Finding Home Insurance When Buying a House in Texas

Summary: Getting home insurance when buying a house in Texas is a must. Start shopping as soon as you sign a contract to avoid delays at closing. Lenders require proof of coverage, and you’ll usually pay a full year upfront. Work with a local agent, compare quotes, and add protection for floods or windstorms if needed. Estimated Read Time: 4 mins

Table of Contents:

1. When Should You Get Home Insurance in Texas?
2. Why Your Lender Won’t Let You Skip It
3. How to Shop for Home Insurance Without the Headache
4. Smart Tips to Save on Home Insurance in Texas

Before you can close on a home, your mortgage lender will usually require proof of homeowners insurance. They want to make sure their investment, and your new home, is protected right away. This is why purchasing home insurance when buying a house goes hand-in-hand. It doesn’t matter if it’s your first home or if you haven’t been through the process in a while. Our guide will help you navigate home insurance when buying a house in Texas so that you save and protect your property without facing potential roadblocks.

When Should You Get Home Insurance in Texas?

You should start looking for homeowners insurance in Texas as soon as you have a signed contract for your new home, ideally right after you sign the purchase agreement, instead of waiting until the last minute.

This gives you time to compare different policies, find the right coverage, and avoid last-minute delays.

Some lenders need to see proof of insurance several weeks before you close on the house. The earlier you shop around, the better prepared you’ll be when it’s time to close.

Covering the Costs

You’ll often need to pay for a full year of insurance upfront, so plan ahead to cover the cost of buying home insurance before closing.

Once you choose a policy that meets your lender’s requirements, your insurance company will typically work directly with your escrow or title company to send proof of insurance before closing day.

Why Your Lender Won’t Let You Skip It

If you’re financing your home, homeowners insurance is mandatory to protect your lender’s investment until the loan is paid off.

Even if you’re paying cash, home insurance is still highly recommended to safeguard against disasters and liability risks.

Once you purchase a policy, your insurer will issue a certificate of insurance to provide to your lender.

From there, many lenders set up an escrow account, using part of your monthly mortgage payment to cover insurance and taxes. This keeps your coverage active and simplifies your payments.

At the end of the day, having a policy in place helps everyone enjoy peace of mind and establishes a path to move forward should the unthinkable occur.

How to Shop for Home Insurance Without the Headache

Finding homeowners insurance can be as simple as going online and searching for a carrier.

But remember, if you’re going to get the best deal available, for your protection and your wallet, always compare top-rated carriers to pinpoint the best option available.

You’ll want to compare how you’re protected, exclusions, customer service, and of course, how much each carrier costs, before enrolling.

Coverages and Protections

Because Texas weather can bring diverse risks like hail, windstorms, and floods, working with a local insurance agent is smart.

They can help you calculate the right amount of coverage for your home and suggest important add-ons like flood insurance or windstorm protection if needed.

In Texas, you’ll need enough homeowners insurance to cover the full cost to rebuild your home, not just its market value, and to replace your personal belongings.

Most policies in the Lone Star State cover personal property at 50–70% of the home’s insured value. You may want to add scheduled personal property coverage for extra protection if you own valuables like jewelry, fine art, or collectibles.

You’ll also want to choose between replacement cost coverage (which pays to replace items new) and actual cash value (which factors in depreciation).

Exclusions and Considerations

Standard homeowners insurance doesn’t cover everything. For example, additional coverage may be needed for:

• Flooding (separate flood insurance policy)
• Earthquakes (separate earthquake policy)
• High-value items exceeding standard coverage limits

With the population of Texas growing, urban development, and stronger Gulf storms, flood risks are on the rise, especially in flood-prone areas.

If your home is in a flood zone, your lender may require flood insurance. Even if not required, it’s wise to consider it.

Texas is also home to several fault lines, including the Balcones Fault, making earthquake insurance an important consideration to protect your home from potential seismic damage.

Be sure to assess your home’s risk and personalize your coverage accordingly.

Smart Tips to Save on Home Insurance in Texas

How much you pay for your homeowners insurance depends on your home’s value, location, how it’s built, your credit history, etc.

In the end, homeowners who are riskier to insure are going to have higher premiums, and those who are less risky will pay less.

Saving on coverage can be accomplished by installing things like smoke detectors, a home security system, or stormproofing features.

However, nothing beats comparing multiple carriers and a home and auto insurance bundle. Each year, it’s also a good idea to review your policy to ensure that you are properly covered and still paying the lowest premium available.

When picking an insurance company, don’t just look at price. Check reviews, ask about how claims are handled, and make sure they’re strong financially.

Get a few quotes, compare coverage carefully, and don’t be afraid to ask questions.

How you protect your home is a major financial decision. You deserve to have an affordable homeowners insurance policy with a company you can trust to be there when it counts.

Read Next: First-Time Home Buyer Texas Assistance Tips

Sources:

Percent Population Change for Texas Counties, 2020-2023, Texas Demographic Center. Accessed June 2025. https://demographics.texas.gov/Visualizations/2024/Estimates2024/