5 Best Homeowners Insurance Companies in Houston (2023) (2023)

Top 5 Home Insurance Providers in Houston

We chose the following five insurance companies as the best options for Houston homeowners:

  • Liberty Mutual: Our pick for discounts
  • Allstate: Our pick for extended coverage
  • Farmers: Our pick for customizable coverage
  • State Farm: Our pick for new homeowners
  • Lemonade: Our pick for fast claims

According to 2023 homeowners insurance data from Quadrant Information Services, the average annual cost of homeowners insurance in Houston is $5,829. The state of Texas has an average homeowners insurance rate of $4,851 per year, which is higher than the national average of $2,417.

Liberty Mutual


5 Best Homeowners Insurance Companies in Houston (2023) (1)


Why We Chose Liberty Mutual

Established in 1912, Liberty Mutual is one of the nation’s largest insurance companies. Its strong financial position and over a century in business indicate stability.

The company allows you to customize your homeowners policy by adding from a long list of endorsements to suit your needs. Taking advantage of Liberty Mutual’s discounts can also save you money.

Pros and Cons of Liberty Mutual

Pros Offers more discounts than some other home insurance providers Has both online policy access and local agents for in-person assistance Allows you to purchase replacement cost coverage Cons Ranks below average in overall customer satisfaction score May require you to submit more information for a quote than other providers


  • Multi-policy bundling
  • Bundle and save
  • Online purchase
  • Newly purchased home
  • Claims-free
  • New or renovated home
  • Protective devices
  • New roof
  • Wind mitigation credit
  • Insured-to-value
  • Preferred payment
  • Paperless policy
  • Early shopper
  • Safe homeowner


  • Blanket jewelry
  • Hurricane damage
  • Flood insurance
  • Water backup or overflow
  • Inflation protection
  • Personal property replacement cost


Extended Coverage

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Why We Chose Allstate

Originally formed by Sears in 1931 as an auto insurance provider, Allstate is now one of the largest homeowners insurance providers nationwide. The company’s impressive variety of endorsements makes it a top choice in Houston and allows you to customize coverage. Allstate supports sustainability, offering homeowners the opportunity for partial reimbursement to replace damaged property with energy-efficient options in covered losses.

Some online customer reviews report dissatisfaction over denied claims, but others seem pleased with Allstate’s customer service, claim processing and mobile app. Those who prefer in-person contact can find local Allstate agents in Houston.

Pros and Cons of Allstate

Pros Has robust extended coverage options Provides many options for discounts Offers online access and local agents Cons Premiums may cost more than some other home insurance policies Has a higher rate of customer complaints than some other companies


  • Multiple policy bundling
  • Claims-free history
  • Welcome and loyalty
  • Responsible payment
  • Easy pay plan
  • Early signing
  • Homebuyer
  • Protective device
  • Early signing


  • Green improvement reimbursement
  • HostAdvantage plan
  • Musical instruments
  • Business property
  • Sports equipment
  • Water backup
  • Electronic data recovery
  • Yard and garden
  • Identity theft restoration
  • Scheduled personal property
  • Personal umbrella policy
  • Flood insurance


Customizable Coverage

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Why We Chose Farmers

For homeowners who like to customize their insurance policies, Farmers provides robust coverage and a long list of optional endorsements. The company has three policy tiers, but upgrade options differ depending on your location.

Although annual premiums tend to be higher than the national average, Farmers offers many discounts to make a homeowners policy more affordable. Customers can manage their policies online using the company’s mobile app or with the assistance of local agents.

Pros and Cons of Farmers

Pros Offers some unique endorsements Provides a variety of discounts and optional coverages Supported by a large network of agents nationwide Cons May charge higher rates than some competitors Has a below-average customer satisfaction score with J.D. Power and Associates


  • Multi-policy bundling
  • Claims-free
  • Welcome
  • Loyalty
  • Homebuyer
  • Affinity
  • Paperless policy
  • UL-approved roofing
  • New home
  • Protective devices
  • Home safety
  • Green certifications
  • Preferred payment
  • Good payer
  • Rent-to-own
  • Connected home


  • Guaranteed replacement cost
  • Extended replacement cost
  • Home-share
  • Flooding
  • Building ordinance
  • Identity theft
  • Earthquake
  • Personal articles floater
  • Umbrella coverage
  • Eco-rebuild
  • Emergency mortgage assistance
  • Water backup or sump pump failure

State Farm

New Homeowners


Why We Chose State Farm

As America’s largest property and casualty insurance provider, State Farm provides robust dwelling coverage and an extensive list of endorsements at reasonable prices. The company may include some additional coverages in your home insurance policy at no extra charge.

State Farm’s online resource library provides detailed information to help new homeowners determine the coverage they need. Plus, State Farm partners with ADT to offer smart-home technologies to homeowners.

Pros and Cons of State Farm

Pros Offers one of the highest bundling discounts of providers on our list Provides a user-friendly mobile app and website Has received a lower-than-average number of state insurance department complaints Cons Offers fewer policy add-on options than some providers Doesn’t extend as many discounts as other companies


  • Multi-policy bundling
  • Impact-resistant roofing
  • Home security
  • Claims-free history


  • Additional dwelling
  • Backup of sewer or drain
  • Earthquake
  • Fortified roof upgrade
  • Identity restoration
  • Sinkhole collapse
  • Special computer


Fast Claims


Why We Chose Lemonade

Lemonade operates differently than many of its competitors, using artificial intelligence (AI) to offer customers a digital experience. But reaching the company by phone can be challenging. While some customers enjoy this framework, others prefer insurers with a more personal in-person approach.

Filing a claim requires policyholders to submit a video through a mobile app —AI technology processes many claims immediately, while human agents process more complicated claims.

Lemonade offers competitive rates and an average number of discounts and optional endorsements. However, the insurer has more complaints reported to the National Association of Insurance Commissioners (NAIC) than what is expected for similarly sized companies.

Pros and Cons of Lemonade

Pros Pays claims quickly in many cases, sometimes immediately Donates portions of proceeds and unclaimed money to charity every year Offers many customization options Cons Relies heavily on technology, which can make personal contact difficult Doesn’t offer umbrella liability coverage


  • Annual billing
  • Multi-policy bundling
  • Protective devices
  • Loyalty
  • Renovation or new home
  • Gated community


  • Appliance breakdown
  • Swimming pool liability
  • Scheduled property
  • Extended reconstruction cost
  • Water backup
  • Foundation water backup
  • Buried utilities

Average Cost of Homeowners Insurance in Houston

Houston homeowners typically pay an average of $5,829 per year for home insurance, significantly higher than the national average of $2,417. Your home insurance premiums can vary depending on several factors, but extreme weather is a primary reason for increased rates in Texas.

Houston is in an area prone to natural disasters, meaning there is a higher probability that insurance companies will need to pay expensive claims. Plus, home values and the cost of construction materials have increased year-over-year, making repair costs higher.

What Factors Affect Home Insurance Rates in Houston?

Houston homeowners insurance rates will likely vary between providers, even if you opt for similar coverage. Requesting multiple home insurance quotes and comparing prices can help save you money. When shopping for a home insurance policy, considers factors such as:

  • Your home’s age, condition, ZIP code and size
  • Dwelling coverage limits and deductible amounts
  • Your credit score
  • Certain risk factors on your property, such as swimming pools, trampolines or specific breeds of dogs
  • Your credit score and personal homeowners insurance claims history

Crime rates, proximity to water, the likelihood of adverse weather events and even your marital status can affect homeowners insurance policy premiums. Your policy selections will also determine the cost. For example, you can choose between actual cash value coverage or replacement cost coverage. Your premium will likely be higher with replacement cost coverage, but your reimbursement for covered damages is usually higher as well.

Common Causes of Home Insurance Claims in Houston

Houston homeowners may file claims for many reasons, but the top three most frequent causes of damage claims include:

  • Wind and hail: Windstorms, hurricanes and tornadoes can cause wind-related damage to your home. Texas also experienced more major hail events in 2022 than any other state in the country, according to data from State Farm. Using hail-resistant materials for your roof can reduce the severity of the damage you experience from a hailstorm.
  • Water: Storm-related floods or burst water pipes commonly cause water damage to homes in Houston.
  • Accidental or deliberate: Non-weather-related events, such as vandalism or accidents, can damage your home.

You can protect your home and personal property further by purchasing insurance coverage not typically included in standard policies, such as flood protection. Be sure to clarify policy exclusions with each potential insurer when shopping for quotes to ensure you purchase the coverage you need.

Recommended Home Insurance Coverage in Houston

Standard HO-3 homeowner policies may differ by carrier. Most home insurance companies in Texas, however, include the following areas of coverage:

  • Dwelling: Pays for covered damage to your home
  • Loss of use: Pays for additional living expenses if you’re unable to remain in your home while it is being repaired after a covered event
  • Medical payments: Pays medical bills if a guest is hurt on your property
  • Other structures: Pays for covered repairs on structures not attached to your home, including fences, storage buildings and detached garages
  • Personal liability: Pays for liabilities if you are legally responsible for injuring someone else or damaging their property
  • Personal property: Pays for covered damage to your belongings, such as clothing and furniture

Covered loss may include damage caused by fire and lightning, accidental water or smoke damage, explosions, theft, civil commotion, vandalism, vehicles and aircraft.

Living in Houston poses some unique risks because of the above-average rate of natural disasters that occur in the area. We recommend purchasing additional homeowners insurance coverage options to mitigate these risks. Suggested endorsements include:

  • Replacement cost coverage
  • Flood insurance
  • Windstorm and hail coverage
  • Specific coverage for high-value belongings
  • Foundation damage coverage
  • Additional liability coverage

A qualified insurance agent can help you decide which options you need and the amount of coverage you should include.

The Bottom Line on Home Insurance in Houston

While we recommend any of the five providers on our list, choosing the right home insurance company ultimately comes down to your coverage needs, budget and personal preferences. If you prefer industry experience and a long list of discount options, opt for Liberty Mutual. While Lemonade offers a digital experience, you may choose Allstate for its use of local insurance agents.

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Frequently Asked Questions About Houston Homeowners Insurance

Methodology: Our System for Ranking the Best Home Insurance Companies

Our team surveyed dozens of home insurance providers and created a scoring system to assess and compare each company’s quality and service. Here are the factors that account for our provider scores according to our home insurance rating methodology:

  • Cost (27%): We compare cost data for homes nationwide to assess how competitively priced each provider is. We also consider each company’s available discounts when determining its overall cost of coverage.
  • Coverage (28%): We analyze the comprehensiveness of each provider’s standard home insurance policy and compare optional policy endorsements to determine the quality of coverage.
  • Availability and ease of use (15%): We evaluate each company’s customer service options, such as live chat, a customer support phone line, and multiple channels for filing claims and generating quotes. Similarly, we score providers based on their digital resources, such as a mobile app or online customer portal.
  • Brand trust (15%): We gauge reputation by evaluating consumer reviews and third-party financial strength and customer experience ratings, including from J.D. Power, AM Best and customer review aggregators.

Companies with the best customer service exhibit 24/7 availability, useful digital tools and a quick claims-filing process. Providers that offer extensive discount options, endorsements, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.

AM Best Disclaimer

How We Gather Cost Data

We at the Marketwatch Guides Team gathered home insurance quotes for the providers in this article using data from Quadrant Information Services. Quadrant is a leading source of property and casualty insurance solutions and data.

Our sample homeowner is a 40-year-old single male with good credit and no prior claims history. Our sample policies featured a $1,000 deductible and the following coverage and limits:

  • Dwelling: $350,000
  • Other Structures: $25,000
  • Personal Property: $150,000
  • Loss of Use: $50,000
  • Liability: $300,000
  • Medical Payments: $1,000

For each provider, we gathered a quote for 50% of the ZIP codes in every state it is licensed in. We used the most populous ZIP codes for our study. We took the average of these individual quotes to calculate a national average premium per provider. Our sample rates are for informational purposes only. Actual premiums will vary.

Bradford Cuthrell is a meticulous researcher and writer specializing in pet and home finance topics. He’s surveyed thousands of pet owners and homeowners, listened to hundreds of customer service calls from various home service companies and spoken with dozens of industry experts to understand homeowners’ common pain points and needs. When he’s not helping his readers make informed decisions, he’s reading a book a week, planning a camping trip or working on his novel draft.

Ryan Lasker is a financial writer and editor with bylines in Morning Brew, The Motley Fool, and several more. As a certified public accountant, he leverages his technical expertise in personal finance and tax to fuel his passion for teaching financial literacy. When he’s not writing, editing or working in a spreadsheet, he’s biking the D.C. trails or reading.

5 Best Homeowners Insurance Companies in Houston (2023) (6)

Bradford Cuthrell Author

Bradford Cuthrell is a meticulous researcher and writer specializing in pet and home finance topics. He's surveyed thousands of pet owners and homeowners, listened to hundreds of customer service calls from various home service companies and spoken with dozens of industry experts to understand homeowners' common pain points and needs.

5 Best Homeowners Insurance Companies in Houston (2023) (7)

Ryan Lasker Editor

Ryan Lasker is a financial writer and editor with bylines in Morning Brew, The Motley Fool, and several more. As a certified public accountant, he leverages his technical expertise in personal finance and tax to fuel his passion for teaching financial literacy. When he's not writing, editing or working in a spreadsheet, he's biking the D.C. trails or reading.

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