Homeowners Insurance in Texas

The average cost of home insurance in Texas surpasses the national average of $1,211 by a substantial $608, making it the fifth most expensive state in the country for home insurance. Also, the Lone Star State ranks first in the nation for tornado and earthquake activity making it the state with the highest frequency of extreme weather events. In 2019, more than 188 tornadoes touched down in Texas, leaving behind piles of rubble in Lone Star State neighbourhoods and business districts. The over-the-top prices of homeowners insurance rates in Texas are attributed to the higher number of claims filed in the state due to its many natural disasters for the coverage level, which include $300,000 (dwelling coverage), $1,000 (deductible), and $300,000 (liability). Since insurance companies avoid taking risks due to the frequency and severity of natural disasters affecting Texas, its homeowners usually pay higher than average insurance rates. However, among important things to consider when buying a homeowner insurance policy, you have to decide the coverage amount for the following: dwelling, liability, medical payments. Several factors influence the price you pay for insurance. Among others, the Insurance Information Institute (III) cites factors such as your home's square footage, building costs in your area, your own home's construction, materials and features, local crime rates, and the likelihood of certain types of disasters, such as hurricanes. The least and most expensive cities for homeowners insurance in Texas with an average rate of $1,827 and $4,363 are El Paso and Houston, respectively.

In choosing an insurance cover from your insurer, you’d like to ask, “What is covered by homeowners insurance?” The homeowners’ policy contains two sections. Section I provides property coverages (A, B, C and D) while Section II provides liability coverages (E and F). A brief description of the individual coverages follows: Coverage A — Dwelling (house and attached structures); Coverage B — Other Structures (structures on the residence premises not attached to the dwelling); Coverage C — Personal Property (personal belongings owned by your residents); Coverage D — Loss of Use (additional living expenses incurred if your home is damaged); Coverage E — Personal Liability (the event you or a resident of your household are legally responsible for injury to others); Coverage F — Medical Payments to Others (medical expenses for persons accidentally injured on your property). Some mortgage lenders require borrowers' homeowner's insurance to be enough to cover the replacement cost of their dwellings. However, the minimum homeowner's insurance coverage mortgage lenders require borrowers to possess is the unpaid mortgage balance amount. Also, if you’re in a rented apartment, you should consider purchasing renter’s insurance. The renter’s policy may be used to provide coverage for your contents located in the property that you occupy. Condominium unit-owners insurance provides coverage for personal property, loss of use, personal liability and medical payments to others.

Some of the top-rated homeowner's insurance company in Texas include Erie, Esurance, USAA, Nationwide, AIG, Safeco and Chubb. They are considered the best homeowners insurance companies in Texas due to the premium rates, ability to pay out claims, good discount and available coverage options. Additionally, customer service ratings, financial strength analyses, and affordability give credence to their high rating. According to research, in categorizing the rating, UPC is the best for hurricane expert, the top-rated. USAA is the best for military families. AAA is rated as the best for discounts and standard coverages. The best for high-value homes is Chubb, while Amica is the overall best for most people. Ranking as the cheapest homeowners insurance companies in Texas for six coverage sets, Farmers Insurance Exchange and USAA were among the cheapest home insurance companies in Texas.