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For many people in Texas, renters insurance is an affordable way to protect themselves against financial loss. The Insurance Information Institute (Triple-I) found that the average annual cost for a renters policy in Texas is $220 per year. On the other hand, a homeowners policy in Texas averages $1,860 per year for $250,000 in dwelling coverage.
Renters insurance may sometimes be overlooked by those who need it, but it can be an important part of your overall financial plan. Plus, the best homeowners insurance companies in Texas usually sell renters insurance, and these companies can be an excellent place to start your shopping journey. To help you get started, Bankrate studied these companies by comparing important factors like discounts and customer satisfaction scores. You can use this information to help find the renters insurance company that is the best fit for you.
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
Because of its low average premiums, socially responsible business model and consistently high customer satisfaction ratings, Lemonade may be an excellent choice for tech-savvy renters. Founded in 2015, this digital-only insurance company offers homeowners, renters, condo, pet, auto and life insurance through their convenient mobile app. Lemonade works differently than traditional insurance companies by donating unused premiums to the charity of your choice. Although Lemonade policies aren’t available in all states, they boast renters insurance policies in Texas for as little as $5 a month.
Learn more: Lemonade 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
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
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
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 $220 per year, which breaks down to about $18 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 $1,868 per year, Texas renters insurance premiums seem significantly less steep.
The table below shows how Texas renters’ 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.