The Best and Cheapest Renters Insurance in Texas for 2022: Rankings, Reviews and Rates
Renters insurance can help you protect your personal property from unexpected damage and theft at a low price. MoneyGeek’s data shows the cheapest renters insurance in Texas costs only $7 per month, versus $14 per month for the most expensive. This means renters can save over $80 per year just by shopping around. The average cost of renters insurance in Texas is $11 per month.
If you’re looking for both quality and cost, MoneyGeek ranked the top renters insurance companies across Texas to help you find the best options 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.
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:
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Best Renters Insurance Companies in Texas
Price isn’t everything when shopping for renters insurance in Texas. Policyholders need to know that during the worst-case scenario, their insurance company will be able to support them with timely and effective service at a fair price.
To find the best renters insurance companies in Texas, MoneyGeek scored providers based on affordability, customer service scores from J.D. Power and Associates and financial stability ratings from AM Best.
According to this research, USAA ranks as the best renters insurance company in Texas with a score of 100 out of 100. Keep in mind that USAA is only available to military members, veterans and their eligible family members. Allstate came in second with a score of 91.
More About USAA
USAA provides renters insurance in Texas for members of the military, veterans and their eligible family members.
The company has a competitive advantage over other providers because it includes flood and earthquake coverage in its standard policy. Coverage for moving and storage is also included.
USAA offers reimbursements on a replacement cost value basis.
More About Allstate
Allstate scored well because of its affordability, strong financial stability and above-average customer service.
When it comes to renters insurance in Texas, Allstate provides comprehensive policies. It offers households the ability to add coverage like flood insurance and identity theft protection.
Policyholders can get discounts for having security systems or being claim-free. They can also use Allstate’s app to create a photo log of their possessions, making it easier to decide how much coverage they need.
More About Lemonade
Lemonade offers some of the cheapest renters insurance in Texas. It also provides customization options.
It’s simple to update your coverage whenever you want using the app. Lemonade easily lets users increase coverage for high-value items like art and jewelry.
You can use Lemonade’s app to get a quote in minutes. The company even donates money to a nonprofit of your choosing. In 2020, they donated over $1.1 million to charity.
More About Nationwide
Nationwide provides standard insurance covering events like theft and fire. Policyholders can also get specialized protection options that cover items like jewelry, watches, cameras and firearms.
Discounts are available to policyholders that bundle renters insurance with their car insurance policy. Homes with smoke, fire and burglar alarms also qualify for discounts.
Nationwide can give you an estimated policy cost in minutes through its online quote tool.
Largest Renters Insurance Companies in Texas
Based on market share data, the top five biggest insurance carriers in Texas are State Farm with 18% market share, Allstate (13%), USAA (10%), Farmers with (10%) and Liberty Mutual (6%). These companies alone make up over 57% of renters insurance policies in Texas.
If you opt for a large insurer, you can buy renters insurance with the confidence that your policy is backed by a financially stable company that will pay out any legitimate claim.
Texas Farm Bureau Group
Average Cost of Renters Insurance in Texas
renters insurance is equal to the average.
The average cost of renters insurance in Texas is $134 per year, which is $25 less than the national average of $159. That works out to the typical Texas renter paying around $11 per month, $2 less than the monthly national average. These rates are for a policyholder who selects personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
Texans can get significant savings by comparing renters insurance quotes. For example, our sample renter could save over $80 per year by choosing the cheapest option, Lemonade, instead of getting the most expensive policy, State Farm. That means 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.
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
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.
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.
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.
FAQs About Renters Insurance in Texas
Under state law, renters insurance is not a legal requirement to lease a home in Texas. It’s possible your landlord may require it in their lease, in which case you will need to buy it to rent that specific apartment or home.
Although renters insurance isn’t legally required in Texas, having a policy can help you protect your property from destruction or theft.
Yes, landlords can require renters insurance in Texas as a condition of a leasing agreement.
According to MoneyGeek’s data, the average cost of an insurance policy for $20,000 in personal property coverage and $100,000 of liability coverage is $11 per month.
Based on MoneyGeek’s research, USAA has the cheapest renters insurance in Texas but has strict membership requirements. Allstate and Lemonade are two of the cheapest renters insurance providers in the state for those who don't have a military background.
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.
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