Buyer guide · Texas
Texas homeowners insurance: what hail, wind and flood do to your payment
Texas homeowners premiums averaged $3,489 in 2025, per TDI. What drives the cost, when you need TWIA or flood coverage, and how insurance hits your mortgage payment.
Insurance is now one of the biggest pieces of a Texas house payment. The Texas Department of Insurance reports the average homeowners premium hit $3,489 in 2025, nearly double the 2016 average. Standard policies don't cover flood. Along the coast, wind and hail coverage may have to come from the Texas Windstorm Insurance Association. Get real quotes before your option period ends, not after.
The number that blindsides Texas buyers
For years, first-time buyers in Texas worried about the rate and the tax bill. Insurance was an afterthought. That has changed. The cost of insuring a Texas home has climbed fast, and because your lender rolls the premium into your monthly escrow, it moves your payment and your debt-to-income ratio just like the loan does.
What TDI's numbers show
The Texas Department of Insurance tracks the statewide homeowners market. Its figures:
| Year | Average annual homeowners premium | Average rate change that year |
|---|---|---|
| 2016 | $1,791 | −2.6% |
| 2020 | $1,987 | 3.8% |
| 2022 | $2,374 | 10.8% |
| 2023 | $2,795 | 21.1% |
| 2024 | $3,291 | 18.7% |
| 2025 | $3,489 | 4.3% |
The rate changes cover homeowners, renters, condo and mobile home policies combined. The average amount of coverage rose too, from $252,000 in 2016 to $432,800 in 2025, which reflects higher rebuilding costs. TDI's recent filings show the pace slowing: rate requests averaged 0.3% over the 30 days ending October 2026 and −4.0% over 90 days.
Even so, $3,489 a year is about $291 a month in escrow before you count property taxes. Your quote may be higher or lower depending on the home's age, roof, location and deductible.
Hail: the inland risk
TDI's breakdown of paid losses shows hail as the largest category in most recent years. That matters in North Texas, the Hill Country and West Texas as much as on the coast. For a buyer it means two things:
- The roof drives the quote. An older roof can mean a higher premium or less coverage for roof damage. Ask the seller for the roof's age and any insurance claims.
- Read the deductible. TDI notes that a higher deductible lowers the premium but raises what you pay after a storm. Ask whether the policy carries a separate wind and hail deductible and what it comes to in dollars. Make sure you could cover it from savings.
Wind on the coast: when TWIA comes in
The Texas Windstorm Insurance Association is the wind and hail insurer of last resort for the coast. Per TDI, it covers people who were turned down by a regular insurer in 14 coastal counties: Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio and Willacy. It also covers parts of Harris County east of Highway 146, including areas of La Porte, Morgan's Point, Pasadena, Seabrook and Shore Acres.
In those areas, your homeowners policy may exclude wind and hail, and you buy a separate TWIA policy through an agent. TDI says lenders will likely require windstorm coverage if you have a mortgage. That can mean two premiums in escrow, plus flood.
The Texas FAIR Plan
If two insurance companies decline you, the Texas FAIR Plan Association can write a policy on a house, townhouse, condo or manufactured home. TDI says anyone who was offered a policy or renewal by a company doesn't qualify. Think of it as a backstop, not a bargain.
Flood: not in your homeowners policy
TDI puts it plainly: your home insurance policy doesn't cover flood damage. Flood coverage is a separate policy, usually through the National Flood Insurance Program. Key points from TDI:
- Most flood policies have a 30-day waiting period before they take effect, so buying when a storm is in the Gulf is too late.
- An NFIP policy covers the home up to $250,000. Belongings need separate contents coverage, up to $100,000.
- Ask your home insurance agent for an NFIP quote, or find an agent through FloodSmart.gov.
If the home is in a FEMA high-risk flood zone and your loan is federally backed, the lender will require flood insurance. Even outside a mapped zone, buyers in low-lying parts of the Houston area should get a quote.
How insurance changes what you can afford
Here is an illustrative comparison of two $300,000 homes with the same loan and taxes. Only insurance differs.
| Example monthly costs | Inland home, newer roof | Coastal home |
|---|---|---|
| Principal and interest (example) | $1,850 | $1,850 |
| Property taxes (example) | $600 | $600 |
| Homeowners policy (example) | $250 | $200 |
| Windstorm policy (example) | $0 | $180 |
| Flood policy (example) | $0 | $90 |
| Total | $2,700 | $2,920 |
A $220 monthly gap can be the difference between approval and denial. It is also why state assistance has limits: 5% from Homes for Texas Heroes or TDHCA shrinks the cash you need at closing, but it can't shrink a premium, so the payment has to work on its own.
Shopping for a policy: a buyer's checklist
- Get quotes during the option period, before your right to back out ends. Ask the seller for the home's claims history.
- Compare at least three companies. TDI counts 157 companies writing homeowners coverage in Texas.
- Ask about roof coverage and wind and hail deductibles in dollars, not just percentages.
- Ask about discounts for impact-resistant roofing, alarms and bundling with auto.
- Price flood separately, even if the lender doesn't require it.
- On the coast, ask about TWIA and whether the home qualifies for a TWIA policy before you commit.
- Send the final quote to your lender so the payment estimate matches reality.
Condos and townhomes
In a condo, the association's master policy usually covers the building, and you buy a policy for the interior and your belongings. The association's insurance costs show up in your dues. Ask for the HOA budget and whether dues went up because of insurance. That fee counts in your payment too.
Once you have real insurance numbers, you have a real payment. That's the moment to check your eligibility for Texas down payment help.
Readers also ask
How much is homeowners insurance in Texas?
The Texas Department of Insurance reports an average annual homeowners premium of $3,489 in 2025, up from $1,791 in 2016. Your quote depends on the home's location, age, roof and deductible.
Does Texas homeowners insurance cover flooding?
No. TDI says homeowners policies don't cover flood. You need a separate flood policy, usually through the National Flood Insurance Program, and most have a 30-day waiting period.
What is TWIA?
The Texas Windstorm Insurance Association is the wind and hail insurer of last resort for 14 coastal counties and parts of Harris County east of Highway 146. It covers people a regular insurer turned down.
Can down payment assistance pay my insurance?
Assistance from Homes for Texas Heroes or TDHCA can go toward closing costs, which can include the first year's premium paid at closing. It does not lower the ongoing monthly cost.
Keep reading
- TSAHC or TDHCA: how to pick the right Texas state program
- How a Texas teacher's paycheck looks to a mortgage underwriter
- Overtime, 24-hour shifts and your mortgage: a guide for Texas first responders
- Your first Texas property tax bill: homestead exemption, the 10% cap and protests
- Texas title insurance rates and the rest of your closing costs
- MUD and PID taxes: the extra bill in new Texas subdivisions
- Houston, Dallas-Fort Worth or Austin: where first-home help goes furthest
- Stacking city and county help on top of Texas state programs
- Texas veterans: the VA loan, the Land Board loan and Heroes, explained
