The Best Texas Renters Insurance Companies 2020
Thomas Barwick

Renting a home or apartment is a popular choice for many people. It’s more cost effective and convenient than owning property, especially in areas where homes can be expensive. But renting comes with its own set of risks, which is why having renters insurance is a smart investment.

Texas residents who rent their homes should consider purchasing renters insurance to protect their personal belongings from extreme weather, like hurricanes, which are common throughout the state. Without renters insurance, you risk paying to replace your belongings entirely out-of-pocket.

But purchasing renters insurance is an important decision, and there are a few things you should know beforehand. As you’re shopping, have a list of your personal items and their value to determine how much coverage you’ll need. Also think about what you can afford to pay for your deductible and if you’ll need a separate policy for things like art or jewelry.

Best renters insurance companies in Texas

There are dozens of insurance providers that offer renters insurance to Texas residents. But not all renters insurance policies are created equal. To help simplify your shopping experience, we put together a list of the best renters insurance companies in Texas and their ratings from J.D. Power’s 2019 U.S. Renters Insurance Study, AM Best and the Better Business Bureau.

These insurance companies were evaluated based on real reviews from customers for overall satisfaction, policy offerings, price, billing process, claims handling and customer service. Here are the top four Best Texas renters insurance companies:

  • American Family earned the top spot in J.D. Power’s study with a perfect five out of five star rating across the board for overall satisfaction, policies, price and customer experience.
  • State Farm: also ranked highly in J.D. Power’s study. State Farm received praise from customers for its policy offerings, price and smooth claims handling process.
  • Allstate: is a well-known and reputable insurance provider that offers an extensive list of discounts, coverage options, and a five-star rated claims handling process.
  • Nationwide: was ranked lower on J.D. Power’s list, earning just two out of five stars for overall satisfaction, but customers love Nationwide’s simple policy offerings and steep savings.

Here is how American Family, State Farm, Allstate and Nationwide were ranked by J.D. Power, AM Best and the Better Business Bureau (BBB):

J.D. Power AM Best BBB
American Family 5 out of 5 A A
State Farm 5 out of 5 A++ A+
Allstate 2 out of 5 A+ A+
Nationwide 2 out of 5 A+ A+

Average renters insurance cost in Texas

In the Lonestar State, the average cost of renters insurance is $232 per year, according to the Insurance Information Institute (III). However, the cost of your premium will depend on several factors, including the city you live in, the size of the home, your deductible, if you have pets and even personal factors like your age and credit score.

To give you a better idea of what each provider charges, we got annual premium quotes for a 26 year old female living by herself in Addison, Texas. These quotes account for $20,000 in personal property coverage with a $500 deductible:

  • American Family: $226
  • State Farm: $268
  • Allstate: $186
  • Nationwide: $160

We should also note that Texas is among the states with the highest renters insurance premiums. Based on data from III, Texas is the fifth most expensive state for renters insurance. Here’s how it compares to neighboring states in the southwest:

State Average premium
Texas $232
New Mexico $187
Louisiana $235
Oklahoma $236

The main reason why Texas renters insurance is more expensive than many other states is because of the extreme weather events that the state endures each year. Texas, Louisiana and Oklahoma are known for getting extreme flooding, heavy rains, hurricanes and even tornadoes, because of their position near the coast. As a result, homes in this area are more susceptible to damage and other losses that the insurance company covers.

Renters insurance coverage options in Texas

Most people think of renters insurance as coverage for your personal items. While that is true, renters insurance covers a wide variety of liabilities and situations.

  • Personal property: This covers your personal belongings if they get damaged or destroyed by a covered peril, such as fire, theft or vandalism.
  • Personal liability: Personal liability covers you if you accidentally damage someone else’s home or belongings. It also covers another person’s medical bills if they were to get injured in your home.
  • Additional living expenses: If your home gets damaged and you are forced to evacuate, additional living expenses covers hotel and restaurant bills for the duration that you’re unable to live in your property.

Renters insurance won’t cover you in every situation. For example, floods and earthquake damage is not covered under standard renters insurance plans. Because of that, Texas residents should consider purchasing a separate policy for flood insurance. You might also consider purchasing hazard insurance, which provides additional coverage for damage caused by earthquakes, tornadoes, extreme weather and other natural disasters.

Frequently asked questions

Is renters insurance required in Texas?

No, renters insurance is not required by law in Texas. However, purchasing renters insurance is a good investment, no matter the worth of your personal belongings. Some landlords might also require renters insurance.

Is renters insurance expensive?

Renters insurance is affordable on a month-to-month basis, even in states with higher-than-average premiums like Texas. In fact, renters insurance is among the least expensive types of insurance you can get.

What is the cheapest renters insurance in Texas?

There isn’t one insurance provider that will offer the cheapest premiums for all Texas residents across the board. Based on our research, Nationwide provided the lowest premium, but the amount you’ll pay depends on your zip code, the size of your home, what it’s built with, the value of your items and your deductible.

How do I get renters insurance in Texas?

Getting renters insurance is a fairly simple process. Most insurance companies, including the ones on our list, offer online quotes. You’ll be required to answer a few questions about your personal information, the property’s address, any safety features your home has and if you have pets. Some providers require you to input your social security number so they can give you an accurate quote based on your credit score.

Are other people living in my home also covered by my renters insurance policy in Texas?

In short, the answer is no. Your roommate, for example, is not covered by default under your renters insurance policy. Anyone else living in your home needs their own policy unless you list them on your plan. To avoid unnecessary disputes around claims, it’s generally recommended that each person in the house have their own policy.