The average cost of homeowners insurance in Austin is $2,158 per year, or $180 a month, for a homeowners insurance policy with $300,000 in dwelling coverage, according to Policygenius' analysis of 2022 rates. This is around 29% lower than the statewide average of $3,027 per year, but about 23% higher than the national average of $1,754.
While home insurance costs in Austin can often skew higher due to the wildfire risk in certain areas, there are several companies that offer affordable policy options.
Compare the best cheap homeowners insurance companies in Austin
To find the best cheap homeowners insurance in Austin, Policygenius rated over a dozen of the largest insurance companies in Texas across several categories, such as average policy cost, financial strength ratings with AM Best, customer and claims satisfaction scores with J.D. Power, available policy options, and more.
Company | Average monthly cost | Policygenius rating |
|---|---|---|
$149 | 4.8 out of 5 | |
$40 | 4.5 out of 5 | |
$282 | 4.5 out of 5 | |
$335 | 4.5 out of 5 | |
$53 | 3.9 out of 5 |
Methodology & why you can trust our rates
Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
All rates based on the above coverage limits except where otherwise noted.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
2024 Policygenius award winner
State Farm
4.8
Bundle home & auto
Offers extended replacement cost
All 50 states
Why we chose it
State Farm home insurance is one of the best overall home insurance providers in Austin thanks to its statewide availability, large selection of policy options for most home types, high customer service marks, and industry-best financial stability ratings.
Pros and cons
Pros
High customer satisfaction and financial strength ratings
Top-tier coverage add-ons, including extended replacement cost coverage
Offers large discounts when you bundle your home and auto insurance
Cons
20% more complaints filed with the NAIC than other companies of its size
No discounts for first-time homebuyers
More details
Why we chose State Farm
At a time when lots of competitors are no longer insuring homes in areas prone to wildfires or hurricanes, State Farm continues to offer its relatively affordable and highly-rated home insurance to homeowners in most parts of the country, including Austin.
While some of its competitors may not have the financial strength to pay out claims after several natural disasters in the same year, State Farm isn't one of them. It earns the highest rating possible from A.M. Best for financial strength and stability — only six insurance companies out of nearly 70 we reviewed hold this title.
How do State Farm home insurance rates compare to the Austin average?
The average cost of State Farm home insurance in Austin is $149 per month, which is about 20% cheaper than the average monthly premium in Austin of $180.
How to get a quote
Online through State Farm
2024 Policygenius award winner
Farmers
4.5
Offers extended replacement cost
Bundle home & auto
Smart home discounts
Why we chose it
Along with saving around 20% when you bundle your home and car insurance, Farmers also gives you access to its extensive suite of discounts, unique policy credits, and claim-free incentives that help put money back in your pocket.
Pros and cons
Pros
12+ discounts to save on rates
Optional extended or guaranteed replacement cost dwelling coverage
Shave $50 off your deductible each year you’re with Farmers
Cons
Below-average scores on J.D. Power’s overall customer satisfaction and digital experience surveys
More details
Why we chose Farmers
Farmers home insurance stands out against competitors thanks to its 17 available discounts and policy perks. For context, Farmers competitors offer an average of around seven discounts total.
Along with several discount offerings and affordable rates, Farmers also offers the following two key policy perks:
Declining deductibles: Earn $50 toward your home deductible each year you have a home insurance policy with Farmers.
Claim forgiveness: Once you’ve gone five years without filing a claim, Farmers won’t raise your rate after that if you end up filing one.
Even more, depending on your state of residence, you can save up to 45% on your auto insurance and up to 34% on your home insurance when you bundle policies, according to farmers.
How do Farmers home insurance rates compare to the Austin average?
The average cost of Farmers home insurance in Austin is $40 per month, which is around 350% cheaper than the monthly city average of $180.
How to get a quote
Online through Farmers
2024 Policygenius award winner
Progressive
4.5
Bundle home & auto
Mobile app
Why we chose it
Progressive offers robust home insurance coverage and ways to save. Our favorite perk? Its bundling discount, which lets you save up to 20% on premiums and only requires you to pay one deductible if your home and car are damaged in the same event.
Pros and cons
Pros
Save up to 20% when you bundle your home and auto insurance
Bundling perks include single-deductible claims and streamlined bill payment
User-friendly app to manage and update policy
Cons
Below-average claims satisfaction ratings
Cost varies by company Progressive places you with
Customer service & claims options vary by company
More details
Why we chose Progressive
Progressive shines for its industry-best home and auto insurance bundling perks. Insure both your home and car with Progressive and you’ll not only score a huge discount, but you’ll only have to pay one deductible if your home and car are damaged in the same incident. This means if a tornado or hurricane knocks a tree over onto your home and car, you’ll only be on the hook for one deductible.
How do Progressive home insurance rates compare to the Austin average?
The average cost of Progressive home insurance in Austin is $335 per year, which is about 46% more expensive than the average monthly premium in Austin of $180.
How to get a quote
Online through Policygenius or ASI Progressive
2024 Policygenius award winner
Nationwide
4.5
Bundle home & auto
Mobile app
New homebuyer discount
Offers extended replacement cost
Why we chose it
Nationwide home insurance features an extensive range of comprehensive coverage and policy options. It also received high marks for claims satisfaction with J.D. Power, indicating you can rely on Nationwide when it matters most.
Pros and cons
Pros
Multiple high-quality coverage options
Highly rated for claims satisfaction with J.D. Power
Cons
Below-average customer satisfaction and digital experience ratings
Won’t cover Airbnbs or other short-term rentals
More details
Why we chose Nationwide
Nationwide is known for it's robust policy options and large selection of coverage add-ons, such as flood coverage and options to rebuild your roof with stronger materials after a covered loss, making Nationwide a smart choice if you live in a Texas area at risk for extreme weather or natural disasters. While Nationwide’s average home insurance rate of $4,456 is among the most expensive in our top company analysis, it has several discount options available that can trim those high costs.
How do Nationwide home insurance rates compare to the Austin average?
The average cost of Nationwide home insurance in Austin is $282 per month, which is around 36% higher than the monthly Austin average of $180.
How to get a quote
Online through Policygenius or Nationwide
Texas Farm Bureau
3.9
Why we chose it
Texas Farm Bureau offers exceptional customer service and the option to bundle a slew of insurance policies on top of just home insurance to save money on rates.
Pros and cons
Pros
Excellent customer service score — received 99% fewer complaints expected for a company of its size in 2021
Excellent financial strength rating from A.M. Best, proving it likely has the funds to pay out claims in the wake of a natural disaster
Only pay one deductible if your home, car, and boat are damaged in the same event and you bundle your insurance policies with Farm Bureau
Cons
Rates are $1,400 more expensive than the national average
Need to have a Farm Bureau membership to purchase insurance
More details
Why we chose Texas Farm Bureau
Texas Farm Bureau offers a complete line of insurance products — from auto, home, life, commercial, and ranch, allowing you to have all of your policies with one company. Farm Bureau is a great option for Austin residents looking for personalized customer care and recommendations from a local company that knows the area best.
How do Texas Farm Bureau home insurance rates compare to the Austin average?
The average cost of Texas Farm Bureau home insurance in Austin is $53 per month, which is about 239% cheaper than the average monthly premium in Austin of $180.
How to get a quote
By contacting a local Texas Farm Bureau agent
How much is homeowners insurance in Austin?
The average cost of home insurance in Austin is $2,158 per year, or $180 a month, for a policy with $300,000 in dwelling coverage. This is around 35% cheaper than the average annual cost of $2,919 for homeowners insurance in Texas, and about 18% higher than the national average.
Austin home insurance rates by ZIP code
Home insurance rates can vary substantially depending on which ZIP code your home is located in, as homes in certain Austin neighborhoods may be more prone to extreme weather damage or property crime than others.
To help you find out how much home insurance costs where you live, we calculated average home insurance rates by ZIP code in Austin.
ZIP code | Average annual cost | Difference from state average (%) |
|---|---|---|
78745 | $2,179 | -25% |
78753 | $2,258 | -23% |
78748 | $2,064 | -29% |
78758 | $2,138 | -27% |
78704 | $2,154 | -26% |
78744 | $2,206 | -24% |
78741 | $2,255 | -23% |
78759 | $2,092 | -28% |
78723 | $2,239 | -23% |
78749 | $2,051 | -30% |
Cheapest ZIP codes for home insurance in Austin
With an average home insurance rate of $2,008 per year, the 78717 ZIP code is the most affordable area for home insurance in Ocala.
ZIP code | Average annual cost | Difference from state average (%) |
|---|---|---|
78717 | $2,008 | -31% |
78749 | $2,051 | -30% |
78750 | $2,063 | -29% |
78748 | $2,064 | -29% |
78739 | $2,067 | -29% |
78703 | $2,081 | -29% |
78799 | $2,089 | -28% |
78759 | $2,092 | -28% |
78735 | $2,097 | -28% |
78727 | $2,104 | -28% |
Most expensive areas for homeowners insurance in Austin
With an average annual premium of $2,354, the 78742 ZIP code is the most expensive ZIP code in Austin for home insurance. If you live one of these ZIP codes, your rates might be among the highest in the city.
ZIP code | Average annual cost | Difference from state average (%) |
|---|---|---|
78742 | $2,354 | -19% |
78712 | $2,276 | -22% |
78710 | $2,274 | -22% |
78753 | $2,258 | -23% |
78741 | $2,255 | -23% |
78723 | $2,239 | -23% |
78722 | $2,217 | -24% |
78721 | $2,208 | -24% |
78724 | $2,208 | -24% |
78744 | $2,206 | -24% |
Learn more >> Home insurance rates by ZIP code
Austin home insurance costs by coverage amount
Along with your home's location, your homeowners insurance premiums are primarily based on how much dwelling coverage is in your policy. This is the centerpiece of your home insurance coverage, covering the cost to repair or rebuild your home after a covered disaster.
Here are the average rates for homeowners insurance by coverage amount.
Dwelling coverage limit | Average annual cost |
|---|---|
$100,000 | $1,003 |
$200,000 | $1,549 |
$300,000 | $2,158 |
$400,000 | $2,785 |
$500,000 | $3,431 |
Austin home insurance costs by deductible amount
Your home insurance deductible is the amount you’re responsible for paying on each claim before insurance kicks in to help cover the cost of repairing or replacing your property. A higher deductible means lower insurance premiums, but it also means you're responsible for paying more out of pocket when you file a claim. Here are the average rates for homeowners insurance by deductible amount.
Deductible | Average annual cost |
|---|---|
$500 | $2,504 |
$1,000 | $1,742 |
$2,000 | $395 |
Cheapest homeowners insurance companies in Austin
Based on our analysis, Farmers, State Auto, and Texas Farm Bureau are the three cheapest home insurance companies in Austin, with average premiums citywide ranging from $475 to $637 per year.
Company | Average annual cost |
|---|---|
$475 | |
$491 | |
$637 | |
Lighthouse Property Insurance | $1,138 |
$1,358 | |
$1,758 | |
$1,784 | |
$1,926 | |
$2,269 | |
IAT Insurance Group | $2,491 |
$2,741 | |
$2,770 | |
$3,388 | |
$4,014 | |
$5,148 |
Cheapest home insurance in Austin if you have poor credit
A bad credit score does more than just cost you a few dollars in late payment fees — it can also make your auto and home insurance rates thousands of dollars higher.
Here are the average rates for homeowners with poor credit.
Company | Average annual cost |
|---|---|
Farm Bureau Insurance | $956 |
Farmers | $996 |
Lighthouse Property Insurance | $1,138 |
State Auto | $1,690 |
Texas FAIR Plain Association | $2,269 |
USAA | $2,326 |
Mercury | $2,981 |
State Farm | $3,063 |
Chubb | $3,670 |
AmGUARD Insurance | $3,928 |
Nationwide | $4,110 |
UPC Insurance | $4,354 |
IAT Insurance Group | $6,415 |
Amica | $6,576 |
Cheapest home insurance in Austin if you have an older home
Insurance carriers consider older homes to have a higher risk of damage or loss compared to newer homes since they're constructed with older and more difficult to replace materials. Additionally, certain structural components in older homes, like the roof or plumbing systems, may not be up to code. Here are the average rates for Austin residents who own older homes.
Company | Average annual cost |
|---|---|
Farmers | $475 |
State Auto | $512 |
Farm Bureau Insurance | $637 |
Lighthouse Property Insurance | $1,172 |
Chubb | $1,218 |
Mercury | $1,657 |
State Farm | $1,784 |
USAA | $1,947 |
Texas FAIR Plain Association | $2,269 |
IAT Insurance Group | $2,491 |
UPC Insurance | $2,515 |
AmGUARD Insurance | $2,871 |
Nationwide | $2,990 |
Amica | $5,544 |
Cheapest homeowners insurance in Austin if you have a history of claims
Claims history is one of the biggest factors that insurance companies use when calculating your home insurance premiums. If you have multiple claims on your record, your insurer will likely view you as a risk for filing future claims and may charge you higher rates as a result.
Here's the cheapest home insurance companies in Ocala for a homeowner with three claims within a five-year period on their record.
Company | Average annual cost |
|---|---|
Farm Bureau Insurance | $714 |
Farmers | $742 |
State Auto | $1,080 |
Chubb | $1,501 |
Lighthouse Property Insurance | $1,708 |
State Farm | $1,784 |
USAA | $2,117 |
Mercury | $3,165 |
AmGUARD Insurance | $3,423 |
Texas FAIR Plain Association | $3,687 |
IAT Insurance Group | $4,146 |
Nationwide | $4,682 |
UPC Insurance | $4,803 |
Amica | $9,169 |
How to get homeowners insurance quotes in Austin
Once you’re ready to shop for home insurance, a Policygenius expert can help you navigate your coverage needs and help you find the best deal on homeowners insurance in Austin.
Frequently asked questions
What is the average cost of homeowners insurance in Austin, Texas?
The average cost of homeowners insurance in Austin, Texas is $183 per month, or $2,196 per year.
Is home insurance in Austin more expensive than other places?
Yes and no. The average yearly cost for homeowners insurance in Austin is higher than the national average, but it's lower than the Texas state average. Austin's average yearly premium is around $800 less than the Texas average, but it's only about $300 higher than the national average.
How can I lower my homeowners insurance in Austin?
If you're looking to lower your homeowners premium, ask your home insurance agent if you're eligible for any discounts, or if there’s anything particular you can do to lower your premium. One quick way to lower your homeowners insurance rates is by increasing your deductible.
Is it mandatory to have homeowners insurance in Texas?
There are no state or federal laws requiring homeowners insurance. However, most mortgage lenders will require you to purchase homeowners insurance before extending you a home loan.
