Texas Homeowners Insurance: A Complete Shopping Guide

Compare Homeowners Insurance Rates in Texas

Whether you’re a first-time buyer or simply searching for a better rate, finding the right homeowners insurance can be daunting. With hundreds of Texas insurance companies, countless pages of documentation, flashy advertisements, rewards programs, and even old acquaintances trying to add you to their client list, it’s challenging to know where to begin.

How to Shop for Texas Homeowners Insurance – What to Know

Starting your journey to find the best home insurance involves understanding how much coverage you’ll need. This includes the value of your home, your belongings, and enough to cover any liability you might face in the future. You need insurance for the rebuild cost of your home. You can get an estimated value through an appraiser, or for a rough estimate, multiply your home’s square footage by the average cost per square foot in your area, or hire a home appraiser to check the value.

Next, you need to know your credit score. Texas insurance companies can adjust your insurance rates based on your credit score. For example, in Houston, homeowners with poor credit can pay up to 49% more than those with good credit. Those with average credit can pay 16% more than those with good credit. Your rate can also adjust based on the construction and age of your home.

Secondly, you’ll want to assess your belongings. Most insurance companies recommend that your total policy should cover 50-70% of your personal property. Between computers, appliances, furniture, collectibles, jewelry, and more, your personal property is probably worth more than you think. Take an inventory, photograph your items, track any large purchases, and update your inventory as you upgrade items like computers, home theater systems, musical instruments, antiques, collections, and other electronics.

Lastly, consider the potential for lawsuits. Homeownership comes with the risk of legal issues, so ensure you have adequate medical coverage just in case. Most insurance companies recommend getting personal liability insurance that exceeds the value of your home. While it might seem excessive, it could save you thousands in the long run, as personal injury cases can target your property and other assets.

What Is the Average Cost of Homeowners Insurance in Texas?

The average cost of home insurance in Texas is $2,060 annually, which is higher than the national average by about $1,000. This estimate is based on a Texas home valued at around $223,107 with:

• 10% of the insured value for other structures
• 50% of the insured value for personal property
• 20% of the insured value for loss of use

This average does not include vacant land, which requires different policies. At $2,060 annually, that equates to about $172 per month. While this might seem high, remember it’s for comprehensive coverage of your home and belongings. Several factors influence this cost, including your home’s age, your credit score, the construction type, and the rate you find.

Cheapest Cities to Insure Homes in Texas

City	Average Annual Insurance Rate
El Paso	$1,443
San Marcos	$1,565
Austin	$1,598
New Braunfels	$1,609
Seguin	$1,613
Bryan	$1,658
Fredericksburg	$1,668
Georgetown	$1,691
Floresville	$1,704
Lockhart	$1,707
Bastrop	$1,712
Laredo	$1,738
Gatesville	$1,740
Boerne	$1,741
Kerrville	$1,763

Most Expensive Cities to Insure Homes in Texas

City	Average Annual Insurance Rate
Wharton	$3,223
Angleton	$3,217
Rockport	$3,200
Orange	$3,178
Corpus Christi	$3,133
Richmond	$3,067
Liberty	$3,058
Pampa	$3,015
Stinnett	$3,011
Port Lavaca	$2,967
Dumas	$2,965
Kountze	$2,944
Decatur	$2,887
Houston	$2,885
Victoria	$2,871

How to Compare Texas Homeowners Insurance

After inventorying your belongings, it’s time to shop around for insurance rates. Don’t just look at premiums and choose the lowest one. Consider fees, charges, and benefits that might make slightly more expensive companies a better deal. Look for bundles, rewards programs, and other benefits included in their coverage. A company might charge an extra $100 per year but offer benefits you hadn’t considered.

Consider the coverage you need to insure your home and belongings. If you’re an avid collector, you might need a higher percentage for personal property. If you have an older home with plaster and lath walls, consult an appraiser or contractor to determine replacement costs. Planning on expanding your home? Add those extra square feet to your estimate to ensure full coverage. Then, check out Texas Insurance Ratings for the best rates in your area.

Types of Homeowners Insurance Policies in Texas

There are three main types of homeowner policies in Texas: Basic, Broad, and Special. Mortgage companies typically require Special Form Coverage on financed homes. Special Form Coverage covers “everything” except for specified exclusions, such as war, floods, nuclear catastrophe, earthquakes, and terrorism. Your policy will provide a complete list of exclusions.

In Texas, HO-A and HO-A+ are “Named Peril” coverages, meaning if it isn’t named, it isn’t covered. So, if a bear tears off your siding or a bee colony nests in your home and you have a “Named Peril” Policy, you might be out of luck. The Special Form Coverage (HO-B) is an “All Risks” Policy, an umbrella-type policy.

Named Peril	Basic Form Coverage HO-A	Broad Form Coverage HO-A+	Special Form Coverage HO-B
Fire	Yes	Yes	Yes
Lightning	Yes	Yes	Yes
Riot and Civil Commotion	Yes	Yes	Yes
Explosions	Yes	Yes	Yes
Wind and Hail	Yes	Yes	Yes
Smoke	Yes	Yes	Yes
Sprinkler Leak	Yes	Yes	Yes
Sinkhole Collapse	Yes	Yes	Yes
Volcano	Yes	Yes	Yes
Vehicles and Aircraft	Yes	Yes	Yes
Vandalism	Yes	Yes	Yes
Water Damage	No	Yes	Yes
Weight of Snow or Ice/Sleet	No	Yes	Yes
Falling Objects	No	Yes	Yes
Glass	No	Yes	Yes
Collapse	No	Yes	Yes
Theft and Burglary	No	No	Yes
Full Glass Coverage	No	No	Yes
Leaky Roof	No	No	Yes
Pretty Much Everything Else*	No	No	Yes

Policy Exclusions

Even the most comprehensive all-risk policy will exclude certain types of loss or damage. Common exclusions include:

• Flood
• Earthquakes
• Termites, insects, rats, or mice
• Freezing pipes while your house is unoccupied
• Losses if your house is vacant for the number of days specified by your policy
• Wear and tear or maintenance
• Wind or hail damage to trees and shrubs
• Mold, except necessary costs to repair or replace property damage caused by a covered water loss and water damage resulting from continuous and repeated leakage or seepage

Some companies allow you to buy full or limited coverage for excluded perils, such as:

• Flood
• Earthquakes
• Continuous and repeated leakage or seepage of water
• Vacant property
• Mold remediation

HO-C Policies in Texas

While most people find HO-B policies to be sufficient, there is one policy that covers more: the HO-C policy. It covers all perils and contents, with the usual exclusions. If you have great credit and need additional no-fuss coverage for personal property damages, it may be the way to go.

Does Credit Score Affect Texas Home Insurance Rates?

Yes, most insurance companies will run a credit check when you apply. This primarily checks your payment history and can lead to higher rates on your insurance premiums. Those with excellent credit might pay significantly less than the $2,451 average, while those with below-average credit can pay up to $1,000 more to insure their home.

Does Building Construction Affect Texas Home Insurance Rates?

Yes, the way your home is constructed can significantly affect the price of your home insurance. Wood frame buildings tend to be the most expensive to insure due to higher risks of fire, wind damage, and hurricanes. Homes built with stucco, brick, or stone may be cheaper to insure as these materials are stronger and less prone to damage, though they tend to be more expensive to replace.

Is Homeowner’s Insurance Higher for Older Homes in Texas?

Generally, yes. Older homes often have higher insurance rates due to the replacement costs of certain materials like plaster, lath, hardwood flooring, decorative trims, and custom glasswork. On average, owning a home over 30 years old can raise your rates by up to 5%. However, an insurance company cannot refuse to insure you based on the age of your house alone.

Discounts, Bundles, Coupons, and Ways to Save on Your Texas Home Insurance Rates

The easiest way to save on your Texas homeowners insurance is to bundle it with auto insurance. Bundle discounts typically range from 10-20%. You can further reduce your costs by adding home security systems or smoke alarms. Here are some common discounts:

Discounts	Discount Amount
Automatic sprinklers	10-15%
Alarm system/Home security	10-20%
Fire extinguishers	5-10%
Few or no claims	10-20%
Impact-resistant roof	15-35%
Fire-resistant roof	10-17%
Belongings have an ID number	5-10%
Home in good condition	10-20%
More than one policy (Bundle)	15-30%
Older/Mature adult buys policy	5-10%
Home age discount/Renovation/Update	20-40%
Early quote discount	5-10%
Firewise community	5-10%
Gated community	5-10%
Green home	5-10%
Good payer	5-10%
Early signing	5-10%
Easy pay (Auto pay)	5-10%
Good grades (GPA)	5-10%