Quick Summary
- Learn the most effective ways to lower home insurance costs in Texas without cutting critical coverage
- Understand which discounts actually move your premium and which ones barely matter
- See how roof upgrades, deductibles, and policy timing impact Texas home insurance pricing
- Discover lesser-known savings many Texas homeowners miss
A full FAQ section is included at the end of this article for quick answers.
Why Home Insurance Costs Are Rising in Texas
Home insurance costs across Texas have increased over the last several years, even for homeowners who haven’t filed claims. The primary drivers aren’t individual policy changes — they’re market-wide pressures.
Severe weather events, especially hail and wind losses, have significantly increased claim payouts. At the same time, insurance companies are paying more for reinsurance, which is essentially insurance for insurers. Those costs eventually flow downstream to policyholders.
That said, rising rates don’t mean you’re powerless. The key is understanding which changes actually lower premiums versus adjustments that only look helpful on paper.
The Biggest Way to Lower Home Insurance in Texas
Bundling Home and Auto Insurance With One Carrier
The most commonly known — and often largest — discount available is bundling your home and auto insurance with the same company. When done correctly, this can produce substantial savings on both policies.
However, bundling only works when:
- Both policies are competitively priced on their own
- Coverage limits and deductibles are appropriate for your situation
Simply moving everything to one carrier without reviewing coverage can create gaps or lead to overpaying elsewhere.
Texas Insight:
Bundling is frequently the single largest discount available, but it only works when both policies are structured correctly — not just because they share the same logo.
Roof-Related Discounts That Can Dramatically Reduce Premiums
New Roof Credit and Why Roof Age Matters
One of the most impactful premium reductions in Texas comes from replacing an old roof. Depending on the carrier and the roof being replaced, a new roof can reduce premiums by 20–30%.
The biggest savings typically occur when:
- A very old roof (15–20+ years) is replaced
- The insurer previously rated the home as high risk due to roof age
If a roof was only five years old before replacement, the premium change will be more modest — but still beneficial.
Impact-Resistant Shingles (Class 3 and Class 4)
Installing Class 3 or Class 4 impact-resistant shingles can unlock additional savings, often 10–20% depending on the carrier.
These shingles are designed to withstand hail damage better than standard architectural shingles, which reduces claim frequency — something insurers reward.
Refer to Texas Department of Insurance for products qualifying for impact-resistant roofing credits.
Quick Tip:
Always obtain written documentation from your roofing contractor showing the shingle classification and installation date. Insurers will not apply impact-resistant credits without proof.
Work With Reputable Roofing Contractors
Not all roofing upgrades qualify for insurance credits. Before choosing materials, confirm with a licensed roofing professional and your insurance agent that the selected shingle qualifies for carrier discounts.
Lesser-Known Discounts Many Texas Homeowners Miss
Advance Quote and Early Shopper Discounts
Many insurers offer an advance quote discount if you shop early or bind coverage 7–14 days before the policy start date. This discount is typically around 5%, but it’s often overlooked.
Waiting until the last minute to renew limits your options and removes this savings opportunity.
Paid-in-Full and Escrow-Related Discounts
Paying your home insurance premium in full often qualifies for an additional discount. Many homeowners assume this only applies when paying out of pocket, but policies paid through mortgage escrow accounts frequently qualify as well.
This makes paid-in-full discounts especially useful when purchasing a new home.
Claims-Free Discounts and Long-Term Strategy
Homeowners who have not filed a claim in the last five years often qualify for claims-free discounts. Beyond the discount itself, maintaining a clean claims history has a compounding effect on long-term affordability.
Insurance works best for large, unexpected losses — not routine maintenance. Using your policy sparingly helps protect future pricing.
Deductible Choices That Lower Home Insurance Costs in Texas
Flat vs Percentage Deductibles
For years, many Texas homeowners carried $500 or $1,000 deductibles. Today, percentage-based deductibles are far more common.
A 1% or 2% deductible is calculated based on your home’s Coverage A (dwelling limit) — not the claim amount.
How 1% and 2% Deductibles Affect Premiums
Raising a deductible to 1% or 2% can significantly reduce annual premiums, especially in hail-prone areas. A 2% deductible often produces the largest savings, though it increases out-of-pocket exposure during a loss.
Texas Insight:
Many homeowners are surprised to learn that a percentage deductible applies to the home’s rebuild value, not the size of the claim itself.
Choosing the right deductible is a balance between premium savings and financial comfort.
Other Factors That Quietly Increase Your Premium
Several factors can raise premiums even when no claims are filed:
- Prior loss history, including small water claims
- Older electrical, plumbing, or roofing systems
- Liability risks such as pools or trampolines
- Multiple outbuildings or detached structures
Understanding these elements helps explain why two similar homes may have very different premiums.
How to Lower Your Premium Without Sacrificing Coverage
Lowering home insurance costs in Texas isn’t about stripping coverage — it’s about optimizing policy structure.
The most effective strategy usually includes:
- Leveraging structural discounts (roof, materials, bundling)
- Shopping early rather than reacting at renewal
- Adjusting deductibles thoughtfully
- Keeping claims activity strategic and minimal
Small, informed changes often outperform dramatic policy overhauls.
Next Steps for Texas Homeowners
If your goal is to lower home insurance costs in Texas:
- Review your policy before renewal notices arrive
- Confirm roof age and materials are rated correctly
- Evaluate deductibles based on savings and risk tolerance
- Ask specifically about lesser-known discounts
Thoughtful reviews lead to better outcomes than rushed decisions.
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Request a QuoteAbout the Author
Luke Faulkner is a Texas-licensed insurance advisor and the founder of Gilded Oak Insurance. He helps Texas drivers and homeowners make confident coverage decisions through clear, practical guidance — without pressure or fear-based selling.
Learn more about our mission and approach on the Gilded Oak Insurance About page .
Learn more about our mission and approach on the Gilded Oak Insurance About page.
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FAQ: How to Lower Home Insurance Costs in Texas
These answers are general guidance. Discounts and savings vary by insurer, location, and home details.
How can I lower home insurance in Texas without switching companies?
You can often lower home insurance in Texas by making sure your policy is rated correctly and by applying discounts you already qualify for. Common wins include:
- Updating roof age and roof type (new roof credit)
- Adding proof of Class 3 or Class 4 impact-resistant shingles
- Paying the policy in full (or confirming escrow qualifies)
- Shopping early enough to qualify for an advance quote discount
- Raising deductibles to a level you can comfortably handle
Does bundling home and auto actually lower home insurance costs in Texas?
In many cases, yes. Bundling auto and home with one carrier is often the largest available discount. The key is making sure both policies are priced competitively on their own and that coverage isn’t reduced just to hit a lower premium.
How much can a new roof lower home insurance in Texas?
A new roof credit can be substantial. Depending on the carrier and how old the prior roof was, replacing an older roof can reduce premiums by roughly 20% to 30%.
When a roof is replaced at a relatively young age (for example, a 5-year-old roof), the premium difference may be smaller than replacing a roof that was 15–20+ years old.
Do Class 3 or Class 4 shingles lower home insurance in Texas?
Often, yes. Installing Class 3 or Class 4 impact-resistant shingles can lead to additional savings, commonly around 10% to 20% depending on the insurer.
To receive the credit, you typically need documentation from the roofing contractor showing the shingle type/classification and installation date.
What is an advance quote discount and how do I get it in Texas?
An advance quote discount rewards homeowners who shop and bind coverage early — often 7 to 14 days before the policy start date. It can be around 5% depending on the carrier.
If you wait until the last minute at renewal, you may miss this discount and limit your carrier options.
Does paying home insurance in full lower the premium if it’s escrowed?
Sometimes, yes. Many carriers offer a paid-in-full discount, and escrowed payments may still qualify depending on how the insurer processes the payment.
Do claims increase home insurance in Texas even if the claim is small?
They can. Claims history is a major rating factor, and even smaller claims can affect eligibility for claims-free discounts and future pricing.
In general, insurance is best used for larger, unexpected losses — not as a maintenance policy for routine wear and tear.
Will raising my deductible lower home insurance costs in Texas?
Often, yes. Increasing deductibles can reduce annual premiums, especially moving from low flat deductibles to a 1% or 2% deductible.
Keep in mind that a percentage deductible is based on your Coverage A (dwelling limit), not the claim amount.
