues to raise its rates for homeowners insurance because claims are steadily increasing.Every year, Texas homes sustain substantial damage caused by tropical storms, hurricanes, tornados, hail, frozen/broken water pipes, and numerous other causes. This results in large claims being paid by insurers, which raises everyone’s rates.

One way Farmers helps consumers combat rate increases is to recommend that policyholders carry a higher deductible. Instead of choosing a $250 or $500 deductible, they often recommend a $1,000 deductible. What its customers save per year in premiums pays for itself in just a couple of years if they have a claim.

Farmers is one of the most well-known insurers in Texas and offers home insurance with high deductibles. Though Farmer’s recently pulled out of Florida (another Gulf Coast state), it has shown no signs of ceasing to write new home insurance business in Texas. Its average premium in Texas is $1,516 per year.

Many people choose a low deductible because they like the thought of paying less out-of-pocket if they have a claim. However, by choosing a higher deductible, you’ll lower your premium enough that you can put the savings aside to pay a higher deductible if you ever have a claim.

Benefits & Drawbacks

Benefits
  • Over twelve discounts are available
  • Guaranteed replacement cost coverage is standard
  • Many Farmers agents in Texas
Drawbacks
  • Below-average score on J.D. Powers’ overall customer satisfaction ratings

Cheapest Insurance For High Deductibles

Insurer Annual Rate
Chubb $2,097
Farmers $1,516
Nationwide $2,646
Amica $2,743
State Farm $1,947

Cheapest Home Insurance For Seniors In Texas

Overall Rating
4.8

Key Statistics

10/10 Affordability
9/10 Customer Reviews
9/10 Claims/Payouts
10/10 Coverage Level

Why We Like Them

State Farm has been chosen best for seniors not based on cheap premiums but on superior customer service, which is invaluable to seniors. Many older homeowners who have experience with homeowner’s claims have war stories to tell about how difficult their insurer was to deal with and settle their claim promptly.

This isn’t the case with State Farm. Though the company doesn’t have perfect online customer ratings (no company does), it has an exceptional 829/1000 rating from J.D. Powers, which is the highest of all the companies reviewed in this article.

State Farm policyholders can easily access their accounts using the website or app. You can also use these tools to file claims and enroll in paperless billing.

Seniors living on Social Security and/or a small retirement fund need to find affordable home insurance. By shopping each year and comparing carriers, they can often find excellent coverage from a top-rated insurer. Seniors understand there will be rate increases, but they can push back by being smart insurance shoppers.

Benefits & Drawbacks

Benefits
  • Competitive premiums
  • Earns highest financial strength rating available
  • Has the highest number of local agents in Texas
Drawbacks
  • Policies not available through independent agents

Cheapest Home Insurance For Seniors In Texas

Insurer Annual Rate
Chubb $1,362
Farmers $1,443
Texas Farm Bureau $1,661
Allstate $2,229
State Farm $2,713

Cheapest Overall

Overall Rating
4.9

Key Statistics

10/10 Affordability
9/10 Customer Reviews
10/10 Claims/Payouts
8/10 Coverage Level

Why We Like Them

Chubb offers the cheapest home insurance in Texas. Its average policy cost is $1,362 per year, which is $1,170 less expensive than the statewide average.

Chubb offers the most affordable home insurance rates in Texas without compromising on coverage. Its policies are not only the cheapest in Texas, but the company is well-known and respected for its strong financial stability and exceptional customer service. With Chubb, you’re not just getting low premiums but also extended replacement cost coverage that will repair or replace your items even if they’re worth less than their original purchase price.

With the cost of construction and home prices continuing to climb in the Lone Star State, finding high-quality, cheap home insurance from a reputable insurance company is very important to Texas families. However, simply because an insurer has “cheap rates” doesn’t mean it’s not quality coverage.

Benefits & Drawbacks

Benefits
  • Cheapest rates in Texas
  • Has specialized policy packages for high-value homes
  • Has a long list of coverage options to personalize home insurance coverage for every need
Drawbacks
  • No online quote tool
  • Lacks scheduled personal property coverage

Cheapest Home Insurance In Texas

Insurer Annual Rate
Chubb $2,037
Farmers $2,096
Nationwide $2,871
Allstate $2,229
State Farm $2,107

Cheapest For Older Homes In Texas

Overall Rating
4.5

Key Statistics

8/10 Affordability
9/10 Customer Reviews
9/10 Claims/Payouts
7/10 Coverage Level

Why We Like Them

Available only to Texas residents, Texas Farm Bureau provides basic home insurance coverage at competitive rates, including older homes. The company has a strong customer service reputation in The Lone Star State and offers a healthy number of discounts if you qualify, which makes its rates even more affordable.

If you have an older home, Texas Farm Bureau has the cheapest rates by far. But, be aware that with Texas Farm Bureau home insurance, its “named-peril” policies only provide coverage if the damage to your home is caused by a peril specifically named in the policy. This can prove costly if, for example, your roof is damaged beyond repair by hail and must be replaced, but your policy doesn’t include hail damage.

There are many older homes in Texas, particularly in rural east and west Texas. With many towns in these areas having residents with older homes and lower incomes, finding affordable rates is very important for homeowners.

Benefits & Drawbacks

Benefits
  • The company is based in Texas
  • Offers competitive rates
  • Strong customer service reputation
Drawbacks
  • Only named perils are covered
  • Few policy options offered
  • No online quotes available – agent only

Cheapest Insurance For Older Homes In Texas

Insurer Annual Rate
Chubb $1,417
Farmers $2,005

Best Cheapest For Homeowners With Bad Credit

Overall Rating
4.6

Key Statistics

8/10 Affordability
7/10 Customer Reviews
8/10 Claims/Payouts
10/10 Coverage Level

Why We Like Them

Being one of the most populated states in America, Texas has many residents with poor credit scores. In Texas, insurers are legally allowed to include a consumer’s credit score when determining rates. Allstate is known to be very liberal when calculating rates for homeowners with below-average credit.

To further help keep rates lower for its insureds with poor credit, Allstate has 11 home insurance discounts, which is significantly higher than the home insurance industry average of seven discounts. Home insurance analysts, including me, consider some of Allstate’s discounts to be unique offerings.

There are many people in Texas who are paying higher insurance rates because they have poor credit. Finding a quality insurer with reasonable rates takes time and energy, but individuals with a poor credit history can find affordable rates in Texas.

Benefits & Drawbacks

Benefits
  • Offers a large number of discounts
  • Many local agents and claims adjusters in Texas
  • Very stable financially
Drawbacks
  • Receives more complaints than the national average

Cheapest Home Insurance For Texans With Poor Credit

Insurer Annual Rate
Chubb $5,717
Farmers $8,649
Nationwide $4,096
Amica $4,143
State Farm $5,562

Cheapest For High-Value Homes

Overall Rating
4.9

Key Statistics

10/10 Affordability
9/10 Customer Reviews
10/10 Claims/Payouts
8/10 Coverage Level

Why We Like Them

Chubb offers the cheapest home insurance in Texas, and that includes its coverage for high-value homes. Its average policy cost is $1,362 per year, which is $1,170 less expensive than the statewide average.

Chubb has built its financial strength largely by catering to high-net-worth families. The company specializes in insuring high-value homes and autos and is highly-regarded for its personal “concierge service” it offers its high-net-worth clients when they have a claim. With this service, the claimant has a dedicated service representative to handle all aspects of their claim from start to finish.

Like the rest of the country, the value of homes continues to rise, which is making them more expensive to insure. Rebuilding a home in Texas is also costly because of the high cost of building materials, but you’ll find that some insurers offer coverage to rebuild your home no matter the current cost of labor and building materials.

Benefits & Drawbacks

Benefits
  • Cheapest rates in Texas
  • Has specialized policy packages for high-value homes
  • Has a long list of coverage options to personalize home insurance coverage for every need
Drawbacks
  • No online quote tool
  • Lacks scheduled personal property coverage

Cheapest Home Insurance In Texas For High-Value Homes

Insurer Annual Rate
Chubb $14,365
Amica $16,117
Nationwide $13,214
Farmers $7,468
State Farm $7,397

Cheapest For Those Who Have Filed A Claim

Overall Rating
4.5

Key Statistics

8/10 Affordability
9/10 Customer Reviews
9/10 Claims/Payouts
7/10 Coverage Level

Why We Like Them

Available only to Texas residents, Texas Farm Bureau provides basic home insurance coverage at competitive rates, including coverage for those who have previously filed a claim. The company has a strong customer service reputation in The Lone Star State and offers a healthy number of discounts if you qualify, which makes its rates even more affordable. Based on its rates, Texas Farm Bureau doesn’t penalize insureds who have previously filed a claim with them or another insurer.

However, be aware that with Texas Farm Bureau home insurance, its “named-peril” policies only provide coverage if the damage to your home is caused by a peril specifically named in the policy. Even though the rates are very attractive, named-peril-only coverage can turn out to be very expensive for you if your home is damaged by an event that isn’t covered by your policy.

Based on climate change and the increase in damaging weather events in Texas, you may need to file a claim sooner rather than later. Most home insurers aren’t pulling out of Texas yet, but they are raising rates for those who have had previous claims.

Benefits & Drawbacks

Benefits
  • The company is based in Texas
  • Offers competitive rates
  • Strong customer service reputation
Drawbacks
  • Only named perils are covered
  • Few policy options offered
  • No online quotes available – agent only

Cheapest Insurance For Those Who Have Filed A Claim

Insurer Annual Rate
Chubb $2,567
Nationwide $3,634
State Farm $2,118
Amica $3,489
ASI $4,497

Best Cheapest For Newly Constructed Homes

Overall Rating
4.5

Key Statistics

8/10 Affordability
9/10 Customer Reviews
9/10 Claims/Payouts
8/10 Coverage Level

Why We Like Them

New home prices are still rising in Texas, and Progressive is well-known for having very competitive rates for newly constructed homes. At $952 per year for $500,000 of dwelling coverage, which is close to the median price of a new home in Texas, Progressive is aggressive with its pricing. You’ll save even more if you bundle your car insurance with them.

Drive around any city in Texas, and you’ll see plenty of new home construction. There are still some insurers who are competitively priced for these new homeowners who have just faced substantial out-of-pocket costs and are looking to save money wherever possible.

Benefits & Drawbacks

Benefits
  • Offers competitive rates for all homes
  • Strong customer service reputation
Drawbacks
  • Few policy options offered
  • No online application available – agent only

Cheapest Insurance For Newly Constructed Homes In Texas

Insurer Annual Rate
State Farm $979
Chubb $1,647
Farmers $1,378
Nationwide $724
Amica $1,978

Average Cost Of Home Insurance In Texas

The average cost of homeowners insurance in Texas is $2,532 per year or $211 per month. This means Texans pay about 30% more for home insurance than the national average. The easiest way to find and buy cheap home insurance is by getting quotes from a variety of insurance companies through Insuranceopedia.

Cheapest Home Insurance In Texas

Insurer Annual Rate
Chubb $2,037
Farmers $2,096
Allstate $2,229
Texas Average Rate $2,532
Amica $2,643
State Farm $2,713
Nationwide $2,871

Cheapest Cities For Homeowners Insurance In Texas

City Annual Rate
Austin $1,188
Brownsville $1,765
El Paso $875
Irving $1,964
Odessa $1,810

Most Expensive Cities For Homeowners Insurance In Texas

City Highest Rate
Pasadena $2,476
Aledo $3,320
Archer City $3,578
Argyle $3,459

Home Insurance Premiums By Deductible In Texas

Deductible Average Annual Rate
$500 $2,726
$1,000 $2,562
$1,500 $2,494
$2,000 $2,301
$5,000 $2,013

Home Insurance Prices By Coverage Level In Texas

Coverage Level Average Annual Rate
$100,000 Dwelling $1,378
$200,000 Dwelling $2,201
$250,000 Dwelling $2,548
$400,000 Dwelling $3,762

Average Cost Of Home Insurance By Credit Score In Texas

Credit Score Average Annual Rate
Poor $6,608
Below Fair $4,594
Fair $3,845
Good $3,282
Excellent $2,758

How To Get Cheap Homeowners Insurance In Texas

Finding cheap home insurance in Texas requires time and effort, but it’s a worthwhile investment. Your home is likely your most valuable asset, so safeguarding it and all your belongings is crucial for the long-term financial security of your family.

Follow these five easy steps to find the best policy for you:

1.    Do online research on home insurers in Texas and narrow your list to three carriers you feel comfortable with.

2.    Decide the coverage limits you need

3.    Get quotes for the coverage from the three insurers

4.    Choose a carrier based on coverage, customer reviews, financial strength, and rates

5.    Complete your application for coverage

Comparing multiple quotes side-by-side is the best way to find cheap home insurance in Texas. Rely on Insuranceopedia to get multiple quotes now.

Home And Auto Bundling

Almost every major home insurance company will give you a bundle discount if they insure your home and auto. In addition to saving money, you’ll find it easier to deal with only one insurance company if you have a claim involving both your home and vehicle.

For example, in Texas, hail storms and tornadoes often damage cars and houses at the same time. Depending on your insurer, you may only have to meet one deductible if your home and car are damaged simultaneously.

Texas Property Crime Statistics

The Texas property crime rate is 2,367 property crimes per 100,000 people, almost the same as the national average. The property crime rate can be separated by specific crimes:

  • Burglary: 411 per 100,000 people
  • Property theft: 1,713 per 100,000 people
  • Motor vehicle theft: 243 per 100,000 people

Common Home Insurance Claims In Texas

Texas homeowners face many weather hazards. As a result, they file many claims every year. These statistics detail the percentage of claims by incident type in 2020:

Wind And Hail

As the most frequent cause of filed homeowners insurance claims, wind and hail account for 45.5% of all claims. This amounts to about 1 in 35 homes.

Fire And Lightning

Accounting for 23.8% of home insurance claims, these are the most expensive, costing an average of $77,340 per claim.

Water Damage And Freezing

These two account for 19.9% of home insurance claims. About 1 in 60 homes will file claims for these events every year, with the average claim being $11,650

Factors That Impact Cost Of Your Home Insurance Policy In Texas

Numerous factors determine how much home insurance in Texas costs, such as:

  • The location of the home (zip code): homes in zip codes with lower crime rates cost less to insure
  • The home’s age: newer homes are more expensive to replace and insure
  • Construction materials (brick, stucco, etc.): more combustible materials (e.g., wood) cost more to insure
  • Proximity to flood zones: being close to rivers and lakes increases premiums
  • Your claim history: you’ll pay more if you have filed property claims previously
  • Coverage amounts: higher coverage amounts with lower deductibles cost more

Common Home Insurance Discounts In Texas

When buying home insurance in Texas, ask your agent about any discounts that will lower your premium. Many times you can get multiple discounts on the same policy, such as:

Claims-free: customers can get a discount when they renew their policy as long as they remain claims-free every year

Bundle: up to a 25% discount with some companies for bundling home and car insurance

Automatic payment: discount for having your premium automatically deducted from your checking account

New home: discount for insuring a newly constructed home

Responsible payment: additional discount for having a good payment history

Early payment: a discount for buying a new policy at least seven days before your old policy expires

FAQs

Why is homeowners insurance so expensive in Texas?

Home insurance in Texas is higher than the national average because of the many different perils homeowners face, such as fires, floods, hail, wind, tornadoes, and hurricanes.

Who is the largest home insurer in Texas?

State Farm is the largest home insurer in the state of Texas.

How much is homeowners insurance in Texas a year?

That will depend on the home’s value, but $250,00 in dwelling coverage will average around $2,532 per year or $211 per month.

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