The Cheapest and Best Renters Insurance in Houston
The Companies With the Cheapest Renters Insurance in Houston
While comparing renters insurance quotes, you’ll notice that most standard policies have similar coverages, often making price a primary factor when choosing a policy. These providers offer the best cheap renters insurance in Houston:
- USAA: $90 per year (only available to current and former military members and their families)
- Allstate: $103 per year
Renters who can purchase renters insurance from USAA get even better value since their policy covers damages from floods and earthquakes. It also reimburses lost or damaged personal property at replacement value.
Standard renters insurance policies have $20,000 in personal property coverage limits, $100,000 in liability coverage limits, and a deductible of $500. Use the table below to see how premiums are affected when you change your personal property coverage limit.
Those who live outside of Houston can check renters insurance rates available in Texas here.
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What Are the Best Renters Insurance Companies in Houston?
Based on MoneyGeek’s findings, these companies offer the best renters insurance in Houston:
- Best Overall: Allstate
- Runner-up: Farmers
USAA received the highest score in Houston 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.
These two providers scored highest in MoneyGeek’s rating system, which looks at customer satisfaction ratings from J.D. Power, financial stability ratings from A.M. Best and overall affordability. Top companies also often have policies that include certain coverages not offered by other insurance providers.
With a policy that covers you even if you’re deployed abroad or decide to live outside the United States, USAA is consistently considered to be one of the cheapest renters insurance options across the country. While standard renters insurance policies do not cover damage caused by floods, USAA’s does. It even covers damages from fire. If your property is lost or damaged, you are reimbursed at replacement cost, allowing you to get items of similar quality. Present members of the military may receive additional discounts, making the premium even more affordable.
USAA is the top renters insurance carrier in Houston, getting a perfect score on customer satisfaction ratings, financial stability and affordability. Only present and former members of the military and their family members may purchase USAA policies.Read MoneyGeek's USAA renters Insurance Review
Often considered one of the best renters insurance companies in Houston, Allstate offers several coverages you can add to a standard policy. You can opt to purchase a flood policy from an agent, giving you protection for any damage caused by this event. Another addition you can make is identity protection, which keeps track of your digital footprint and covers any costs caused by identity theft.
Allstate received high marks across all categories used to compare renters insurance carriers and did particularly well on affordability. Customers can lower their premiums even more by waiving their on-premises theft coverage. While waiving this coverage means any item stolen outside your home is no longer protected, it saves you a few dollars every month.Read MoneyGeek's Allstate renters Insurance Review
The Average Cost of Renters Insurance in Houston for 2023
renters insurance is equal to the average.
The average cost of renters insurance in Houston is $151 per year or $13 per month. It’s lower than the national average — $159 per year — by $8.
What Factors Impact Renters Insurance Costs in Houston?
There are several factors that affect the cost of your renters insurance premium. The following items are the ones that impact it the most:
- Personal property coverage amount – The amount of personal possessions to be covered is one of the most important factors affecting a policy's cost. Renters often underestimate the value of their belongings. It's best to have an accurate assessment of your belongings and what it would cost to replace them to get the best policy for you.
- Location within a city – Your neighborhood plays a factor in how much your policy will cost. Areas with higher crime rates often result in slightly more expensive premiums. Weather patterns can affect your premium as well. Places with a higher risk of severe weather usually have higher premiums. Renters from secure neighborhoods will likely get a policy with a lower cost, though the difference is often small.
- Deductible – This refers to the amount charged by the insurance carrier to process claims and replace goods. Policies with a lower deductible have higher premiums due to insurance carriers shelling out more to reimburse your claim. Choosing a policy with a higher deductible may give you a lower premium.
- ACV vs. RCV – Insurers either use actual cash value (ACV) or replacement cost value (RCV) when paying out a claim. Policies with ACV plans have lower premiums because they account for depreciation, resulting in them paying less for older items. In contrast, RCV packages reimburse for a new item of the same type and quality. Since policies with ACV plans pay a smaller amount for claims, they have lower premiums.
- Liability coverage amount – Standard policies include $100,000 of liability coverage, which is the part of your insurance that protects you from a claim someone files against you for injury or loss of physical property. The extent of the coverage has a minor effect on the cost of your policy – for only a few additional dollars per year, you can add several thousands of dollars to your coverage limit.
Calculate How Much Renters Insurance You Need
Does My Houston Neighborhood Impact Cost of Renters Insurance?
Your neighborhood’s location in Houston has little effect on the cost of a renters insurance policy. MoneyGeek's study shows that your premium will only change by a few dollars every month.
Understanding Renters Insurance in Houston
Although renters insurance is not required in Houston, some landlords may ask you to purchase a policy. Acquiring one is a good idea either way — your landlord may have his own insurance, but its coverage does not extend to you or your possessions. Renters insurance becomes particularly helpful if there are cases of theft or damages caused by fire or extreme weather conditions. Having renters insurance is a low-cost way to protect your belongings.
What Does Renters Insurance Cover in Houston?
When looking for the best renters insurance in Houston, compare rates from various renters insurance providers. Understanding what is and isn’t covered in policies can help you get a clear idea of which insurance provider offers a policy that best suits your needs.
Having the right coverage allows you protection against expenses from damages caused by unexpected disasters. It may even protect you against theft. According to the FBI, Houston had a property crime rate of 3,500 per 100,000 people in 2018 or 77% above the national average.
As someone renting in Houston, you may also consider adding coverage to your policy — it may give protection against losses from fire and water damage, which occurs anywhere.
Insurance providers in Houston usually offer renters insurance policies that include the following:
- Personal property coverage – When items are lost or destroyed in a covered peril, personal property coverage allows you to file for reimbursement. In Houston, personal property coverage includes expenses from damages from wildfires, tornadoes or other extreme weather events.
- Additional living expenses – Sometimes, when a covered peril occurs, the damage caused to your rented unit is so severe that temporary residence elsewhere is necessary. This coverage provides reimbursement for expenses when your home becomes uninhabitable.
- Liability insurance – If an accident occurs on your property and someone gets injured or, if their property is damaged, liability insurance protects you. It also covers the cost of legal defenses if the person files a lawsuit against you.
- Medical payments coverage – When someone suffers bodily injury while on your property and you need to pay for their medical expenses, medical payments coverage allows you to file for reimbursement.
What Is Not Covered by Renters Insurance in Houston?
While personal property is covered by renters insurance in Houston, the rented unit's actual structure is not. Landlords should have their insurance coverage to cover damages to your rental dwelling.
Although some water damage is covered, most standard renters insurance policies do not cover damage resulting from a flood. Unfortunately, this is a fairly common occurrence in Houston, so you may choose to increase your coverage to include this by buying incremental insurance through the National Flood Insurance Program (NFIP).
Damage or loss of personal property is covered but does not extend to possessions owned by your roommates — they’ll need to purchase their own insurance. Damage from earthquakes and those to your car are also not covered. Jewelry, as well as other items with a higher value than your policy limits, are excluded. Comparing different renters insurance companies is always good practice. Make sure to read through each company’s policies, as these may offer slightly different coverage.
Frequently Asked Questions About Renters Insurance in Houston
If you’re comparing quotes for renters insurance, look for an insurance carrier that combines both quality and affordability. Here are the most frequently asked questions regarding renters insurance in Houston:
Renters Insurance in Houston Analysis: Methodology
Moneygeek analyzed hundreds of renters insurance quotes in Houston 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 derived from a comprehensive analysis of quotes provided by Quadrant.
About Mark Fitzpatrick