Why Cheap Home Insurance in Texas isn't Always the Best

Going without homeowners insurance isn't a good idea no matter where you live, but it's particularly risky for those who live in the great state of Texas. With hurricanes hitting every year, plus fires, thunderstorms, and other disasters, Texas homeowners need no reminder of how important home insurance is for protecting long term finances. That being said, finding the best homeowners insurance in Texas is tough. You can't shop based on price alone! Who is the best company and who has the best rates for you? It can be difficult to know for sure.

You can start by knowing the average home insurance cost and going from there. The average cost of home insurance in Texas is $3,429 a year. This number makes Texas the fifth most expensive state in the country for home insurance. Its average cost is $1,124, or 49%, more than the national average of $2,305, for the coverage level of a $300,000 home with a $1,000 deductible.

Remember that this average is only the starting point, though. There are many factors that go into your homeowners insurance. Your price could be right about average, much less, or much more expensive and still be considered a fair and reasonable price. The location of your home, how it was built, and its current condition, your credit, and claims history all play a part in how much you pay. If you have a poor driving record, like multiple speeding tickets or a DUI, you'll pay more for car insurance. Just the same, if you had a claim on your account last year, let's say your tree fell in a thunderstorm and crashed into your pool screen, your homeowners insurance will be higher to account for this. If you live in an area prone to hurricanes or crime, you'll also pay more.

Your insurance company is a business, not a charity. They stay in business by having people pay them every month and hopefully never needing to pay out. It's all about risk for the insurance company. The more likely you are to need a pay out, the more money you'll pay each month so the insurance company comes out even.

That isn't to say you're stuck paying a large bill every month and there's nothing you can do about it. There are several factors that can bring your insurance costs down to be quite affordable. For example, if you live in a gated community with a night guard or have a high tech security system, you're less of a risk for having your home broken into and your expensive items stolen. That makes your home cheaper to cover. If your home has a brand new metal roof you'll be paying less than a neighbor with an old, asphalt shingle roof.

Insurance companies assess risk in different ways, so it's important to compare multiple homeowners insurance quotes from several different companies to be sure you get the most affordable rate. The best homeowners insurance in Texas for you may be a different company than your friends or neighbors.