How Much Is Homeowners Insurance in Texas?

As of October 2025, Texas homeowners pay an average annual home insurance premium of $4,101 for a policy with $300,000 in dwelling coverage.

Home insurance rates have soared dramatically these past years in the Lone Star State because of billion-dollar disasters.

Keep reading to see how Texas insurance prices compare and what’s driving rate hikes. I’ll also share quick tips to lower your rates.

How Much Is Homeowners Insurance in Texas: Understand the Average Cost

Texas is one of the states with the most expensive yearly home insurance premiums. [1]

Here’s a quick comparison between state and national average costs for a policy with $300,000 in dwelling coverage:

The average annual homeowners insurance in Texas is around $1,693 more expensive than the national average. [2]

Some cities in Texas have higher home insurance rates than others:

Major Factors Affecting Rising Homeowners Insurance Rates in Texas

Since 2021, home insurance premiums have risen by over $1,000 in the Lone Star State. [3] 

The following key factors have driven up premiums:

Surge in Extreme Weather Events

Texas experienced an average of 10.1 disasters each year between 2018 and 2023, which is much higher than the previous years (5.5 disasters annually from 2010 to 2017). [4]

Various types of severe weather affect the state, including hurricanes, flooding, tornadoes, hailstorms, wildfires, and ice storms.

These severe weather events have caused more than a billion dollars in insured losses, forcing insurance companies to raise rates and even refuse coverage in certain high-risk areas.

For example, an insurance company declined to renew a Fort Worth homeowner’s policy due to high risk of future hail damage. [5]

Higher Construction/Building Material Costs

Rising construction and building material costs in Texas have also contributed to the insurance spike. [6]

When material prices increase, the potential cost of repairing or rebuilding your property also goes up. So, insurers raise premiums to reflect today’s cost of fixing your property.

How to Lower Your Homeowners Insurance Premium

Here are essential tips to reduce your monthly premium:

• Bundle your auto and homeowners insurance. Some insurers take up to 15% off your premium when you bundle at least two policies. Compare multiple quotes to find the most affordable option. Also, make sure the bundle price is actually cheaper than buying the coverages separately from different insurance companies.
• Raise your annual deductible, which is the amount you pay when your home gets damaged before your insurer covers the rest. Some insurers offer up to 25% premium savings if you increase your deductible to $1,000. Keep in mind that some insurance policies may have separate deductibles for certain damage types, such as windstorms or hailstorms. [7]
• Improve your home’s disaster resistance. Some insurance companies offer lower premiums if you strengthen your home against damage, like reinforcing your roof, adding storm shutters, or modernizing your plumbing, heating, and electrical systems. Ask your insurer which home improvements qualify for discounts.
• Discover other discounts. Insurers may offer discounts you’re not aware of, so don’t hesitate to ask.
• Boost your credit score. Many insurers consider a homeowner’s credit history when pricing insurance policies. Always make on-time payments and avoid accumulating more debt than you can afford. It’s best to review your credit record regularly and report any errors to keep your record accurate.

Pro Tip: If you’re struggling to secure traditional insurance, consider enrolling in the Texas FAIR Plan Association (TFPA), which serves as a fallback when other insurance carriers deny coverage to your home. However, the FAIR Plan coverage usually comes with limited benefits and higher premiums.

Get Enough Coverage to Protect Your Home

When choosing homeowners insurance in Texas, it’s essential to get adequate coverage to safeguard your property from various types of weather-related disasters.

If you live in a disaster-prone area, you may have to get additional insurance policies, such as:

• Flood insurance
• Windstorm and hail insurance
• Wildfire insurance

Plan Ahead With the Right Mortgage Partner

With the ever-changing homeowners insurance landscape in Texas, you can make smarter financial decisions with expert guidance.

At Texas United Mortgage, our seasoned loan officers will help you understand what to look for in a home insurance policy and make sure your coverage meets lender requirements to avoid closing delays. We’ll guide you every step of the way, whether you’re buying your first home, refinancing, or looking for a second property.

Contact us now to start your application!