Homeowners insurance in Texas: rates, coverage, and how to save

Texas homeowners pay more for insurance than residents of almost every other state. The average cost of homeowners insurance in Texas runs $4,085 to $4,350 per year for $300,000 in dwelling coverage in 2026, according to Insurance.com and ShopTexasInsurance data — roughly 60% to 70% above the national average of $2,543. Fort Worth homeowners tend to pay even more than the state average, with NerdWallet placing the Fort Worth average at $5,825 per year.

The reasons are straightforward: Texas sits in the middle of tornado and hail country, faces hurricane exposure along the Gulf Coast, and logs more hail-related insurance losses than any other state. The Insurance Council of Texas data shows Texas recorded 878 major hailstorms in 2024 alone. That frequency of severe weather drives carrier pricing across the entire state, not just in directly affected areas.

Average homeowners insurance rates by region

Rates within Texas vary dramatically based on location and weather exposure. The DFW corridor sits squarely in what insurers call Hail Alley, with Dallas averaging $4,945 per year and Fort Worth averaging $5,825 per year according to NerdWallet's 2026 city data. Houston runs even higher at $6,370 per year because it adds Gulf Coast hurricane exposure to the hail risk already present across the state.

El Paso on the western edge of the state averages $2,004 per year — about 51% below the state average — because its dry desert climate and distance from both the Gulf Coast and tornado corridor dramatically reduce weather-related risk.

Austin averages $3,400 per year. San Antonio runs in a similar range. Inland cities without significant coastal or tornado exposure generally track closer to the state average, while anything in the DFW metro, along the Gulf Coast, or near active tornado pathways through central Texas pays more.

What Texas homeowners insurance covers

Dwelling coverage (Coverage A) pays to repair or rebuild your home after a covered loss. Standard HO-3 policies in Texas provide open-perils coverage on the dwelling, meaning the structure is covered against most causes of loss unless specifically excluded. Wind, hail, fire, lightning, and theft are all standard covered perils in Texas.

Personal property coverage protects your belongings. The critical distinction is whether your policy settles property claims at replacement cost value (what items cost to replace new) or actual cash value (replacement cost minus depreciation). ACV settlement means a five-year-old television might pay out $200 even if replacing it costs $900. Replacement cost coverage closes that gap.

Liability coverage pays if someone is injured on your property or you accidentally cause damage to someone else's property. Standard policies include $100,000, but $300,000 is a more realistic floor for most Texas homeowners with assets worth protecting.

Additional living expenses covers temporary housing, meals, and extra costs when a covered loss makes your home uninhabitable. In a major hail event or tornado, this coverage keeps your financial situation stable while repairs happen.

Common exclusions and add-ons

Flood is the most important exclusion in any Texas homeowners policy. Standard HO-3 forms do not cover flooding from any source — storm surge, heavy rainfall accumulation, overflowing waterways, or drainage system overflow. Texas experienced catastrophic flooding events in 2015, 2017 during Harvey, and repeatedly since. Flood insurance requires a separate policy through the NFIP or a private flood carrier. The average NFIP policy in Texas costs $698 per year.

Wind and hail in coastal counties is the second major exclusion to know. Homeowners in TWIA-eligible counties — the 14 coastal and first-tier coastal counties — typically cannot get windstorm coverage from standard carriers and must obtain it through the Texas Windstorm Insurance Association. For DFW homeowners, wind and hail are covered under your standard policy but trigger a separate percentage-based deductible.

Sewer backup and service line coverage are optional endorsements worth considering. Standard policies don't cover damage from a backed-up sewer line, and the average Texas plumbing or sewer repair can run several thousand dollars. These endorsements typically add $30 to $60 per year.

Weather risks that affect your premium

The wind and hail deductible structure is the most consequential feature most Texas homeowners don't fully understand until they file a claim. Unlike the standard flat-dollar deductible that applies to fire or theft claims, wind and hail deductibles in Texas are typically expressed as a percentage of your dwelling coverage — usually 1% to 2% for most DFW homes. On a $400,000 home with a 2% wind and hail deductible, you pay the first $8,000 of any storm-related claim before insurance covers anything.

Roof age directly affects both your eligibility for coverage and your settlement terms. Most Texas carriers refuse to renew policies on composition shingle roofs older than 15 to 20 years, or will only settle roof claims at actual cash value (with depreciation) rather than replacement cost. Keeping your roof in good condition and replacing it proactively before it hits carrier age thresholds is one of the most financially impactful things a Texas homeowner can do.

Winter storm risk, significantly underappreciated before February 2021, is now priced into Texas homeowners policies. Burst pipes from frozen temperatures can cause catastrophic water damage, and insurers now model Texas winter storm exposure much more seriously than they did five years ago.

5 tips to lower your Texas homeowners insurance rate

Comparing quotes across multiple carriers is the single most effective way to reduce your premium. The same home in the same ZIP code can receive quotes ranging from $3,000 to $6,000 or more from different carriers. One company's underwriting appetite for your neighborhood, roof age, and claims history can vary dramatically from another's. Re-quoting at every renewal — not just when you first buy — consistently finds savings.

Installing impact-resistant roofing materials can generate meaningful carrier discounts while also improving your coverage terms. A Class 4 impact-resistant shingle qualifies for discounts with most major Texas carriers and can cut the wind and hail portion of your premium by 15% to 30%.

Raising your standard deductible from $1,000 to $2,500 reduces your premium while keeping your wind and hail deductible structure unchanged. This makes sense if you have savings to cover the higher out-of-pocket amount for a non-storm claim.

Bundling home and auto insurance with the same carrier generates multi-policy discounts of 5% to 26% at most major Texas carriers. On a $4,500 annual home insurance premium, a 15% bundle discount saves $675 per year.

Improving your credit score before renewal matters more in Texas than most people realize. Carriers use credit-based insurance scores to price policies, and the spread from poor to excellent credit can equal a 30% to 50% difference in annual premium on the same coverage.

Why brokers find better deals

An independent broker compares your home, roof, claims history, and ZIP code across multiple carriers simultaneously — not just the one company a captive agent is authorized to sell. For Texas homeowners in a market where carrier availability changes regularly and pricing varies widely, that comparison is the most reliable way to find the right coverage at the right price. All Texas Insurance Brokers serves homeowners across Fort Worth, Keller, Grapevine, Southlake, North Richland Hills, Haltom City, and the wider DFW area. For a free quote on homeowners insurance in Texas, call (817) 766-6310 or request a quote online.