The average homeowner in Texas paid $3,506 per year for coverage in 2025, according to the Texas Department of Insurance. That works out to about $292 per month for homeowners insurance coverage alone — an increase of about $215 per year from 2024's average annual cost of $3,291.
In some parts of the state, the department's data found costs are even higher. Homeowners in coastal Galveston County paid an average of $4,464 per year for homeowners insurance in 2025, while Aransas County residents paid $5,560 per year for coverage, or about $372 and $463 per month, respectively.
While costs have risen, shopping around is largely the best way to find the lowest rate for your unique home and situation. Luckily, Texas has over 150 insurance companies offering coverage in the state.
You don't have to compare options from every one of them to save. To help you start the process, CNBC Select has picked the top homeowners insurance companies based on price, coverage limits, endorsements and other criteria. For more on how we made our selections, see our methodology.
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Best for discounts: Mercury
Who's this for? Mercury offers nearly a dozen discounts for homeowners, including for installing theft prevention devices, instituting wildfire mitigation efforts and going three years without a claim.
Standout benefits: Replacement cost value for personal belongings and generous dwelling coverage come standard with Mercury policies — a feature that typically costs extra with other insurers.
Mercury Homeowners Insurance
Cost
The best way to estimate your cost is to get a personalized quote
Maximum coverage
Not disclosed
App available
Yes
Policy highlights
Policy covers damage to your home due to fire, lightning, smoke or storm damage, theft, loss of use, personal liability and accidents that occur to others on your property.
Does not cover
Earthquakes and flood insurance. See below for additional protections.
Terms apply.
Pros
- Can submit claims online or over the phone
- Offers service line protection
- Offers discounts for bundling home and auto insurance
- App available
- Provides identity theft coverage of up to $25,000
- Offers discount for living in a gated community
- Offers a discount for selecting a policy with a higher deductible
Cons
- Only available in 10 states
Best for windstorm insurance: Allstate
Who's this for? While all property insurers in Texas must be members of the Texas Windstorm Insurance Association (TWIA), Allstate wrote the most policies of all insurers in the program in 2025, according to the TWIA. The company offers both homeowners insurance and windstorm insurance, making it easy to manage both policies in the same place.
Standout benefits: Allstate offers a discount for new homeowners who recently purchased their home.
Allstate Homeowners Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Allstate's homeowners insurance combines strong track records for customer satisfaction with affordability. While not available in all states, it is widely available across the U.S. It's also willing to work with homeowners who have unique needs like those with homes over 100 years old. Special features including unique homesharing coverage can help make your homeowners insurance policy even more useful.
Pros
- Offers several discounts, including bundling discounts for bundling home and auto insurance
- Coverage is available in all 50 states and Washington, D.C.
Cons
- New policies not available in California
Best for high-risk homes: Foremost Insurance Group
Who's this for? Foremost specializes in covering those who have homes that are higher-risk because of their location or other factors. So, it could be a good fit for those who have faced rejections, cancellations or non-renewals in the past.
Standout benefits: Foremost also offers coverage for vacation homes used only seasonally, something not all insurers will cover.
- Covers homeowners who have been non-renewed or declined elsewhere because of bad credit
- Can work with owners of vacation homes and vacant properties
- Online quotes take 2 to 3 days and aren't available in all states
Best for bundling: Amica
Who's this for? Amica offers a generous discount of up to 30% if you bundle home, auto, life and umbrella insurance policies.
Standout benefits: Amica also has generous discounts for paying in full, making automatic payments, switching to online billing or not filing claims for at least three years. Customers who stay with Amica for two years are also eligible for a discount.
- Platinum Choice plan offers up to 130% of your dwelling coverage for rebuilding
- Some policies pay dividends
- Discounts of up to 30% off if you bundle home, auto, umbrella and life insurance
- Not offered in Hawaii or Alaska
- Dividend policies not available in every state
Best for high-value homes: Chubb
Who's this for? While competitors charge extra, Chubb's Masterpiece homeowners insurance policies include extended replacement cost coverage.
Standout benefits: Chubb is also our top pick for flood insurance for high-value homes. Its policies cover items in a basement automatically and provide up to $5,000 toward relocation if a flood warning is issued.
- Extended replacement cost available
- Complimentary home inspections and property services
- Cash settlement available if you decide not to rebuild
- Online quotes are not available
Best for extended replacement cost coverage: Farmers
Who's this for? Farmers Insurance has an extended replacement cost policy that covers up to 25% more than your dwelling limit and a guaranteed replacement plan with no coverage limit. Either option protects you if the cost of rebuilding exceeds your policy limit, which can be useful if contractors' rates soar after a large storm or wildfire.
Standout benefits: Farmers offers a home-sharing endorsement that can cover homeowners who rent part or all of their property out through services like Airbnb.
Farmers Homeowners Insurance
Cost
The best way to estimate your costs is to submit your information for a quote
Maximum coverage
Not disclosed
App available
Yes
Policy highlights
Policy covers your home and property damages, personal liability and loss of use
Does not cover
Damage resulting from earth movement, water, nuclear hazard, failure to make repairs, war and fungi — see here for the complete list; contact a Farmers Insurance agent for a list of any exclusions specific to your state
Terms apply.
Read our Farmers homeowners insurance review
Pros
- Many discounts available
- Variety of customization options
- No list of banned dogs
Cons
- Higher premiums
- Lower-than-average customer service scores
- Not available in all states
Best for military members and veterans: USAA
Who's this for? Available to service members, veterans and their families, USAA has lower-than-average rates for Texas homeowners.
Standout benefits: Policyholders with no claims for at least five years can earn up to 15% off their premiums. There's also a 10% discount for bundling home and auto, and 5% off for having connected home security and safety devices.
- Replacement cost and identity theft coverage are included with all policies
- USAA Perks™ has discounts on moving and storage, home security and cleaning services
- Claims-free discount available
- Covers uniforms and equipment for active-duty members
- Coverage and discounts are not available in all states
- Must become a USAA member in order to get a quote
Why is homeowners insurance so expensive in Texas?
Homeowners insurance has become a large expense for Texans, along with customers across the U.S., for several reasons:
1. Extreme weather
Insurers have raised their rates in Texas to deal with the increased number and severity of hurricanes, floods and other extreme weather events fueled by climate change. Additionally, the state's fragile electrical grid experiences surges and outages during storms.
2. Rising construction costs
Premiums have also increased to offset rising home prices in Texas and the higher cost of building materials and labor.
3. Litigation
Texas has a high number of insurance lawsuits compared to other states, which is driven by abusive litigation practices, $10 million-plus verdicts and storm-chasing lawyers.
4. Cost of reinsurance
The previously cited factors have led reinsurance costs to soar over the past few years, an expense that insurance companies are passing on to policyholders.
What does homeowners insurance cover in Texas?
If your house faces a covered event, like a fire or a burglary, homeowners insurance in Texas would pay to repair or replace your dwelling and personal belongings. It also pays for damages you may cause others — say, if your dog bites a neighbor — and covers living expenses if your home is uninhabitable during repairs.
Homeowners insurance doesn't cover normal wear and tear or poor maintenance. As in any state, homeowners insurance also doesn't cover flooding — you'll need a separate flood insurance policy for that.
In parts of Texas, basic homeowners insurance doesn't cover damage from wind or hail. You can get a policy from a private insurer — like Allstate, USAA or Travelers, three of the top writers of this coverage in the state, according to TWIA — or buy a plan from the TWIA directly if you can't find coverage on the private market.
Do I need homeowners insurance in Texas?
If you own a home in Texas, there's a good chance that you need homeowners insurance. Mortgages typically require homeowners insurance as a condition of the agreement. As long as you have a loan on your home, you'll be required to keep coverage.
Additionally, if you don't have the funds to repair or replace your home on your own, homeowners insurance can be a big help if something unexpected happens. Homeowners insurance can cover various issues from a break-in to a fire, and it could be a financial lifeline.
Because of the extreme weather along the Gulf Coast, homeowners policies in that region may not cover damage from wind, hail, tornadoes or hurricanes. If you have a mortgage and live in a Tier 1 county — a county that's at particularly high risk of windstorms — your lender will likely require a windstorm insurance policy.
What does windstorm insurance in Texas cover?
Windstorm insurance covers damages caused by wind and hail, additional living expenses and increased construction costs. It also covers reimbursement for emergency repairs, debris and tree removal after a covered storm. While it includes damages from hurricane winds, you'll need flood insurance to cover damages caused by flooding.
Where to get windstorm insurance in Texas
You can buy windstorm insurance from a major provider (all of our picks offer policies) or use a niche provider like Tower Hill.
If you've been rejected at least twice, you can get a policy from the Texas Windstorm Insurance Association (TWIA), the insurer of last resort. You can't be turned down, but the cost is usually significantly higher.
How much does windstorm insurance cost in Texas?
In June 2026, the most recent data available, the average premium for a TWIA policy was about $2,541, according to the association. Private insurers may charge more or less, and individual rates vary based on the type of home, coverage amount, deductible and riders.
Do I have to get windstorm insurance in Texas?
There is no legal requirement to get windstorm insurance in Texas, but if you have a home loan and live in a high-risk area, your lender may require a policy. Without coverage, you'll have to pay out of pocket for any repairs.
How to save on homeowners insurance in Texas
To save on homeowners insurance in Texas, take the following steps:
- Ask about discounts: If you own a car, motorcycle or RV, you could save by buying all of your policies from the same company. Many insurers also have rate reductions for remaining a customer for several years, paying your premiums annually and staying claims-free.
- Make your home safer: Many providers offer discounts for adding a smoke detector, burglar alarm or other security or safety features.
- Raise your credit score: Having a good credit score can help you raise your credit-based insurance score and get better homeowners insurance rates. You can raise it by paying bills on time, paying off debt and checking your credit report for errors.
- Avoid filing claims: Home insurance premiums can increase 10% after a claim, according to Policygenius. If the damage is minor or it won't meet your deductible, consider paying out of pocket.
- Get your home reinspected: If you've made improvements to your home's structure, ask your insurer to reevaluate your risk. Adding impact-resistant roofing, strengthening roof-to-wall connections or improving ventilation may earn you a rate reduction.
- Raise your deductible: Increasing your deductible, or the amount you have to pay before your insurance kicks in, usually results in lower rates.
- Shop around: Get quotes from three to five homeowners insurance companies and compare them, keeping the coverage amounts, limits and deductibles the same.
Texas homeowners insurance FAQs
How much is homeowners insurance in Texas?
In 2025, homeowners insurance policies in Texas averaged about $3,506 a year across the state, according to the Texas Department of Insurance.
Who has the cheapest homeowners insurance in Texas?
Do you have to have homeowners insurance in Texas?
No state requires homeowners insurance, but if you have a mortgage, your lender will likely require you to take out a policy. Regardless of your financing, you'll be on the hook for any repair or replacement costs if you're not covered.
What if I can't get approved for homeowners insurance in Texas?
If you've been rejected for homeowners insurance in Texas at least two times, you may qualify for a policy from the Texas FAIR Plan, the state's insurer of last resort. A policy will, however, cost more and cover less.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. To research the best insurance companies, we compiled over 100 data points on more than a dozen insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
To determine the best insurance companies in Texas, CNBC Select analyzed dozens of companies licensed in the state, based on cost, as well as coverage, limits, deductibles, endorsements, digital channels and customer experience.
We reviewed sample premiums for dozens of companies licensed in the state, using a Bankrate analysis of data from Quadrant Information Services and data from the Texas Department of Insurance's HelpInsure tool. Rates were based on a policy with $300,000 of dwelling coverage. We also considered data from the Texas Department of Insurance's HelpInsure Tool.
We considered customer satisfaction scores from J.D. Power and the National Association of Insurance Commissioners, as well as financial strength ratings from A.M. Best.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on those criteria, our picks for the best homeowners insurance in Texas are:
- Best for affordability: Mercury
- Best for windstorm insurance: Allstate
- Best for high-risk homes: Foremost
- Best for bundling: Amica
- Best for high-value homes: Chubb
- Best for extended replacement cost coverage: Farmers
- Best for military members and veterans: USAA
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