The average cost of home insurance in Houston is $5,511 per year for a policy with a $1,000 deductible and $300,000 in dwelling coverage, according to Insurify data. That’s much higher than the national average of $2,377 for the same coverage.
Texas is the fourth most-expensive state for home insurance, according to an Insurify home report, in part because it experiences a range of natural disasters and severe weather events, such as extreme heat, flooding, and wildfires.
If you’re looking for affordable home insurance in Houston, here’s what you need to know about comparing home insurance quotes and finding coverage.
Best home insurance companies in Houston
If you’re looking for home insurance, many quality insurance companies serve homeowners in Houston. The best coverage for you will depend on your individual situation, needs, and budget. Start your search with some of the best homeowners insurance companies listed below.
Cheapest rates: Armed Forces Insurance Exchange
Armed Forces Insurance (AFI) has been providing insurance to military members since 1887. Today, AFI continues to provide a range of insurance products, including home, auto, renters insurance, business insurance, and flood insurance. AFI has a lot of potential customers, as Texas has a population of nearly 1.6 million veterans.1
Best insurer for green homes: Travelers
Best insurer for bundling: State Farm
Best insurer for new homes: Farmers
Cheapest home insurance in Houston
Armed Forces Insurance Exchange has the cheapest home insurance in Houston, with an average annual cost of $2,480 for $300,000 in dwelling coverage. Comparing multiple insurance companies before choosing the one that’s right for you can help you save money.
The table below shows the average home insurance premiums for some of the cheapest insurers in Houston.
Cost of homeowners insurance in Houston
The average cost of home insurance in Houston for $300,000 in coverage with a $500 deductible is $5,590. Some of the most common factors that affect your home insurance premiums include:2
Where you live: When you want to get a quote for home insurance, insurers always ask for your ZIP code. They want to know how close you live to a fire hydrant or fire station, what the crime rates are like in your community, and whether you live in a city or rural area.
Age of your home: Older homes often have higher premiums because insurers are taking on more risk. For example, when insurers take on a home with an old roof or old pipes, there’s a higher likelihood of a leak.
Replacement cost: The replacement cost of your home is the amount it would cost to rebuild your property using the same kind and quality of materials it was originally built with. Generally, the higher the replacement cost, the higher your premiums.
Cost of homeowners insurance by dwelling coverage amount
Dwelling coverage, also known as Coverage A, insures the physical structure of your home if there’s damage from hail, lighting, a fire, or another covered peril. Most policies also cover attached structures, such as a porch or garage.3
Your dwelling coverage is typically based on your home’s replacement cost. Many mortgage companies require enough insurance to cover the cost of your home’s replacement. A higher coverage limit results in higher premiums.
The following table demonstrates how higher coverage limits result in higher average premiums in Texas for policies with a $1,000 deductible.
Cost of homeowners insurance by deductible
A homeowners insurance deductible is the amount you pay out of pocket before your insurance kicks in. Deductibles generally range from $500–$2,000, and a higher deductible typically results in lower insurance premiums. If you want to lower your premium and can afford a higher deductible, this is one way to reduce your insurance costs.
The table below highlights how insurance premiums can change based on the deductible you choose.
How to get cheap homeowners insurance in Houston
To get the cheapest homeowners insurance in Houston, you can use several strategies to try to lower your premiums, including:4
Comparison shop. You can save money simply by comparing home insurance companies. Insurers offer different discounts and use different calculations to determine premiums. Aim to get quotes from at least three different companies to find the one that best suits your needs and budget.
Bundle insurance. Many insurers offer discounts of 5%–15% if you purchase two or more insurance policies from them. When comparing insurers, ask if they offer bundling discounts for home and auto coverage.
Strengthen your credit. In Texas, insurers can use your credit history when calculating your home insurance premiums. Generally, a higher credit score can help lower your insurance premiums because it signals to insurers that you’re less likely to file a claim.
Secure your home. Adding smoke detectors, security systems, or even deadbolt locks may help you secure a discount. Installing a sprinkler system or an alarm that automatically contacts the police or fire department can reduce your premiums by 15%–20%, according to the Insurance Information Institute.
Texas homeowners insurance rates by city
Where you live can affect your home insurance rates. Different cities, as well as different ZIP codes with a city, can yield varying home insurance quotes. This is because different areas have different risks.
When insurers are calculating your home insurance premiums, they consider a number of factors, including:
Proximity to a fire station: How close you live to a fire hydrant or fire station can affect your premiums. If you live in a community that has a professional fire department versus a volunteer fire department, this can result in lower premiums.
Property crime rates: Urban areas like Houston often experience higher property crime rates than more rural areas because more people live in urban areas. Living in a ZIP code with a higher rate of crime can cause your premiums to go up.
Weather events: Houston residents are no strangers to wild weather events. From severe storms to floods and a recent winter freeze, many homeowners are seeing their home insurance rates rise.
Take a look at the average annual home insurance premiums in some Texas cities in the table below. Rates shown are for policies with a $1,000 deductible and $300,000 in dwelling coverage.
How much homeowners insurance do you need in Houston?
When you take out a mortgage, your mortgage company will require you to purchase a home insurance policy. You want at least enough homeowners insurance to cover the cost to rebuild the structure of your home if it’s completely destroyed.
When choosing a home insurance policy, it’s important you understand the different types of homeowners insurance and how much your policy covers so you know if you have an appropriate amount of coverage.
A standard home insurance policy covers:
What are some of the biggest risks when owning a home in Houston?
Houston experiences extreme weather events, which can affect home insurance premiums. Some of the most common perils to consider in Houston include:
Texas homeowners who struggle to find insurance can also look into the Texas FAIR Plan Association. The association sells basic home insurance policies to homeowners who can’t find coverage through other Texas insurance companies.