Texas home insurance costs are rising rapidly and are amongst the highest in the country. Property owners are looking for ways to decrease their premiums and survive inflation.
Average Costs
The average cost of home insurance in Texas is approximately $2,200 to $3,100 per year, significantly higher than the national average of about $1,700. Texas consistently ranks among the top five most expensive states for home insurance due to its unique risk factors.
Key Factors Affecting Your Premium
Geographic Location
Coastal properties near the Gulf of Mexico face substantially higher premiums due to hurricane and flooding risks. Homes in North Texas may have higher rates due to tornado and hail exposure, while West Texas properties might see lower premiums in areas with reduced natural disaster risks.
Home Characteristics
Older homes typically cost more to insure than newer constructions. Similarly, construction materials matter—brick homes often receive lower premiums than wooden structures due to better fire resistance and durability during storms.
Coverage Levels
The amount of coverage you choose directly affects your premium. Most lenders require coverage at least equal to your mortgage amount, but replacement cost coverage (which rebuilds your home regardless of depreciation) will cost more than actual cash value policies.
Deductible Amount
Texas homeowners can often reduce premiums by selecting higher deductibles, particularly with percentage-based wind/hail deductibles that are common in the state.
Why Texas Rates Are High
Texas faces multiple natural disaster risks, including hurricanes, tornadoes, hailstorms, and wildfires. The state's large size and diverse climate zones create varied risk profiles that insurers must account for in their pricing models.
Saving on Texas Home Insurance
Most insurers offer discounts for security systems, impact-resistant roofing, bundling policies, maintaining good credit, and staying claim-free. Texas homeowners should also consider shopping around, as premiums can vary by 15-30% between companies for identical coverage.
Additional Considerations
Standard home insurance in Texas typically doesn't cover flood damage, which requires separate flood insurance policies. Many coastal and bayou-area residents need both policies for comprehensive protection.
Texas residents can access the Texas FAIR Plan Association as a last resort if they can't obtain coverage in the standard market, though these policies typically cost more money and offer less coverage than traditional options.