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The Cheapest Texas Renters Insurance Companies of 2021
Whether you are renting a house, a room or an apartment, you will want to purchase renters insurance to protect your belongings and your wallet. It provides coverage for the things you own if it is stolen or damaged by fire, water and weather events. Texas renters insurance averages $310 for covering $40,000 in contents.
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According to the Texas Apartment Association, more than six million Texans rent their home. Renting a home or apartment comes with less risk and lower costs than owning a home. However, renters in Texas should still consider buying renters insurance to protect their personal belongings and liability.
To find the best Texas renters insurance, we used the SimpleScore method to evaluate discounts, coverage options, customer satisfaction, support and website accessibility for major carriers. If you’re in the market for renters insurance in Texas, keep reading to see our top five recommended companies.
[ Read: Is Renters Insurance Really Necessary? ]
Best renters insurance companies in Texas
- Best for Cheap Rates: Lemonade
- Best for Discounts: Allstate
- Best for Military Members: USAA
- Best for Optional Coverages: Nationwide
- Best for Customer Service: Homeowners of America
Best for cheap rates – Lemonade
If you’re looking for basic coverage at the lowest price possible, check out Lemonade.
Lemonade is our pick for the cheapest renters insurance provider in Texas. The company earned the top spot in J.D. Power’s 2020 U.S. Renters Insurance Study and has great reviews across the board. Lemonade’s renters insurance is extremely basic, with very limited coverage options and discounts. However, you can’t beat the low prices. Lemonade operates completely online, so it’s able to keep premiums low. To see how much you’ll pay for Lemonade renters insurance, you can get an instant rate quote online.
Best for discounts – Allstate
Allstate offers more renters insurance discounts than almost every other company.
Renters insurance companies usually offer very few discounts because policies are affordable to begin with. However, Allstate offers a variety of savings opportunities for Texans who want a low rate. With Allstate, you can save money by being claims-free, signing up for automatic payments, bundling your policies and having safety features installed in your home. There is also a discount for retired enters who are 55 or older and are not actively seeking employment.
Best for military members – USAA
Military members and veterans can get robust renters insurance coverage with USAA.
USAA is one of the highest-rated insurance companies in the industry. The catch is that only military members, veterans and their spouses are eligible for coverage. If you live in Texas and meet the criteria, USAA is your best option for renters insurance. In addition to excellent customer service and low rates, USAA’s renters insurance policies offer comprehensive coverage. It’s one of the only companies that includes flood and earthquake insurance with every renters insurance policy.
Best for optional coverages – Nationwide
Every renter has different needs, and Nationwide offers a variety of optional coverages for a customized policy.
Nationwide is our recommendation for any Texas renter who wants to customize their policy with optional coverages. Most renters insurance policies only offer one or two add-ons, but Nationwide offers seven endorsements. One of the most unique add-on coverages is building addition and alterations coverage, which helps pay for damage related to additions, alterations, fixtures, improvements or installations for your home or apartment. You can also add earthquake and flood insurance to a renters insurance policy from Nationwide.
Best for customer service – Homeowners of America
Texas renters who value good customer experience should consider a policy from Homeowners of America.
Homeowners of America is a property insurance company based in Irving, TX. The company’s renters insurance policies are very limited, with only basic coverage. However, Homeowners of America stands out for its customer service, which can be hard to find in the insurance industry. Homeowners of America has an A+ rating from the Better Business Bureau (BBB) and has fewer than average complaints based on the National Association of Insurance Commissioners (NAIC) Company Complaint Index.
Choosing your Texas renters insurance provider
When you shop for insurance, it’s a good idea to look at national and local providers. Both types of companies have advantages and drawbacks. Here are some pros and cons to keep in mind:
Local carrier
Pros
- Better customer service.
- More personalized experience.
- Faster claims handling.
Cons
- More expensive premiums.
- Fewer coverage options.
National carrier
Pros
- More coverage options.
- Wide range of discounts.
- Cheaper policies.
Cons
- Poor customer service.
- Slower claims handling.
Texas minimum insurance requirements
In Texas, there are no legal minimum requirements for renters insurance. However, having a renters insurance policy is extremely valuable. In addition to basic coverage, Texas renters should consider purchasing extra coverage for natural disasters and weather-related events.
Flood insurance
Flooding in Texas is extremely common, especially after major storms and hurricanes. Because standard renters insurance doesn’t cover flood damage, it’s a good idea to get a separate flood insurance policy. You can purchase flood insurance through the National Flood Insurance Program (NFIP) or buy a policy through a private provider.
[ Read: 3 Reasons Why You Should Get Flood Insurance ]
Earthquake insurance
Earthquakes do occur in Texas even though it’s not widely known. Texas earthquakes are usually not big enough to be felt, but they can cause property damage. Unfortunately, standard renters insurance policies don’t cover earthquake-related damage, with the exception of USAA. To fill the gap, you would need to purchase an earthquake insurance policy.
How much does renters insurance cost in Texas?
In Texas, the average renters insurance premium is $232 annually. That’s more expensive than the United States national average rate of $180 per year. However, renter insurance premiums are highly personalized. Your ZIP code, age, credit score and claims-history can all affect your rate. If you add earthquake insurance, flood insurance or other optional coverages, your rate will increase.
[ Read: How Much Is Renters Insurance? ]
Texas renters insurance FAQs
Renters insurance has three main coverages: personal property, liability and loss of use. Most carriers also offer optional coverages that you can buy for specific protection. Remember that renters insurance does not cover earthquake or flood damage. You’ll need a separate policy for those losses.
No, renters insurance is not legally required in Texas. However, some landlords require tenants to have renters insurance before signing a lease. Even if your landlord doesn’t require it, having renters insurance is valuable, and the policies are typically very affordable.
There isn’t one renters insurance company in Texas that is the best for everyone. In our review, we gave each provider a superlative. You’ll notice that the best company for customer service is not the same as the best company for affordable rates. To find the best Texas renters insurance company for you, look at providers that meet your specific needs and sell policies that fit within your budget.
Too long, didn’t read?
Texas renters should strongly consider purchasing a renters insurance policy to protect their personal belongings and liability. Based on our review, the best renters insurance companies in Texas are Lemonade, Allstate, USAA, Nationwide and Homeowners of America. Although Texans pay higher-than-average premiums compared to the national average rate, most renters insurance companies offer policy discounts.
We welcome your feedback on this article and would love to hear about your experience with the insurers we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.
Keep Reading
Methodology
The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.
For every review, our editorial team:
- Identifies five measurable aspects to compare across each brand
- Determines the rating criteria for each aspect score
- Averages the five aspect scores to produce a single SimpleScore™
Here’s a breakdown of the five aspect scores and their rating criteria for our renters insurance reviews.
Why do some brands have different SimpleScores on different pages?
To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.
However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare State Farm’s home insurance according to our criteria for the best home insurance, it scores a 3.8 out of 5. But when we compare State Farm according to the criteria for the best auto insurance, it scores higher, since the features the company offers can vary by the type of insurance.
Discounts
We awarded higher scores to insurance providers with more discounts available on their website.
Coverage Options
We gave providers with more renter insurance coverage options a higher score because they’re more likely to have a policy that best meets your needs.
Support
We awarded higher scores to renters insurance providers with the most channels for customer support.
Customer Satisfaction
We leveraged the J.D. Power Home Insurance Satisfaction Study℠ to see how customers rated their experience with each insurance provider. (If a provider wasn’t included in J.D. Power’s study, we skipped this aspect and averaged the four remaining aspect scores.)
Accessibility
We awarded higher scores to insurance providers that have more online and mobile features to easily manage your policy and claims.
Reviewed by
Nashalie Addarich
Insurance EditorNasha Addarich is an editor at The Simple Dollar and a former attorney who specializes in home insurance, auto insurance, life insurance, and savings. She is a former contributing editor to Reviews.com.
