Home Insurance in Austin, TX
If you’ve ever visited Austin for festivals such as Austin City Limits or South by Southwest and thought, “I’d love to live here,” you better act fast. Austin is booming, with more people moving to Texas’ capital city than any other place in the nation. This is driving up prices citywide, meaning buying your dream home and home insurance in Austin is getting more competitive by the day. But if you know Austin, you know it’s well worth it.
The live music capital of the world has still managed to keep things weird, even with all this change. From Eeyore’s Birthday Party to nightly shows at Esther’s Follies, there’s plenty of fun to be had within Austin’s city limits. Heard enough? Well, before you pack your bags and head down to Bat City, take a moment to learn more about getting the proper protection for your new digs with our guide. We’re headquartered in Austin after all, and most of our team resides in Texas, so it's safe to say we know a thing or two about life in the Lone Star State.
How much is homeowners insurance in Austin?
Homeowners insurance in Austin costs about $2,862 per year, according to Insurance.com. That’s about how much you’d pay for 16 tickets to watch Austin’s first major league sports team, Austin FC, play at Q2 Stadium. Just like the home prices, home insurance in Austin is relatively expensive, costing over $700 more than the Texas home insurance average of $2,128 and more than double the national average of $1,200.
What factors influence my home insurance rate?
Even though Austin is relatively small compared to other major cities in Texas like Dallas or San Antonio, how much you’ll pay for insurance still depends on where you’re located, as well as your home’s size, age and current condition. So if you have a large home in Westlake by the water, you should expect to pay more for home insurance than if you owned a one-bedroom house on the outskirts of south Austin.
Austin Home Insurance Premiums
Why is homeowners insurance so expensive in Austin TX?
Homeowners insurance is so expensive in Austin due to Texas’s inclement weather, including flooding, hurricanes, tornadoes and hailstorms. The city’s new growth and low inventory of homes also influences these prices, as transplants from more expensive states like California and New York drive up both the home and insurance prices across the board. And if you plan to build your own home in Austin, there are even more considerations to take into account.
What does homeowners insurance in Austin cover?
Homeowners insurance in Austin covers your home’s structure, any personal property inside the home and homeowner liability. This means if you have some friends over to watch the Red River Showdown and one of them trips on your stairs, you’ll be covered to repair what they damaged and help pay for your friend's medical bills (even if they were rooting for OU instead of UT). Your home insurance policy will likely cover any additional structures on your property, such as your fence or a shed. But this coverage will vary by provider, so make sure to check your insurance declaration page to see what protection you have.
While Austin is known for its bright and cloudless skies, it’s in Central Texas, meaning the weather can often be unpredictable. Because of this, adding some insurance riders to your policy is a good idea if you want to keep your home protected from the elements. Though you may not need riders like hurricane insurance like you would in Houston, other add-ons such as flood insurance, equipment breakdown coverage and water backup coverage are a smart move for life in ATX.
Austin Insurance Coverage Options
Traditional coverage
Physical Structure
Living Expenses
Liability Protection
Additional Structures
Personal Possessions
Supplemental coverage
Fire
Earthquake
Flood
What Austin residents need to know
Whether you moved to Austin to sunbathe at Barton Springs or to get in on the emerging tech scene, there are a few things you should know before buying a home in Texas’ capital city. The most important is the growing housing cost in Austin, which experienced an astonishing 62% increase from 2016 to 2021. Austin is also implementing new wildfire codes that may require homeowners to pay more to protect their homes.
Austin is also prone to extreme heat and the occasional flash flood, so keeping your HVAC system in tip-top shape and getting flood insurance is a good idea. Prepping your home for power outages is essential too, as Texas’ power grid has experienced statewide outages during both the winter and summer months.
How to lower your Austin home insurance premium
The cost of living in Austin has changed dramatically in the last few years, meaning homeowners across the city are looking for any way to save a few bucks.
While you shouldn’t skimp out on coverage just to save some cash, there are things you can do to lower your overall premium without sacrificing your protection.
First, consider making your home smarter. Adding in technology such as security cameras, alarm systems, carbon monoxide detectors and water leak monitors can help make your home less of a risk to insure (which means lower premiums).
Second, you should be willing to update older sections of your home such as your roof, HVAC system and windows. This will not only help keep you comfortable throughout Austin’s hot summers, but will also save you money on your premiums by offering your home more protection from the elements.
Don’t settle for home protection that’s just “alright, alright, alright,” as Austin FC co-owner Matthew McConaughey might say. To get the best and most modern coverage for your home, give us a call or enter your address for a home insurance quote that just takes 60 seconds.
