Texas Homeowners Pay Some of the Highest Insurance Costs In The Country

Texas homeowners face some of the highest insurance costs in the nation, reflecting the state’s broad exposure to hurricanes, flooding, tornadoes, and hailstorms.

While national averages remain far lower, new data from the U.S. Census Bureau and the 2025 Climate Risk Report show that Texas households are under growing affordability pressure.

Texas’s Insurance Costs in Context

According to the American Community Survey (ACS) data from the U.S. Census Bureau, Texas homeowners with a mortgage typically pay $2,000–$2,499 annually for homeowners insurance, while those without a mortgage average $1,500–$1,999. Overall statewide costs also fall into the $2,000–$2,499 range.

Texas has 7,134,877 insured homeowner households in total—3,958,949 with a mortgage and 3,175,928 without. Among mortgaged owners, 319,894 pay less than $100 annually and 754,652 pay $4,000 or more. Among those without a mortgage, 942,598 pay less than $100 and 423,536 pay $4,000 or more.

Compared with nearby states, Texas is among the most expensive. Louisiana homeowners with a mortgage also pay $2,000–$2,499, while Oklahoma and Kansas fall into the same high-cost bracket. By contrast, Arkansas and Mississippi are more affordable, averaging $1,500–$1,999 with a mortgage. New Mexico is even cheaper, with mortgaged households paying $1,000–$1,499. This places Texas firmly among the highest-cost insurance states in the South and central U.S.

Climate Risks Across the Region

The Climate Risk Report underscores how climate hazards drive premiums in high-risk markets. Miami homeowners pay the most in the nation, with average annual premiums of $22,718, equal to 3.7% of home value. Other Florida metros such as Cape Coral, Sarasota, and Tampa also rank among the most expensive.

Texas metros are also represented among the hardest hit. Houston ranks in the top 10 nationally, with premiums consuming 1.8% of median home value. Dallas and San Antonio are also identified in the report as markets where climate risks—particularly severe storms and flooding—drive significant homeowners insurance costs.

The state’s vast geography exposes it to nearly every type of extreme weather: hurricanes on the Gulf Coast, tornadoes and hail in the Plains, and flash flooding in urban areas. These combined risks make Texas one of the most expensive insurance markets outside Florida and Louisiana.

A National Affordability Challenge

Texas’s high premiums mirror national affordability concerns. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already faced challenges renewing or obtaining coverage.

These affordability challenges are already reshaping housing decisions. Nearly 30% of homebuyers said they had completely changed their search areas due to insurance costs, while another quarter said they had overhauled their strategies altogether. A recent migration analysis shows that some buyers are relocating to states with the lowest home insurance premiums, reshaping demand in both affordable and high-cost markets.

Even more concerning, 58% of homeowners nationwide said they would consider dropping coverage entirely if premiums rose too high, with younger generations especially likely to take that risk.

Texas’s Outlook

For Texas households, affordability pressures are already among the steepest in the country. With climate risks intensifying, particularly along the Gulf Coast and in storm-prone regions, residents may want to use a home insurance comparison tool to evaluate coverage options. Insurance costs in Texas are likely to remain among the highest nationwide in the years ahead.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.