The Best and Cheapest Home Insurance Companies in Texas (2026)
Mercury usually has the cheapest home insurance in Texas, at $1,453/yr, on average. | ||
Homeowners insurance in Texas costs an average of $3,969/yr, making it the fifth-most expensive state in the U.S. | ||
Coastal areas near Houston tend to have much more expensive insurance, with average quotes up to $9,500/yr. |
Find Cheap Home Insurance Quotes in Texas
Who has the best cheap home insurance in Texas?
Who has the cheapest home insurance in Texas?
Mercury has the most affordable homeowners insurance in Texas.
Find Cheap Home Insurance Quotes in Texas
-
Mercury's home insurance costs 52% to 76% less than the Texas state average, depending on your home and the amount of coverage you need.
However, Mercury's customer service isn't great. So you may be sacrificing a smooth claims process for cheap rates if you choose Mercury.
-
Texas Farm Bureau also has very affordable coverage, with rates that are 31% to 54% cheaper than average. And it's the cheapest option for expensive homes, at $4,143 per year for $1 million of dwelling coverage.
Texas Farm Bureau has fewer customer complaints than Mercury. It may be worth spending more for the peace of mind that your insurance company will take great care of you in an emergency.
Cheapest homeowners insurance quotes in Texas by dwelling coverage limit
$200,000
$350,000
$500,000
$1 million
Company | Annual rate | ||
|---|---|---|---|
| Mercury | $985 | |
| Texas Farm Bureau | $1,726 | |
| Farmers | $2,300 | |
| Allstate | $2,767 | |
| State Farm | $2,798 | |
*USAA is only available to military members, veterans and some of their family members.
Key takeaways
Best home insurance in TX for most people: Texas Farm Bureau
| Editor rating | |
| Annual cost | $2,506 |
| Monthly cost | $209 |
| Customer complaints |
Pros & cons
- Affordable home insurance
- Very few customer complaints
- Helpful local agents
- No online quotes
- Very little info available online
Why is Texas Farm Bureau the best?
Texas Farm Bureau is the best choice for most people because it offers affordable home insurance along with great customer service.
How much is Texas Farm Bureau insurance in Texas?
Dwelling coverage limit | Annual rate | % from state avg. |
|---|---|---|
| $200,000 | $1,726 | 31% cheaper |
| $350,000 | $2,506 | 37% cheaper |
| $500,000 | $2,998 | 42% cheaper |
| $1 million | $4,143 | 54% cheaper |
Texas Farm Bureau also has excellent customer service reviews. The company gets 47% fewer complaints than an average company of its size. That means most customers are very happy with their experience at Farm Bureau.
Potential issues
Texas Farm Bureau's website is very dated, which could make it harder to buy a policy or manage your coverage.
The company doesn't offer online quotes, so you'll have to speak with a local insurance agent to get your rate, buy a policy or even learn about some basic options for coverage and discounts.
The website also doesn't share much info about many of the features of Texas Farm Bureau's coverage. If you're looking for a policy with upgraded protection, you'll need to talk to an agent to see if the company offers the coverage you're looking for in your area.
While Texas Farm Bureau is cheaper than average, it's typically much more expensive than the overall cheapest option, Mercury. For example, a policy with $350,000 of dwelling coverage costs over $1,000 per year more from Farm Bureau than Mercury.
Best for cheap home insurance in TX: Mercury
| Editor rating | |
| Annual cost | $1,453 |
| Monthly cost | $121 |
| Customer complaints |
Pros & cons
- Cheapest rates in TX
- Lowest rates for new homes and seniors
- Offers online quotes
- Mediocre customer service
- Few coverage add-ons and discounts
Why is Mercury the best?
Mercury offers the cheapest home insurance for most people in Texas.
How much is Mercury insurance in Texas?
Dwelling coverage limit | Annual rate | % from state avg. |
|---|---|---|
| $200,000 | $985 | 61% cheaper |
| $350,000 | $1,453 | 63% cheaper |
| $500,000 | $2,168 | 58% cheaper |
| $1 million | $4,341 | 52% cheaper |
In addition, Mercury offers online quotes, so you can quickly compare prices and buy a policy. That could be helpful if you're buying a new home and need coverage fast.
Potential issues
The biggest downside to Mercury is that it doesn't have the best customer service.
- Mercury was ranked 22nd out of 27 of the largest home insurance companies on J.D. Power's customer satisfaction survey.
- Mercury also gets an average number of customer complaints for a company its size. While this isn't terrible, both Texas Farm Bureau and State Farm get fewer complaints than average.
- Most of Mercury's complaints are about Mercury's slow claims process and low settlement offers.
That means it may take Mercury longer to send you a check after your home is damaged, and you could end up paying more for repairs.
Additionally, Mercury doesn't offer as many coverage add-ons as other companies. If you want to upgrade your home insurance protection with extra coverage, consider Allstate, instead.
Compare rates for new homes
Cheapest insurance for new homes in Texas
Company | Annual rate | ||
|---|---|---|---|
|
| Mercury | $590 | |
|
| State Farm | $1,882 | |
|
| Farmers | $2,145 | |
| Nationwide | $2,148 | |
|
| Texas Farm Bureau | $2,506 | |
Rates are for a home with $350,000 of dwelling coverage.
Compare rates for seniors
Cheapest homeowners insurance in Texas for seniors
Company | Annual rate | ||
|---|---|---|---|
|
| Mercury | $1,397 | |
|
| Texas Farm Bureau | $2,506 | |
|
| Farmers | $3,719 | |
|
| State Farm | $3,874 | |
|
| Allstate | $4,746 | |
Rates are for a home with $350,000 of dwelling coverage.
Best for bundling home and auto insurance in Texas: State Farm
| Editor rating | |
| Annual cost | $3,874 |
| Monthly cost | $323 |
| Customer complaints |
Pros & cons
- Cheap auto insurance in TX and large discount make it great for bundling
- Reliable customer service
- Not the cheapest option for home insurance
- May not offer coverage in coastal areas
Why is State Farm the best?
State Farm's affordable car insurance and large bundling discount make it the best choice if you prefer to get all of your insurance policies from one company in Texas.
State Farm tends to have some of the lowest car insurance quotes in Texas. Paired with its cheaper-than-average home insurance and great bundling discount, it could provide the best value if you're buying both from the same company.
For example, a State Farm policy with $350,000 of dwelling coverage costs an average of $3,874 per year. On average, State Farm customers can save around 27.4% on their home insurance rates when they also buy a car insurance policy. That could bring your home insurance rate down to $2,813 per year, which is a savings of over $1,000.
State Farm customers are also typically happy with the service they receive.
- State Farm gets 92% fewer customer complaints than an average company its size.
- State Farm was ranked fifth out of 27 top insurance companies on J.D. Power's customer satisfaction survey.
Potential issues
Although home insurance from State Farm is typically cheaper than average, it's not the most affordable company in Texas. A policy with $350,000 of dwelling coverage is twice as expensive from State Farm as the cheapest company, Mercury.
Additionally, State Farm may not offer coverage to homes in coastal areas. So people living in high-risk areas around the Gulf Coast, like parts of Galveston or Corpus Christi, may not be able to get a policy.
Best high-value home insurance in Texas: Chubb
| Editor rating | |
| Cost for a $500,000 home | $3,289/yr |
| Cost for a $1 million home | $4,956/yr |
| Customer complaints |
Pros & cons
- Affordable rates for expensive homes
- Excellent customer service
- Standard policy includes extra coverage
- No online quotes
- Only available for high-value homes
Why is Chubb the best?
Chubb offers coverage tailored to expensive homes at an affordable rate.
Chubb is the third-cheapest home insurance company in Texas for high-value homes.
How much is Chubb insurance in Texas?
Dwelling coverage limit | Annual rate | % from state avg. |
|---|---|---|
| $500,000 | $3,289 | 36% cheaper |
| $1 million | $4,956 | 45% cheaper |
While Chubb is not the cheapest option, the extra protection included in its basic policy may be worth the additional cost.
For instance, Chubb policies include extended replacement cost, which pays to repair or replace older items with brand new ones even if they're worth less than when you got them.
You can also get a cash settlement if a "covered incident," such as a fire, completely destroys your home. In other words, Chubb will cut you a check if you decide not to rebuild your home.
Chubb also offers flood insurance with much higher limits than you can get from the National Flood Insurance Program (NFIP). That's really important for expensive homes that can't be fully covered with the NFIP.
Potential issues
The main downside of Chubb is that the company usually only covers expensive homes. So it may not be an option if you have a more affordable house.
Additionally, you can't compare quotes from Chubb online. You'll have to speak with a local independent insurance agent, so it could take longer to buy a policy.
Best homeowners insurance in Texas
The best-rated homeowners insurance companies in Texas are Chubb and Texas Farm Bureau.
Both companies have affordable rates and very few complaints, according to the National Association of Insurance Commissioners (NAIC). However, Chubb typically only sells insurance for high-value homes.
Top-rated insurance companies in Texas
Company |
Rating
|
Complaints
|
|---|---|---|
| Chubb | Low | |
| Texas Farm Bureau | Low | |
| State Farm | Low | |
| USAA | Low | |
| Farmers | Average |
How much is home insurance in Texas?
The average cost of homeowners insurance in Texas is $3,969 per year.
That's two-thirds more than the national average, which makes Texas the fifth-most expensive state in the country for home insurance.
Dwelling coverage | Average rate |
|---|---|
| $200,000 | $2,519 |
| $350,000 | $3,969 |
| $500,000 | $5,135 |
| $1 million | $9,004 |
Texas home insurance rates are expensive, but quotes in neighboring states are also typically pricey.
Oklahoma has the most expensive home insurance in the country, at $5,298 per year. Arkansas and Alabama are also in the top 10 most expensive states for home insurance.
Average cost of home insurance in Texas' largest cities
Houston
How much is homeowners insurance in Houston, TX?
The average cost of home insurance in Houston is $5,067 per year. That's 28% more expensive than the Texas state average.
Houston homeowners can find much cheaper insurance at Mercury, where a policy costs $1,609 per year, on average.
Company | Annual rate | |
|---|---|---|
|
| Mercury | $1,609 |
|
| Texas Farm Bureau | $2,667 |
|
| State Farm | $4,616 |
|
| Nationwide | $5,186 |
|
| Allstate | $6,267 |
Rates are for a policy with $350,000 of dwelling coverage.
Home insurance in Houston is likely more expensive because of its location near the coast, where homes have a higher risk of storm damage.
Houston also has some of the highest property crime rates in Texas. In fact, people living in Houston experience nearly twice as much property crime as the national average for major cities. That means Houston homeowners are more likely to have their homes broken into or vandalised.
San Antonio
How much does home insurance in San Antonio cost?
Homeowners in San Antonio pay an average of $2,668 per year for insurance, which is one-third cheaper than the state average.
Mercury, Farmers and Texas Farm Bureau offer the cheapest rates in San Antonio. All three companies have average rates under $1,800 per year.
Company | Annual rate | |
|---|---|---|
|
| Mercury | $1,259 |
|
| Farmers | $1,686 |
|
| Texas Farm Bureau | $1,783 |
|
| State Farm | $2,544 |
|
| Allstate | $3,460 |
Rates are for a policy with $350,000 of dwelling coverage.
It's less common for a big city like San Antonio to have lower home insurance rates than the state average. However, San Antonio has fewer costly weather events like hailstorms and flooding compared to other parts of Texas. This likely makes homes in the area cheaper for insurance companies to protect.
Dallas
How much is home insurance in Dallas, TX?
Homeowners insurance in Dallas costs an average of $4,223 per year. That's 6% higher than the Texas average.
Mercury has the cheapest home insurance in Dallas by a large margin. A policy from Mercury costs around $1,572 per year, which is more than $1,000 per year less than the second-cheapest option, Farmers.
Company | Annual rate | |
|---|---|---|
|
| Mercury | $1,572 |
|
| Farmers | $2,671 |
|
| Texas Farm Bureau | $2,836 |
|
| State Farm | $3,607 |
|
| Allstate | $4,693 |
Rates are for a policy with $350,000 of dwelling coverage.
Homes in Dallas are at serious risk of hail damage. In fact, Dallas has the most homes with a moderate or higher risk of hail damage in the U.S., with over 2.1 million homes at risk.
Dallas homeowners should check their attics for signs of leaks before storm season, which typically runs from March through June. This can help prevent major water damage throughout your home.
Austin
How much is home insurance in Austin, TX?
The average cost of homeowners insurance in Austin is $2,598 per year, which is one-third cheaper than the Texas average.
Mercury and Texas Farm Bureau have the cheapest home insurance in Austin, at $1,411 and $1,670 per year, respectively.
Company | Annual rate | |
|---|---|---|
|
| Mercury | $1,411 |
|
| Texas Farm Bureau | $1,670 |
|
| Farmers | $1,956 |
|
| State Farm | $2,617 |
|
| Allstate | $3,448 |
Rates are for a policy with $350,000 of dwelling coverage.
Austin has the fifth-highest number of homes with a moderate or greater risk of wildfire damage among major cities in the U.S.
Fortunately, home insurance almost always covers fire damage. But it's important to check your policy coverage because insurance companies sometimes exclude wildfire coverage for homes in very high-risk areas.
Fort Worth
How much does home insurance in Fort Worth cost?
Ft. Worth home insurance costs an average of $4,436 per year, 12% higher than the Texas average.
Mercury is the cheapest insurance company for most Fort Worth homeowners. At around $1,561 per year, a policy from Mercury costs $1,311 per year less than the second-cheapest company, Farmers.
Company | Annual rate | |
|---|---|---|
|
| Mercury | $1,561 |
|
| Farmers | $2,872 |
|
| Texas Farm Bureau | $3,096 |
|
| State Farm | $3,730 |
|
| Allstate | $5,267 |
Rates are for a policy with $350,000 of dwelling coverage.
Texas home insurance rates by city
Taylor Lake Village, a waterfront town outside of Houston, has the highest home insurance rates in Texas.
Homeowners insurance in Taylor Lake Village typically costs around $9,545 per year for a policy with $350,000 of dwelling coverage.
Homestead Meadows South, which is part of the El Paso metro area, has the cheapest rates. The average rate in Homestead Meadows South is $2,105 per year.
Find Cheap Home Insurance Quotes in Texas
Cheapest home insurance in Texas by city
City | Average rate | Cheapest company | Cheapest rate |
|---|---|---|---|
| Abbott | $3,633 | Mercury | $1,303 |
| Abernathy | $4,535 | Mercury | $1,524 |
| Abilene | $4,211 | Mercury | $1,378 |
| Abram | $3,453 | Mercury | $1,893 |
| Ace | $2,824 | Mercury | $1,550 |
Rates are for a policy with $350,000 of dwelling coverage.
What homeowners insurance coverage do I need in the state of Texas?
As the largest state in the contiguous U.S., Texas has a wide range of severe weather that affects its homeowners.
Hail causes the most damage to Texas homes. Damage from hurricanes and other storms is a concern near the Gulf of Mexico. Meanwhile, homes further inland are at risk for wildfires and tornadoes.
Keep in mind, you'll need a different type of coverage if you have a mobile home in Texas.
Does Texas homeowners insurance cover hail damage?
Standard homeowners insurance almost always covers hail damage. So if hail breaks a window or causes your roof to leak, home insurance will pay to fix or replace it.
However, home insurance doesn't usually pay to fix cosmetic damage. That means if a hailstorm dents your siding but doesn't cause damage underneath, it's likely not covered.
Texas has nearly 8 million homes with a moderate or greater risk of hail damage. That makes Texas the top state for hail damage exposure in the U.S. In 2025, nearly 236,000 Texas homes were damaged by hail at least 2 inches in diameter, about the size of a golf ball.
Does TX home insurance cover hurricanes and tropical storms?
There are two main types of damage caused by coastal storms: wind damage and flooding. Homeowners insurance typically covers damage caused by wind, but not flooding.
Is wind damage covered by Texas homeowners insurance?
A standard home insurance policy usually includes protection against wind damage.
So if the wind breaks a window or causes a tree to fall on your roof, your homeowners insurance will cover the costs.
However, if your home is near the coast or in Tornado Alley, the insurance company may consider it at high risk for wind damage. In that case, you may have to pay a separate wind deductible to fix damage caused by wind.
If insurance companies feel your home is too risky, they may not offer you wind coverage at all.
If this is the case, you can buy a wind policy from the Texas Windstorm Insurance Association (TWIA). The TWIA offers wind insurance in 15 counties across Texas.
Windstorms caused nearly $23 million in damage to Texas homes in 2025, and that doesn't include hurricanes or tropical storms.
Does Texas home insurance cover flooding?
Homeowners insurance doesn't usually cover flood damage, whether from a hurricane, rainwater or an overflowing lake or river.
If your home is at risk of flooding, you'll need to buy a flood insurance policy.
How much does flood insurance cost in Texas?
The average cost of a policy from the National Flood Insurance Program (NFIP) is $949 per year across Texas. Your flood insurance may cost more if you're in a very high-risk area.
You have two main options for flood insurance: a National Flood Insurance Program (NFIP) policy or a policy from a private insurance company. You should compare quotes for both NFIP and private flood insurance to find the lowest prices and best coverage.
The National Flood Insurance Program paid more than $156 million to repair flood damage in 2,045 claims across Texas in 2025. That's an average of more than $76,000 in damage per claim.
Cameron County had the most severe damage, with nearly $88 million in flood insurance claims. That's because Cameron County had severe thunderstorms in March, which dumped 6 to 20 inches of rain across the Rio Grande Valley within a two-day period.
Are wildfires covered by home insurance in Texas?
Homeowners insurance almost always covers fire damage.[ So most people have protection against wildfire damage as long as their coverage limits are high enough.
If your home is in an area with a high risk of wildfires, insurance companies may not offer you fire insurance.
In this case, you should buy a separate fire insurance policy so you have protection against wildfire damage.
Wildfires are most common in the western parts of Texas, where conditions tend to be drier and more susceptible to fire.
Nearly 245,000 homes across Texas have a moderate or higher risk of wildfire damage. That's the third-highest number of high-risk homes in the country.
Within Texas, Austin has the most homes susceptible to wildfire damage, with 94,673 in moderate to high-risk areas.
On a county level, Bandera, Real, Kendall, Kerr and Comal counties have the highest percentage of homes with a high to extreme risk of wildfire damage. These counties are in the Texas Hill Country outside of San Antonio, which is the same region that experienced devastating flooding in 2025.
Are tornadoes covered by insurance in Texas?
Homeowners insurance typically covers wind, which is the main cause of tornado damage.
Standard home insurance policies also usually cover other sources of tornado-related damage, such as hail. But coverage can vary by company and region, especially if you live in an area with frequent tornadoes. You should double-check your policy or talk to your agent to make sure you have the right protection.
Tornadoes are common in Texas, especially during springtime. Tornadoes generally don't cause as much widespread damage as a hurricane. But they often appear with little or no warning. This means you won't have much time, if any, to prepare before a storm hits.
Once tornadoes form, they generally travel at around 30 mph. But they can move at speeds up to 70 mph in the right conditions. If you're in an area under a tornado watch or warning, stay inside in a protected area until the danger passes.
How to find the best home insurance in Texas
The best home insurance companies in Texas offer excellent customer service and the coverage you need at an affordable price. To find the best company for you, start by deciding how much coverage you need. Then, compare quotes and look at customer service reviews.
Decide how much protection you need. Most basic home insurance policies come with the same types of coverage. But limits can differ by company, especially if you live somewhere with frequent tornadoes, wildfires or hurricanes.
In addition, not all companies offer the same coverage add-ons, like hidden water damage or flood coverage. If you need extra protection, make sure it's an option before you waste time going through the quote process.
Compare quotes from multiple companies. There's a difference of over $4,500 per year between the most and least expensive home insurance companies in Texas.
The cheapest company in the state may not be the best option for you. Home insurance companies all calculate quotes differently. They take into account unique factors such as your home's building materials and your insurance history. That's why it's important to shop around for the best price.
Compare customer service reviews. You want a home insurance company that will make your life easier if you ever have an emergency. Companies with great reviews typically have a hassle-free claims process and pay you a fair price to fix damage.
You can start by reviewing ValuePenguin editor's ratings, which consider customer service scores, complaints, availability and overall value. If you'd like to do more research, you can look up the J.D. Power home insurance customer satisfaction study. You can also view a company's complaints at the National Association of Insurance Commissioners (NAIC) website.
Texas home insurance trends
Home insurance prices are up nearly 57% in Texas over the last five years.
Texas home insurance rates went up by a staggering 22.9% in 2023, followed by a 10.4% increase in 2024. Homeowners saw much lower increases in 2025, when rates went up by an average of just 1%.
How much has home insurance gone up in Texas over the last five years?
Year | Rate increase |
|---|---|
| 2021 | 4.56% |
| 2022 | 9.22% |
| 2023 | 22.87% |
| 2024 | 10.41% |
| 2025 | 1.04% |
Home insurance rate change data was compiled using RateWatch from S&P Global, which uses information from the National Association of Insurance Commissioners (NAIC).
In Texas, three different insurance companies more than doubled their home insurance prices over the last five years: Texas Farm Bureau (113.7%), Liberty Mutual (102.7%) and Nationwide (100.4%).
State Farm had the smallest increase, at just 25.1%.
Frequently asked questions
What is the average cost of homeowners insurance in Texas?
A homeowners insurance policy in Texas costs $3,969 per year, or $331 per month, on average. That's 66% higher than the national average, making Texas the fifth-most expensive state in the country for home insurance.
Why is Texas home insurance so expensive?
Home insurance in Texas is expensive because weather damage is common across the state. Homes located near the coast and those in Tornado Alley have frequent wind damage, while Western Texas is prone to wildfires. This damage can be expensive, so insurance companies charge more to offset their costs.
Who has the cheapest homeowners insurance in Texas?
Mercury is the cheapest home insurance company in Texas, with an average price of $1,453 per year. That's 63% cheaper than the state average.
What are the top three home insurance companies in Texas?
Texas Farm Bureau, State Farm and Chubb are the top home insurance companies in Texas. All three companies have affordable rates and minimal customer complaints.
Methodology
To find the best homeowners insurance in Texas, ValuePenguin collected thousands of insurance quotes from the largest homeowners insurance companies in Texas across every ZIP code in the state. Rates are for a 45-year-old married man with a good credit score and no prior insurance claims. Quotes are for a 2,170 square foot home built 39 years ago, based on the average home age and size in Texas.
Quotes include the following coverage limits:
- Dwelling coverage: $200,000, $350,000, $500,000 or $1 million
- Personal liability: $100,000
- Medical payments: $1,000
- Deductible: $1,000
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurance company filings and should be used for comparative purposes only. Your own quotes may be different.
Sources:
About the Author
Senior Writer
Lindsay Bishop is a Senior Writer at ValuePenguin, where she educates readers about home, auto, renters, flood and motorcycle insurance.
Lindsay began her career in the insurance and financial industry in 2010. She was a licensed auto, home, life and health insurance agent and held Series 6 and 63 financial licenses.
After a hiatus from the financial sector, Lindsay returned to the industry as a content writer for ValuePenguin in 2021. She enjoys having the opportunity to help readers make smart decisions about their insurance so they can be prepared for anything life throws their way.
When Lindsay isn't writing about insurance, you can find her spending time with family, enjoying the outdoors on Sunday long runs or riding her Peloton.
How insurance helped Lindsay
As a homeowner for 15 years located in South Carolina, Lindsay has plenty of experience navigating the coastal insurance market and managing the claims process. That includes successfully negotiating a full roof replacement claim.
Expertise
- Home insurance
- Car insurance
- Flood insurance
- Renters insurance
- Motorcycle insurance
Referenced by
- CNBC
- Yahoo Finance
- Miami Herald
Education
- BS/BA Economics, University of Nevada Las Vegas
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
