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The Cheapest Texas Renters Insurance Companies 2020
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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One of the challenges in purchasing renters insurance is determining how much coverage you need. There are many calculators online that can help you figure this out. The average value to protect the contents of an apartment is $20,000. You will want to increase this amount if you own anything of additional value.
Several national insurance companies offer coverage in Texas, and it is easy to get an online quote from any of them. Bundling insurance is the best way to save money on insurance, as most carriers will give you a discount for having multiple policies. Other discount opportunities include arranging for payments to be taken directly from your bank account and adding a security system. Read more on the average cost of renters insurance.
Best renters insurance companies in Texas
The cheapest renters insurance companies in Texas on this list were chosen because they scored in the top third of rental insurance companies in J.D. Power’s 2019 home insurance satisfaction survey, have a variety of insurance products and offer affordable insurance rates:
- Allstate
- American Family
- Farmers Insurance
- USAA
Farmers Insurance provided the cheapest renters insurance. You can save more by bundling multiple policies with Farmers, being a non-smoker and installing a security system or fire alarm. Identity protection is available as an addition to your policy.
Allstate comes in second when it comes to price. It offers the discounts listed above, plus up to 25% off for those aged 55+ and retired. You can add optional coverage for identity theft and a home-based business as well.
American Family offers additional discounts for current customers with another policy and for customers whose parents were also policyholders. Additional coverage is available for pets, identity theft, home businesses and travel.
USAA insurance is only available to current and former military members and their families. Their pricing is competitive and includes earthquake and flood coverage, which is not usually included in the renters insurance policies from other carriers.
| Company | Cost per year | J.D. Power Rating | BBB Rating |
|---|---|---|---|
| Farmers Insurance | $169.37 | 2 out of 5 | A+ |
| Allstate | $242.65 | 2 out of 5 | A+ |
| American Family | $262.00 | 5 out of 5 | A |
| USAA | — | 5 out of 5 | F (due to lawsuit) |
Quotes are based on renting an apartment in a building with four units in Katy, TX, and $20,000 worth of belongings.
Best Texas renters insurance company for coverage options: Allstate
Best for coverage options – Allstate
Allstate is a major insurance company, so it offers several coverage options you might not find at smaller companies.
Allstate offers home, auto, renters, condo, motorcycle, business, pet, event, life and identity insurance. It also offers several add-on options if you want more coverage than a standard policy.
Best overall Texas renters insurance company: American Family
Best overall – American Family
If you want a company that ranks high overall instead of having specific strengths and weaknesses, American Family may be a good option.
It received 5 out of 5 in every category from J.D. Power (categories are overall satisfaction, policy offerings, price, billing process and policy information, interaction and claims). American Family won J.D. Power’s award for renters insurance.
Cheapest Texas renters insurance company: Farmers
Cheapest – Farmers
Farmers has the lowest average renters insurance rates.
Your rate will be determined by how much coverage you need, where you live and what discounts you are eligible for.
Best Texas renters insurance company for customer support: USAA
Best for customer support – USAA
The USAA is dedicated to serving members of the military and their families, so perhaps that’s why the company has such high customer service ratings.
USAA received 5 out of 5 on overall customer satisfaction, billing process and interaction.
Texas renters insurance FAQs
According to USAA, the average amount of coverage needed for the contents of a two-bedroom apartment is $20,000. The best way to find out how much coverage you need is to do an inventory of your belongings and find out how much it would cost to replace them.
Based on J.D. Power’s 2019 survey, American Family got the best overall customer satisfaction rating. The only company that scored higher was USAA, which is only available to current and former military members and their families. However, the best option for you will depend on your needs and circumstances.
Standard renters insurance policies are based on paying out the actual cash value of your property. This is calculated by taking the cost to replace the item, then subtracting depreciation, which is a loss in value due to wear and tear. You can pay more for replacement cost coverage, which pays the cost to replace the item. Your payout will be reduced by your deductible in either case.
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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. You can also review more detail on our Simplescore renter insurance methodology.
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.
