No matter where you live, severe home damage due to inclement weather is a possibility. The state of Texas is no exception. Texans are no strangers to damage from tornadoes, hurricanes, and severe storms, as well as flooding -- and even a historic snow storm that caused billions in damage in recent years. That's why finding the best Texas homeowners insurance is so important.
The Best Homeowners Insurance in Texas:
- Best For:Ratings, price and customizationVIEW PROS & CONS:securely through Lemonade Home Insurance's website
All residents of Texas should consider taking out a homeowner’s insurance policy to protect their valuable assets. There are several companies that offer these policies throughout the state. Once a homeowner decides that they need an insurance policy, it is time to choose which company can offer the best outcome.
Average Annual Premium
The average annual premium for homeowner’s insurance in Texas is $2,016, a significant difference from the national average rate of $1,228 per year.
That may seem like a steep price to pay for coverage; however, insurance companies consider several factors when they determine your annual rate. If you live on the coast, own an older home, or have additional structures on your property, these factors will influence your annual premium.
Why do I Need Homeowners Insurance?
Purchasing homeowners’ insurance can be one of the most important decisions you will ever make. Purchasing a home is the biggest financial investment of your life. And when most people buy a home, they want to keep it for life.
Why wouldn’t you want to insure the most expensive, and one of the most crucial items you have ever purchased? You never know what the future may hold.
Even if you purchased a home that is not in a flood zone, or one that isn’t located in an area of Texas prone to inclement weather, you could still benefit from having a comprehensive homeowners insurance policy.
This type of policy can cover the costs of any type of damage, including fire, wastewater spills, and even theft.
Finding the Best Premium for Your Home
Any time you move to a new residence, you need to learn more about your options for homeowners insurance. You should also think about the different factors that will affect your premium while you are shopping around for a new home.
The home that you purchase, the climate in the area, and the safety of the property will help determine the amount you pay. It’s important to find a homeowner’s insurance policy that will adhere to your specific needs. Here are a few things you should think about before you take out a new homeowners’ insurance policy.
Taking the time to research each one will better guarantee that you end up with the best premium for your home. Consider the cost to rebuild your home. This shouldn’t be confused with the current market value of your property. Instead, you should think about how much it will cost you to reconstruct your home after disaster strikes. The materials used to build your home will determine how much risk is involved. A wood frame home, for example, will pose a greater risk of damage than one made with brick.
Your possessions could impact your premium. Think about all the items that you currently own. Your HDTV, desktop computer, or new refrigerator. Most homeowners’ insurance policies will cover damage or loss of possessions up to about half of what your home is worth. And if you require additional insurance to cover special items such as jewelry, that will cause your premium to go up even more.
Do you live in an area where severe weather strikes often? If you are located along the Gulf Shore of Texas, it is likely that you have endured more than one serious storm. Homeowners who reside in areas near the water will often pay more for their premiums since they live in a high-risk area. It’s also important to check if your property is located in a flood zone.
Those who live in the deepest part of Texas’ flood zone will have to pay out higher insurance premiums.
Is your home located in an area known for criminal activity? Homeowners insurance will cover the cost of most items in your home or on your property. But if you live in an area that has a high crime rate, you should expect to pay more for this type of coverage.
What Damage or Loss Does Homeowners Insurance Cover?
Most homeowners insurance policies will provide coverage for the following:
- Your residential home
- Additional structures on your property such as a storage shed
- Your personal property inside the home such as electronics, appliances, or furniture
- Liability coverage in case someone becomes hurt or injured on your property
Some insurance providers will offer additional coverage options to homeowners. This can include coverage for damage that their homeowners’ insurance policy does not take care of.
You may be able to take out additional coverage for damages caused by natural disasters such as floods, hurricanes, or earthquakes.
There are also additional coverage options for personal belongings such as jewelry, antiques, and collectibles. Here is some more detailed information on the coverage offered from most homeowners’ insurance policies.
Dwelling Protection. This is the basic coverage that provides protection for the structure that you live in. This coverage will also pay to repair or replace other structures attached to your home such as a deck or a garage.
The specifics of your coverage will vary from one company to the next. Therefore, you should be sure of what your new homeowners’ insurance policy covers before you make a final decision.
Additional Structures Protection. Most policies will also include coverage for additional structures on your property. This can include, but is not limited to, a tool shed, fence, detached garage, or storage shed.
Personal Property Coverage. Homeowners insurance policies cover more than just your home. Your plan may also cover your personal belongings if they are damaged or stolen. This type of protection may help repair one of your belongings due to damage caused by a storm.
Many of today’s top insurance companies offer separate coverage options that can provide additional protection for your most valuable items such as jewelry or collectibles.
Liability Coverage. When someone who does not live with you becomes injured on your property, liability coverage will take care of the damage.
Bodily injury liability can help pay for any legal expenses you may endure if a visitor trips or falls on your property and you are at fault. Many companies allow their clients to increase their liability coverage limits by adding an umbrella policy.
Weather in Texas
2017 has been a devastating year for the residents of Texas due to the numerous hurricanes, flooding, and severe storms that have swept through the area.
Hurricane Harvey, which hit in late August 2017, was the most powerful storm on record to hit the United States since 2005. Thousands of residents fled their homes during a voluntary evacuation for those who lived in the Brazos River area.
The residents of nearby San Bernard had a mandatory evacuation, along with seven other counties. After the storm passed, many homeowners wondered if their insurance policy would cover the cost of the damage.
That was the moment when many people learned that they didn’t have the right amount or the right type of homeowners insurance coverage. Most homeowners insurance policies will cover damage to a home caused by wind, sewer line issues or a backed-up drain.
Damage caused by flooding from a hurricane would fall under flood insurance coverage. And that is a separate, more expensive policy. When it comes to taking out a homeowner’s insurance policy, the most important factor is to make sure you have coverage for what lies ahead.
While we can’t determine what the future holds, we can look at the history of an area to find out if an additional flood insurance policy would be worth the money.
Should I Purchase Flood Insurance?
According to an article in USA Today, an estimated 80% of all Hurricane Harvey victims did not have flood insurance. Many of those who ended up with flooded basements and damaged furniture will have to pay for their repairs out of their own pocket, and some may even need to sell their home and relocate.
It is a common misconception that homeowners’ insurance provides coverage for all types of damage. That coverage doesn’t include damage caused by floods. While it may be expensive, it can help to save you thousands of dollars in repair costs.
Those who live in the flood zone should consider taking out a flood insurance policy. Doing so will help them avoid serious consequences in the future.
Most Affordable Cities
There are several things that can affect the cost of your homeowners’ insurance policy, including the city where you live in Texas.
This is especially true if you live in an area that is known for flooding, dangerous storms, or a high amount of criminal activity.
The five counties with the lowest homeowners’ insurance rates are:
- El Paso
- Round Rock
- San Marcos
- College Station
- Killeen
Most Expensive Cities
The five cities with the highest homeowners insurance rates are:
- Needville
- Corpus Christi
- Galveston
- Houston
- Sugar Land
Best Texas Home Insurance Providers
- Ratings, price and customization
1. Lemonade
Lemonade provides a top-rated homeowners insurance experience that’s easy and hassle free. Award-winning customer service and digital, super-fast everything from just $25 a month.
Leveraging insurtech to rewrite the traditional insurance model, Lemonade offers home insurance for the digital age.
Coverage includes things like theft (whether inside or outside your home), perils (fire, water damage, storm damage) and extra living expenses.
Lemonade Home is available in the following states: Arizona, Colorado, Connecticut, District Of Columbia, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Washington, and Wisconsin
- Customers who have existing policies with State Farm
2. State Farm
State Farm has been a leader in the insurance industry for almost a century. The company was founded in 1922 by an Illinois farmer named G.J. Mecherle.
What started out as a small business turned into one of the most well-known and trusted names in home, auto, and life insurance. State Farm takes part in the hometown that they serve. Each location does its part to help create a stronger, safer, and better community. State Farm differs from other companies because:
- The company offer discounts on policies if you choose to take out more than one type such as home and auto.
- Customers have the option to add a home security plan from either Canary or ADT. The plan is available at a discount to those who already have insurance through State Farm.
How to obtain a quote: State Farm does not offer quotes on its website. To get a quote for homeowners’ insurance, you will need to contact your local State Farm agency in Texas for more details.
- Those who own investment properties
3. Farmers Insurance
Farmers Insurance company has been around since 1928. Since that time, Farmers has grown to meet the specific needs of today’s families.
And while policies and options may have changed, the company still sticks to the founders’ ideas to offer quality insurance and top-rated services to their customers. Farmers Insurance provides coverage to more than 10 million families throughout the U.S. Farmers Insurance differs from other companies because:
- The company offers exceptional deals such as insurance bundles. The more you have covered, the more you save.
- Farmers offers a wide range of insurance options for today’s busy homeowners such as recreational, umbrella, renters insurance, and pet insurance.
How to obtain a quote: You can fill out the simple online form to request a free quote from Farmers Insurance. You can also call your local agency and get a quote over the phone, or stop by and request a quote in person.
- No Recent Claims
4. Allstate
Allstate has been in business since 1931 and currently provides coverage to more than 16 million households. Allstate was founded by General Robert E. Wood, who was also the President and Board Chairman of Sears, Roebuck & Co. at the time.
The company is based in Northbrook, Illinois and is the nation’s largest publicly held personal lines insurer. Allstate differs from other companies because:
- When customers get a policy through Allstate, a local agent is assigned to them who takes care of all their insurance needs.
- Allstate offers a wide range of diverse insurance plans such as motorcycle insurance, renters insurance, and retirement plans.
How to obtain a quote: You can get a free quote for homeowners insurance online by visiting the Allstate website. If you would rather get a quote in person, stop by your local Allstate agency, or call to learn more about coverage options.
Read Benzinga’s full Allstate Home Insurance Review
- Members of the armed forces and their families
5. USAA
USAA is a unique company because it only provides coverage to current and former members of the U.S. armed forces and their family members.
USAA touts exceptional customer service, and is well-known for being one of the top companies in the industry. USAA began in 1922 and remains one of the top-rated insurance providers in the country. USAA differs from other companies because:
- USAA offers affordable insurance policies to current and former members of the armed forces and their relatives.
- USAA’s basic homeowners’ insurance plan includes flood and earthquake insurance. For most companies, this is only offered as an additional policy.
How to obtain a quote: You have the option to create an online account and request a free quote online. Otherwise, if you are already a USAA customer, you should have a direct agent that you can contact for a quote.
6. Safeco
Safeco Insurance company has been in business since 1923. The company offers a comprehensive range of insurance policies for today’s busy homeowners. The agents at Safeco do what they can to make protecting the things that you love easy.
They provide customers with local agents who can be there at any time to provide support. In addition, customers can manage their policy online at their own convenience 24 hours a day, 7 days a week. Safeco differs from other companies because:
- At Safeco, you can get coverage for everything that you own from your car to your home, motorcycle, or RV.
- Safeco partners with local independent agents who work in your community. This allows customers to get personalized recommendations for all their insurance needs.
Final Thoughts on Texas Homeowners Insurance
When deciding on a homeowner’s insurance policy in Texas, it’s important to choose a plan that will meet your specific needs.
Always ask questions before you sign the documents so that you know exactly what your policy covers, and what it doesn’t. Additional coverage options are available from most insurance providers.
Protection from damage caused by flooding or other natural disasters can be useful if you live in a flood zone in Texas. Therefore, you should always get the facts about your homeowner’s insurance policy so that you and your family will have coverage against life’s storms.
Frequently Asked Questions
If I drop my computer, will home insurance cover the cost of replacement?
Home insurance policies usually cover personal property for a specific list of risks, called named perils. These perils might include fire, theft, burst pipes, and more, but dropping your laptop or TV or spilling soda on your new game console isn’t covered. See the best home insurance providers for a custom quote.
What are the most common types of home insurance claims?
Wind and hail claims top the list with nearly 40% of all home insurance claims due to these two acts of nature. Fire and lightning are the second most common, but claims due to fire tend to much bigger than claims dues to other types of risk. The possibility of a total loss is why it’s so important to insure your home for the full cost of rebuilding. Get a custom quote today.
How does home insurance liability coverage work?
Most home insurance policies provide liability coverage that can help protect you and your family against several types of lawsuits or liability claims. Coverage limit options usually begin at $100,000 and can go as high as $1 million. Your liability coverage provides coverage for common mishaps, like slip and fall accidents or animal bites and can protect you even when you are away from home. However, home insurance liability coverage does not provide coverage for automobile-related liability or liability related to business activity. Get the best home coverage and policy through our top providers today.
About Luke Jacobi
Luke Jacobi is a distinguished professional known for his role as President at Benzinga, a renowned financial media outlet. With a background in business operations and management, Luke brings valuable expertise to his position, overseeing various aspects of Benzinga’s operations. His contributions play a crucial role in the company’s success, ensuring efficiency and effectiveness across different departments. Prior to his role at Benzinga, Luke has held positions that have honed his skills in leadership and strategic decision-making. With a keen understanding of the financial industry and a commitment to driving innovation, Luke continues to make significant contributions to Benzinga’s mission of providing high-quality financial news and analysis.