Texas Homeowners Insurance

Fran
Fran Majidi
November 10, 2020

Homeowners Insurance in Texas: Complete Consumer Guide

Are you thinking of becoming a homeowner in texas or are already one? Here are some facts about your home state. The Lone Star State’s flag has only one star. Texas is known for oil rigs (hundreds of them) and the world’s best barbecue. Austin is known for its music and for being home to the fastest road in the country. The popular soft drink Dr. Pepper was invented in Texas. In this state, the power grid is separate from the rest of the U.S. The Great Galveston Hurricane of 1900 is still the deadliest natural disaster in U.S. history. Three cities in Texas rank in the top 10 most populous cities in the U.S. The name Texas comes from the greeting Spanish settlers used, “tay-yas” which means “friends.” There are many ranches in Texas, and the Interior Lowlands has some of the biggest ones. When it comes to wildlife, armadillos, black bears, cougars and leopard frogs are found here. And Texas has about 12 million cattle, more than any other state in the union. Two U.S presidents were born in Texas: Dwight D. Eisenhower and Lyndon B. Johnson. If you like rodeos, Texas has thousands of them as well as real life cowboys.

Types of Homeowners Insurance policies in Texas

HO-1 is the most basic type of home insurance policy but many carriers do not offer it.

HO-2 covers a bit more than the basic form, but is still limited in scope and less commonly used than the HO-3 form.

HO-3 is the most common type of homeowners insurance policy and has a broader coverage than the HO-2 form.

HO-5 is the most comprehensive form of homeowners insurance. It’s the most common type of homeowners insurance after the HO-3.

HO-6 is for condo owners, and is usually a walls-in policy that doesn’t cover much of the structure if at all.

HO-8 is a special type of homeowners insurance policy for homes that don’t meet the standards for other policy forms.

What factors affect rates on homeowners insurance in Texas?

Many factors affect homeowners insurance rates including the age of the house and roof, construction type/materials, pools and trampolines, wood-burning stoves, home business, home security and safety (neighborhood crime rates), dog bites and the number of claims you’ve filed in the past. Of course your credit matters too, and it pays to bundle home and auto for price breaks.

Top 5 disasters in the State of Texas

Texas federally declared Fire as the most common disaster with 250 counts since 1953, followed by Flood, Hurricane, Severe Storms, and Tornado disasters. Fire or Lightning disasters is one of 16 perils covered on standard homeowners policies. Here are the top 5 disasters in the state of Texas:

Rank Declaration Title Disaster Number
1> Fire 250
2 Flood 40
3 Hurricane 23
4 Severe Storms 20
5 Tornado 15

Source: Federal Emergency Management Agency (FEMA)

How much is homeowners insurance in Texas?

The average homeowners insurance policy in texas costs about $1,140, but many factors can affect your rate so it’s a good idea to shop and compare prices.

Source: The average cost of homeowners insurance by state, Business Insider.

Crime Rate: Is Texas a safe state?

2019 Crime in Texas Crime Number Crime Rate*
Property Crime 693,204 2,390.7
Burglary 113,902 392.8
Larceny-Theft 501,813 1,730.6

*Rate per 100,000 inhabitants

Safest Cities in Texas by Property Crime*

  • Fate, TX has a population of 15,378 with a Property Crime rate of 4.7 per 1k. The city average home value is approximately $275,138.
  • Trophy Club, TX has a population of 13,031 with a Property Crime rate of 4.9 per 1k. The average home value there is about $489,383.
  • Horizon City, TX came in third as the safest city in the state of Texas and has a population of 20,131 with a Property Crime rate of 5 per 1k. Its home value averaged at about $144,237.
  • Murphy, TX has a population of 20,962 with a Property Crime rate of 5 per 1k. Its average home value is $409,582.
  • Memorial Villages, TX has a population of 12,472 with a Property Crime rate of 6 per 1k. The city home value averaged $828,439.

*Based on FBI Uniform Crime Reporting 2019, some cities have been eliminated because of changes in the state/local agency's reporting practices and cities with populations under 10,000. Zillow’s State/Cities average home value for a single family home or a condo as of Sept. 2020.

Compare Home Insurance Rates in Texas

Top homeowners insurance companies in Texas

Amica received mostly 5/5 stars from J.D. Power and superior ratings from A.M. Best and Better Business Bureau. Amica offers property replacement, identity fraud protection and separate flood and earthquake policies. Members also get 5 to 20% of their annual premium back each year.

State Farm comes in close behind Amica’s ratings in Texas, with mostly 4/5 from J.D. power and great ratings from A.M. Best and Better Business Bureau.

Allstate comes in third with 3/5 stars from J.D. Power and high marks from A.M. Best and Better Business Bureau. Allstate offers many ways to save each month on premiums.

For military family members, however, there’s no way to beat USAA, which received all 5’s from J.D. Power and high ratings from A.M. Best and Better Business Bureau.

Texas Home Insurance FAQs

Why is home insurance so expensive in Texas?

Residents in Texas pay higher premiums for homeowners insurance than in other states, due to extreme weather, including hailstorms, windstorms, tornadoes and hurricanes.

How to shop for home insurance in Texas?

The best way to shop for home insurance in Texas is by comparing rates with SmartFinancial with over 200 insurers to find the best value.

How long do I have to file a home insurance claim in Texas?

Most homeowners insurance policies have a one-year deadline unless you can show good cause for filing late.

Get a Free Home Insurance Quote Online Now.

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