When we’re going to buy anything, it tends to happen that the first thing we think of is price. That’s normal. We work hard for our money. It’s only natural to want to make sure every dollar will stretch as far as it will go. This is especially true if we have a family.

The Lone Star State is a great place to live, but it does have its challenges. Every state across the nation faces its own unique hurdles in terms of weather and natural disasters. In Texas, for instance, we’ve got hurricanes, massive thunderstorms, tornadoes, etc. Yes, we know. Everything is bigger in Texas and that, unfortunately, includes natural disasters. This means potential risks to any Texan home are also bigger.

Home insurance (HI). It’s not a topic that screams excitement for most folks, but it is important. When we see images of roofs being torn off homes by a tornado, we’d like to assume it will never happen to our home. Our family will never be displaced by floods, fires, tornados or whatever else Mother Nature throws at us. Reality shows us otherwise.

According to an article by NBC News, Texas ranks first on the list of states with the most natural disasters. The Lone Star State has declared over 80 major natural disasters since the mid-1950s. Basically, Texas is 267,000 square miles of natural disasters waiting to happen.


When it comes to risks, insurance companies are like a Vegas blackjack dealer. They know the odds and work to keep those odds in their favor. How? By charging higher annual insurance premiums in higher-risk areas.

An average annual home insurance premium in Texas is just over $1400. This is about twice as much as the average HI premium in states like Tennessee. When compared to the average annual HI premium in Utah, it’s nearly three times higher! Some sources claim the average monthly HI premium for the state is actually closer to $2,000.

You think the $2,000 figure seems too high to be average? Think again. Remember, average is our “mathematical middle ground”. If we look at cities like Galveston, the city has some of the highest premiums for HI in the state. If you live in Galveston, you’re looking at an average premium of $7,000. If this is out of your price range, you may want to consider living in El Paso. El Paso boasts some of the lowest homeowner’s insurance premiums in Texas. Don’t believe us?

A simple search by zip code on will prove our point. Every zip code plugged into the site returned results with rates under $900. That’s bargain-basement rates when compared to Galveston. This goes to show that just because you live in a high-risk zone, it doesn’t mean you can’t afford adequate HI coverage.


As we saw in the above examples, it really depends on where you live. The national average for HI is approximately $800. That’s comparable to the lowest rates found in Texas. That being said, you can take certain steps to obtain a lower HI premium.

Comparison shopping isn’t just for clothes and your typical goods and services. You can use it to help you save money on insurance too. For instance, you know the average home insurance rate in Galveston is $7000, so you opt to live in El Paso. Just knowing the difference in rates between the two cities helps you save about $6,000.

Next, there are mitigating factors. Installing sump pumps, fire extinguishers, security systems and smoke alarms in your home may lead to discounts. Always ask your insurance agent about discounts.

So, what’s the take-away from all this? No matter where in Texas you choose to live, you need to make sure your home insurance policy in Houston TX provides the coverage you need at a price that fits your budget.

Next: True cost of cheap homeowners insurance

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