The Cheapest and Best Renters Insurance in Austin
The Companies With the Cheapest Renters Insurance in Austin
While shopping around for renters insurance, the cost is one of the essential factors that Austin residents consider, among several others. Different companies charge different rates, and comparing quotes across several insurers can help you find the lowest rates in the city.
On average, the cheapest companies in Austin, Texas, for renters insurance are:
- Lemonade: $63 per year
- USAA: $79 per year (offered exclusively to former and current military members and their families)
Unlike other renters insurance companies in Austin, TX, USAA provides better deals since its policies include coverage for flood and earthquake damage. Renters also get their damaged items reimbursed at replacement cost.
These rental insurance average costs represent a policy with $20,000 in personal property coverage, $100,000 in liability coverage and $500 as the standard deductible. You can key in varying numbers in the following table to see how the costs change for each limit.
If you are not a resident of Austin, you can find statewide renters insurance rates for Texas using MoneyGeek’s scores.
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What Are the Best Renters Insurance Companies in Austin?
According to MoneyGeek, the best renters insurance in Austin, Texas, comes from:
- Best Overall: Allstate
- Runner-up: Lemonade
USAA received the highest score in Austin, Texas by MoneyGeek's rating system. However, because USAA is only available to military members, veterans and their families, it is not listed as best overall.
USAA and Allstate received the highest ratings based on the MoneyGeek rating system that combines several factors, including financial stability scores from AM Best and customer satisfaction and affordability scores from J.D. Power. Policyholders from USAA and Allstate receive exceptional coverage that’s not always available from other renters insurance companies.
USAA provides consistently cheap renters insurance coverage across the United States. Policyholders receive earthquake and flood damage coverage as part of their standard policy plan. The company also reimburses all damaged items at replacement cost. That means your possessions are replaced with new ones of the same quality as the items lost or damaged.
USAA is the leading insurer in Austin, Texas, and the top scorer when it comes to affordability and customer service. Its policies are, however, limited to military personnel and their families.
Although Allstate does not provide flood coverage in Austin as USAA does, it allows policyholders to purchase flood coverage through one of its agents. If you purchase your renters insurance from Allstate, you can save a percentage of your monthly premium by excluding the off-premises theft coverage. However, that means items stolen outside your home will not be covered.
Allstate’s scores are slightly lower than USAA’s but higher than the rest of the providers in Austin. Aside from standard coverage, Allstate also provides identity protection coverage to policyholders who wish to secure their digital footprint.
The Average Cost of Renters Insurance in Austin for 2023
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On average, the cost of renters insurance in Austin, Texas, is $127 per year, translating to about $11 per month. Austin’s average insurance cost is less than the national average of $159 by $32 per year or about $3 per month. That’s a difference of approximately 20%.
What Factors Impact Renters Insurance Costs in Austin?
Various factors influence how much you pay for renters insurance in Austin, Texas. Some of the most significant determinants include:
- Personal property coverage amount - This is one of the most significant factors that affect your renters insurance policy’s cost. The more the property, the higher the price.
- Liability coverage amount - Your premiums go up as you increase the amount of renters insurance you purchase. Carrying out an inventory of your property before shopping around can help you find the best policy for your needs.
- Location - Your ZIP code partly determines the cost of your renters insurance. If you live in an area prone to crime and harsh weather patterns, you will pay higher renters insurance costs.
- ACV vs. RCV - Insurance carriers reimburse policyholders using either the actual cash value (ACV) or replacement cost value (RCV) methods. For the ACV method, the insurer reimburses a value that’s less than the cost of your lost or damaged item, considering that it has lost value over time. Contrarily, policies that use the RCV method reimburse the full cost of a new item with the same quality and type as the damaged one. ACV policies are ideal for renters seeking to save on their monthly premiums, but they offer less reimbursement, while RCV policies are more expensive but reimburse more on claims.
- Deductible - This refers to the amount you pay out of pocket once an insurance company agrees to settle your claim. Policies that feature higher deductibles always charge lower rates per month. In comparison, those with lower deductibles charge higher premiums because the insurance company covers most of the cost of replacing your items.
Calculate How Much Renters Insurance You Need
Does My Austin Neighborhood Impact Cost of Renters Insurance?
The cost of your renters insurance may increase or decrease depending on where you live. However, MoneyGeek discovered that the impact is quite small, and your rates will only change by a few dollars per month.
Understanding Renters Insurance in Austin
Renters insurance can help you safeguard your personal property at low costs in case of unexpected damage. Purchasing renters insurance ensures that your items get replaced in the event of fire, theft, severe weather and other covered incidents.
What Does Renters Insurance Cover in Austin?
Before you purchase renters insurance in Austin, Texas, you need to ensure that you understand what the policy covers (and what it doesn’t) to get what suits your needs. Typically, insurance companies include the following coverages in their standard policy plans:
- Personal property coverage - This is a standard inclusion for renters insurance and covers the cost of replacing your items if they get damaged by incidents such as theft and fire.
- Additional living expenses - This covers additional costs that you may incur due to being unable to live in your damaged home or apartment, often including hotel bills.
- Liability insurance - Liability coverage protects you from spending money out of pocket if you are found responsible for damages to other people or their property.
- Medical payments coverage - This covers medical treatment costs for renters who get injured on the property regardless of the negligence involved.
Renters insurance companies in Austin provide coverage against theft, property, liability, medical payments and living expenses.
What Is Not Covered by Renters Insurance in Austin?
While renters insurance in Austin, Texas, protects you against most emergencies, it does not cover certain situations, like the ones mentioned below:
- Structural damage - Renters insurance only covers personal property damage and does not include any structural damage to your home. If you are a landlord, this is ultimately your responsibility.
- Damage from floods - Although your policy includes some water damage coverage, it excludes flooding that results from natural disasters like rainstorms and hurricanes. Renters can purchase flood insurance for their home or apartment through the National Flood Insurance Program (NFIP).
- Earthquake damage - Earthquakes, as well as damage caused by other natural ground movement activities, are not included in your renters insurance policy.
- Guest property - Unless your renters insurance includes your roommate as a policyholder, it will not cover their possessions in the event of damage.
- Valuable items - Expensive items whose cost is higher than your insurance limits, such as jewelry and gaming computers, are often excluded from renters insurance. To protect such valuables, you will need to buy additional insurance.
As with all insurance policies, you should read your plan’s guidelines to fully understand what is covered and what is not since different coverage plans may cover different perils.
Frequently Asked Questions About Renters Insurance in Austin
Whether you live in Austin or plan to move to the city, you may have questions about finding car insurance in the city. Find answers to common FAQs to aid in your search.
Renters Insurance in Austin Analysis: Methodology
Moneygeek analyzed hundreds of renters insurance quotes in Austin, TX, to help you find cheap renters insurance. The best renters insurance rankings were determined using data from J.D. Power, AM Best and our affordability metrics that are derived from a comprehensive analysis of quotes provided by Quadrant.
About Mark Fitzpatrick