7+ years writing insurance and personal finance content
Contributor to top media, including USA Today
A passionate personal finance advocate, Sarah’s writing has graced the pages of many of the personal finance and insurance industries’ top web publications.
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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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.
Quick Facts
Some of the cheapest home insurance companies in Austin include Republic Indemnity, Farmers, and Travelers.
The Texas state average for a home insurance policy with $300,000 in dwelling coverage is $3,969 per year, which is higher than the Austin average.
How much you pay for home insurance will depend on your dwelling coverage limit, deductible, home details, and more.
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.
Insurance Company
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
Average Annual Premium
Best For
Farmers
4.2
$1,481
Cheap rates
Travelers
3.9
$1,908
Flood insurance
Texas Farm Bureau Group
N/A
$1,945
High-risk homes
Armed Forces Insurance Exchange
N/A
$2,031
Military families
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Our editorial team spent 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. Criteria are weighted by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.
We rate each company on a 1 to 5 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. We update ratings once a year or as more recent information becomes available.
Third-party financial ratings: We use data from AM Best, S&P, Moody's, and more to compare insurance companies’ credit and ability to pay out future claims.
Customer satisfaction: To calculate this score, Insurify analyzed more than 20,000 customer reviews across 155 car insurance companies. We also considered third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the United States, as well as available discounts, to calculate an affordability score.
Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
Availability and reach: Insurify identified the number of states in which insurers offer coverage and company size by market share to score availability and reach.
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
3.8
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
815
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$123/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$195/mo
Austin homeowners can find some of the cheapest rates available through Farmers. In addition to homeowners insurance, Farmers offers car insurance, motorcycle insurance, life insurance, pet insurance, and more. The wide range of policy options gives you an opportunity to save when you bundle multiple types of insurance, which can lead to even cheaper rates.
Pros
Cheap rates
Multiple types of insurance to choose from
Cons
Below-average customer satisfaction rating in J.D. Power’s 2023 U.S. Home Insurance Study[2]
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.3
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
829
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$159/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$259/mo
Travelers is the sixth-largest insurer in the United States, and the company offers low average home insurance rates in Austin.
Travelers also offers flood insurance as a separate policy. This can be a good choice for homeowners in flood-prone areas of Austin because it pays for flood damage, while standard homeowners insurance coverage won’t. Travelers earned a below-average customer satisfaction rating in J.D. Power’s 2023 U.S. Home Insurance Study.
Pros
Flood insurance available
Large insurer with many coverage options
Cons
Below-average customer satisfaction rating in J.D. Power’s 2023 U.S. Home Insurance Study
Relatively negative Trustpilot reviews
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.
Pros
Below-average rates
Local roots since 1952
Cons
Some negative Yelp reviews
Must work with a local agent to finalize the right policy for you
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.
Pros
Below-average rates
Offers a range of insurance products
Cons
Some negative Yelp reviews
Available only to military members, veterans, and their families
Shop for Home Insurance in Austin
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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.
Insurance Company
Average Annual Premium
Republic Indemnity
$1,310
Farmers
$1,481
Lighthouse Property Insurance Corporation
$1,718
Travelers
$1,908
Texas Farm Bureau Group
$1,945
Armed Forces Insurance Exchange
$2,031
USAA
$2,235
Bankers Insurance Group
$2,414
State Farm
$2,627
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:
Location of the nearest fire department
Living near a fire department can help you earn lower rates.
Age of the home
Older homes with outdated building materials are usually more expensive to insure.
Condition of the roof
Having an older or damaged roof often increases your home insurance premiums.
Cost to rebuild
If you’re insuring a large home, it’s often more expensive to rebuild it after a total loss. The higher rebuilding costs can make your home insurance more expensive.[3]
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.
Coverage Limit
Average Annual Premium
$100,000
$923
$200,000
$1,327
$300,000
$1,770
$400,000
$2,194
$500,000
$2,683
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.
Deductible Amount
Average Annual Premium
$500
$2,831
$1,000
$2,791
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.
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.
Finding the right amount of coverage for your insurance needs is important. The following information should answer your remaining questions about finding cheap Austin homeowners insurance.
How much is home insurance in Austin?
The average cost of home insurance in Austin is $2,791 per year for $300,000 in dwelling coverage with a $1,000 deductible. For the same coverage with a $500 deductible, the average cost in Austin is $2,831 per year. If you decide to purchase a separate flood insurance policy, you’ll have to pay another premium.
Who has the cheapest homeowners insurance in Austin?
Republic Indemnity has the cheapest homeowners insurance in Austin, with an average annual premium of $1,310 for $300,000 in dwelling coverage. Farmers is the second-cheapest home insurance company in Austin, with an average annual premium of $1,481. The best way to find cheap home insurance is to compare home insurance quotes from multiple insurers.
Does Austin require homeowners insurance?
No. Texas doesn’t require homeowners to purchase home insurance, but your mortgage company will. Even if you’ve paid off your mortgage, you should maintain home insurance to avoid expensive out-of-pocket costs following damage to your home. And having home insurance can cover your liability and loss of use.
How much is insurance on a $300K house in Texas?
The average cost to insure a Texas home with $300,000 in dwelling coverage is $3,969 for a policy with a $1,000 deductible and $4,026 for a policy with a $500 deductible.
Sarah Sharkey is a personal finance writer who enjoys helping people make savvy financial decisions. She covered insurance and personal finance topics. You can find her work on Business Insider, Money Under 30, Rocket Mortgage, Bankrate, and more. Connect with her on LinkedIn.
Edited byKatie PowersAuto and Life Insurance Editor
Katie PowersAuto and Life Insurance Editor
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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