Homeowners Insurance Quotes in Bonham, TX

What You Should Know About Home Insurance in Bonham

Named after one of the Alamo defenders, James Butler Bonham, the city that now bears his name began as a two-story blockhouse in 1837 called Fort Inglish (there’s now a replica of this settlement where you can experience frontier living). The city officially became Bonham in 1848. Currently, there is a statue in honor of the Alamo hero on the courthouse grounds.

Located in what is known as the Texoma region (north Texas and south Oklahoma), Bonham has several famous sons and daughters, including former Speaker of the U.S. House of Representatives Sam Rayburn, plenty of musicians such as Charlie Christian, several athletes, such as Homer Blankenship and  Durwood Keeton, plus the outlaw and gunslinger John Wesley Hardin.

The Lake Bonham Recreational Area is a huge draw for residents, consisting of more than 1,000 acres. This park offers a multitude of outdoor activities including camping, swimming on a public beach, fishing, trails and more. Given the population is a relatively small number of 10,400, Bonham is not overcrowded. The school system is rated highly and there is a community spirit centered around family.

Bonham homeowners can find the best home insurance in Texas at InsureOne. InsureOne offers white-glove service, flexible plans and the ability to work with A+-rated carriers.

How Much Does a Homeowners Insurance Policy Typically Cost in Bonham?

Your home insurance policy takes into account how much it would cost to rebuild your home in the event of a total loss. Here are some averages.

Type of Home in Texas	Average Annual Cost in Texas	Average Annual Cost Nationwide
Homes $300K	$2,919	$2,300
Co-ops and Condos	$730	$531
High-end Homes	$4,487	$2,831

How Do Home Insurance Deductibles Change Insurance Rates in Bonham?

Setting the right deductible for your home insurance policy involves balancing affordability and risk. A deductible is the amount you pay out of pocket before your insurance kicks in after a claim. Opting for a higher deductible can lower your premium but increases your financial responsibility in case of a loss.

Consider your budget—choose a deductible you could comfortably pay without financial strain. Assess your home’s risk factors, such as weather-related hazards in your area, to determine if a lower deductible is wiser. Regularly reevaluate your choice as your financial situation or home insurance needs change to maintain the right balance.

Compare Home Insurance Rates in Bonham

The cost of living in Bonham is considered low, although most residents are fairly affluent. The median cost of an owner-occupied home there is $183,600 and the majority of people live in their homes for multiple years.

The more desirable neighborhoods are those located near downtown and the lake, including Highland Home, Chancellorsville and New Post. More affordable homes are located southeast of the city in neighborhoods like Inglish.

Here are some various average costs of insurance rates in Texas based on replacement value.

Dwelling Coverage	Average Annual Home Insurance Rates
$100,000	$1,318
$200,000	$2,086
$300,000	$2,919
$400,000	$3,749
$500,000	$4,642

Is Home Insurance Tax Deductible in Bonham?

Home insurance premiums aren’t typically tax-deductible because they’re considered personal living expenses. The IRS generally allows deductions only for expenses directly related to income generation or specific allowable categories, such as medical costs, charitable donations, or mortgage interest. Since home insurance is designed to protect your personal property and doesn’t directly contribute to earning income or fall into those special categories, it doesn’t qualify for a deduction.

Exceptions exist, such as for rental properties or home offices, where insurance becomes a business-related expense. This distinction ensures tax deductions are applied to activities that directly affect income or meet specific policy objectives.

Does Bonham Have the 80% Homeowners Insurance Rule?

Did you know you may get a smaller payout for a successful claim if certain conditions in your policy are not met? For example, most insurance agencies require your policy amount to be at least 80% of your home’s replacement cost. If it is less than that, there is a clause that states they do not have to pay the full claim amount.

That’s why it is best to always ensure you have enough coverage. Let’s look at an example:

Example:

• Your home’s replacement cost: $365,000
• Required insurance (80% of replacement cost): $292,000
• Actual coverage purchased: $265,000
• Damage to your home: $50,000

In this example, the insurer will divide the actual coverage ($265,000) by the required coverage ($292,000) and multiply it by the damage ($50,000). This equals $45,376, which is how much you would receive for your claim, leaving you to cover the remaining $4,624 out of pocket.

Having a little more coverage than you need is better than not having enough coverage when you have an emergency. Discuss this with your neighborhood insurance agent to make sure you are in compliance with the 80% rule.

What Weather Affects Home Insurance Costs in Bonham, Texas?

Bonham is located in the far north part of Texas and has hot summers and cold, wet and windy winters. It rarely gets over 94°F and rarely gets below freezing. The risk of experiencing a tornado is much higher than the Texas average, but it is still only considered a moderate risk in Bonham. There are typically two tornadoes here per year and an average of no fatalities.

Other weather events that may play a part in home insurance costs include:

• Severe Thunderstorms and Hailstorms: Although not as severe as some northern areas of Texas, there were 14 reports of hail and 21 severe weather warnings in 2024, according to interactivehailmaps.com.
• High Winds: Being located in the northern part of Texas carries a strong likelihood of high winds and Bonham is no exception. These winds can damage roofs and other property.

If you experience one of these weather events and have damage, your successful claim may hinge on your regular maintenance. Make sure your roof is in good shape and keep branches trimmed.

What Are the Different Types of Homeowners Coverage Offered in Bonham?

Bonham insurance companies offer residents all types of homeowners insurance, but not every homeowners policy is the same. There are eight types of homeowner policies for whatever home you choose. Some options include the following:

• HO-1 coverage is basic homeowners insurance. An H0-1 policy will pay out only for claims involving a limited list of hazards, including fire, theft, or hail.
• HO-2 policies, also known as broad form coverage, protect you from everything listed in an H0-1 policy plus some additional perils, like steam or falling objects.
• An HO-4 policy is better known as renters insurance. It includes many perils covered by an H0-2 policy, plus protection for liability and personal property damage. This type only covers what is within the home, not the structure itself.
• An HO-8 policy is designed to cover older homes, specifically those built more than 40 years ago, and the cost of rebuilding, which, after a major loss, is significantly higher compared to new builds. These policies cover the same hazards as H0-1 coverage.

Which Common Natural Disasters Are Covered by Home Insurance in Bonham?

People who choose to live in this fairly-rugged part of Texas are typically prepared for the common natural disasters that come their way, including:

• Tornadoes (and high winds): Tornadoes spawn high winds and these types of events are usually covered in Bonham.
• Hailstorms: Early spring and early summer are the likeliest times for residents to see hail damage to roofs, siding, windows, and other parts of the home. These damages are generally covered under most policies.
• Lightning Strikes and Fire: Severe thunderstorms including lightning can happen at any time of the year, but are most prevalent during spring and summer storms. Fire damages caused by lightning strikes are typically covered.