We analyzed the cheapest rates and top companies for home insurance across the Lone Star State.
Texas is not just about a piece of land or a steak, but everything is bigger there. It turns out that homeowners insurance is also affected by this saying.
Texas home insurance is third most expensive in the United States with an average annual rate $3,007. This is just behind Oklahoma and Nebraska.
High home insurance premiums in the Lone Star State are due to severe weather such as hurricanes and hailstorms. Texas was also hit hard by major winter storms in recent years.
NerdWallet looked at rates from 19 Texas insurers to give an estimate of the cost of Texas home insurance.
Why is Texas home insurance so expensive?
Texas homeowners should be aware that there are many types of severe weather conditions that can threaten their homes, such as:
- Hurricanes. Texas has the second highest number of landfalls in the United States after Florida due to its large coastline. Homeowners insurance typically covers damage caused by wind, but in Texas you may pay a separate insurance deductible for any wind or hail damage. Your insurer might not offer windstorm coverage depending on where you live. Should that happen, you can purchase separate windstorm insurance, or if you’re rejected by a private insurer, you can usually get coverage from the Texas Windstorm Insurance Association as long as you live in a designated coastal county.
- Flooding. Texas has experienced significant flooding over the years, but since flood damage isn’t covered by homeowners insurance, you’ll likely need a separate flood insurance policy.
- Hail. Hailstorms can cause havoc to roofs but, fortunately, homeowners have hail damage covered by their home insurance policies. It’s also a good thing: Texas leads the U.S. for hail-related insurance claims and hail events.
- Tornadoes. Because of its unique geography, Texas is particularly vulnerable to tornadoes. Standard homeowners insurance covers tornado damage and any living expenses incurred if you are temporarily evacuated due to tornado damage.
- Wildfires. Texas is prone to wildfires. In Texas alone, there were over 6,000 in 2020. Wildfire damage can be covered by standard home insurance policies.
