El Paso Texas House
Home Insurance in El Paso TX

Nicknamed 'The Sun City,' El Paso has, on average, 297 sunny days per year. It is home to more than 70 Fortune 500 companies, which helped maintain a low unemployment rate of 3.7% before the COVID-19 pandemic. El Paso is rated the city with the lowest cost-of-living in the US; purchasing a home in El Paso costs about 30% less than the national average. The average home costs only $119,300, and the average cost of monthly rent is $770.

El Paso residents enjoy a city rich in history, art, and music. There is something for everyone - kid-friendly venues such as TecH20, an interactive water conservation center, Western Playland Amusement Park, and popular neighborhoods such as Park Foothills, Redd-Mulberry, and Silver Springs Village.

Owning a home in El Paso is a significant investment, so it is wise to make sure you have proper homeowners coverage. Young Alfred wants to help you understand home insurance's ins-and-outs, so we put together this useful guide for those looking to review or buy home insurance.

  1. The average price of home insurance in El Paso, TX
  2. Typical home insurance claims in El Paso, TX
  3. Coverage details of your home insurance policy
  4. Insurance companies in El Paso TX
  5. El Paso home insurance quotes


1. The Average Price of Home Insurance in El Paso, TX

Everyone likes home insurance discounts. At Young Alfred, we want to help our customers find every savings available. We search for every El Paso insurance discount that you may be eligible to earn.

Most Young Alfred customers in El Paso pay around $631 - $1,196 per year for their home insurance premiums. The average home insurance cost in El Paso, TX, is $901.84. Finding cheap insurance in El Paso, TX, is difficult.

Average Home Insurance Cost El Paso TX
One thing to note is that your home's value goes up as home pricing increases, which means you need to add more coverage. Adding additional coverage limits is a smart financial move to cover the full cost of a rebuild. You can expect to pay an extra $198/year in home insurance for every $100,000 home value increase.

Home Insurance Rates vs. Home Rebuild Cost for homes located in El Paso, TX
Insurance El Paso TX
Home insurance rates data generated from the following zip codes: 79901    79902    79903    79904    79905    79906    79907    79913    79914    79915    79920    79922    79923    79924    79928    79934    79935    79936    79937    79938    79945    79946    79947    79948    79949    79908    79910    79911    79912    79917    79925    79926    79927    79929    79930    79931    79932    79940    79941    79942    79943    79944    79950    79951    79952    79953    79954    79961    79968    79976    79990    79995    79996    79997    79998    79955    79958    79960    79978    79980    79999    88510    88516    88517    88518    88519    88520    88521    88523    88524    88525    88526    88511    88512    88513    88514    88515    88527    88528    88529    88530    88531    88538    88539    88540    88541    88542    88548    88549    88550    88553    88554    88560    88561    88562    88563    88565    88571    88572    88573    88574    88575    88576    88577    88578    88579    88580    88532    88533    88534    88535    88536    88543    88544    88545    88546    88547    88555    88556    88557    88558    88559    88566    88567    88568    88569    88570    88581    88582    88583    88584    88585    88595    88586    88587    88588    88589    88590

2. Common Home Insurance Claims in El Paso, TX

El Paso is known for its extreme weather. In 2018, the city recorded 46 triple-digit summer days, and in 2019-2020 had 32 reports of hail on the ground.

Here is a risk report example from an El Paso home address.

El Paso, TX Home Risk Report
El Paso Home Insurance Perils

Insurance companies often offer higher deductibles in areas that frequently experience specific disasters such as wind and hail that commonly happen in El Paso. Because these disasters drive up home insurance premiums, home insurance shoppers might opt for higher deductibles and a lower premium. If you have an excessively high deductible that you cannot meet and consequently you cannot repair your home, you will lose your investment. To avoid this, we recommend choosing a lower affordable deductible with its accompanying premium.


3. Coverage Details of Your Home Insurance Policy

Your homeowners insurance in El Paso covers six distinct areas. Understanding how these coverage requirements work is vital to protect your investment.

Coverage A: Dwelling is the part of your policy that covers your actual home.
Coverage B: Other Structures covers any building that is not attached to your home.
Coverage C: Personal Property entails coverage for your personal belongings such as furniture, clothing, household items, etc. Many things have special sub-limits, which means the insurance will only cover the item up to a certain amount.
Home Insurance El Paso TX
Coverage D: Loss of Use is insurance coverage that provides reimbursement for living expenses incurred when you cannot live in your home.
Coverage E: Personal Liability is protection that pays for medical and legal expenses if someone gets hurt and sues you.
Coverage F: Medical Liability coverage handles medical bills for an injured person who does not choose to sue you.

Additional Recommended Coverages
Although there are no state minimums in Texas, it is always wise to consider a full range of coverages:

Water Damage
Water damage is a large percentage of all homeowners claims. Below are the different areas of water damage. Some are covered, some are not.

  • Flooding. Insurance policies exclude flooding from coverage on a standard policy. Consumers can purchase coverage from the National Flood Insurance Program, NFIP, or Private Flood Insurance Companies.
     
  • Burst Pipe. Water damage is a covered loss on your standard homeowners policy. A slow leak that causes water damage is not covered as this is a preventable instance.
     
  • Water Backup Coverage. Your homeowners insurance excludes water backup, but consumers can purchase this as an add-on.
     
  • Storm-Related Water Damage. If water enters from above ground level, your insurance policy covers storm-related water damage.
     
  • Water Seepage or Groundwater. This water damage is an exclusion on your policy. Some homeowners purchase it as an add-on.

Foundation Coverage
Texas soil consists mostly of clay that is prone to shifting. Because of the foundation's uncertainty, most homeowners insurance policies exclude foundation coverage. If you purchase a water and foundation endorsement, it covers you for 15% of your Coverage A or has a $25,000 limit. It is smart to buy this coverage to avoid expensive slab leak repairs.

Wind and Hail Deductible
Home insurance policies typically have percentage-based or set amount deductibles. Wind and hail insurance usually come as a percentage deductible.

Percent-Based Deductible (2%, 3%, 5%, 10%)
The deductible, in this case, is a percentage of Coverage A on your policy.

Example:
$150,000 of dwelling coverage
3% deductible

The homeowner pays for the first $4,500 ($150,000 * 3%) of loss to your home, and then the insurance company pays. In Texas, percentage deductibles get applied to special losses such as a Hurricane Deductibles or Wind and Hail Deductibles.

Dollar-Based Deductibles ($500, $1,000, $2,500, $5,000, $10,000)
The dollar-based deductible is the same amount, whatever the covered peril. The most common deductible is $1,000.

Example:
$500,000 of dwelling coverage
$2,500 deductible

You pay for the first $2,500 in a covered peril, and then the insurance company pays the rest.

Roof Coverage: Replacement Cost vs. Actual Cash Value
Roofs that are 20+ years old are surviving beyond the customarily expected life span. 

Example: Your asphalt roof is 19 years old, and a hail storm damages your roof beyond repair - now you need a new roof. The insurance company will not cut you a check for a brand-new roof if covered at ACV because you would need to replace the roof in the next five (5) years, with or without the hail storm. 

Instead, your insurer will cover your roof for its remaining useful life. If the roof is 19 years old, with a 25-year remaining useful life, replacement costs $15,000, and your policy has a $1,000 dollar deductible, your check will be (25-19)/25*15,000 - $1,000 = $2,600. 

However, if your roof has Replacement Cost, your check will be $15,000 - $1,000 = $14,000. In this example, Replacement Cost Coverage for your roof was worth an extra $11,400

Animal Liability
The average amount of a dog-bite legal claim spans as high as $35,000 — insurance companies set rates based on dog breed when pricing animal liability insurance. Homeowners should look carefully at their policy to see if animal liability is an exclusion. Do not wait until you are filing a claim to find out you are not covered.

Each homeowner should understand the six major coverage categories.

  1. Coverage A: Dwelling - covers your primary building structure.
  2. Coverage B: Other Structures - covers any structures on your property not attached to your primary home's structure.
  3. Coverage C: Personal Property - covers your personal belongings with special sub-limits for specific categories:

    homeowners insurance coverage C special limits
  4. Coverage D: Loss of Use - if you can't live in your home after a covered loss, this helps cover your cost of living somewhere else until repairs are completed
  5. Coverage E: Personal Liability - if someone sues you for something that happened on your property, this will kick in to defend the lawsuit and payout on damages charged in the case.
  6. Coverage F: Medical Liability - if a guest injures themselves on your property, this can cover the guest's medical expenses from that injury.

More importantly, homeowners in El Paso, TX, should know the five specific coverage details of their home insurance policy:

  1. Water Damage
    Water damage represents a third of all homeowners claims. Insurance companies break up water damage into many different categories, only some of which are covered by your standard insurance policy.

    Flooding - not covered in your standard homeowners policy, but can be purchased as a separate policy from NFIP or Private Flood Companies.

    Water Damage from a Burst Pipe - usually covered in your standard homeowners policy. You are not covered if they are leaking slowly over time. 

    Water Backup Coverage - not covered in your default home insurance policy, but can be purchased as an additional add-on. 

    Storm-Related Water Damage - covered by your standard homeowners policy if the water enters from above the ground level.

    Water Seepage/Groundwater - not covered in your standard homeowners policy can be purchased as an add-on coverage.
     
  2. Foundation Coverage
    Texas homeowners insurance policies typically exclude foundation coverage. The exclusion is common because the geological makeup of Texas is mostly clay, which is prone to shifting. You can usually buy a water & foundation endorsement that covers 15% of your Coverage A or up to a $25,000 limit. I highly recommend this to protect against those costly slab leaks
     
  3. Wind/Hail Deductible 
    There are two types of deductibles quoted on home insurance policies: 

    Percent-Based Deductible (2%, 3%, 5%, 10%) 
    Percentage-based deductible means that your deductible is a percentage of the coverage A on the policy.

    Example:  
    $300,000 of dwelling coverage 
    2% deductible
    You pay for the first $6,000 ($300,000 * 2%) of damages to your home before the insurance company steps in. In Texas, these % deductibles follow special perils, like a Hurricane Deductible or Wind/Hail Deductible.


    Dollar-Based Deductible ($500, $1,000, $2,500, $5,000, $10,000) 
    You pay a set $ amount anytime you file a claim, and the insurance company pays that claim. The most common deductible is $1,000. 

    Example:  
    $300,000 of dwelling coverage 
    $1,000 deductible
    You pay for the first $1,000 of damages to your home before the insurance company covers repairs.

     
  4. Roof Coverage: Replacement Cost or Actual Cash Value
    You should replace an asphalt shingle roof every 20 years. If you have an older roof, your home insurance policy may only cover the roof at Actual Cash Value (ACV). Actual Cash Value coverage means you aren't getting a full reimbursement on your roof in a claims scenario.

    Example: Your roof is 19 years old, and you have a hail storm that damages the roof beyond the point of repair - you now need a new roof. The insurance company is not going to cut you a check for a brand new roof if it is covered at ACV, because you were going to have to replace the roof in the next 5 years even without the storm. They will give you a check that represents the remaining useful life of your roof. If the roof is 19 years old, has a 25-year useful life, costs $15,000 to replace, and you have a $1,000 deductible, you are only going to get a check for (25-19)/25*15,000 - $1,000 = $2,600. If your roof is covered at Replacement Cost, you are getting a check for $15,000 - $1,000 = $14,000. In this common example, the Replacement Cost Coverage on your roof was worth an extra $11,400. 
     
  5. Animal Liability
    In addition to an unusually high number of tigers in Texas, there are also plenty of dangerous dogs. We know, bad dogs are usually not a function of the breed, but a lousy owner. However, insurance carriers do not have a way to change pricing based on the quality of the dog owner yet, so they use dog breed as a rating factor in their pricing models. As the average dog bite claim is ~$35,000, you may want to check if animal liability coverage is being excluded on your policy if you own a dog.

4. Insurance Companies in El Paso, TX

There is a myriad of home insurance agencies in El Paso, TX competing for your business. Investigating the companies you are considering is a great way to narrow down your list. Here are some things to research:

  • Financial Stability Rating. An insurance company's financial stability directly determines their ability to pay your claim should the need arise. Look at AM Best or Demotech to learn more about each insurance company's financial status.
  • How long has each company been insuring El Paso homes?
  • Look at online reviews, especially for claim handling and quality of customer service.

We recommend the following insurance carriers for El Paso homeowners.

Insurance Company Financial Stability Experience Online Reviews
Progressive AM Best A+ Experienced 4 stars
Hippo AM Best A- New 5 stars
State Auto AM Best A- Experienced 4 stars
Travelers AM Best A+ Experienced 5 stars
USAA AM Best A++ Experienced 5 stars
Encompass (Allstate) AM Best A+ Experienced 5 stars
State Farm AM Best A++ Experienced 4 stars
Foremost (Farmers) AM Best A Experienced 3 stars
Safeco (Liberty Mutual) AM Best A Experienced 4 stars
Stillwater AM Best A- Experienced 5 stars
Mercury AM Best A Experienced 4 stars
Velocity AM Best A New 4 stars
Towerhill AM Best A- Experienced 5 stars
Lighthouse AM Best A- New 3 stars

5. El Paso Home Insurance Quotes

 Insurance companies use three main categories to calculate rates:

  • Property ratings. Based on the age, location, and heating system in the home.
     
  • You. Your credit score, claims history, pets, and more are all ways insurance companies determine rates.
     
  • Coverages you choose. Coverage options, limits, and endorsements.

We make it easy to obtain a home insurance quote. Young Alfred features a customized quoting engine to provide you with the best home insurance prices and comparison in your area. We never sell information or call you after you request your personalized quote. If you need home and auto insurance, or even renters insurance, Young Alfred is the go-to place!

Get Home Insurance Quotes in El Paso TX

I hope that helps!

At your service,
Young Alfred