The Best Homeowners Insurance in Texas of 2022

Knowing what to look for in the best homeowners insurance in Texas could provide shoppers with big savings when they’re buying a policy.

By Jeff Keleher and Karon Warren | Published Nov 21, 2022 4:02 PM

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The Best Homeowners Insurance in Texas

Photo: istockphoto.com

Finding the best homeowners insurance in Texas can be challenging for those who don’t know what to look for in a good policy. After all, it’s important to find the right coverage at an affordable price. Of course, many consumers also want the best homeowners insurance company in Texas to make it easy to research and price a policy as well as to maintain that policy. Therefore, it’s important for shoppers to look for companies that can offer quotes, claim filing, and claim status either online, through a mobile app, by phone, or by talking to an agent, depending on what matters most to the customer. So who has the best homeowners insurance in Texas? We break it down below.

  1. BEST OVERALL: State Farm
  2. RUNNER-UP: Amica
  3. BEST DIGITAL EXPERIENCE: Lemonade
  4. BEST FOR SERVICE MEMBERS: USAA
  5. ALSO CONSIDER: Allstate
The Best Homeowners Insurance in Texas

Photo: istockphoto.com

What to Consider When Choosing One of the Best Homeowners Insurance Companies in Texas

To find top-rated homeowners insurance in Texas, customers will want to look for companies that offer policies that will cover the value of not only the dwelling itself, but also the personal contents in the home. The best insurance companies will also offer a variety of coverage types so homeowners can customize their insurance to ensure their home, personal property, and liability exposure are all adequately covered. Of course, finding a policy that is affordable with regard to both the premium and the policy deductibles is also important. Insurance companies that make it easy to get rate quotes, file claims, and manage policies also are top contenders for the best homeowners insurance in Texas.

Coverage Amount

When searching for homeowners insurance, customers will want to look for a policy that provides enough coverage to pay for repairing or rebuilding the dwelling at current construction prices as well as replacing the personal contents in the home. In general, customers can choose between actual cash value and replacement cost coverage. Actual cash value coverage will help pay to repair or replace damaged items at their depreciated value (less the deductible), whereas replacement cost coverage pays to repair or replace the items at their current value, less the deductible. For example, if a homeowner has a TV that cost $2,000 when they bought it 5 years ago, a policy with actual cash value coverage would pay out the current value of the TV, whereas a policy with replacement cost coverage would pay to replace the item with one of similar value and with similar features without accounting for depreciation.

Policy Options

There are several types of homeowners insurance with different policy options. While dwelling and personal contents coverage are the primary components of a good homeowners insurance policy, it’s important to consider other policy options that may be necessary to protect all the homeowners’ assets. For instance, if the homeowner has valuable jewelry, artwork, collectibles, musical instruments, sporting equipment, or other high-value items, it might be necessary for them to purchase additional coverage that specifically covers these items, since a typical homeowners insurance policy will have coverage limits.

Also, many consumers like to manage all of their insurance policies with one company to keep things simple. Therefore, customers may want to check with the homeowners insurance company to find out if it also offers other policies such as car insurance or life insurance.

Insurance Premiums

When researching home insurance prices in Texas, it’s important to note that costs are influenced by a number of factors. Premiums are calculated based on a home’s characteristics (including the size and age of the house), the type of home construction (brick, wood, etc.), and the home’s location. Other factors include the homeowner’s credit history and credit score as well as their previous insurance claims history.

Of course, the amount and type of insurance coverage purchased will also be instrumental in determining the insurance premium. Obviously, the more coverage purchased, the higher the premium will be. Types of coverage such as replacement cost versus actual cash value also will affect the amount of the premium.

Quote Process

When consumers are shopping for homeowners insurance, one of the first things they want to know is how much it’s going to cost. That’s why it’s important to look for a homeowners insurance company that has a seamless quote process that quickly provides an estimated rate. Many of the best homeowners insurance companies offer an online quote process that requires only a few details, such as the age and location of the home. Of course, these quotes are just estimates, and the price could change based on the specific information provided on the home and the coverage requested. Talking with an agent may provide customers with a more accurate quote.

Claims Process

When it comes to filing a claim, homeowners want to quickly file and resolve a claim so they can get the necessary funds to start repairing or replacing their home and personal belongings. Therefore, customers will want to look for insurance companies that offer quick and easy ways to file a claim, such as online or using a mobile app. It’s also important to find companies that offer status updates on claims through these same channels so customers can see where they stand.

For more insight on how an insurance company handles claims, homeowners will want to speak to current or past customers regarding their experiences and read customer reviews on such reliable sites as the Better Business Bureau.

Deductibles

An insurance deductible is the amount a policyholder pays out of pocket when filing a claim. Deductibles vary based on several factors, such as the amount of coverage purchased, the type of coverage, and the policy’s premium. Generally speaking, the higher the insurance premium, the lower the deductible will be. Choosing between a higher premium and a higher deductible should come down to how much the homeowner can afford to pay up front for the policy versus how much they can afford to pay out of pocket if filing a claim.

Choosing between a policy with replacement cost value or one with actual cash value coverage will also affect premiums. It again comes down to whether the homeowner wants to pay more up front in premium costs or would rather pay more out of pocket when filing a claim in exchange for a lower premium.

Additional Policies

Homeowners insurance coverage needs to be sufficient to repair or replace the dwelling and the homeowner’s personal contents. However, there are certain events a typical homeowners insurance policy will not cover, so additional policies may be necessary. For instance, flood insurance coverage is typically not included with a standard homeowners insurance policy. Therefore, if the home is located within a floodplain or has a sufficient level of flood risk, the homeowner will want to look for a separate flood policy. Not all insurance companies offer flood insurance, so customers will want to ask their agent whether flood coverage is available—especially if having all insurance policies with the same company is important to them.

Other events not typically covered under standard homeowners insurance include earthquake damage and water damage due to sewer and drain backups. Coverage for such events will warrant additional policies.

Discounts

When shopping for the best home insurance rates in Texas, customers will want to look for homeowners insurance companies that offer the best discounts for them. Many insurance companies advertise discounts for bundling home and auto insurance policies, but this could be just one of many discounts available to customers. For instance, many companies offer discounts for signing up for paperless billing or automatic payments, and for having multiple policies with the same company.

Customers will want to ask for a complete list of available discounts. Companies don’t always advertise all discounts, such as those for loyalty (for example, if a family member also has insurance with the company). Getting every discount available is one of the best ways for customers to maximize savings.

AM Best Rating

AM Best is a company that examines an insurance company’s financial strength to determine its ability to pay claims as agreed. This determination is based on a review of the insurance company’s credit ratings, financial data, and other research and analysis. AM Best then issues a rating between A++ (Superior) and D (Poor).

Ideally, insurance companies with AM Best insurance ratings between B+ (Good) and A++ (Superior) provide a low-risk option for buying homeowners insurance. Those with A+ and A++ ratings are considered to have a superior ability to meet their ongoing insurance obligations. Customers will likely want to remove companies with ratings of B and below from consideration when shopping for the best homeowners insurance in Texas.

Our Top Picks

When trying to determine what is the best home insurance in Texas, customers will want to look for companies with smooth quote and claims processes, a wide range of coverage, and strong AM Best ratings.

Best Overall

The Best Homeowners Insurance in Texas Option State Farm
Photo: statefarm.com

Why It Made the Cut: State Farm has great mobile app support, a wind mitigation discount, a fortified roof upgrade option, a free fire safety device program, and a “Superior” AM Best rating.

Homeowners looking for a quick and convenient way to manage their homeowners insurance will love the State Farm mobile app, which was recognized as the “Best Insurance Mobile App” by the 2019 Mobile Web Awards. The app allows customers to file claims and check their status, upload supporting documentation, and reach out directly to their designated agent right from their mobile device.

State Farm doesn’t provide a lot of flexibility with deductibles; depending on the plan chosen, customers could be assigned a deductible equal to either 2 percent or a 1 percent of their coverage amount. However, customers can save money on their premiums with available discounts such as the wind mitigation discount, which is given to homeowners whose property has been designated by the Institute for Business and Home Safety (IBHS) as “Fortified” (meaning it was built to withstand severe weather). This can be a huge benefit for homes located in areas of Texas that are prone to hurricanes or tornadoes.

Homeowners can also opt for a fortified roof upgrade endorsement, which will pay the entire cost, less the deductible, of replacing a damaged roof with a more fortified roof to help prevent future issues (such as leaks) that could require expensive repairs. Another bonus: Homeowners insurance policyholders can receive a complimentary Ting sensor for fire safety along with 3 years of monitoring services for free. Ting sensors can warn homeowners about damaged wires, loose connections, and faulty devices that could cause electrical fires in the home.

Finally, State Farm’s “Superior” A++ rating shows that the company has a superior ability to pay out claims on time and that it will be able to meet ongoing obligations to its policyholders.

Specs

  • Quote process: Online, phone, agent
  • Claims process: App, online, phone, agent
  • Deductibles: 1 percent to 2 percent
  • Additional policies: Auto, motorcycle, watercraft, ATV, farm and ranch, umbrella, life, pet
  • Discounts: Multi-policy, protective device, wind mitigation
  • AM Best rating: A++

Pros

  • User-friendly policy and claims management via award-winning mobile app
  • Wind mitigation discount available
  • Fortified roof upgrade endorsement available
  • Free smart-technology fire safety device program
  • A++ AM Best rating

Cons

  • Limited deductible options

Runner-Up

The Best Homeowners Insurance in Texas Option Amica
Photo: amica.com

Why It Made the Cut: Amica offers a lot of benefits for homeowners, such as an extra dwelling coverage option, a superior online quote process, flexible payment options, and a contractor-matching program.

Amica’s online quote tool is fast and easy to use, without skimping on details that could influence the accuracy of the quote. This can make it easier for homeowners shopping around and comparing rates to know that they’re getting an accurate quote. Unless a policyholder’s premiums are paid through an escrow account, they can choose to pay their insurance premiums on a monthly, quarterly, semiannual, or annual basis.

Regarding coverage, Amica’s Platinum Choice plan gives policyholders 30 percent more dwelling coverage, which can help homeowners cover the cost of any home repairs in the event those expenses exceed their standard policy limit. If repairs are necessary, Amica’s Contractor Connection program helps policyholders find qualified contractors in their area so they can schedule repair work on covered damages. The company promises that customers will hear back from a local contractor within 24 hours to set up a free estimate or begin repair work.

Specs

  • Quote process: Online, phone
  • Claims process: Online, phone
  • Deductibles: $1,000; 1 percent for wind/hail and hurricane damage
  • Additional policies: Auto, motorcycle, RV, umbrella, life, boat, flood, pet
  • Discounts: Multi-policy, loyalty, claims-free, automatic payments, paperless billing, protective device, automatic detection device, new or remodeled home
  • AM Best rating: A+

Pros

  • Simple and fast online quote process
  • Extra dwelling coverage endorsement available
  • Flexible premium payment options
  • Home repairs scheduled within 24 hours via contractor-matching program

Cons

  • Autopay discounts unavailable on escrowed premiums

Best Digital Experience

The Best Homeowners Insurance in Texas Option Lemonade
Photo: lemonade.com

Why It Made the Cut: Lemonade offers low rates, the ability to instantly change coverage options through the mobile app, and fast payouts in some cases; plus it donates unclaimed premiums to charities.

Lemonade offers some of the lowest rates in Texas, so homeowners can likely receive a competitive rate compared to those of other homeowners insurance companies. However, customers will find relatively few discounts with Lemonade. Even though the company is not yet rated by AM Best, Lemonade prides itself on paying claims “almost instantly,” although it does acknowledge some claims may require more time and research before they are paid.

Policyholders can change the terms of their coverage or even cancel their policy at any time using the Lemonade mobile app. For instance, policyholders could adjust their personal property limits if they want to increase or decrease their coverage. This makes it easier to tweak a policy to better meet the needs of the homeowner.

For those who prefer to do business with socially conscious companies, Lemonade donates any unclaimed insurance premiums to charity once a year. The policyholder can even choose the charity that will receive the donation so they can be certain their money is going to a cause they care about.

Specs

  • Quote process: Online
  • Claims process: Online
  • Deductibles: $2,500; 2 percent on windstorm damage
  • Additional policies: Auto, life, pet
  • Discounts: Multi-policy, protective device
  • AM Best rating: Not rated

Pros

  • Relatively low insurance premiums
  • Claims paid out almost instantly in select cases
  • Ability to change coverage immediately via the Lemonade app
  • Unclaimed premiums donated to customer-selected charity

Cons

  • Limited discount opportunities
  • Not currently rated by AM Best

Best for Service Members

The Best Homeowners Insurance in Texas Option USAA
Photo: usaa.com

Why It Made the Cut: USAA is specific to service members and their families and has standard replacement cost coverage on every policy, the option to purchase extra dwelling coverage, and an A++ AM Best rating.

There’s a lot to love about USAA, but it’s important to note up front the company only works with active and former military members and their families. For those who do qualify, USAA offers standard replacement cost coverage (rather than actual cash value) with every homeowners insurance policy. This means claims on personal property will not account for depreciation when determining payouts, so policyholders may receive larger payouts. Many other home insurance companies charge extra for this coverage.

Policyholders have the option to purchase the USAA Home Protector endorsement, which can provide 25 percent more dwelling coverage than the current value of their home. This extra protection could help homeowners avoid needing to pay extra money out of pocket to rebuild their home if changes to the cost of materials or building codes would make construction costs exceed their standard dwelling coverage limit.

Homeowners also can feel secure with USAA thanks to its “Superior” A++ AM Best rating, which means it has a strong financial footing and is likely to pay out claims promptly and will continue to do so going forward.

Specs

  • Quote process: Online (for USAA members), phone
  • Claims process: App, online, phone
  • Deductibles: Unknown
  • Additional policies: Auto, motorcycle, watercraft, ATV, RV, classic car, landlord, flood, farm and ranch, umbrella, life, aviation, pet
  • Discounts: Multi-policy, protective device, connected home, loyalty, claims-free
  • AM Best rating: A++

Pros

  • Standard replacement cost coverage
  • Extra dwelling coverage endorsement available
  • A++ AM Best rating

Cons

  • USAA membership limited to service members and their families

Also Consider

The Best Homeowners Insurance in Texas Option Allstate
Photo: allstate.com

Why It Made the Cut: Allstate offers many discount opportunities to maximize savings, rate increase protection after a homeowner files a claim, and the option to be reimbursed for energy-efficient upgrades in the home.

Allstate offers a wide variety of discounts that can help eligible Texas homeowners lower their cost of coverage; however, despite this, the company had the highest premiums in our research. As such, homeowners may find that they’ll pay more for insurance with Allstate, but exact rates will depend on the terms and coverage options selected; therefore, homeowners will want to get a quote to see how Allstate’s premiums compare to others on their short list.

Customers who opt for the Enhanced Package will benefit from Allstate’s Claim RateGuard, which means policyholders won’t see a rate increase after filing an insurance claim. This benefit means customers won’t need to second-guess the financial fallout from filing a claim and worry about their premiums going up.

Allstate’s deductibles are reasonable at either $500 to $5,000 or 1 percent to 2 percent, depending on coverage chosen; however, there is a separate deductible of 2 percent to 5 percent for tropical cyclone damage, including damage caused by hurricanes, which could leave Texas homeowners paying a hefty chunk of money after a hurricane. On the other hand, Allstate’s green improvement reimbursement endorsement will cover the additional cost to replace covered items that are damaged or destroyed with energy-efficient upgrades, which can be beneficial and lead to long-term cost savings.

Specs

  • Quote process: Online, phone, agent
  • Claims process: App, online, phone, agent
  • Deductibles: $500 to $5,000 or 1 percent to 2 percent; 2 percent to 5 percent for tropical cyclone damage
  • Additional policies: Auto, motorcycle, watercraft, ATV, RV, landlord, flood, life, pet
  • Discounts: Multi-policy, protective device, responsible payment, claim-free, loyalty, new customer, home buyer, automatic payments, early signing
  • AM Best rating: A+

Pros

  • Extensive and generous discount opportunities
  • Protection against rate increases following claim submissions available
  • Reimbursement on energy-efficient upgrades available

Cons

  • Relatively high insurance premiums
  • Separate 2 percent to 5 percent tropical cyclone deductible

Our Verdict

We chose State Farm as Best Overall because it checks a lot of boxes, including a great mobile app, specialty discounts and free programs, and an A++ Superior AM Best rating. Amica is our Runner-Up thanks to a fantastic online quote process and flexible payment options.

How We Chose the Best Homeowners Insurance Companies in Texas

When selecting the best homeowners insurance companies in Texas, we looked at several key factors during our research. For instance, we reviewed each company’s quote and claims process to make sure they were quick and easy to use. We also looked at each company’s rates and discounts to see how competitive they are for the market and to see how affordable they are for homeowners. Other considerations included deductibles, additional policies, and AM Best ratings to find the companies that would offer the best coverage and value for customers. The combination of these factors elevated these companies above their competition.

Before You Choose One of the Best Homeowners Insurance Companies in Texas

It’s important to note that just because a company is included in this roundup of the best homeowners insurance companies in Texas, that doesn’t mean it is the best company for every homeowner. Customers will want to do their due diligence researching not only these companies but other homeowners insurance companies that offer coverage in their area. Every company weighs every policy and every customer differently so it’s possible to find better coverage at better rates from a company not listed here.

Shopping around is essential to finding the best homeowners insurance company with the best coverage for the customer.

Cost of Opting for One of the Best Homeowners Insurance Companies in Texas

When trying to find out who has the best homeowners insurance rates in Texas, customers will want to take time to shop around and get quotes from several companies, including those listed here as the best homeowners companies in Texas. There are many variables that affect the cost of homeowners insurance, and each company weighs those variables differently, so getting quotes from at least three companies is crucial to finding affordable home insurance. The availability of discounts from each company will also play a role in the cost of homeowners insurance, so homeowners will want to make sure they ask about those. Discounts could be the deciding factor in finding the most affordable homeowners insurance policy.

The Advantages of Opting for One of the Best Homeowners Insurance Companies in Texas

When considering one of the best homeowners insurance companies in Texas, it’s easy for homeowners to see how they compare on the surface regarding claims and quote processes, available coverage options, additional policy options, and AM Best ratings. Each of the recommended companies stands strong in each category. Although these companies may not be the right choice for every homeowner, they certainly have a lot going for them.

  • All featured companies offer online quote and claims processes
  • Each company offers additional policies so homeowners get the coverage they need
  • All featured companies have strong AM Best ratings

FAQs

Shopping for homeowners insurance can be a time-consuming and intense process, but it’s important to find the right coverage at the right price. For many consumers looking for the best homeowners insurance in Texas, the following are some common questions.

Q. How do I get homeowners insurance in Texas?

Consumers can get homeowners insurance in Texas by comparing different companies, policies, and prices, and then buying the one that best meets their needs.

Q. How do I choose the best home insurance company?

It’s recommended that consumers do their own independent research to find the best home insurance company for their individual needs and budget.

Q. Why is Texas home insurance so expensive?

Factors such as the likelihood of natural disasters (such as tornadoes, hurricanes, or windstorms), inflation, and interest rates affect the price of Texas home insurance.

Q. What if I can’t find a company willing to insure me in Texas?

Coverage may be available through the Texas FAIR Plan Association or a surplus lines insurance company.

Q. Is windstorm insurance required in Texas?

While the state of Texas does not require windstorm insurance, the homeowner’s mortgage lender could require it.

Q. Who is the largest home insurer in Texas?

State Farm is the top writer of homeowners insurance in Texas.

Q. Does homeowners insurance cover tornado damage?

Most homeowners insurance covers tornado damage, but customers can talk to the insurance company to see if there are any exceptions or gaps where additional coverage could be necessary.

Q. Does homeowners insurance cover flood damage?

Homeowners insurance does not cover flood damage; a separate flood insurance policy is required to cover flood damage.

Q. Does homeowners insurance cover hurricane damage?

Homeowners can look into how to get hurricane insurance protection by checking with their homeowners insurance company. Some homeowners insurance covers damage due to a hurricane, but customers will want to check with the insurance company to find out what exactly is covered and what is not.