5 Best Texas Renters Insurance Companies

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Are you renting an apartment or a house? If so, consider renters insurance. You don’t want to find out what would happen if an incident occurs and your landlord’s insurance policy doesn’t cover your valuables.

Don’t miss out and get coverage that can replace your damaged items. Find out why you might want to buy renters insurance in Texas.

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5 Best Renters Insurance in Texas

Renters Insurance in Texas Overview

Renters insurance is similar to homeowners insurance — it protects the place you live and the stuff inside your dwelling. Renters insurance isn’t mandatory in Texas, but many landlords may require you to get as a part of your lease.

Texas tops the list of renter majority cities in the U.S., which means that in most Texas cities, more people rent than own. Many residents have shifted to renting due to a strong military and college student presence and rising home prices.  

Average Annual Renters Insurance Premium in Texas

Average renters insurance in Texas costs around $268, or roughly $22 per month. It’s much higher than the nationwide average of $185 per year. These discounts could save you money on your policy:

  • Multi-policy discounts: You can earn a discount if you buy more than 1 type of insurance policy from the same carrier. For example, you can earn a discount if you bundle it with your auto insurance.
  • Safety device discount: Many insurance carriers offer discounts if your apartment has a security system or hardwired fire alarm system.
  • Auto-pay discounts: Signing up for auto-withdrawals from a bank account or credit card could earn you a 5% discount with many carriers.
  • Claims-free discount: This discount applies if you’ve been claims-free for several years, though the time you must be claims-free varies by company.

Renters Insurance Coverage Explained

Your landlord carries insurance for the building, grounds and common areas but his insurance policy won’t cover your belongings. Your landlord’s insurance wouldn’t cover your costs if your upstairs neighbor’s bathtub flooded, soaked through the floor and ruined your couch, for example. 

Renters insurance provides coverage for personal belongings if they’re destroyed, lost or stolen. The liability clause in your renters insurance protects you if you’re sued when someone gets hurt in your apartment. Your policy will also cover medical payments to others if someone is injured in your apartment. Loss of housing coverage pays for you to live elsewhere if your apartment becomes uninhabitable.

Weather-related damage is one of the biggest reasons your apartment could become uninhabitable. Hurricanes ravage the Gulf Coast every year, but you might experience blizzards, thunderstorms, hail and tornadoes. All of these weather-related events could damage your apartment building.

Insurance companies pass these costs onto you in the form of higher premiums. If you live in an area that’s been hit by a tornado, hurricane or other natural disaster, expect to pay more for renters insurance.

Most Affordable Cities for Renters Insurance Texas

If you don’t want to pay a lot for renters insurance, these are the most affordable cities in Texas:

  • McKinney
  • Plano
  • Waco
  • Amarillo
  • Killeen

Most Expensive Cities for Renters Insurance Texas

Expect to pay more for renters insurance if you live in:

  • Austin
  • College Station
  • Fair Oaks Ranch
  • Marble Falls
  • Prairie View

Best Renters Insurance Providers in Texas

The best insurance provider for your renters insurance will offer great coverage, good claims servicing and reasonable premiums. It’s crucial to find a balance — cheap coverage but poor claims servicing could lead to a lot of headaches. Start with our list of the top 4 renters insurance providers in Texas and get multiple quotes to find your best option.

1. Best Overall: American Family

American Family (AmFam) came in at the top of J.D. Power’s renters insurance customer satisfaction survey in 2019. From claims processing to price, its customers are highly satisfied with AmFam.

AmFam covers everything inside your apartment, from your dining room table to your clothes and will pay for your hotel if an unexpected covered event means you can’t stay at your apartment. You’re even covered if your computer is stolen at a coffee shop.

Coverage for valuable items stops at $1,500, but you can add a rider onto your policy for higher-priced items. 

You’ll get a whopping 29% discount on your auto insurance and 15% off on renters insurance if you bundle both. Smart home systems such as doorbells or a smoke alarm system can also save you money on premiums.  

AmFam also gives customers great digital tools. You can pay your bill, change your coverage, file a claim, and track its status online or through their app. Overall, AmFam has done an excellent job of addressing every part of the customer experience.

2. Best Claims Processing: Liberty Mutual

A burst pipe in your neighbor’s apartment doesn’t always happen during business hours. Liberty Mutual offers 24/7 claims processing. You can file claims online, by phone or through the Liberty Mutual app. You can message through live chat and track your claims process online or on the app.

Liberty Mutual covers furniture, clothing, electronics and personal items up to a certain amount. (Check with the company for details.) You can also add on coverage specific to replace your phone or computer and get identity fraud protection, which will help you with the cost of recovering a stolen identity.

Bundle auto and renters to save money, and if you remain claims-free for 5 years or longer, you’ll earn more discounts. Liberty Mutual offers good all-around renters insurance with excellent claims processing.

3. Best for Discounts: Allstate

Allstate can give you opportunities to save money. Bundle your renters and auto insurance policies and other options, too.

You could save up to 15% on your premiums if your rental has a security system or fire alarm. You can save 5% with Allstate’s Easy Pay Plan, which automatically deducts your monthly premium from a checking or savings account. You can also save up to 25% on your premium if you’re a retiree who’s 55 or older, and those who aren’t actively looking for work can also save up to 25% off their premiums. 

If you switch coverage to Allstate after being claims-free at another provider, you’ll save 20%. Each year you don’t file a claim you’ll get bonus savings. Allstate’s billing process and policy information also received the highest score possible in a J.D. Power customer satisfaction survey.

4. Best for Extra Coverage: AARP Homeowners Insurance Program from The Hartford

What if you want coverage above the standard renters insurance policy? You might know about issues with your building’s sump pump, or own an expensive piece of jewelry, and want more coverage. AARP® Homeowners Insurance from The Hartford has you covered.

Its policies include standard coverage or personal property damage, personal liability, medical payments, and additional living expenses. You can also purchase helpful riders for your renters insurance.

Add the ProtectorPLUS Zero Deductible Benefit to your policy and The Hartford will waive up to $5,000 of your deductible if you experience a loss over $27,500. Personal injury liability coverage protects you if someone accuses you of libel or slander. Replacement cost coverage pays you the actual cost to replace a damaged item, not just what it was worth when damaged. Water backup covers damages from water backup or sump pump overflow on your rental property.

These riders provide additional coverage that you might want or need to reduce your risk in certain living situations.

5. Best Digital Insurance: Lemonade

Lemonade is a newcomer in the insurance industry, but it’s been quickly capturing market share. Part of a wave of online-only insurers who aim to appeal to younger generations, everything from your quote to your application to claims processing is done online or through its app. It has no offices or agents on the ground.

Its goal is to make getting renters insurance easy and painless. High-powered algorithms can get you insured in just 90 seconds, an industry record. While Lemonade promises to pay claims in only 3 minutes, it’s so new that there hasn’t been a lot of reporting on it in the market yet.

Lemonade is also dirt cheap, starting at just $5 per month. If you want to buy renters insurance in a hurry and prefer to do everything online, it’s a good pick.

Shop Around for Renters Insurance

Assess what it would cost to replace most or all of your belongings. The amount might surprise you, particularly if your couch is 10 years old. You’ll need this number when you request quotes.

Don’t want to pay a lot for renters insurance? The easiest way to reduce your premiums is to increase your deductible. You’ll pay lower premiums if you’re willing to pay more out of pocket for damages before insurance kicks in. 

Spend a little time with our list to find the best renters insurance in Texas for you.

Frequently Asked Questions

1) Q: Does the type of home matter?

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1) Q: Does the type of home matter?
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Normally, since renters insurance only covers your belongings, the type of home will not matter. What will matter is that in a larger home, you will have more personal possessions, thus more to insure. You will want to look at the limits the policy has and consider having an add-on/rider that will cover your higher priced items like jewelry, collections, and precious metals. You can learn more by reading our homeowners insurance guide.

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2) Q: Will renters insurance cover roommates?

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2) Q: Will renters insurance cover roommates?
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Renters insurance covers the individuals listed on the policy. If your roommate is not listed on your policy, he or she will not be covered. If they have coverage and you are not listed on their policy, you will not be covered.

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3) Q: Does where you live matter?

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3) Q: Does where you live matter?
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Since your renters insurance covers your belongings, where you live does not necessarily matter if you are moving locally. However, insurance prices do vary from state to state. Most policies will move when you move; your rate may just change if your move is drastic. Other factors are other state law and limits a new landlord may impose.

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