How Much is Homeowners Insurance in Dallas?

If you’re moving to the “Big D” Dallas, or simply reviewing a larger-than-a-longhorn monthly bill, you need to know the lay of the land. 

Just how much is homeowners insurance in Dallas, Texas? 

Like so many financial calculations, the answer is: it depends. There are a lot of variables related to both your financial history and decisions plus property characteristics. Let’s examine how to estimate the costs and keep homeowners insurance premiums affordable. 

Average Cost of Homeowners Insurance in Dallas

Polling what others pay is a good starting point to determine the average cost of homeowners insurance in Dallas. On average, Dallas households pay $5,045 per year (or $420 per month) to insure their homes, considerably higher than the national average of $1,915 per year, more than twice the monthly average payment of $160.¹

At a state level, Texas ranks second in the country for the highest homeowners insurance rates, with an average $4,400 annual cost. On the positive side, however, you’re better off in Dallas than in Houston, which has the highest rate of the top 20 metropolitan areas nationwide at $6,610 per year!

Factors That May Increase Insurance Costs

Some rate calculations are based on the specific home you buy in Dallas, while others can be navigated and negotiated. If you’re currently shopping for a Dallas home insurance policy, consider these enduring factors: 

The Effect of Home Age on Home Insurance Rates

Overall, an older or more structurally complex home results in a more expensive insurance policy. 

When it comes to age, if all other factors are equal, pricing differentials are approximately²:

• 10 years old: 48% higher than new construction
• 20 years old: 69% higher than new construction
• 30 years old: 74% higher than new construction
• 100 years old: 76% higher than new construction

It's crucial for Texas homeowners to account for these factors when budgeting for their home insurance.

The Influence of Neighborhood and Location

The exact location and neighborhood are relevant to insurance rates to the extent they increase risk and vulnerability to damage. This can include: 

• Vulnerability to natural disasters, erosion, flooding, etc.
• Crime rates
• Proximity to nearest fire services
• Strictness and care of local building codes

Ways to Reduce Homeowners Insurance Premiums

One of the simplest ways to lower your premiums is to simply ask. Call your insurance company, let them know you’re shopping around for a home insurance policy. Ask if there are any discounts you now qualify for, especially if you’ve made property improvements. Such measures can significantly reduce what you pay.

Leverage Discounts and Bundling Options

You can significantly reduce your premiums through discounts, so be sure to find out what you qualify for when you comparison shop. Common discounts include: 

• Bundling multiple types of insurance (such as home and auto) with one carrier
• Autopay and paperless billing selections
• Loyalty (length of time with the insurer) and solid payment histories
• Nonsmoking, military, or older age status

Home characteristics that can offer discounts include: 

• Smart home devices such as leak detectors
• Newer roofs with fire resistant or damage resistant materials
• Green home certification

Improve Home Security Measures

Homeowners in Texas can reduce premium costs by strengthening home security. Consider: 

• Steel entry doors
• Security systems with door and window motion sensors
• Surveillance cameras
• Fire and burglar alarm connected to police, fire, or monitoring resource

Shop Around for the Best Rates

Is gathering some new quotes worth your time? The same $300,000 house application yielded monthly premiums of $184 to $664 from five of the top insurance companies in Texas for 2024.³

That’s a potential savings of $5,760 over the course of a year! You won’t always find a gap that huge, but comparison shopping periodically will ensure you’re taking advantage of every discount that a company rep can offer to secure your business.

Maintain a Strong Credit Score

Your credit score makes a difference, since insurers consider your reliability as part of risk determination. Follow these steps: 

• Check your credit reports periodically
• Appeal any errors
• Make regular, timely payments
• Keep a comfortable mix of credit type, utilization, and debt to income (DTI) ratio

Avoid Homeowners Insurance With Truehold

Canceling your homeowners insurance usually goes hand in hand with hitting the road after a property sale, but there is a way to ditch the insurance payments without leaving your home. 

With Truehold's Sell and Stay option, you can bring together two common real estate steps—a property sale and a lease—into one smooth transaction. By selling your home to us, you gain access to your home equity, pay off any current mortgage, and are no longer responsible for homeowners insurance, property tax, or essential repairs—all without leaving the comfort of the home you love.* 

Investigate all of your options before you make decisions on how to lower your housing costs. Call us today and a representative will reach out to review our process and see if a Dallas sell and stay transaction is a good fit for your financial picture and goals.

Disclaimer*: After the home sale, you must comply with the terms of your lease to continue living in the home. This includes making timely payments on your rent for your minimum lease term (which ranges from 6 – 24 months).

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Sources: 

1. NerdWallet. The Average Home Insurance Cost in the U.S. for 2024. https://www.nerdwallet.com/article/insurance/average-homeowners-insurance-cost‍
2. Policygenius. Average homeowners insurance cost (October 2024). https://www.policygenius.com/homeowners-insurance/how-much-does-homeowners-insurance-cost/‍
3. Bankrate. Best homeowners insurance companies in Texas for 2024. https://www.bankrate.com/insurance/homeowners-insurance/texas/