According to the Insurance Information Institute (Triple-I), the average cost of a renters insurance policy in Texas is $225 per year. Renters insurance provides an affordable way for Texas renters to protect their finances. And compared to homeowners insurance, which costs Texans an average of $1,863 per year, Texas renters might find suitable coverage without significantly impacting their budgets.
Luckily, many of the best renters insurance policies in Texas are sold by the best home insurance companies. But to make your search even easier, Bankrate analyzed the largest Texas renters insurance companies by market share and reviewed their current coverage offerings, discounts, policy features and third-party rankings. Our research could help you find a company that fits your needs and budget.
Best renters insurance companies in Texas
Among the many providers in Texas offering renters insurance policies, five stood out as being among the best available. We utilized each provider’s customer satisfaction score from the 2020 J.D. Power U.S. Home Insurance Study and consulted financial strength ratings by AM Best to help quantify why each company deserves a spot on our list of the best renters insurance companies in Texas.
|Company||J.D. Power score||AM Best|
*Not officially ranked by J.D. Power due to eligibility restrictions
Renters insurance through American Family provides you standard coverages for personal property, theft and liability, but your policy can come with add-ons like a diminishing deductible. When you opt for a diminishing deductible, you could shave $100 off of your deductible as soon as you sign up and could see your deductible decrease even more each renewal period. American Family also offers several great discounts, including significant savings for bundling your renters insurance with your auto policy.
Learn more: American Family Insurance review
State Farm is the largest home insurance provider in the country, which could give you peace of mind that the company can handle your renters insurance needs. No matter where you are located, you are likely to have an agent in your area, as State Farm has an extensive list of local agents, including in Texas’ smaller areas like Granbury and Marble Falls. If you want extra protection, there is identity theft coverage available to ensure you have both financial and professional support for emergencies.
Learn more: State Farm Insurance review
More than just a trusted name, Texas renters want to feel confident in their insurer’s ability to pay out claims. Allstate makes the process easy by allowing policyholders to file and track claims directly from its mobile app or website. Additionally, its A+ (Superior) AM Best financial strength rating lends even more credibility to the company. Allstate offers standard renters insurance coverages like personal property and liability, in addition to options for scheduled personal property and identity theft.
Learn more: Allstate Insurance review
Nationwide’s renters insurance policies include all the standard coverages you would expect and there are options for some situations you might not expect. The company’s policies even include an option for credit card coverage, which pays for fraudulent bank transactions and checks forged under your name. Texas renters who choose Nationwide may have opportunities to save in a few different ways, such as by being claims-free or having smoke detectors installed.
Learn more: Nationwide Insurance review
USAA could be a great option for military members and immediate family members of military service members in Texas — the company tailors its policies specifically to these groups. There are special savings for being an active service member living on base and unique personal property coverages for when you are deployed overseas. As an added bonus, all standard USAA renters insurance policies include flood coverage.
Learn more: USAA Insurance review
Average renters insurance cost in Texas
In the Lone Star State, the average cost of renters insurance is $225 per year, which breaks down to about $19 per month. However, your premium will depend on several factors, including the city you live in, the size of the rental, your deductible, if you have pets and even personal factors like your age and credit score.
Ultimately, getting a good grasp of how much your personal items are worth by conducting a home inventory will often influence the amount of coverage you need. Your coverage level is one of the biggest factors that impacts your premium. The price of your renters insurance will change based on the provider you choose, so getting multiple quotes for the same amounts of coverage could allow you to determine which company best suits your needs.
According to the Triple-I, Texas is the fourth most expensive state in the nation for renters insurance. But compared to the state’s average homeowners insurance rate, which is $1,863 per year, Texas renters insurance premiums seem significantly less steep.
The table below shows how Texas’ premiums compare to surrounding states.
|State||Average annual premium|
Texas, Louisiana and Oklahoma are known for having extreme weather, including heavy rains, hurricanes and tornadoes. As a result, homes and rental properties in these areas are more susceptible to damage. Still, Texas maintains lower renters insurance costs than several of its neighboring states.
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 are injured by your negligence.
- Additional living expenses: If your home is 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 will not cover you in every situation. For example, flood and earthquake damage are not covered under most standard renters insurance plans. Because of that, Texas residents might want to consider purchasing an endorsement for earthquake coverage and a separate policy for flood insurance.
Frequently asked questions
Is renters insurance required in Texas?
Renters insurance is not required by law in Texas, but landlords may require tenants to have a renters insurance policy and could dictate how much liability coverage that tenants must purchase. However, purchasing renters insurance is often a good idea and can help protect your finances if damage occurs.
Is renters insurance expensive?
Renters insurance is generally affordable, even in states with slightly higher premiums like Texas. Even though Texas is prone to several weather hazards and types of potential damage, renters insurance costs an average of just $19 per month. In fact, renters insurance is among the least expensive types of insurance you can get.
What is the cheapest renters insurance in Texas?
There is not one insurance provider that will offer the cheapest premiums for all Texas residents across the board. The amount you will pay depends on your ZIP code, your claim history, 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 home insurance companies in Texas, including the ones on our list, offer online quotes. Generally, you will 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.
Are other people living in my home also covered by my renters insurance policy in Texas?
It depends. Typically, your spouse and children are automatically covered under your renters insurance policy, but to be safe, it’s not a bad idea to list them on the policy. Most renters insurance companies also recognize domestic partnerships, though you should check with your agent and still name them on your policy. A roommate is typically not covered and would need their own policy. The best course of action is to ask your agent when purchasing or updating your policy.