Average Homeowners Insurance Costs in Texas
In Texas, homeowners' insurance tends to be more expensive than the national average. According to NerdWallet, the average annual premium in Texas is about $4,585 (around $382 per month) for a typical policy. Progressive reports an average Texas homeowners policy at $2,108.62 annually (or about $175.72 per month), though that number depends heavily on location, coverage levels, and property characteristics.
Other sources show even higher figures in certain cities. Bankrate lists average premiums in Houston at $5,391 per year, and Dallas around $4,145 per year. In Dallas specifically, Truehold notes that homes may cost about $5,045 annually to insure. Thus, what you “should” pay depends a lot on where you live in Texas and what kind of home you have.
What Drives the Wide Range in Premiums
Several factors explain why two homes in the same state may pay very different premiums:
- Location and risk of natural disasters: Proximity to the coast, flood zones, hail-prone areas, or areas exposed to hurricanes or severe storms increases cost substantially.
- Home characteristics: The age, construction materials, roof type, square footage, wiring and plumbing condition, and quality of replacement cost estimates all matter.
- Claims history and credit: If you or prior owners have had frequent claims, insurers view the home as a higher risk. Also in Texas, credit and prior insurance history often affect your rate.
- Coverage amounts, deductibles, and endorsements: Higher dwelling limits, lower deductibles, and additions like ordinance & law, flood, or windstorm coverage push premiums up.
- Market and insurer-wide factors: Rising costs for building materials, labor, and reinsurance (insurance for insurers) are driving premiums up across the board.
What You Should Expect to Pay (Ballpark)
Given the data, a reasonable expectation for a typical homeowner in a moderate-risk area of Texas might be in the $3,000–$6,000 per year range, though in coastal or high-risk zones the number might be much higher. Homes in lower-risk inland parts of the state may see premiums toward the lower end of that bracket.
Conclusion
There’s no one “correct” amount you should pay for homeowners insurance in Texas — the cost depends heavily on location, home attributes, coverage choices, and market conditions. That said, based on current averages, many homeowners in Texas could expect to see $3,000 to $5,500 annually for a solid, mid-level policy. If your quote is vastly higher or lower than the averages for your city, you should compare insurers, coverage details, and possibly shop around.
