If you're living in Stafford, Texas—or thinking about moving there—you've probably heard about the city's biggest claim to fame: no property tax. That's right, Stafford is one of the few cities in Texas that doesn't charge municipal property taxes. But here's what you still need to think about: insurance. Even without property tax eating into your budget, you'll need the right coverage to protect your home, car, and belongings in this Houston suburb.
Stafford sits in Fort Bend County, just southwest of downtown Houston, which means you're dealing with typical Gulf Coast weather—including heavy rain, occasional flooding, and hurricane season. Your insurance needs here are shaped by your location, and understanding what you actually need can save you thousands while keeping you properly protected.
Auto Insurance in Stafford: What You Need to Know
Texas law requires all drivers to carry minimum liability insurance, known as 30/60/25 coverage. That's $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $25,000 for property damage. These minimums haven't changed for 2025 or 2026, and they're honestly pretty basic. If you cause a serious accident, these limits can get used up fast.
In Stafford, you're looking at average costs of $48 to $65 per month for minimum liability coverage, or about $158 to $170 monthly for full coverage that includes comprehensive and collision. That's actually pretty reasonable compared to some other Houston-area cities. If you have a clean driving record and good credit, you might even pay less—USAA offers rates as low as $36 per month if you qualify for membership, while State Farm averages around $52 monthly.
Here's something new for 2025: Texas passed SB 1644, which requires insurance companies to review your credit report every three years and adjust your rates based on changes to your credit score. If your credit has improved, you could see lower premiums without having to shop around. There's also HB 2067, effective January 2026, which means insurers must give you a written explanation if they decline, cancel, or don't renew your policy. No more guessing why you got turned down.
Homeowners Insurance: Protecting Your Biggest Asset
The average homeowners insurance policy in Stafford runs about $1,210 per year. That's significantly lower than the Texas average of around $2,300 annually, which is good news for your budget. Since Stafford doesn't charge property tax, you're already saving money there—but don't skip on adequate home insurance to save a few more bucks. Your home is likely your most valuable asset, and proper coverage is essential.
Standard homeowners insurance covers your dwelling, personal property, liability, and additional living expenses if your home becomes uninhabitable. But here's the catch: it doesn't cover flood damage. Not even a little bit. And in the Houston area, that's a big deal. Even if you paid off your mortgage and aren't required to have flood insurance, you should seriously consider it.
When you're shopping for homeowners insurance in Stafford, look beyond the premium. Check the deductible (what you'll pay out of pocket before coverage kicks in), coverage limits (especially for dwelling and personal property), and whether the policy covers replacement cost or actual cash value. Replacement cost pays to rebuild or replace items at today's prices, while actual cash value factors in depreciation—meaning your five-year-old roof gets valued like a five-year-old roof, not a new one.
Flood Insurance: Don't Skip This One
Let's talk about flooding in Stafford. The city experiences flooding from heavy local rainfall that can overwhelm drainage systems, especially in areas with flat terrain and lots of pavement. You don't need to live in a designated flood zone to flood—Houston-area residents learned this the hard way during Harvey and other major storms.
Flood insurance in the Houston area typically costs between $769 and $1,553 through the National Flood Insurance Program (NFIP), though some homeowners pay as little as $800 while others pay over $3,000 depending on their flood risk. The NFIP covers your home up to $250,000 and personal belongings up to $100,000 with a separate contents policy. You can also buy private flood insurance, which sometimes offers higher coverage limits and more flexibility than NFIP policies.
Here's some good news: Houston recently earned enough points to move from a Class 5 to Class 4 community rating with FEMA, which increases flood insurance discounts from 25% to 30%. The Harris County Flood Control District recommends all residents learn their flood risk and consider flood insurance regardless of whether you're in a mapped high-risk zone. You can check your specific flood risk at FEMA's Flood Map Service Center using your address.
Getting the Right Coverage at the Best Price
Shopping for insurance isn't fun, but it's worth your time. Stafford has seven local insurance agencies, giving you options to compare quotes and find coverage that fits your needs. Don't just look at the bottom-line price—consider the company's reputation for claims handling, customer service ratings, and financial stability. You want an insurer that'll actually be there when you need them, not one that fights every claim.
Bundle your policies whenever possible. Most insurers offer discounts if you buy home and auto insurance together, sometimes saving you 15-25% on premiums. Ask about other discounts too: security systems, new home construction, claims-free history, and even professional affiliations can all lower your costs.
Review your coverage annually. Your needs change—maybe you paid off your car, bought new furniture, or started working from home. Your insurance should reflect your current situation, not what it was three years ago. And with that new credit review law, your rates might automatically improve if your credit has gotten better.
Next Steps: Getting Your Stafford Insurance Right
Start by taking inventory of what you need to insure. For your car, make sure you meet Texas minimum requirements at a bare minimum, but consider higher liability limits if you have assets to protect. For your home, calculate what it would actually cost to rebuild—not what you paid for it, but what construction would run today. Then add flood insurance to the list, especially if you're anywhere near areas that have flooded before.
Get quotes from at least three insurers, including local agents who know the Stafford market. Compare not just the price but what's actually covered, the deductibles, and how claims are handled. Living in Stafford gives you a property tax advantage—use those savings to invest in solid insurance coverage that'll protect you when you actually need it. Because in Southeast Texas, it's not a question of if you'll need your insurance, but when.
