Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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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.
Quick Facts
The cheapest home insurance companies in Houston include Armed Forces Insurance Exchange, Travelers, and Lighthouse Property Insurance Corporation.
Standard home insurance policies typically cover damage from wildfires, but they don’t cover flood damage. If you live in a high-risk area, you may need to purchase a separate flood insurance policy.
Houston homeowners who can’t find standard home insurance can get basic coverage through the Texas FAIR Plan Association.
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.
Insurance Company
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
Average Annual Premium
Best For
Armed Forces Insurance Exchange
NR
$2,480
Cheapest rates
Travelers
7.8
$3,721
Green homes
State Farm
8.2
$3,936
Bundling
Farmers
8.4
$4,144
New homes
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]
Pros
Offers optional flood insurance coverage
Once you have insurance with AFI, you’re always eligible, even if your military status changes
Cons
Not available to the general public
Lower AM Best financial strength rating of B+ (Good)
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.0/10
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.
$310/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.
$505/mo
For more than 165 years, Travelers has been providing insurance to U.S. customers. The company offers a wide variety of insurance products, including home, renters, condo, travel, pet, and business owner policies. If the Leadership in Energy and Environmental Design (LEED) organization certifies your home as “green,” you can save up to 5% on your policy.
Pros
A++ (Superior) financial strength rating from AM Best
Long history in insurance
Cons
Below-average J.D. Power property claims satisfaction rating
Low customer rating on the Better Business Bureau (BBB) website
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.3/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
842
$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.
$328/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.
$469/mo
State Farm is a well-known insurance company that’s been selling insurance products for more than 100 years. Customers can purchase banking and investing products, as well as homeowners, renters, condo, auto, business, pet, health, and life insurance. You can bundle multiple policies, such as your home and auto, to save up to $1,273 per year.
Pros
Above-average J.D. Power customer satisfaction and claims satisfaction ratings
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.3/10
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.
$345/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.
$607/mo
Farmers could be a good choice for people who own newer homes in Houston. The company offers a discount for homes that are less than 14 years old. Several other discounts are also available, including home safety discounts, claims-free discounts, and affinity discounts. The company also has strong customer satisfaction and financial strength ratings.
Pros
A (Excellent) financial strength rating from AM Best
Above-average J.D. Power customer satisfaction rating
Cons
Premiums are more expensive than some insurers
Below-average J.D. Power claims satisfaction rating
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.
Insurance Company
Average Annual Premium
Armed Forces Insurance Exchange
$2,480
Travelers
$3,721
Lighthouse Property Insurance
$3,814
State Farm
$3,936
Farmers
$4,144
Mercury
$4,252
ASI
$4,261
Bankers Insurance Group
$4,454
Foremost
$4,830
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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.
Coverage Limit
Average Annual Premium
$100,000
$1,910
$200,000
$3,207
$300,000
$4,456
$400,000
$5,581
$500,000
$6,757
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.
Deductible Amount
Average Annual Premium
$500
$5,590
$1,000
$5,511
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.
City
Average Annual Premium
Austin
$2,842
Brownsville
$5,184
Dallas
$4,585
El Paso
$2,102
Fort Worth
$5,106
Frisco
$4,502
Houston
$5,511
Ingleside
$5,573
San Antonio
$3,162
Sugar Land
$5,991
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.
Dwelling coverage pays to repair or rebuild your home if it’s damaged in a fire, hurricane, or by another covered peril.
Personal property
Personal property coverage insures the personal items that are inside your home, such as your furniture, clothing, or treadmill.
Liability
Liability insurance covers you if someone falls on your driveway and takes legal action, for example.
Additional living expenses
Also called loss of use coverage, this pays for things like your hotel and food if you temporarily can’t live in your home due to property damage from a storm or fire.
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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:
Windstorms
Homeowners in Houston are familiar with windstorms. A storm in May 2024 resulted in $5 billion–$7 billion in damage. While most Texas homeowners can get wind coverage as part of their standard homeowners policy, people with homes along the coast, or in Harris County or Galveston Bay, may need to have separate coverage.[5] Texas residents who can’t get windstorm insurance on the regular market can apply for coverage through the Texas Windstorm Insurance Association (TWIA).
Hurricanes
In Houston, Hurricane season runs from June through November. Most insurance companies cover damage to the structure of your home in a hurricane. But you may have to pay a separate deductible for hurricanes, which can range from 1%–5% of the insured value of the structure of your home.[6]
Flooding
Houston homeowners may experience flooding due to storm surges. Homeowners insurance typically doesn’t cover flooding, so you’ll need to purchase a separate policy. Homeowners can apply for flood insurance through the National Flood Insurance Program (NFIP), which is part of the Federal Emergency Management Agency (FEMA).
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.
Houston homeowners insurance FAQs
If you’re shopping for home insurance in Houston, this additional information may help as you research your coverage options.
How much is home insurance in Houston?
Home insurance in Houston costs $5,511 per year on average for a policy with a $1,000 deductible and $300,000 in dwelling coverage. This is higher than the Texas average of $4,456 per year for the same coverage.
Your home insurance rates will vary depending on many factors, including your ZIP code, the age of your home, the square footage of your home, and the coverage levels you choose.
Which company has the cheapest homeowners insurance in Houston?
Armed Forces Insurance Exchange has the cheapest homeowners insurance in Houston, with average annual premiums of $2,480. Travelers and Lighthouse Property Insurance Corporation also offer affordable coverage in the city, with average annual premiums of $3,721 and $3,814, respectively.
Does Houston require homeowners insurance?
No. Houston doesn’t require homeowners insurance, but if you have a mortgage on your home, your lender will require it. Home insurance is important because it protects you financially if something damages or destroys your home and you need to make repairs or rebuild. Without home insurance, you’d have to cover the entire cost out of pocket.
Which company has the cheapest homeowners insurance in Texas?
Farmers is the cheapest home insurance company in Texas, with average statewide premiums of $2,167 per year, or $181 per month.
Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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