Homeowners insurance has become a significant household expense for many Texas families. According to the Texas Department of Insurance, the preliminary 2025 average annual homeowners insurance premium in Texas was $3,506.
About $292/month
Preliminary 2025 statewide average
That statewide average is useful for understanding the Texas insurance market, but it does not tell you what your individual home should cost to insure. Premiums can vary significantly depending on where you live and the characteristics of your home and policy.
Factors such as your home's reconstruction cost, roof, deductible, coverage selections, claims history, property characteristics, and insurance company can all affect what you pay.
That's why the better question isn't simply, “What does homeowners insurance cost in Texas?” It's, “Is my current coverage and premium competitive for my home?”
| Area | Average Annual Premium | Approx. Monthly Cost |
|---|---|---|
| Texas Statewide | $3,506 | $292 |
| Smith County | $3,148 | $262 |
| Cherokee County | $2,979 | $248 |
| Collin County | $4,343 | $362 |
| Dallas County | $4,364 | $364 |
| Denton County | $4,336 | $361 |
| Tarrant County | $3,939 | $328 |
County figures represent average annual homeowners premiums for policies that include wind coverage. The statewide figure is the preliminary 2025 Texas average. Source: Texas Department of Insurance.
There is no single rate for homeowners insurance in Texas. Insurance companies evaluate a combination of factors when determining the premium for a particular home and policy.
Some of the factors that can affect your homeowners insurance premium include:
This is why an average premium cannot tell you what your home should cost to insure. Two homeowners in the same city — or even on the same street — can have different premiums based on their homes, coverage, deductibles, insurance history, and insurance company.
If your premium is higher than a Texas or county average, that does not necessarily mean you are overpaying. Likewise, being below an average does not necessarily mean you have the right coverage or the best available price.
The most useful comparison is your current policy against another option with similar coverage.
It is tempting to estimate homeowners insurance based on the price or market value of a home, but insurance generally does not work that way.
A $300,000 home does not automatically need $300,000 of dwelling coverage, and a $400,000 home does not automatically need $400,000 of dwelling coverage.
Your home's price is not the same as the cost to rebuild it.
Market value reflects what a buyer may be willing to pay for the property, including factors such as the land, location, neighborhood, school district, and local housing market.
Reconstruction cost estimates what it could cost to rebuild the insured home after a covered total loss. That calculation can include current construction materials, labor, debris removal, building characteristics, and other reconstruction expenses.
Because those are different calculations, two homes with the same market value can require different amounts of dwelling coverage and can have very different insurance premiums.
The only reliable way to determine the price for a particular home is to evaluate the property and the coverage being requested. Location, reconstruction cost, roof, deductible, coverage options, claims history, and the insurance company can all affect the final premium.
That is why online averages for a "$300,000 house" or "$400,000 house" should be treated as general information rather than an estimate of what your home should cost to insure.
Already know what your current policy costs? A comparison can tell you much more than a statewide average.
Texas averages can provide useful context, but they cannot tell you whether your individual premium is competitive.
A homeowner paying more than the statewide or county average may have perfectly reasonable pricing based on the home, coverage, deductible, roof, claims history, or other rating factors. Another homeowner paying less than average may still have an opportunity to improve their price or coverage.
The easiest way to find out whether your current premium is competitive is to compare similar coverage with another insurance option.
Price matters, especially when household expenses continue to add up. But saving money should not require giving up coverage you may need when a loss occurs.
A useful insurance comparison looks at both: what you're paying and what you're getting for that price.
Premium figures presented on this page are market averages and are provided for general informational purposes. They are not quotes or estimates of the premium for any particular property. Individual premiums vary based on underwriting, coverage selections, rating factors, and insurance company.