Are you required to have home insurance in Texas?
Texas law does not require anyone to buy home insurance. But if you have a mortgage, your lender might require it. And home insurance is a good idea for anyone who owns a house, to protect the investment.
What does Texas homeowners insurance cover?
Home insurance in Texas offers coverage types similar to policies in other states. This generally includes:
- Dwelling coverage for the house itself.
- Personal property coverage for the things you own, such as furniture, clothes and toys.
- Other structures coverage for buildings not attached to your house, such as detached garages, storage sheds and fences.
- Loss of use coverage in case you can’t live at home due to damage covered by the policy. Additional living expenses can include rent, food, laundry and other costs.
- Personal liability coverage for injuries to others, including their medical bills and lost wages. Liability coverage also pays for property damage to others that you’re responsible for. And it pays court costs if you’re sued because of an accident covered under homeowners insurance.
- Medical payments coverage in case people are hurt on your property. It can also pay for injuries to others that happen away from home.
Is homeowners insurance expensive in Texas?
The average homeowners insurance premium in Texas is $1,937 for a typical policy, according to the National Association of Insurance Commissioners. That’s higher than the countrywide average of $1,192.
25 largest homeowners insurance companies in Texas?
| Rank in Texas | Company | Group | Texas market share % |
|---|---|---|---|
| 1 | State Farm Lloyds | State Farm | 19.55 |
| 2 | Texas Farmers Insurance Co. | Farmers Insurance | 8.69 |
| 3 | Allstate Vehicle & Property Insurance Co. | Allstate Corp. | 7.06 |
| 4 | United Services Automobile Assn. | USAA | 3.89 |
| 5 | Allstate Texas Lloyd's | Allstate Corp. | 3.58 |
| 6 | Safeco Insurance Co. of Indiana | Liberty Mutual | 3.44 |
| 7 | Liberty Insurance Corp. | Liberty Mutual | 3.34 |
| 8 | USAA Casualty Insurance Co. | USAA | 3.11 |
| 9 | Travelers Home & Marine Insurance Co. | Travelers | 2.53 |
| 10 | ASI Lloyds | Progressive | 2.47 |
| 11 | Texas Farm Bureau Mutual Insurance Co. | Texas Farm Bureau Insurance | 2.01 |
| 12 | Amica Mutual Insurance Co. | Amica | 1.84 |
| 13 | Chubb Lloyds Insurance Co. of Texas | Chubb | 1.71 |
| 14 | Auto Club Indemnity Co. | Auto Club Exchange | 1.5 |
| 15 | USAA General Indemnity Co. | USAA | 1.46 |
| 16 | Allstate F&C Insurance Co. | Allstate Corp. | 1.34 |
| 17 | Homeowners of America Insurance Co. | n/a | 1.32 |
| 18 | Garrison P&C Insurance Co. | USAA | 1.24 |
| 19 | Nationwide General Insurance Co. | Nationwide | 1.18 |
| 20 | United P&C Insurance Co. | UPC Insurance | 1.1 |
| 21 | Clear Blue Insurance Co. | Clear Blue Insurance | 1.07 |
| 22 | Foremost Lloyds of Texas | Farmers Insurance | 0.96 |
| 23 | Travelers Lloyds of Texas Insurance Co. | Travelers | 0.94 |
| 24 | Met Lloyds Insurance Co. of Texas | MetLife | 0.88 |
| 25 | Meridian Security Insurance Co | State Auto | 0.69 |
| Source: S&P Global Market Intelligence, based on market share in 2018 in Texas for homeowners multi-peril insurance. | |||
Best homeowners insurance in Texas
We looked at complaints against the largest 25 homeowners insurance companies in Texas (listed above) to find the 10 best.
| Rank | Company |
|---|---|
| 1 | Chubb Lloyds Insurance Co. of Texas |
| 2 | Meridian Security Insurance Co |
| 3 | United Services Automobile Assn. |
| 4 | Clear Blue Insurance Co. |
| 5 | Foremost Lloyds of Texas |
| 6 | Garrison P&C Insurance Co. |
| 7 | Amica Mutual Insurance Co. |
| 8 | State Farm Lloyds |
| 9 | Texas Farm Bureau Mutual Insurance Co. |
| 10 | Homeowners of America Insurance Co. |
| Source: Complaint data from the National Association of Insurance Commissioners. Rankings are based on companies with the lowest complaints ratios for homeowners insurance nationwide in 2018. | |
Who sells Texas flood insurance?
If you live along the Texas coast, or even inland, you may want flood insurance. You can buy it from the federal National Flood Insurance Program through an insurance agent, or as personal private insurance. Companies that sell personal flood insurance in Texas include:
- American National Property and Casualty
- Bankers Insurance Co.
- Federal Insurance Co. (Chubb)
- Homeowners Choice Property and Casualty
- Wright National Flood
Who sells Texas windstorm insurance?
Most Texans can get wind coverage through their home insurance policies. But if you live on the Texas coast or in Harris County on Galveston Bay, your homeowners policy doesn’t cover wind or hail damage. You can buy coverage by contacting your home insurance agent and getting a Texas Windstorm Insurance Association (TWIA) policy. Find out more at twia.org or by calling 800-788-8247.
Texas homeowners insurance bill of rights
Texas law gives you certain rights when you buy homeowners, dwelling or renters insurance. These rights cover topics such as the use of credit, water and mold claims, windstorm coverage and policy cancellation. See the Texas insurance bills of rights at the Texas Department of Insurance website.
Trouble getting Texas homeowners insurance?
If you can’t find a company to insure you and at least two companies have turned you down, you can buy basic homeowners insurance through the Texas FAIR Plan Association. Call a Texas home insurance agent or the FAIR Plan at 800-979-6440.