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CheapRenters InsuranceTexas2022The Best and Cheapest Renters Insurance Companies in Texas for 2022: Rankings, Reviews and Rates
The average cost of renters insurance in Texas is $11 per month, compared to the $13 national average. However, prices in Texas can range from as low as $7 per month to as high as $14 per month. This means renters can save over $80 per year by shopping around.
MoneyGeek’s data shows that Lemonade offers both the cheapest and best renters insurance for most people in Texas, costing an average of $7 monthly or $84 annually.
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Advertising & Editorial DisclosureLast Updated: 11/11/2022
Edited By |
Katherine Kurtz
Written By |
Mark Fitzpatrick
If you’re looking for both quality and cost, MoneyGeek ranked the top renters insurance companies in Texas to help you find the best option at the lowest price. Our scoring system considers affordability, financial strength and customer service in companies across Texas so you can find the best company for your needs.
CheapRenters InsuranceTexas2022The Cheapest Renters Insurance in Texas
Cheap Renters Insurance Companies in Texas
For many Texans, the cost of renters insurance is the most important factor when choosing a policy. On average, the two cheapest companies in the state are USAA and Lemonade.
For our sample renter, a USAA policy costs an average of $81 per year or $7 monthly. However, USAA is only available to military members and their eligible family members. If you do not qualify for a policy with USAA, coverage with Lemonade costs an average of $84 annually.
The average annual and monthly premiums for every renters insurance provider are based on quotes across a diverse set of ZIP codes in the state for a policy with personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
Personal Property Coverage:
$20,000
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Cheapest Renters Insurance Companies in Texas by City
Using MoneyGeek’s data, Lemonade offers the cheapest renters insurance in 11 out of 13 cities we studied in Texas. In some cities such as Dallas and Austin, USAA is the cheapest option. However, USAA is limited to current or former military members and is not widely available.
Companies With the Cheapest Renters Insurance in Texas by City
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- CityCheapest CompanyAverage Annual Premium
- Lemonade$82
- Lemonade$63
- Allstate$68
- Lemonade$83
- Lemonade$60
- Lemonade$82
- Lemonade$87
- Allstate$103
- Lemonade$87
- Lemonade$67
- Lemonade$73
- Lemonade$60
- Lemonade$83
Compare Renters Insurance Rates
Ensure you're getting the best rate for your renters insurance. Compare quotes from the top insurance companies.
Best Renters Insurance Companies in Texas
The best renters insurance company in Texas is USAA, scoring 100 out of 100 based on MoneyGeek’s ranking. Note that USAA is only available to military members, veterans and their eligible family members. Lemonade comes in second with a score of 94 out of 100.
MoneyGeek scores providers based on their affordability, customer service scores from J.D. Power and Associates and financial stability ratings from AM Best.
The best renters insurance companies are not necessarily the cheapest, but those that offer the best balance of cost and quality. Policyholders should feel secure knowing their insurance company will support them with timely and effective service at a fair price.
1
USAA
Score:100
Gaining perfect scores in customer satisfaction, affordability and financial stability, USAA ranks as the overall best renters insurance provider in Texas. However, it’s only available to military members and eligible family members. Unique protections such as identity theft coverage are offered in USAA’s standard policy.
More About USAA
USAA is available in all states and offers the most comprehensive insurance coverage on the market, but its policies are restricted to military members and their families. Unique offerings like flood, earthquake and identity theft coverage are included in USAA’s standard renters insurance policy. Interested individuals can get an estimate through their online platform, which also features calculators for insurance, savings and debt management needs. Their mobile app enables on-the-go management of their insurance, banking, investing and other services.
Read MoneyGeek's USAA renters Insurance Review2
Lemonade
Score:94
In Texas, Lemonade ranks as one of the best renters insurance companies due to its high customer satisfaction and affordability scores. Policyholders can opt to get their unique coverage for landlord property damage, which protects a landlord’s property in case of damage caused by pets or water.
More About Lemonade
Available in 32 states, Lemonade policies feature unique add-ons like flood, landlord property damage and equipment breakdown insurance. Their company offers only three discount opportunities, significantly lower than the national average of five. But they do have a helpful online portal for potential and current policyholders. Interested individuals can get a quote online and manage their accounts through Lemonade’s website or mobile application. Their app lets users view their policy, file claims and pay bills on the go.
Read MoneyGeek's Lemonade renters Insurance Review3
Allstate
Score:93
Allstate ranks highly in financial stability and affordability, earning third place among Texas’s best renters insurance providers. Allstate also offers coverage for flood insurance, which can help replace belongings damaged by floodwater.
More About Allstate
Allstate’s comprehensive policies are available to renters in all 50 states. Although they have just four additional coverage options, they offer five discounts, including one for retirees aged 55 and older. Allstate also has a convenient online system where policyholders can manage their accounts, set up automatic payments or use Allstate’s app to file a claim, pay bills and get roadside assistance.
Read MoneyGeek's Allstate renters Insurance Review4
Nationwide
Score:79
Nationwide scores 79 out of 100 and ranks highly in customer service and financial stability, making them a reliable option for Texan renters. Policyholders can also get specialized theft extension coverage for items like jewelry, watches, cameras and firearms.
More About Nationwide
Nationwide’s renters insurance is only available in 43 states, excluding Hawaii, Alaska, New Mexico, Louisiana, Florida, New Jersey and Massachusetts. In states like Texas, policyholders can supplement their policy with Nationwide’s 11 optional coverages — far more than the industry average of seven — and see if they qualify for their four available discounts. Nationwide also has a reliable online portal and mobile app where users can get personalized quotes, pay bills, file claims and more.
Read MoneyGeek's Nationwide renters Insurance Review5
State Farm
Score:75
State Farm ranks as the fifth-best renters insurance company in Texas thanks to its high scores in customer satisfaction and financial stability. Renters can also benefit from their unique personal injury coverage, which offers protection against personal claims such as libel or slander.
More About State Farm
Renters in all 50 states can purchase a policy from State Farm. However, their five additional coverage options and two discount opportunities for renters are less than the industry average. Interested buyers can quickly get a personalized quote on State Farm’s website, where renters can manage their insurance and banking accounts, set up automatic payments and use their calculators for retirement or college savings.
Read MoneyGeek's State Farm renters Insurance ReviewMONEYGEEK EXPERT TIP
The cheapest policies don’t always guarantee great service. Paying more to get the best renters insurance for your budget gives you peace of mind that your claims will be handled efficiently and saves money in the long run.
Largest Renters Insurance Companies in Texas
Don’t be afraid of big-name companies when choosing insurance. Larger companies generally have more financial stability, which is crucial to ensure your claims will be addressed. They also often invest in improving customer experience, making your claims process far easier.
- CompanyMarket Share
- 1.State Farm18.3%
- 2.Allstate13.3%
- 3.USAA10.0%
- 4.Farmers9.9%
- 5.Liberty Mutual6.4%
Average Cost of Renters Insurance in Texas
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renters insurance is equal to the average.
The average cost of renters insurance in Texas is $134 per year — $25 less than the national average of $159.
This means that people in Texas typically pay $11 per month for renters insurance, $2 less than the monthly national average. These rates are for renters insurance policies with personal property limits of $20,000, liability limits of $100,000 and a deductible of $500.
Keep in mind that the average cost of renters insurance in Texas will ultimately depend on how much personal property coverage you need. The greater the value of your personal property, the higher your premiums will be. Use the calculator below to estimate how much insurance you need based on the value of your items.
clothing
Total:
MONEYGEEK EXPERT TIP
Comparing renters insurance quotes in Texas can help you save significantly. For example, our sample renter could save over $80 per year by choosing a cheaper option, Lemonade, instead of getting the most expensive policy from State Farm. That equals savings of approximately $7 per month.
What Factors Impact Renters Insurance Cost in Texas
Many different factors can impact how much you pay for renters insurance, from where you live to the type of coverage you’re seeking. Keep these factors in mind when shopping around for renters insurance in Texas.
Location
Your renters insurance price is based in part on your ZIP code because weather patterns and crime rates influence premiums. Apartments in neighborhoods with a history of property theft or risk of severe weather could have higher rates.
Coverage Amount
The more insurance renters purchase, the higher their premium will be. Before getting a quote, do a home inventory to determine how much it would cost to replace your property in the event of an accident.
Deductible
The deductible is how much you have to pay when the insurance company accepts a claim to replace your items. Plans with higher deductibles have a lower monthly premium because you have to pay more out of pocket. In comparison, plans with lower deductibles are pricier because the insurance company will pay more to replace your items.
Actual Cash Value (ACV) vs. Replacement Cost Value (RCV)
Insurance companies may offer to reimburse you after an accident in one of two ways: actual cash value (ACV) or replacement cost value (RCV). ACV policies account for the fact that your property has lost value over time, so they’ll pay you less for your belongings. RCV policies will pay you for a new item of similar kind and quality. ACV policies are good for those who want to save on their monthly bill, but you’ll get less money in the event you make a claim. RCV policies are more expensive, but you’ll get more money if you make a claim.
Credit Score
In Texas, your credit score is used to calculate the probability you’ll make a claim. Insurance companies have found that those with low credit scores are more likely to file claims. Accordingly, insurers charge renters with poor scores more for renters insurance. Conversely, if you have a great credit score, you’re more likely to get a more affordable price on your renters insurance.
Compare Renters Insurance Rates
Ensure you're getting the best rate for your renters insurance. Compare quotes from the top insurance companies.
Renters Insurance in Texas: What You Need to Know
Renters insurance is a low-cost way to protect your assets in the event of an unexpected event or disaster. It is especially helpful in case of burglary, fire or destruction caused by severe weather conditions.
In Texas, 34.9% of the population are renters and the average rent price is $1,091 per month. For a standard policy with $20,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible policy, the average monthly premium is $11. This is 1.02% of the price of rent.
What Renters Insurance Typically Covers in Texas
Before you purchase renters insurance in Texas, it’s important to understand what’s covered and what’s not. While some renters insurance options will offer additional benefits like identity theft insurance, most plans will cover the four basic types of incidents: personal property, additional living expenses, liability insurance and medical payments.
In Texas, personal property insurance will cover many of the damages of major natural disasters such as thunderstorms, wildfires and tornadoes.
What Renters Insurance Typically Does Not Cover in Texas
As with all insurance policies, be sure to read the fine print to understand what is covered and what is not. Ask your agent all of your pertinent questions, as they can make the difference between a claim being accepted or denied.
Although renters insurance in Texas covers many emergency situations, it doesn’t protect you from every situation. These common issues are usually not covered by your rental insurance policy.
- EventDescription
Flooding
While water damage from broken pipes or a water main may be covered, flooding from a natural disaster (like a torrential rainstorm or hurricane) is usually excluded. Flooding is one of the most common natural disasters in Texas, so those concerned about weather should consider adding flood insurance through the National Flood Insurance Program (NFIP).
Earthquake Damage
Earthquakes and other natural ground movements are usually not covered by renters insurance policies.
Structural Damage
Renters insurance covers your personal property but not damage to your rental’s frame and structure. These are your landlord’s responsibility.
Roommate Property
Unless your renters insurance names your roommate on all documents, it will only cover your property. Your roommate is responsible for purchasing their own renters insurance policy.
Expensive Items
High-end or expensive items, like jewelry or gaming computers, are often excluded from renters insurance. If you want to protect your valuables, you may have to purchase an additional rider.
MONEYGEEK EXPERT TIP
If you’re unsure about what renters insurance entails, the Texas Department of Insurance can help. This agency exists to help you learn about all things related to insurance, such as how to file a claim, avoid getting scammed and get help.
You can reach the Texas Department of Insurance through the following channels:
- Office Address: 333 Guadalupe, Austin, TX 78701
- Consumer Help Line: 800-252-3439
Their consumer helpline is open from 8 a.m. to 5 p.m. CT, Monday through Friday.
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FAQs About Renters Insurance in Texas
Renters insurance can be a confusing topic for new renters. When it comes to renters insurance in Texas, MoneyGeek has answers to some of your most commonly asked questions.
Compare Renters Insurance Rates
Ensure you're getting the best rate for your renters insurance. Compare quotes from the top insurance companies.
Renters Insurance in Texas Analysis: Methodology
MoneyGeek analyzed renters insurance premiums from seven of the top insurance companies in Texas that were provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across Texas. Quotes were gathered for policies with personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
About the Author
sources
- TDI. "Texas Department of Insurance." Accessed March 28, 2022.