Home insurance in Houston

On average, homeowners in Houston can expect to pay $6,288 per year according to the latest data available from the Consumer Federation of America. This is notably higher than the Texas state average, mainly due to Houston’s vulnerability to hurricanes, hailstorms, and extreme weather events. High reconstruction costs, paired with population growth and aging infrastructure, also play a role in pushing premiums upward.

Several factors specific to Houston’s climate and housing market can influence what you pay for coverage:

• Exposure to hurricane-force winds and severe thunderstorms

• Age and condition of your roof, especially for older homes

• Building materials and structural resilience of your home

• Fire protection class based on proximity to fire stations and hydrants

• Your credit history

• Crime trends in your area, which may affect rates for theft and vandalism coverage

• Previous claims on your property or within your ZIP code

Note that in some parts of Texas, including along the coasts, insurers may exclude or limit coverage for wind damage. Always discuss coverage details with your insurer to determine if hurricane damage is covered by your policy.

To ensure full protection, Houston homeowners should consider coverage that accounts for both local risks and personal asset value:

• Dwelling coverage. Enough to fully rebuild your home based on current Houston-area labor and material costs.

• Other structures coverage. Typically set to 10% of your dwelling limit to cover other structures on your property,  like fences, detached garages, and sheds. Depending on the replacement cost of insurable structures on your property, you may need more coverage. 

• Personal property coverage. Usually set to at least 50% of your dwelling limit to cover furniture, clothing, electronics, and other belongings. Completing a detailed home inventory can help you determine the right amount of protection.

• Liability coverage. Choose a limit high enough to protect your assets in case someone is injured on your property or you’re found legally responsible for damage.

• Medical payments coverage. Provides a small payout (typically $1,000 to $5,000) for minor injuries sustained by guests in your home.

Even the most comprehensive home insurance policies in Houston have exclusions. The following are typically not covered by a standard policy.

• Damage from flooding, such as after a severe storm or a levee breach

• Termite or pest infestations

• Mold caused by long-term neglect or poor ventilation

• Foundation issues due to soil shifting unless specifically endorsed

• Damage from general wear, aging, or lack of routine maintenance

Given the city’s coastal exposure and history of natural disasters, these policy enhancements are especially relevant:

• Flood insurance 

• Windstorm or hurricane if excluded from your policy

• Water backup coverage to protect against sewer or sump pump overflow

• Foundation coverage, particularly for homes on expansive clay soil

• Ordinance or law insurance for code-compliant repairs after major damage

Texas law does not obligate homeowners to carry insurance, but nearly all mortgage lenders require an active home insurance policy before funding a home loan. In many parts of Houston, particularly those located in flood-prone or wind-exposed areas, additional insurance requirements (like flood or windstorm coverage) may also apply. 

For homeowners who’ve never had a mortgage or paid theirs off, carrying insurance is still a critical safeguard against catastrophic financial loss from fires, storms, or liability claims