The reported average cost reached $2,303 annually in Harris County and $2,166 within the City of Houston. Flood or wind insurance policies can add other costs.
Homeowners insurance rose 17% in Harris County over a single year, reaching an average reported cost of $2,303 annually in 2024, according to the latest analysis from the Kinder Institute for Urban Research at Rice University.
Within the City of Houston, the average reached $2,166, an annual increase of 13%. The rise in premiums outpaced the growth in home values and added pressure to other expenses such as mortgage, property taxes, utilities, and maintenance.
Across Texas, the increase in insurance has been considerably faster than incomes. Between 2009 and 2024, the median county premium rose 74% after inflation adjustments, while median household income advanced 11%.
The Houston and Harris County housing report also found that nearly a quarter of local homeowners allocate more than 30% of their income to housing costs.
A Higher Premium Can Elevate Your Monthly Mortgage Payment
Many homeowners do not pay the annual premium directly. Their mortgage servicer deposits each month a portion of the payment into an escrow account and uses that money to cover the insurance and property taxes.
When the insurer increases the premium, the servicer recalculates how much needs to be collected. The total mortgage payment can rise even if the interest rate and the portion going toward principal remain the same.
The Consumer Financial Protection Bureau notes that the annual escrow account statement should show payments made, projected expenses, and any shortfall. An increase can also reflect a combination of insurance and property tax, so the breakdown helps identify which item changed.
Location, Roof, and Deductible Change the Final Insurance Price
The Harris County average does not represent what each homeowner will pay. The premium depends on the insured value, the estimated rebuild cost, the age and condition of the roof, the claims history, proximity to a fire station, and the risks associated with the location.
The deductible also influences the premium, that is, the amount the insured pays before the company covers a claim. A higher deductible usually lowers the premium but increases the out-of-pocket expense the homeowner would bear after damage.
Some policies express the wind, hurricane, or hail deductible as a percentage of the insured value rather than as a fixed amount. For a home insured for $300,000, for example, a 2% deductible represents $6,000.
The Texas Department of Insurance also distinguishes between replacement cost coverage and actual cash value. The former calculates what’s needed to repair or replace the property at current prices. The latter deducts depreciation and may pay less after a loss, even if the premium is lower.
Homeowners Insurance Usually Does Not Cover Floods
Most homeowner policies do not cover flood damage. That protection is purchased separately through the National Flood Insurance Program or a private insurer.
When a property is in a high-risk zone and has a mortgage backed by the federal government, the lender requires flood coverage. A home outside those zones can also suffer water damage, but the obligation depends on location and loan.
In coastal sectors and areas of Harris County near Galveston Bay, a standard policy may also exclude wind and hail damage. Properties located in parts of La Porte, Morgan’s Point, Pasadena, Seabrook, and Shore Acres may need independent coverage via the Texas Windstorm Insurance Association or a private company.
For that reason, two homeowners with similar premiums may have very different protections. Comparison needs to consider the replacement cost limit, deductibles, exclusions, contents coverage, and whether wind, hail, or flood require additional policies.
Texas Offers a Policy Comparison Tool and Insurance Complaints
HelpInsure.com, administered by the Texas Department of Insurance and the Office of Public Insurance Counsel, allows reviewing sample prices, types of coverage, financial ratings, and complaint indices for the companies.
The results of the tool are not final quotes. After comparing equivalent options, each insurer determines the actual price based on the property, applicant, and chosen coverage.
The state department also recommends asking about discounts related to monitored alarms, fire protection systems, multiple policies purchased with the same company, or a no-claims period. An active policy should not be canceled until there is written confirmation of the new coverage, to avoid a coverage gap.
Homeowners with questions about a company, an agent, a cancellation, or a rate increase can contact the Texas Department of Insurance help line at 800-252-3439, Monday through Friday, from 8 a.m. to 5 p.m., Central Time.
