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

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.

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.

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.

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.

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.

Get quotes from each of our top five homeowners insurance companies in Houston to compare rates and coverage.

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.

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