Austin, the capital city of Texas, has a population of around 1 million people, 44% of which are homeowners.1 On average, Austin homeowners pay $2,791 per year for $300,000 in dwelling coverage with a $1,000 deductible, which is higher than the national average cost of $1,982 for the same coverage.

Homes in Austin face damage from wildfires, flash flooding, and other severe weather, making it especially important to secure the right home insurance policy. You can find the cheapest rates by comparing quotes from multiple insurers.

Here’s what you should know about finding the right homeowners insurance policy for your Austin home.

Best home insurance companies in Austin

Austin homeowners can choose from several quality home insurance companies. But the best home insurance company for you depends on your unique situation and needs. In addition to cost, you should consider customer satisfaction, quality of coverage, policy options, and more.

Here’s a closer look at a few of the best homeowners insurance companies in Austin.

Best insurer for cheap rates: Farmers

Best insurer for flood insurance: Travelers

Best insurer for high-risk homes: Texas Farm Bureau Group

Texas Farm Bureau Group offers homeowners in Austin below-average rates. While the company hasn’t earned accolades for home insurance, it has earned the top spot for customer satisfaction among auto insurers in Texas in the J.D. Power survey 11 years in a row. Based on that ranking, it’s likely you’ll have a positive customer experience with the company.

The company has served the area in some form since 1952. With a network of local agents, this company might provide the personalized touch you’re looking for. Generally, an insurance agent can help you find the coverage you need, even if you have a home that qualifies as high-risk.

Best insurer for military families: Armed Forces Insurance Exchange

Around 32,000 veterans live in Austin. If you’re a veteran or have a qualifying military connection, the Armed Forces Insurance Exchange could be a great option for home insurance coverage. The company sells insurance exclusively to military members, veterans, and qualifying family members. If you live in Austin, you can earn below-average rates from this insurer.

Cheapest home insurance in Austin

Homeowners in Austin can find the cheapest average rates with Republic Indemnity and Farmers. While both of these companies offer consistently low rates, shopping around can help you find the company offering the best rates for your unique situation.

Here are some insurance companies offering affordable home insurance in Austin.

Cost of homeowners insurance in Austin

The average cost of homeowners insurance in Austin is $2,791 per year for a policy with $300,000 in dwelling coverage and a $1,000 deductible. The exact cost of your policy will vary based on your needs.

Here are several factors that affect premiums in Austin:

Cost of homeowners insurance by dwelling coverage amount

Dwelling coverage is the foundation of any home insurance policy. Essentially, dwelling coverage protects your finances against damage to your house or other covered permanent structures on your property from a covered peril. For example, if wind damages your home, the dwelling coverage from your home insurance policy should help you pay for repairs.

A higher dwelling coverage limit leads to higher rates for the insurance policy. The table below illustrates how premium costs increase for U.S. homeowners with higher levels of coverage.

Cost of homeowners insurance by deductible

The deductible for your homeowners insurance policy represents the amount you’ll have to pay out of pocket when filing a claim. In general, insurers offer lower home insurance rates to homeowners who opt for a larger deductible.

Although getting a higher deductible can help you save on your premiums, it’s important to only make this change if you have the money on hand to cover it in an emergency.4 Otherwise, you could be in a difficult situation if you need to file a claim.

The table below illustrates how opting for different deductible amounts affects premiums for a policy with $300,000 of dwelling coverage in Austin.

How to get cheap homeowners insurance in Austin

For most homeowners in Austin, home insurance is an unavoidable expense. Although paying for this coverage is a necessary part of protecting your financial stability, you can find ways to save.

Use the strategies below to find cheaper rates:

• Shop around. Every insurance company has a slightly different method of determining rates. Take the time to obtain quotes from multiple insurers to find the cheapest homeowners insurance.

• Opt for a higher deductible. A higher deductible often leads to a lower premium. If you have the funds on hand to cover a higher deductible, then consider making this move.

• Bundle your policies. If you purchase multiple types of insurance from the same company, you can often earn a bundling discount. For example, you could purchase your home insurance with your auto insurance, pet insurance, or life insurance from the same company to lock in a discount.

• Seek out discounts. Insurance companies often offer many different discounts. Don’t forget to ask if you qualify for any discounts.

• Maintain good credit. Many insurers consider your credit history when determining rates. Shoppers with a higher credit score earn lower rates. Build a record of on-time payments to impress insurance companies.

Texas homeowners insurance rates by city

Where you live has a big influence on your home insurance costs. Rates often vary by city and ZIP code due to factors like the frequency of weather events in your area, crime rates nearby, and your proximity to a fire station. For example, some areas in Austin are prone to flash floods, which means you’ll likely pay more for insurance if you live in that area of town.5

In general, the average cost of homeowners insurance is higher in major cities due to the higher cost of repairs and more potential perils in urban areas.

The table below highlights how average rates vary by city in the Lone Star State.

How much homeowners insurance do you need in Austin?

If you take out a home loan to purchase your home, your mortgage lender will require you to purchase a home insurance policy. While you could cancel the policy after paying off your mortgage, going without homeowners insurance means you’ll have to pay for damage to your home without the help of an insurance check.

When it’s time to purchase homeowners insurance, start by determining the cost of rebuilding your home and considering the types of home insurance you should buy. You’ll want to have enough coverage to rebuild after a catastrophic event.

Beyond dwelling coverage, consider how much liability insurance you need. Liability coverage protects you against lawsuits for bodily injury or property damage. For example, this might include medical payments to someone who injures themselves in a fall on your property.

It’s a good idea to get enough coverage to replace your personal belongings, which involves estimating how much they’re worth. Also, consider the cost of loss of use. If you’ll need to rent another place while your home is being repaired, consider finding a policy that will help you pay for that.

Before you move forward with a policy, read the fine print and confirm the policy meets your specific needs. It’s critical to understand exactly what your home insurance policy covers and what it doesn’t. For example, flood insurance and earthquake insurance are usually separate policies.6

What are some of the biggest risks when owning a home in Austin?

As you look for homeowners insurance, it’s important to consider some of the biggest risks facing Austin homeowners. Here are a few of the risk factors to consider:

• Flash floods: Flash flooding represents the most common natural disaster in the Austin area. Standard home insurance policies don’t include flood damage events. With that, Austin residents should consider purchasing supplemental insurance coverage to protect from floods.

• Wildfires: Wildfires are a threat in Austin. In fact, almost half of the population lives in an at-risk wildfire area. In general, a standard homeowners insurance policy should cover damage from a wildfire. But it’s a good idea to double-check the details of your policy to confirm you have the right coverage.

• Storm damage: Severe weather can cause damage to your Austin home. A standard homeowners insurance policy should cover damage from a passing storm.