The Best Renters Insurance in Texas of 2023

A renters insurance policy can help renters pay to replace their damaged or stolen items. By comparing the best renters insurance in Texas, tenants in the Lone Star State can find the right coverage for their needs.

By Jeff Keleher | Updated Jan 20, 2023 5:51 PM

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The Best Renters Insurance in Texas

Photo: istockphoto.com

Texas residents who currently rent an apartment, townhouse, or single-family home may benefit from a renters insurance policy. Renters insurance covers personal property in the event that it is damaged by fire, storms, or other covered perils, and can help pay to replace items that are stolen from the renter’s home. This type of insurance also provides liability coverage for both policyholders and any pets they may own in the event that they injure another party or cause damage to the property. In a worst-case scenario—a fire causing extensive damage to the property and rendering it uninhabitable, for example—renters insurance can cover living expenses such as paying for a hotel while any damage is repaired.

Finding the best renters insurance in Texas can seem daunting for residents who aren’t sure where to begin their search. After reviewing the various policies and providers available, we have compiled a list of the best renters insurance companies in Texas to help narrow down those options. Although there’s no one-size-fits-all insurance policy, renters can find the right plan for their needs by reviewing the top insurance companies in the state.

  1. BEST OVERALL: Farmers Insurance
  2. RUNNER-UP: State Farm
  3. BEST DIGITAL EXPERIENCE: Lemonade
  4. BEST FOR SERVICE MEMBERS: USAA
  5. ALSO CONSIDER: Allstate
The Best Renters Insurance in Texas Options

Photo: istockphoto.com

What to Consider When Choosing One of the Best Renters Insurance Companies in Texas

The best Texas renters insurance providers bring a lot to the table for residents to consider, but each one will have certain strengths that may distinguish it from the competition. When reviewing insurance options, it can be helpful to have a list of priorities in mind so renters can weigh the relative benefits of each option and come to a decision that best suits their particular needs. Those considerations may include coverage amount, policy options, costs, and experiential factors, among other criteria.

Coverage Amount

One of the highest priorities for many renters considering their insurance options is the amount of coverage that a given policy provides. Coverage limits dictate the maximum amount of money that a policyholder could receive on a claim. In particular, renters may want to focus on the personal property coverage limits included with each policy, as that figure reflects how much their belongings are insured for in the event they are stolen, damaged, or destroyed by a covered peril. It may also be worth considering the amount of liability coverage included in a policy, as this coverage can help pay legal bills and damages if the policyholder is held liable for injuring another person or damaging someone else’s property—including the rental property itself. Coverage amounts often vary from one insurance company to another—and sometimes significantly so—making it a good starting point when comparing renters insurance companies.

Policy Options

No matter where they live, tenants can expect renters insurance to include some basic coverage terms—the aforementioned personal property, liability, and loss of use coverage are all examples of common policy terms. However, renters insurance plans can vary significantly when shoppers are looking at policy options beyond those core coverage terms. For instance, some policies may include water backup or—in rare cases—flood coverage as part of their standard terms, while others may only offer such coverage as extra endorsements—if they offer that coverage at all.

Another policy option to look for is replacement cost coverage, which will pay to replace covered items at their current market price. The alternative—and far more common option—is actual cash value coverage, which accounts for depreciation and, as such, can often result in smaller payouts on insurance claims. It’s important for shoppers to consider the full scope of policy options that are available, either as standard coverage or as extra endorsements, when looking to see what apartment renters insurance in Texas can offer.

Insurance Premiums

When searching for renters insurance in Texas, cost considerations loom large for many customers. Insurance premiums are the rates that policyholders pay to receive coverage. Renters insurance can often be paid on a monthly basis, although some companies may require customers to pay for an entire year’s worth of coverage up front. Renters who are concerned about budgeting for this insurance may want to check that premiums can be broken up into monthly installments rather than one annual payment when vetting insurance providers.

Although there are many factors that will influence a policyholder’s insurance premiums, some companies tend to offer lower rates than others. It’s also important for renters to provide the same property details and coverage selections when getting quotes so they can accurately compare insurance providers. Even a seemingly small detail, such as omitting a pet during the quote process, can impact insurance rates and may skew a policy’s quoted premiums. As such, when looking for cheap renters insurance, Texas residents will want to make sure they’re offering the same property information and requesting the same policy terms when obtaining quotes.

Quote Process

Quotes can be valuable assets when customers compare renters insurance in Texas and shop around for the best rate. In many cases, renters insurance quotes can be obtained entirely online in a relatively short amount of time. Some shoppers may prefer a more hands-on approach where they can ask agents any questions they have about their coverage options and then find the right policy terms to suit their needs. In those situations, customers may be better off calling an insurance company directly to get a quote. That option may not always be available, though, so it’s worth taking into account when considering the different renters insurance options in the state of Texas.

Claims Process

Filing a claim on a renters insurance policy may not require a long, drawn-out review process, but every company will approach claims a little differently. In some cases, policyholders may be pushed to submit claims online or through a mobile app, which can make it easier to upload photos, receipts, and other documents that may support a claim. Policyholders may even be able to record videos of any damaged items they wish to file a claim on and then use those recordings as documentation. That approach may be convenient to some renters, but others may want to work more directly with an actual agent who can help them navigate the claims process. The best renters insurance company may be one that offers a claims process and platform that fits a tenant’s specific sensibilities.

Deductibles

When selecting a renters insurance policy, customers will likely have the option to choose from a range of deductibles. These deductibles represent the out-of-pocket costs that the policyholder will be responsible for when filing a claim. Rather than ask customers to pay the deductible before disbursing their funds, insurance companies will deduct that amount from the total payout. As such, a customer’s deductible selection will have an impact on the amount of money they receive in the event of a covered claim.

Because higher deductibles lead to lower premiums, it’s not uncommon for renters to favor the initial benefits of increasing their deductible. However, doing so could undercut any payout they may stand to receive later on down the line. And with deductible options running thousands of dollars in some cases, it’s possible that a higher deductible could significantly reduce the payout on a future claim. As such, it can be important to account for deductible expenses as tenants search for the best renters insurance rates in Texas.

Additional Policies

Texas residents may want to pair their renters insurance with other types of policies, such as auto, life, or even ATV insurance. Insurance companies may offer discounts for customers who bundle multiple policies, which can help lower the total cost of coverage for renters in the market for different types of insurance. Using one company for all insurance needs can also make it easier to keep track of each policy since customers will be given one account to manage all of their insurance plans. Logging into a dedicated online portal or mobile app could enable customers who bundle two or more policies to stay on top of all their plans with relative ease. Because the policies available will vary from one company to another, it may be worth taking into account these options when vetting the best renters insurance in Texas.

Discounts

When going through the quote process, renters will want to be mindful about the selections they make as they relate to the property and their own claim history, as this information could result in discounts being applied to their policy. For instance, properties with burglar alarms or central fire alarms may be eligible for discounted insurance rates. Discounts are, in general, pretty common with renters insurance, but the availability of specific discounts will vary across insurance companies. Some companies may offer lower premiums to customers who enroll in automatic payments, while other providers won’t give a discounted rate for selecting that option. It’s important to factor in discounts when comparing renters insurance costs from multiple providers, as they can influence the total cost of coverage.

AM Best

A company’s AM Best rating is a reflection of its creditworthiness and financial stature. AM Best is an independent credit rating agency that specializes in the insurance industry, grading companies based on their ability to continue meeting their obligations as insurance providers. When looking at the top renters insurance in Texas, shoppers may want to take a look at each company’s AM Best rating in addition to other attributes. Buying insurance from a provider with a high AM Best rating could provide more peace of mind that it’s unlikely to go out of business or cease providing coverage at any point in the near future.

Our Top Picks

Tenants looking for the best renters insurance providers in Texas will want to take into account what features, benefits, and drawbacks will have the biggest impact on them. In some cases, purchase decisions may be driven entirely by cost considerations, while in some cases renters will want to prioritize coverage limits, policy options, extra perks, and other criteria. Regardless of what specific features or benefits a tenant is looking for, the best Texas renters insurance companies all have a lot to offer in the right circumstances.

Best Overall

The Best Renters Insurance in Texas Option Farmers Insurance
Photo: farmers.com

Why It Made the Cut: Farmers Insurance offers low rates, long loss of use protection, and a potentially low deductible, making it a great option for many Texas renters.

Farmers Insurance gives Texas renters plenty of food for thought when they’re considering their renters insurance options. The insurance provider may offer low premiums, depending on the coverage selected, which can help renters minimize the cost of their insurance. Renters who would prefer to save money on their out-of-pocket costs when they need to file a claim have the option to choose a deductible as low as $100.

Although there aren’t many extra endorsements for renters to add to their policy and expand coverage, standard renters insurance policies may come with enough coverage on their own to satisfy customers. In addition, policyholders can receive loss of use coverage that will help pay living expenses for as long as 24 months in the event that they are unable to continue staying at their rental property following a covered peril. Farmers Insurance also provides customers with a handy personal property calculator that can be used during the quote process to determine how much coverage is needed in a renters insurance policy so they can be sure they’re purchasing enough coverage to adequately insure their property.

Specs

  • Coverage amount: $4,000 to $150,000
  • Quote process: Online, phone, agent
  • Claims process: Online, phone, agent
  • Deductibles: $100 to $2,500
  • AM Best rating: A

Pros

  • Relatively low insurance premiums
  • Lengthy 24-month loss of use coverage available
  • Low $100 deductible option
  • Helpful personal property calculator

Cons

  • Limited extra endorsements

Runner-Up

The Best Renters Insurance in Texas Option State Farm
Photo: statefarm.com

Why It Made the Cut: Texas renters may be interested in State Farm’s convenient mobile app, stellar AM Best rating, lengthy loss of use coverage, and coverage limits that account for inflation changes.

State Farm is a well-rounded option when it comes to the best renters insurance companies in Texas. The company currently holds an A++ rating from AM Best—the highest ranking possible—reflecting its strong finances and long-term outlook. Renters may feel more comfortable purchasing insurance from an organization with such a high rating, since they can trust that their insurance provider will have the resources to continue providing coverage and paying out claims for the foreseeable future.

Beyond multi-policy bundles and safety device discounts, there aren’t many opportunities for policyholders to lower their renters insurance costs through discounts. However, Texas residents may be pleased to know that their coverage limits will be adjusted each year to take into account any increases due to inflation. With this automatic adjustment, policyholders don’t need to worry about the value of their coverage decreasing because of rising inflation. State Farm customers can also easily manage their renters insurance policy and any claims they need to file through the company’s dedicated mobile app. Doing so may be more convenient than picking up a phone and calling a representative or agent.

Specs

  • Coverage amount: $2,000 to $110,000
  • Quote process: Online, phone, agent
  • Claims process: App, online, phone, agent
  • Deductibles: $500 to $2,000
  • AM Best rating: A++

Pros

  • Inflation-adjusted coverage limits
  • Long 24-month loss of use coverage available
  • User-friendly policy and claims management via mobile app
  • A++ AM Best rating

Cons

  • Limited discount opportunities

Best Digital Experience

The Best Renters Insurance in Texas Option Lemonade
Photo: lemonade.com

Why It Made the Cut: With high coverage limits, a convenient mobile app, and the potential for instant claim approval, Lemonade could be a very appealing option for Texans looking for renters insurance.

Lemonade is a relative newcomer to the insurance industry, but the company provides plenty of benefits that may catch the eye of Texas renters in need of insurance coverage. For one, renters can insure their personal property for up to $250,000 with a renters insurance policy, which is fairly high for the Texas market. Customers may find conflicting information regarding the availability of standard jewelry coverage and if they need to purchase a separate endorsement to insure any jewelry they own. Even so, Lemonade’s high coverage limits could help ensure that renters are able to get all the coverage they need for their possessions.

It’s worth noting that Lemonade does not currently hold a rating from AM Best, although that does not necessarily reflect on the company’s financial standing one way or the other. There are also very few discounts available, but Texas residents may be happy to hear that a portion of their premiums that are not used to pay out claims—up to 40 percent—will be donated to a charity of their choice at the end of the year. If policyholders do need to file a claim, their claim may be approved instantly thanks to Lemonade’s AI-based claims process. This means customers could receive their claim funds in no time at all after submitting their paperwork. Filing a claim is relatively easy due to the company’s intuitive and user-friendly mobile app, which allows policyholders to upload photos, videos, and documents to support their insurance claims. Customers can also adjust their policy’s coverage options directly through the app and have those changes immediately implemented.

Specs

  • Coverage amount: $10,000 to $250,000
  • Quote process: Online
  • Claims process: App
  • Deductibles: $250 to $2,500
  • AM Best rating: Not rated

Pros

  • Relatively high $250,000 coverage limit
  • Instant claim approval possible
  • User-friendly policy and claims management via mobile app
  • Up to 40 percent of unclaimed premiums donated to charity

Cons

  • Conflicting information around standard jewelry coverage
  • Limited discount opportunities
  • Not currently rated by AM Best

Best for Service Members

The Best Renters Insurance in Texas Option USAA
Photo: usaa.com

Why It Made the Cut: USAA offers fantastic standard coverage for eligible members, including replacement cost and flood coverage with every renters insurance policy, along with a number of discounts to help lower premiums.

USAA provides insurance to active members of the armed forces, retired service members, and their immediate family. Because of that exclusivity, USAA can offer a number of unique benefits and perks that may appeal to eligible renters, but it also means that not all Texas residents will be able to apply for coverage. Some of those perks include standard replacement cost coverage with every renters insurance policy, which doesn’t account for depreciation when a claim is processed and funds are disbursed. As such, USAA members may receive larger payouts on their renters insurance claims.

Another standout feature is the standard flood insurance; all renters insurance policyholders will be covered up to their policy limits if their personal property is damaged or destroyed by flooding water.Although deductible options are limited to renters who use USAA’s online quote tool, policyholders do have plenty of opportunities to adjust their insurance costs with the help of several available discounts, including up to 28 percent off for service members who reside on a military base. USAA also has an A++ AM Best rating, which is only given to insurance companies that can demonstrate a “superior” capability to meet their obligations to customers. Texas renters may enjoy some peace of mind knowing that their insurance provider is on solid financial footing and is unlikely to run into funding issues that could interrupt their coverage.

Specs

  • Coverage amount: Starting from $5,000
  • Quote process: Online, phone
  • Claims process: App, online, phone
  • Deductibles: $500
  • AM Best rating: A++

Pros

  • Standard replacement cost coverage included
  • Standard flood coverage included
  • Wide variety of discounts available
  • A++ AM Best rating

Cons

  • USAA membership limited to service members and families
  • Limited deductible options

Also Consider

The Best Renters Insurance in Texas Option Allstate
Photo: allstate.com

Why It Made the Cut: Texas residents who are looking to save money on their renters insurance may find Allstate to be an intriguing option as a result of the company’s many bundling options and discount opportunities.

Allstate offers several benefits for Texas renters to consider, but perhaps the most notable perk is the opportunity to bundle different types of policies together, including renters, auto, motorcycle, life, and ATV insurance. Although Allstate premiums may be a bit on the high side for renters insurance—and policyholders are required to pay 2 months’ worth of their premiums up front—bundling policies can help lower the total cost of coverage. In addition, Allstate offers a variety of discounts, including discounts for policyholders who are retired or those who enroll in automatic payments, that can further reduce premiums and save customers money on their policies.

Prospective customers may also want to note that extra endorsements are fairly limited, but standard renters insurance policies do come with $2,500 worth of coverage for jewelry, which is a relatively high coverage amount for this type of property.

Specs

  • Coverage amount: $25,000 to $150,000
  • Quote process: Online, phone, agent
  • Claims process: App, online, phone, agent
  • Deductibles: $250 to $1,000
  • AM Best rating: A+

Pros

  • Ability to bundle multiple policy options
  • Relatively high $2,500 jewelry coverage included
  • Wide range of discounts available

Cons

  • Relatively high insurance premiums
  • 2 months of payments due up front
  • Limited extra endorsements for purchase

Our Verdict

We gave Best Overall to Farmers Insurance because of the company’s low premiums on renters insurance, along with the low deductible options, helpful personal property calculator, and generous loss of use coverage. State Farm gets the nod for Runner-Up due to its user-friendly mobile app, superior AM Best rating, and coverage limits that adjust each year to account for inflation.

How We Chose the Best Renters Insurance Companies in Texas

When deciding on which insurance providers offer the best renters insurance in Texas, we took a look at each company’s coverage options, including both terms that come standard with every policy and add-on options that can be purchased as extra endorsements. We also weighed factors that would impact a customer’s total cost of coverage on an insurance policy. To that end, each company’s rates were considered, along with any deductible options and potential discounts that could influence insurance premiums.

The customer experience was also an important factor that was accounted for during our research. Both quote and claims processes were reviewed for each insurance provider, along with any tools or services that could aid the customer, including mobile apps and online calculators. Although all companies represented in our roundup offer renters insurance in Texas, we also wanted to account for eligibility factors that could impact availability for residents of this state.

Before You Choose One of the Best Renters Insurance Companies in Texas

Texans should know that they are not legally required to get renters insurance when renting a property in their state. Even so, landlords could insist that prospective tenants obtain renters insurance before they will approve a rental application. While some renters may feel OK rolling the dice on going without coverage, having renters insurance can come in handy if a tenant’s belongings are destroyed in a fire, stolen during a break-in, or otherwise damaged by another covered peril. Without a policy in place, renters could be on the hook to pay to replace any damaged belongings entirely on their own.

When weighing policy options, it’s important for customers to figure out how much renters insurance they need so they can choose the right coverage amount. Taking stock of their possessions can help renters determine exactly what their coverage limit should be. Going a step further and creating an inventory of belongings they wish to insure, along with the value of each item, can also be helpful if the time comes to file a claim after a covered event. This way, policyholders can be sure they’re claiming every covered item and receiving the largest payout possible.

Cost of Opting for One of the Best Renters Insurance Companies in Texas

Insuring a renter’s personal property doesn’t have to be an expensive proposition, but how much is renters insurance in Texas? According to the Texas Department of Finance, the average cost of renters insurance in Texas is $20 a month. The total cost of coverage will heavily depend on the policy options that a customer chooses, though. Increasing the personal property coverage limits can have a major impact on one’s insurance premiums, especially if renters choose the maximum amount available. The same holds true for liability coverage, although maximum coverage amounts tend to be lower than personal property limits and may not sway insurance prices to the same degree. Adding endorsements to expand coverage will likewise increase a renter’s insurance premiums.

The cost of renters insurance can be pretty reasonable in many cases, especially when paid in monthly installments. Some insurance companies may require a full year’s worth of coverage paid up front, though, so renters may want to weigh the available payment options when considering the best renters insurance companies in Texas. A policyholder’s choice of deductible will impact the up-front cost of coverage as well, as a higher deductible will result in a lower monthly premium. Finally, renters will want to consider any available discounts that could help reduce their insurance rates and make renters insurance even more affordable. When looking for the cheapest renters insurance, Texas residents should account for all of these factors that could impact the total cost of their policy.

The Advantages of Opting for One of the Best Renters Insurance Companies in Texas

Having a renters insurance policy is worth it for tenants who worry how they will pay to replace any belongings that are damaged or stolen while living in a rental property. What does renters insurance cover in Texas? This type of insurance typically covers perils like fires, windstorms, and burglaries as part of any standard policy. In addition, policyholders can enjoy liability protection in the event they are sued or otherwise found liable for damages they cause themselves. That liability coverage often extends to pets, too, so renters can be financially protected if their dog were to bite another person or damage the rental property. The best renters insurance companies in Texas offer plenty of perks and benefits that may appeal to tenants in this state:

  • Various deductible and discount options to help adjust the total cost of a renters insurance policy.
  • Lengthy loss of use coverage in the event that a renter needs to find another place to stay after a covered peril.
  • Standard policy terms and add-on options that can include replacement cost, flood, and jewelry coverage.

FAQs

Searching for the best renters insurance in Texas can be relatively easy if customers go into it with a firm understanding of what to look for and how to get renters insurance coverage. So shoppers can build up a solid base of knowledge regarding renters insurance, here are answers to some of the most common questions tenants have about this type of policy, especially in Texas.

Q. Does renters insurance cover fires?

In most cases, renters insurance covers fire damage as part of a standard policy. That coverage includes damage caused by the fire itself as well as any ensuing smoke damage. It’s important to note, however, that renters insurance only covers fires that are started accidentally; instances of arson would not be covered by this type of policy.

Q. Is tenant insurance the same as renters insurance?

Yes, tenant insurance and renters insurance are one and the same. Although tenant insurance is not a widely used term, Texans may come across it when looking for the best renters insurance.

Q. Does landlord insurance cover tenant damage?

Like renters insurance, landlord insurance covers accidental damages, which can include any damage to the property that’s caused unintentionally by a tenant—a kitchen fire, for instance. Deliberate damage or theft, such as putting holes in walls or stealing furnishings owned by the landlord, would not be covered by landlord insurance.

Q. Is renters insurance a good idea?

It may be a good idea to purchase renters insurance to help pay to replace any belongings that are damaged by fire, storm, or another covered event, as well as any possessions that are stolen during the rental period. Combined with the liability and loss of use coverage that is typically included in a standard policy, as well as the relatively affordable premiums, a renters insurance policy is often a wise investment for tenants.

Q. Is it illegal not to have renters insurance in Texas?

Renters in this state may wonder, “Is renters insurance required in Texas?” The answer is no, the state government does not legally require tenants to obtain renters insurance. That being said, a landlord could make renters insurance a prerequisite to approving a rental application, in which case tenants would need to get renters insurance to rent that particular piece of property.

Q. Does renters insurance cover food loss?

Although it’s a much-less heralded feature of renters insurance, these policies often include food loss as part of their personal property coverage. This means that if a refrigerator or freezer were to stop working because of a covered peril, policyholders could claim any food loss when filing their renters insurance claim, less the renter’s deductible.

Q. Does renters insurance cover water damage?

In some cases, renters insurance will cover water damage, but it’s important to understand the limitations of that coverage. Burst pipes, water leaks, and failing water heaters are all examples of water damage that is often covered by renters insurance. However, water backups from overflowing sewers or floods are not typically covered by a policy unless otherwise noted. If tenants need this coverage, they may want to narrow their options to companies that offer flood insurance for renters in Texas or look for a separate policy offered through the National Flood Insurance Program.