The Best Renters Insurance in Texas
There are dozens of companies providing renters insurance in Texas. How can you know which is the best? It may surprise you to learn there is no single best renters insurance in Texas.
But that’s not necessarily bad news. You don’t need to find the best company; you just need to find the best one for you.
Decide what kind of coverage you need, and how much, then begin getting quotes from several companies. I’ve compiled a list of what we believe to be the five best renters insurance companies in Texas.
This will be an excellent start in conducting your search.
Best Renters Insurance In Texas
Here are the top 5 providers of the best renters insurance in Texas:
- 🏆 Lemonade: Best Cheap Renters Insurance in Texas
- Liberty Mutual: Best for Coverage in Unusual Situations
- State Farm: Best for Home Businesses
- Allstate: Best Texas Renters Insurance for Policy Bundles
- USAA: Best for Military Families
Lemonade gets our top prize as the best cheapest renters insurance in Texas. They advertise renters insurance for as little as $5 per month. Lemonade is a fintech insurance provider specializing in renters and homeowners insurance.
Lemonade uses a unique business model in which premiums are paid by customers, claims are paid out as needed, and Lemonade takes 20% for administrative costs. Any funds leftover at the end of the year are donated to charities. You’ll not only be getting renters insurance, you may also be helping to contribute to the greater good.
Lemonade uses a fully online, automated system that not only makes applications quick and easy, but also the payment of claims. They advertise you can get a policy in as little as 90 seconds, but receive claim payment in as little as three minutes.
They’re able to pay claims quickly using artificial intelligence (AI). However, if AI is unable to make a determination, the claim will be turned over to human reviewers for evaluation. That, of course, will delay the payment of your claim. And as a nonprofit, Lemonade doesn’t use claim minimization strategies to slow or reduce your benefit.
If Lemonade has any drawbacks, it’s that they provide renters insurance in only 27 states, plus the District of Columbia (though they are working on entry into other states). Fortunately for Texas residents, Texas is one of the states were Lemonade is live.
Another potential negative is that Lemonade provides only homeowners and renters insurance. If you need auto, life, or any other type of insurance, you’ll need to work with another provider.
Liberty Mutual is a large, well-known insurance company providing all types of insurance policies. They’re especially well known for their auto insurance policies, which could be a big advantage if you want to bundle your renters policy with auto for a discount.
Speaking of discounts, Liberty Mutual offers them for certain affiliations, including active and former members of the US military. Like Lemonade, they also advertise renters insurance for as little as $5 per month, but that will depend on where in Texas you live, how much coverage you need, and how many discounts you qualify for.
One of the reasons Liberty Mutual should be on your short list of renters insurance in Texas is because of the many different coverages they offer under a rental policy. Not only do they cover standard hazards, like personal property, liability, and medical payments, but they also offer coverage for earthquake damage, additional living expenses if your rental home becomes unlivable, and blanket jewelry coverage. The latter will cover your jewelry even if it’s lost or stolen away from home.
If Liberty Mutual has a disadvantage, it’s that it’s about middle of the road for customer satisfaction.
State Farm is one of the largest insurance companies in the country, particularly when it comes to auto insurance. But they also offer life insurance, homeowners and condo units insurance, flood insurance, and coverage for personal articles.
State Farm can cover your rental unit for general liability and personal property. The latter can cover money, bank notes, points (including coin collections), property used for business, securities, checks, travelers checks, gift cards, phone cards, and other valuables. They even have options for loss of use of your home, identity theft restoration, and both additional business property and incidental business liability coverage if you run a business out of your home.
State Farm offers a large number of discounts, including bundling with auto insurance, which could result in a discount on both policies. But, you can also get discounts for a higher deductible, having home alert protection devices in your house or apartment, and other options.
State Farm is unlikely to be one of the lower cost providers in Texas, unless you already have an auto insurance policy with them and can take advantage of bundling with your renters policy. But, they may still be worth getting a quote even if you don’t have your car insurance with them now.
Allstate is one of the largest insurance companies in the country, providing virtually every type of policy. That includes life insurance, disability, business insurance, auto insurance, and homeowners, and condos coverage. That will open up multiple opportunities for policy bundling discounts.
Renters insurance is available for both personal property and liability. But, you can also have scheduled property for high-value items, reimbursement for living expenses if your home was destroyed, guest medical coverage, and identity restoration. And if you live in an area that’s prone to flooding, Allstate can provide flood insurance coverage. They offer umbrella insurance up to several million dollars as well, if you have special potential liability and need additional coverage.
There’s one other area where Allstate can stand out. Though you can initiate the purchase of a renters policy online, the company has a large network of insurance agents to help guide you through the process. If you’re not sure how much coverage you need, or you need special policy provisions, the best strategy will be to go through a live agent.
Generally speaking, Allstate is not going to be one of the lower-cost providers in Texas. Unlike other companies on this list, their renters policies can be relatively expensive if they can’t be bundled with an auto policy.
USAA is hands-down the best insurance provider for current and former members of the US military. If you’re eligible, they may very well have the lowest cost renters insurance in Texas, especially when it’s bundled with a USAA auto insurance policy – which likewise may be the least expensive available in the state.
USAA works specifically with military families, so they understand the specific and often unique needs of their clients. Not only do they provide all types of insurance products, but they also offer banking and investment services. Those include credit cards, home loans, auto loans, investments (including mutual funds), and retirement plans.
On your renters policy, flood insurance will automatically be included if the property is located in a flood zone. This is significant because other insurance companies charge an additional fee for flood coverage, or even require a separate policy.
If USAA has a disadvantage, it’s that it’s only available to active duty military, veterans, and their families.
Shopping For Renters Insurance In Texas
I would advise against using price as your main criteria. Price is always important, but it’s less a factor with renter’s insurance than other types of coverage.
What’s equally important is that you get the coverage you need. For example, if you have a dog or you run a business from your home, you’ll need increased liability insurance and even special provisions to cover those additional factors.
Your goal should be to get the right amount of coverage, with any necessary additional provisions, for the lowest price.
With insufficient coverage, you may find yourself paying out of your own pocket for damage to your own property or injury to someone visiting your home or apartment.
There’s a lot to know about renters insurance, probably more than the average consumer realizes. We’re not going to do a deep dive into the mechanics of renters insurance but will address the most basic questions below.
Is renters insurance a legal requirement in Texas?
Renters insurance is not a legal requirement in Texas, or in most other states. However, an increasing number of landlords are requiring tenants to have coverage. In fact, a provision requiring renters insurance is commonly written into most lease agreements.
If you’re renting through a property management company, or especially a large apartment complex, you should fully expect renter’s insurance to be required. However, an increasing number of private property owners are also requiring it. This may be at least in part because of the increasing reliance on standard form lease agreements available on the Internet.
You should also want to have adequate renters insurance if you have special circumstances. This can include a pet (especially certain breeds generally considered more dangerous), a significant amount of high-value personal possessions, or if you operate a business out of your residence.
Doesn’t the landlord have coverage? And won’t that cover me as the tenant?
There are two points to be made on this question. First, the landlord’s property insurance itself covers only the building and surrounding improvements of the property. But, that coverage stops at the front door. It does not extend to the contents of your rental unit, or to any liability-related events where you may be responsible.
The second is the possibility the landlord has no property insurance. It’s rare, since the lender will require coverage for any property with a mortgage. But if the property has no mortgage, the landlord would be under no requirement to have a policy. If the building is destroyed—and your contents with it—coverage would need to come from your own renters policy.
Why do I need liability coverage as a renter?
Liability covers medical expenses and damages for anyone injured on the property. While the landlord’s policy may cover injuries outside the home itself, you will be personally responsible for any that occur inside. That can include a visitor falling and sustaining an injury while inside your home, or if someone is bitten by your pet inside or even outside your home.
If you don’t have liability coverage, you’ll need to pay medical costs and damages from any injuries out of your own resources.
How much should I expect to pay for Texas renters insurance?
There are too many variables connected with a renters insurance policy to provide even an average premium. That’s especially true in a very large state like Texas, which has many diverse markets.
Renters insurance premiums are determined by several factors, including:
- Your specific location in Texas
- The type of property (single-family home, small apartment building, large apartment complex)
- The amount of coverage you need
- Whether you operate a business from your home
- Any history of previous renters insurance claims by you
These are just a few of the factors that go into determining your premium, and there may be more that are specific to the insurance company you’re working with.
Fortunately, renters insurance is fairly inexpensive. You can generally expect to pay between $15 and $40 per month, depending on the factors above.
Do You Need Renters Insurance In Texas?
If you’ve never purchased a renters insurance policy before, you should get quotes from several renters insurance companies.
Not only will that give you an opportunity to get the cheapest renters insurance in Texas, but it will also help you to understand the various provisions of the policy that apply to you.
We recommend getting quotes from some or all the companies on this list. And be sure to request any special policy provisions that may apply in your own situation.