Overall, home insurance in Texas for most drivers is around $499 monthly or $5,989 per year. Compared to the national average, Texans can expect to pay $280 more per month or around $3,354 yearly. These rates make it the 2nd most expensive in the country.
Average Home Insurance Cost in Texas
Updated: March 19, 2025
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Key Takeaways
Home insurance costs in Texas can range from $1,063 per year to well over $10,000, depending on your financial history, home details, coverage chosen, and provider.
Home insurance premiums in Texas are the 2nd most expensive in the country, with rates that are 127% over the national average.
To save on home insurance costs in the state, we recommend finding what coverage you need beforehand, researching costs and discounts in your area, and shopping around.
How Much is Home Insurance in Texas?
| Texas Average | $499 | $5,989 | 127% |
| National Average | $220 | $2,635 | 0% |
*These rates represent a home built in 2000 out of frame with $250K Dwelling, $125K Personal Property, and $200K Liability coverage with a $1,000 deductible.
Compare Personalized Average Home Insurance Costs
While the rates above represent most homeowners in Texas, it may not be the right estimate for you. So below, we’ve created a filterable table where you can select factors specific to you to find how much people with your same profile pay for home insurance.
Data filtered by:Results filtered by:
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Coverage Level:$250K Dwelling / $125K Personal Property / $200K Liability
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Deductible:1000
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Claims History:Claim free for 5+ years
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Credit Tier:Good
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Home Age:Older Homes
| $250K Dwelling / $125K Personal Property / $200K Liability | $515 | $6,185 |
Average Home Insurance Cost By City
Depending on your city, various risk factors, including the age of your home, weather-related factors, and valuations of homes, change drastically, affecting home insurance costs. For example, average monthly home insurance costs for El Paso are around $207 per month, while for Dallas, it is much higher at $448 per month.
| Abilene | $513 | $6,162 |
| Allen | $461 | $5,533 |
| Amarillo | $586 | $7,032 |
| Arlington | $466 | $5,593 |
| Austin | $267 | $3,205 |
| Beaumont | $756 | $9,078 |
| Brownsville | $732 | $8,788 |
| Carrollton | $510 | $6,125 |
| College Station | $527 | $6,325 |
| Corpus Christi | $1,095 | $13,136 |
| Dallas | $448 | $5,372 |
| Denton | $528 | $6,333 |
| El Paso | $207 | $2,481 |
| Fort Worth | $457 | $5,484 |
| Frisco | $489 | $5,869 |
| Garland | $474 | $5,685 |
| Grand Prairie | $528 | $6,331 |
| Houston | $728 | $8,738 |
| Irving | $485 | $5,819 |
| Killeen | $284 | $3,406 |
| Laredo | $363 | $4,357 |
| League City | $919 | $11,029 |
| Lewisville | $478 | $5,738 |
| Lubbock | $481 | $5,777 |
| McAllen | $504 | $6,051 |
| McKinney | $466 | $5,592 |
| Mesquite | $474 | $5,690 |
| Midland | $457 | $5,479 |
| Odessa | $452 | $5,419 |
| Pasadena | $861 | $10,336 |
| Pearland | $861 | $10,336 |
| Plano | $449 | $5,385 |
| Richardson | $479 | $5,751 |
| Round Rock | $282 | $3,380 |
| San Angelo | $463 | $5,556 |
| San Antonio | $359 | $4,309 |
| Sugar Land | $777 | $9,318 |
| The Woodlands | $667 | $8,006 |
| Tyler | $371 | $4,449 |
| Waco | $377 | $4,526 |
| Wichita Falls | $642 | $7,704 |
Why Is Home Insurance So Expensive in Texas?
Overall, the main reasons home insurance is so expensive in Texas is due to the rising number of claims in the state, high risk of damaging weather/natural disasters, rising material/labor costs, and current state insurance laws. Below, we will go into detail about each of these factors:
Rising Claims
Texas homeowners make more claims than average compared to the rest of the country. The Insurance Information Institute (III) reports that in 2023, the state recorded the 2nd highest total incurred insurance losses (claim value) in the country at 60.5 billion dollars, which leads insurers to charge more.
High Weather Risks
Due to high risks for major weather damages around the Gulf Coast and large population centers in Texas, the likelihood of expensive claims is higher. In 2024, weather-related risks accounted for at least 20 billion dollars in damages, mostly from severe storms and cyclones.
Rising Material and Labor Costs
Since 2020, the price index for construction materials for residential homes has soared by 38% compared to four years prior. Within this same period, wages for construction workers have risen 35%, making the costs of paying for damages higher, all contributing to higher claims costs for insurers.
State Insurance Laws
Currently, Texas operates under a file and use system, allowing insurers to notify state departments and raise insurance rates without full approval from the Texas Department of Insurance. In addition, home insurance is required if you’re getting a mortgage, and with most opting out of that market to keep renting due to the high expenses, it decreases the pool for insurers to pull funds from for claims, increasing the risk of insuring homeowners.
Tips to Save on Texas Home Insurance
Especially with high costs in the state of Texas, it is even more important to find ways to save on premiums if you want to buy a home or cut expenses for your current home. So below, we share some tips to help you find the best and cheapest home insurance in Texas for your situation.
- 1
Find How Much Coverage You Need Beforehand
Determining how much home insurance you need before buying allows you to frame how you search for coverage and avoid being oversold by agents. In addition to standard coverage options, you should also consider if you need add-ons to protect any additional items you own.
- 2
Research Costs and Discounts Beforehand
To know whether you’re actually getting a good deal, you’ll need to understand average costs for you and your home specifically. Also, be sure to ask about all home insurance discounts with agents since insurers are not required to apply some of their reductions unless you ask them for home policies.
- 3
Compare Multiple Providers Through Different Avenues
Once you are armed with research, compare multiple insurers apples to apples for the coverage you want. We also recommend using multiple different avenues such as online comparison sites, brokers, provider websites, and provider agents since quotes will vary widely between each method.
- 4
Consider Bundling Policies
Like all states, you can have significant savings when bundling policies. For example, if you bundle home and auto insurance in Texas, you can save up to 29% on home insurance and $1,188 per year for both policies.
- 5
Reduce Your Personal Risk Profile
To get cheaper premiums on your home, consider making improvements like adding storm shutters or home security systems. Also, improving your credit score can decrease premiums drastically. For example, moving from a fair to a good credit score can save you 28% on average.
- 6
See if You Are Eligible for State Programs
If you are denied by traditional insurers, Texas offers the TFPA policy to insure you. While TFPA plans don’t offer the same amount of coverage you get with traditional policies, it does satisfy mortgage requirements.
Texas Home Insurance Rates: The Bottom Line
Texas falls within the top three most expensive states to insure a home and has many factors alluding to much higher premiums in the future. However, it is still possible to get affordable coverage in the state by doing your own research, deciding your needs before hand, and comparing plenty of quotes.
Average Home Insurance Cost Texas: FAQ
Below, you can review our expert answers to frequently asked questions about Texas home insurance costs:
How much is home insurance per month in Texas?
For most homeowners in Texas, home insurance costs around $499 per month for coverage. However, depending on personal factors and your coverage level chosen, prices can be as low as $89 per month to over $1,000 a month.
Why is home insurance expensive in Texas?
Due to inflationary pressure, prices for building materials and labor have skyrocketed in recent years across the country and especially in Texas. In conjunction with this, the major risks of weather-related damages in the state’s population centers and state law’s allowance for rate increases without full approval causes exceptionally high rates in Texas to be widespread.
What home insurance is required in Texas?
Home insurance is not required by the state of Texas but will be required by a lender if you have a mortgage, similar to if you were financing a car. In general, this requirement will apply to your dwelling coverage, and as long as you are covered up to the value of your home if it were to be completely destroyed, you’ll meet lender requirements. Although, specifics will be in your specific mortgage agreement and will differ widely from home to home
Our Methodology For Determining Texas Home Insurance Costs
When determining the average cost of home insurance in Texas, we used a base profile for a simple estimate consistent with the following:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 liability coverage
- Home Built Year: 2000
- Construction type: Frame
- Roof type: Composition
- $1,000 deductible
- No claims in the past 5+ years
- Fire protection level of 3
However, rates will vary widely depending on factors such as coverage level, provider chosen, the age of the home, other features of the home, insured credit and claims history, among other factors. All other combinations presented in this article assume the home was built in 2000.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.