How much is home insurance in Texas? What the state's own data shows

Most answers to this question come from insurance sites quoting each other. Texas is one of the few states where you don't have to settle for that: the Texas Department of Insurance (TDI) publishes the market's own numbers — statewide averages, county-level averages, and the rate changes companies have filed — on a public dashboard.

So here's the number, and then the far more useful part: what it is, what it isn't, and which of the things behind it you can actually do something about.

The statewide number

TDI's Texas homeowners insurance market overview reports, for homeowners policies:

Avg. annual premium — $3,506 (Homeowners — 2025 preliminary)

Divide it out and that's about $292 a month ($3,506 ÷ 12 = $292.17). If you came here searching for a monthly figure, that's the honest statewide answer.

Around it, TDI's snapshot of the same market for 2025 gives the scale: 8,233,096 active policies, $19.75 billion in direct written premium, and about $2.4 trillion of total insured value, written by 157 companies across 81 groups. TDI's own summary of that: "Texas has a competitive homeowners insurance marketplace, with nearly 160 companies selling homeowners insurance policies in the state."

Now the caveat that matters more than the number. An average is not a quote. It's every insured home in Texas — a coastal bungalow and a Panhandle ranch house, a new build with a two-year-old roof and a 1970s house with a twenty-year-old one — divided by the count. Almost nobody actually pays $3,506. It's a reference point for whether your renewal is in a normal range, not a prediction of your price.

Why the number moved so fast

If your premium feels like it changed character in the last few years, TDI's rate-change data says you're reading it correctly. Average statewide homeowners rate changes filed since 2016, per TDI rate filing data (the figures cover owner-occupied homeowners, tenants, condo, and mobile homeowners policies):

Five years of low-to-mid single digits, then two years that stacked 21.1% on top of 18.7%, then a 4.3% year. That shape is the whole story of the last renewal cycle in Texas, and it's why advice written before 2023 reads as though it's about a different state.

The most recent filings on TDI's dashboard point in a gentler direction — a filed 30-day rate request of −2.8% for July 2026 and a 90-day figure of +0.4% for May–July 2026 — though a filed request is an industry-wide average of what companies have submitted, not a promise about your policy.

One distinction to carry through all of this, because TDI makes a point of it: a rate is not a premium. TDI's definitions:

"Premium: The amount you pay to an insurance company for an insurance policy." "Rate: The cost of insurance per exposure unit ($1,000 of home coverage or one year of auto coverage)."

And their illustration: "A gallon of gas costs $3.50. I pay $49 to fill up my car's 14-gallon gas tank. The premium is $49. It's the rate ($3.50) times the unit (14 gallons)."

Which sets up the part people miss. As TDI puts it: "Not only do rate changes affect premiums, but coverage amounts do, too." If construction costs push your rebuild figure up, your premium can rise even in a year when your insurer's rate barely moves. You bought more gallons.

What actually decides your number

TDI lists the factors companies commonly use for home insurance — with the note that "Each company's premium formula is different":

• Your home's age
• Your home's roof age and material
• Where you live
• The cost to replace your house
• Your claim history
• Your credit score

Two of those are worth pausing on, because they're where Texas homes differ most from each other. Roof age and material is close to a headline factor in a hail state — it drives both what you're charged and, often, whether the roof is settled at replacement cost or depreciated value. And the cost to replace your house is not what you paid or what it would sell for; it's what it would cost to rebuild today.

Then there's everything that isn't about you at all. TDI is explicit that companies also price in costs "spread across customers": inflation in building materials and construction labor, supply-chain disruption, weather — "freezes, hurricanes, hailstorms, tornadoes, wildfires, major thunderstorms" — and reinsurance, the insurance that insurers themselves buy, where "Higher reinsurance rates affect what insurance companies charge their customers."

TDI also draws its own boundary clearly: "TDI doesn't set insurance rates or premiums." Companies file rates, may use them as soon as the same day they're filed, and must support them with analysis that TDI's actuaries review. State law requires rates to be adequate, not excessive, based on sound actuarial principles, reasonably related to all costs, and "Not be based on the insured's race, creed, color, ethnicity, or national origin." If your own premium jumped and you want the reason, TDI's guidance is to ask the company: "TDI doesn't have information about your policy or what elements caused your premium to change. Your company should be able to tell you why it raised your premium."

The Texas-specific reason: hail

Look at TDI's data on what Texas insurers actually pay claims for, broken out by peril, and one category dominates almost every year on record: hail. In each year TDI shows from 2016 through 2025, hail is the largest single category of paid homeowners losses — with one exception, 2021, when water and freeze losses ran higher, the year of the February freeze.

That's the mechanism behind the statewide average. Texas premiums aren't high because of one bad hurricane season; they're high because hail damage arrives every year, at scale, across a very large number of roofs. It's also why nearly every Texas policy carries a separate percentage-based wind and hail deductible — a structural feature of the market rather than a quirk of your policy. How the wind and hail deductible works in Texas turns that percentage into a real dollar figure.

Your county is not the state

The statewide average flattens a lot. TDI's dashboard includes an interactive county map showing, for each Texas county, the average annual premium for policies with wind coverage, the average insured property amount, and the number of companies collecting premium — with data selectable by year from 2019 through 2025.

The map also treats the coast separately, because the coast is separate. For the 14 counties where the Texas Windstorm Insurance Association (TWIA) provides wind coverage — Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio and Willacy, plus parts of Harris County east of Highway 146 — it separately shows average premiums for policies without wind coverage and average TWIA premiums. A coastal homeowner's true annual cost is often two policies added together, which is exactly the comparison a single statewide figure hides.

If you want a number that's closer to your situation than $3,506, your own county on that map is the better starting point.

Insured value: the input people get wrong

Before you compare anyone's price to anyone else's, check that you're comparing the same amount of insurance. TDI's guidance on building costs draws the line clearly:

"Your property's appraised value includes the cost of your land and factors in how much homes are selling for in your neighborhood. The insured value is the cost to rebuild or replace your home."

Underinsuring to reach a lower premium has a consequence that only shows up at claim time. TDI notes that some insurers require you to insure at least 80% of the cost to rebuild, and gives this illustration: "if the cost to rebuild your home is $200,000, but you only insured it up to $120,000 (60% of the replacement cost) then your insurance company might only pay up to 60% of the repair cost, minus your deductible."

A cheaper policy that's cheap because it's smaller isn't a saving. It's a deferred bill.

What you can actually influence

TDI's own consumer guidance, quoted rather than paraphrased:

• Ask why, and ask about discounts. "If your auto or home insurance bill is rising, ask your company to explain the increase and ask if you're getting all available discounts."
• Consider the deductible trade. "You could consider increasing your deductible. This will lower your premium payment. When deciding what deductible is right for you, think about how much you can afford to pay if your property is damaged." The second sentence is the important one — a deductible you can't cover after a hailstorm has moved risk onto yourself, not removed it.
• Use the state's tool, then get real quotes. "You can start your search at HelpInsure.com to get sample estimates. Then call the companies you're interested in to get price quotes."
• Compare like for like. "Also consider calling an independent insurance agent. They can help make sure you're comparing the same type and amount of coverage."

That last point is why price-only comparison tends to mislead. Two quotes differing by several hundred dollars often differ in dwelling limit, wind/hail deductible percentage, or whether the roof is settled at replacement cost or actual cash value — differences that decide far more money than the premium gap does.

Key facts

• The statewide average annual homeowners premium in Texas is $3,506 — TDI, homeowners policies, 2025 preliminary. That works out to roughly $292 a month ($3,506 ÷ 12).
• Market scale, 2025: 8,233,096 active policies, $19.75 billion in direct written premium, about $2.4 trillion of insured value, 157 companies in 81 groups. TDI: "nearly 160 companies selling homeowners insurance policies in the state."
• Rate changes ran hot then cooled: TDI rate filing data shows average statewide homeowners rate changes of 10.8% (2022), 21.1% (2023), 18.7% (2024) and 4.3% (2025).
• Rate ≠ premium. TDI: premium is "The amount you pay"; rate is "The cost of insurance per exposure unit ($1,000 of home coverage)." And: "Not only do rate changes affect premiums, but coverage amounts do, too."
• Common home rating factors, per TDI: home age; roof age and material; where you live; cost to replace the house; claim history; credit score — noting "Each company's premium formula is different."
• It isn't only about you. TDI cites inflation in building materials and labor, supply-chain disruption, Texas weather, and reinsurance costs as factors spread across all customers.
• Hail leads paid losses. In TDI's peril data, hail is the largest single category of paid homeowners losses in every year from 2016 to 2025 except 2021, when water and freeze losses were higher.
• County-level averages are published for 2019–2025, with separate figures for policies with and without wind coverage and for TWIA policies in the 14 coastal counties.
• Insured value is rebuild cost, not market value. TDI: "The insured value is the cost to rebuild or replace your home." Insuring to 60% of rebuild cost can mean an insurer "might only pay up to 60% of the repair cost, minus your deductible."

Sources: Texas Department of Insurance — Texas homeowners insurance market overview (market snapshot, county map, and peril data; premium and insured-value figures sourced by TDI to the Texas Statistical Plan for Residential Risks), Auto and home insurance rate changes (January 22, 2026), How are your auto and homeowners insurance costs calculated?, and How building costs affect your home insurance. Figures are as published by TDI as of August 2026; 2025 figures are marked preliminary by TDI. Averages describe the market, not any individual policy — your premium depends on your home, your coverage amounts, and each insurer's own rating formula. TDI's Help Line is 800-252-3439. This page is general information, not legal advice.

Take the next step

$3,506 a year is the state's number, not yours. Yours is decided by a rebuild cost, a roof age, a county, a claim history and a set of coverage choices — and the only way to find out where you actually sit is to see your own home priced by more than one carrier, with the same dwelling limit and the same deductible on each.

Credify is a licensed insurance agency in Texas, and we compare coverage across multiple licensed Texas carriers in one short form, with no obligation; each insurer remains responsible for its own products. If you want the background first, why did my home insurance go up in Texas unpacks the increases behind those rate-change years, how the wind and hail deductible works explains the percentage that sits behind most Texas policies, and how to choose home insurance in Texas covers comparing coverage rather than just price. 📞 Talk to Credify 24/7.