The average yearly cost of Dallas home insurance is $3,989 for $300,000 in dwelling coverage with a $1,000 deductible and $4,046 for a policy with a $500 deductible. This is much higher than the national average of $1,770 for $300,000 in dwelling coverage.

Dallas is an urban area at risk for flooding — the most common natural disaster in Texas.1 Homeowners may need to purchase a separate flood insurance policy to satisfy mortgage lender requirements.

Here’s what you need to know about finding cheap home insurance in Dallas, including the importance of comparing quotes and coverage options.

Best home insurance companies in Dallas

The best insurance company for you is the one that aligns with your coverage needs and budget. Farmers, Travelers, Texas Farm Bureau Group, and Armed Forces Insurance Exchange each offer advantages for Dallas homeowners. You should always compare quotes from multiple insurance companies to find the cheapest rates.

Best insurer for cheapest rates: Farmers

Best insurer for natural disasters: Armed Forces Insurance Exchange

Flooding is the most common natural disaster in Texas, so when severe weather strikes, it’s helpful to have homeowners and flood insurance. Dallas homeowners can secure both through the Armed Forces Insurance Exchange.

The Armed Forces Insurance Exchange limits its membership to military members, certain government officials, surviving spouses, and a few other exceptions. Qualified homeowners can extend membership to their parents and children.

Best insurer for customer service: Texas Farm Bureau Group

Texas Farm Bureau Group has an excellent customer service reputation. The company has a below-average number of customer complaints filed with the National Association of Insurance Commissioners (NAIC) for a company of its size.

A homeowners plan through the Texas Farm Bureau Group includes coverage for the dwelling, personal property, liability, and loss of use. The company doesn’t provide specifics about any other endorsements or homeowners insurance discounts available.

Best insurer for recent homebuyers: Travelers

Cheapest home insurance in Dallas

Farmers is the cheapest home insurance company in Dallas, with an average annual home insurance premium of $1,979 for a $300,000 dwelling insurance policy. Farmers may have the lowest averages in the city, but it might not be the best homeowners insurance company for you. It’s always best to compare prices and coverage options to ensure you get the coverage you need that fits your budget.

Here are some of the cheapest Dallas home insurance options for you to consider.

Cost of homeowners insurance in Dallas

The average cost of homeowners insurance in Dallas for a $300,000 residential dwelling coverage policy is $3,989 with a $1,000 deductible and $4,046 with a $500 deductible. Your cost of homeowners insurance will depend on your ZIP code, home value, and more.

Cost of homeowners insurance by dwelling coverage amount

Homeowners insurance will always include dwelling coverage, which is the insurance that covers costs to repair or rebuild the actual structure of your home. When it comes to covered losses, dwelling coverage has a coverage limit. You can increase the limit, but that will also increase your premiums.

Compare the annual cost of homeowners insurance in the U.S. by dwelling coverage limits below.

Cost of homeowners insurance by deductible

As a property owner, you’ll have to pay a home insurance deductible if you file a claim. A deductible represents the homeowner’s financial responsibility for covered damage. Even though the insurance company will cover expenses within the policy limits, a homeowner must first contribute a set amount before the insurance company covers the rest.4

Homeowners can usually choose to set a high or low deductible. The lower the deductible, the higher the premiums, and vice versa. Look at the following table to see how average annual premiums for a $300,000 dwelling coverage policy in Dallas change based on the deductible amount.

How to get cheap homeowners insurance in Dallas

Finding a lower rate may be easier than you think. Some ways to save require patience, while others simply require you to pick up the phone and call your insurance agent.

Consider these four tips on how to get cheap homeowners insurance in Dallas:

• Ask about discounts. You may qualify for discounted premiums if your home has a fire or burglar alarm system, a sprinkler system, or an impact-resistant roof. Some insurance agencies offer discounts for new homes, homeowners who have multiple years without a claim, and homeowners with multiple policies.4

• Improve your credit score. Some insurance companies check your credit history and use it as a deciding factor for whether you qualify for a policy and how much you should pay. By improving your credit score, lowering your debt-to-credit ratio, and removing any inaccuracies on your credit report, you may be a more eligible candidate for homeowners insurance coverage.

• Reduce certain coverage limits. Since there’s no legal limit on how much or little coverage you should carry, consider reducing limits on coverages you may not need or use anymore. For instance, if you had a high personal property endorsement to protect high-value personal belongings in your home, you can consider reducing that amount if the items decrease in value or you store them elsewhere now.

• Compare rates. All homeowners insurance companies set premium rates based on diverse factors but not necessarily using the same steps. Insurer A and Insurer B may offer the exact same policy for two very different rates. That’s why it’s always important to shop around and compare quotes from multiple insurance companies before making your decision.

Texas homeowners insurance rates by city

Texas is the second-largest state by size and population. Homeowners insurance rates vary by state, city, and ZIP code due to an area’s crime rates, home prices, and weather hazards. Even homes within the same area in Dallas may have different rates based on property value, size, and location.

Dallas has the second most reported property crimes in Texas — behind only Houston.5 Dallas also receives snow and ice accumulation, which increases the chances of damage compared to Corpus Christi, which typically doesn’t. When it comes to fire hazards, Dallas has the second-largest fire department in the state.

The table below shows how these factors may influence average annual premiums for a $300,000 dwelling coverage policy with a $500 deductible across Texas cities.

How much homeowners insurance do you need in Dallas?

Texas law doesn’t require homeowners to buy home insurance. But a mortgage lender will require you to hold a home insurance policy that meets certain coverage limits to protect the property for the length of your mortgage. It’s always a good idea to have a homeowners insurance policy, even if you don’t owe money on your home. A home is one of the largest purchases a person makes in their life; insurance helps protect this investment.

Always remember that there’s no “minimum” or “maximum” amount of homeowners insurance you can choose. Policies have different coverage options and coverage limits. It’s always important that you review your policy to understand what damages it covers and what it excludes.

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

Every homeowners insurance policy outlines a list of covered or excluded perils, which are types of damages your home could incur. Home insurance typically commonly covers perils like explosions and vandalism but rarely covers damage from earthquakes or continuous water leaks. It’s important to know what perils are common in Dallas so you can have adequate coverage.

In many ways, thunderstorms are the most dangerous weather events that can cause damage to Dallas homes because thunderstorms can lead to strong winds, hail, tornadoes, lightning strikes, and flash flooding. It’s always a good idea to proactively protect your home from storm threats whenever possible.

Here are three of the most common natural disasters in Dallas: