5 Insurers with the Cheapest Homeowners Insurance in Texas

home insurannce

Carrying homeowners insurance is an essential part of homeownership, but that doesn’t mean you should just automatically go with the same company you’ve used before. Texas has over 100 insurance companies to choose from, and to make sure you get the best price possible, here are five top insurers with the cheapest homeowners insurance in Texas as of March 2018, according to data from the National Association of Insurance Commissioners (NAIC).

home insurannce

If you live in Texas, finding the cheapest homeowners insurance shouldn’t be difficult. With average annual rates in the state well above the national average of $1,567, as of our most recent data at least according to the National Association of Insurance Commissioners, Texans certainly have plenty of options when it comes to insurers offering affordable policies.

Outline

  • State Farm
  • GEICO
  • Nationwide
  • Farmers
  • Liberty Mutual

5 Insurers with the Cheapest Homeowners Insurance in Texas

Carrying homeowners insurance is an essential part of homeownership, but that doesn’t mean you should just automatically go with the same company you’ve used before. Texas has over 100 insurance companies to choose from, and to make sure you get the best price possible, here are five top insurers with the cheapest homeowners insurance in Texas as of March 2018, according to data from the National Association of Insurance Commissioners (NAIC).

1) State Farm

This insurer is best known for its affordable car insurance. The company also offers some of the cheapest homeowners insurance rates in Texas. In addition to providing affordable and convenient auto and homeowners policies, State Farm has an A+ rating from Better Business Bureau (BBB) for its customer service and overall financial strength. The company’s quality ratings are as follows: 36% = Excellent, 33% = Good, 21% = Fair, 8% = Poor.

Read more about Top 5 Cheapest Homeowner Loans

2) GEICO

Texas homeowners insurance rates are among some of the lowest in all 50 states, as we’ve seen. That’s why it’s not surprising to find that GEICO is one of several insurers who compete on price. GEICO is famous for offering cheap car insurance but also undercuts most other companies when it comes to homeowners insurance too. That said, if you don’t have a lot of accidents or moving violations, your monthly premium may be higher than those on a similar policy from another insurer.

3) Nationwide

Nationwide, based in Ohio, offers one of the cheapest homeowners insurance quotes on our list. It has an average annual rate of $1,656 and a 1 percent discount for bundling auto and home insurance. For all homeowners policies Nationwide offers discounts for things like smoke detectors, security systems, and alarms. Policyholders get coverage up to $300,000 for earthquake damage—which is higher than all but four other insurers on our list. The average claim payout is about 75 percent lower than other top companies we reviewed, so there might be some truth to its A-plus claims rating from J.D. Power’s 2015 U.S.

4) Farmers

There are three Farmers offices in Texas, and it has an A+ rating from A.M. Best, a financial services company that provides bond ratings for insurance companies. Farmers averaged rates of $1,955 per year compared to a state average of $3,279. In Waco, Farmers’ home insurance costs were even lower than average at $1,560 per year versus Waco’s state average of $2,046.

Also, read 10 Reasons You Should Consider A Home Equity Loan

5) Liberty Mutual

If you live in a part of Austin, Dallas, or Fort Worth that’s prone to flooding, Liberty Mutual may be your best option for cheap homeowners insurance. The company had average annual rates well below state averages for many ZIP codes. For example, it had annual rates of $1,066 less than state averages in 75051; $724 less than average in 75219; and $701 less than average premiums across its ZIP codes in Houston. Liberty Mutual also offers a discount if you install security devices such as a fire alarm system, smoke detector, or dead-bolt locks on all doors leading outside of your home.

Conclusion

Citizens Property Insurance Corporation (CCIC) only insures properties worth less than $350,000, but if you have an average home in Texas, that’s not going to cover you against hurricanes and other disasters. Texas homeowners looking for cheap homeowners insurance should choose from one of these five insurers, which offer rates below the state average of $3,279 per year.

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