Homeowners Insurance Texas Average Cost: Average Rates & What Drives Them

Most state guides show the smaller sample policy coming in cheaper. Texas does not. MoneyGeek's figure for a 250,000 dollar dwelling limit is higher than NerdWallet's for a 500,000 dollar limit, which says as much about the way these averages are built as it does about Texas.

Both numbers sit far above the national benchmarks, and the city range is wide. Here is what the published data shows and where it should be read with care.

The two sources do not sample the same insurers, the same homes, or the same ZIP codes. NerdWallet averages quotes from a set of insurers for one sample home. MoneyGeek builds its benchmark from quote data gathered by a rating firm and averages across the state. If one source's sample leans toward costly insurers or high-risk areas, its average moves up regardless of the dwelling limit.

The practical takeaway is that Texas averages are a rough guide only. A homeowner in Austin and one on the Gulf Coast live in different insurance markets.

NerdWallet's city table shows how large that difference can be. Houston averages $9,095/yr, Dallas averages $6,915/yr, and Austin averages $4,250/yr.

Houston is more than twice Austin in this table. The source does not explain the gap, but Houston is exposed to hurricanes, flooding rains, and hail, and insurers commonly consider those risks along with claim history. Dallas sits in a heavy hail corridor, which could be a factor in its figure as well.

Both sources place Texas well above their national averages.

NerdWallet's national benchmark is $3,005/yr and MoneyGeek's is $3,468/yr. Even the lower of the two Texas averages is well above its matching national number.

At a 300,000 dollar dwelling limit NerdWallet shows $3,875/yr, and at 700,000 dollars it shows $7,400/yr.

Texas sees frequent hail, wind, and flood events, so insurers commonly attach special terms. Wind and hail deductibles are often a percentage of the dwelling limit, such as one or two percent, instead of a flat sum. On a 500,000 dollar policy, a one percent deductible would be 5,000 dollars. Ask your agent for the exact figure on any quote, since it affects what you pay after a storm.

Flooding is excluded from standard homeowners policies. After heavy rain events in recent years, many Texans have looked at separate flood coverage, and homes in coastal counties may also need to look at wind coverage through the state's windstorm association if private insurers decline. A licensed insurance agent can explain what applies at your address.

• Quote the same dwelling limit and deductible everywhere. A policy that looks cheap may use a higher percentage deductible for wind and hail.
• Ask whether the roof is paid at replacement cost or actual cash value. Older roofs are often treated differently after a hail loss.
• Check how each company handles claims. Price is one input, and a low premium from a company that is slow to pay hail claims can cost more in the end.
• Ask about impact-resistant roofing discounts, which some insurers offer in hail-prone areas.

Mercury shows $2,420/yr, RHP shows $3,330/yr, and Farmers shows $4,885/yr. The spread between the first and third is large, which is a good reason to quote widely.

The Texas Department of Insurance publishes consumer information and handles complaints.