The Best Cheap Renters Insurance in Texas

NerdWallet looked at rates from more than a dozen insurers to find the cheapest options in the Lone Star State.

Sarah SchlichterJanuary 13, 2021

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Everything’s bigger in Texas, or so the saying goes, and unfortunately, that may include your renters insurance rates. The average cost of renters insurance in Texas is higher than the national average, but shopping around can often lower your rates. To help you narrow the options, NerdWallet compared companies across the state to find the best cheap renters insurance in Texas.

How much is renters insurance in Texas?

The average cost of renters insurance in Texas is $199 a year, or about $17 a month. That’s above the national average of $168 a year.

Tenants in the state’s two largest metro areas pay even more. Renters insurance in Houston costs $245 a year, on average, while tenants in the Dallas/Fort Worth area pay $194, on average.

Cheap renters insurance companies in Texas

NerdWallet analyzed rates across the state from a variety of companies to find the ones offering the cheapest Texas renters insurance.

Company

Average Annual Premium

Average Monthly Premium

Allstate

$108

$9

The Hartford

$132

$11

Nationwide

$160

$13

Mercury

$167

$14

Guard

$174

$15

Amica

$181

$15

UPC Insurance

$199

$17

Texas Farm Bureau

$208

$17

Republic Group

$210

$18

State Farm

$231

$19

Farmers

$237

$20

Texas FAIR Plan Association

$241

$20

Progressive

$242

$20

USAA*

$96

$8

*USAA is available only to military, veterans and their families.

More about some of the cheapest companies

Allstate: You can get a variety of discounts on an Allstate renters policy, including up to 20% for having no claims history and up to 25% for being at least 55 years old and retired.

The Hartford: This company partners with AARP to offer renters insurance primarily to older Americans. The Hartford will waive its renters insurance deductible up to $5,000 for certain major claims worth $27,500 or more.

Mercury: If you live in a gated community, have smoke alarms, or have both auto and renters insurance with Mercury, you could save money on your renters policy.

Nationwide: Along with standard coverage for liability and personal belongings, Nationwide renters insurance also includes coverage for expenses due to theft like unauthorized credit or debit card transactions and forged checks.

Texas FAIR Plan Association: Created by the Texas government, the FAIR Plan Association is the state’s insurer of last resort, offering coverage to those who have been turned down by at least two other companies. Although it’s not the cheapest option in Texas for renters insurance, it is the only option for some tenants.

USAA: Unlike most insurance companies, USAA includes coverage for flood damage as part of its renters policies. But only veterans, active military and their families can buy USAA renters insurance.

Cheap Texas renters insurance from the best companies

If you’re looking to buy insurance from widely available companies with a strong reputation, consider one of the following insurers from NerdWallet’s list of best renters insurance companies.

Company

NerdWallet rating

Annual premium

Allstate

4.0

NerdWallet rating 

$108

The Hartford

4.0

NerdWallet rating 

$132

Nationwide

5.0

NerdWallet rating 

$160

Amica

4.5

NerdWallet rating 

$181

State Farm

5.0

NerdWallet rating 

$231

Farmers

4.5

NerdWallet rating 

$237

USAA*

5.0

NerdWallet rating 

$96

*USAA is available only to military, veterans and their families.

What to know about Texas renters insurance

Natural disasters, such as tornadoes and tropical storms, happen regularly in Texas. If one strikes your home, your landlord’s insurance will cover only the building structure, not any damage to your possessions. That’s why it’s important to know what’s covered (or not) when shopping for renters insurance in Texas.

Flooding is the state’s most common disaster, according to the Texas Department of State Health Services, but it’s not covered by standard renters policies. If you’re at risk — for example, if you live in a ground-floor apartment near the beach or another low-lying area — you may want to purchase separate flood insurance.

Renting a place on the Gulf Coast? Make sure your renters insurance covers damage due to hurricane and tropical storm winds. Though many standard renters policies cover wind-related claims, such coverage may be specifically excluded if you live in high-risk areas near the coast. The Texas Windstorm Insurance Association is operated by the state and offers wind and hail policies to those who can’t find coverage elsewhere.

Even if you’re not in an area prone to hurricanes, you may still want extra wind coverage. More than 100 tornadoes strike the state each year, on average.

Wildfires are another common disaster in Texas, and while most renters policies cover losses due to fire, you’ll want to make sure you have enough personal property coverage to replace all your belongings if the worst happens. The calculator below can help you estimate how much your possessions are worth.

What determines Texas renters insurance rates?

You may pay more or less than the average annual premiums listed above, depending on various factors.

Your location. If you live on the Gulf Coast where hurricanes are common, or in a neighborhood with a high crime rate, you may pay more for a renters policy.

Your credit. Many insurance companies use a credit-based insurance score — similar to a traditional credit score — to evaluate how likely you might be to file a claim. People with better credit tend to get cheaper renters insurance rates.

Your claims history. If you’ve filed any renters insurance claims in the past few years, your insurer may charge more for your policy.

Your coverage limits. If you have more possessions — or particularly valuable possessions — to cover, you’ll typically pay more for renters insurance.

Your deductible. Raising your deductible is an easy way to lower your Texas renters insurance premium, as long as you feel confident you can access enough cash to pay it if necessary.

Other policies. If you buy your renters and auto insurance from the same company, you can often get a bundling discount.

Your home’s features. Home security systems, fire alarms and 24-hour building security guards could earn you discounts.

Your dog. Dog bites are a common cause of renters liability insurance claims, so if your pup is a breed that insurance companies consider high-risk, such as a pit bull or Doberman pinscher, your premium might be higher (if the animal is covered at all).

Texas Department of Insurance

If you have questions, concerns or complaints about your renters insurance, the Texas Department of Insurance may be able to assist. You can call its consumer helpline at 800-252-3439 for service in both English and Spanish.

When you buy or renew a renters policy in Texas, your insurance company is required to give you a copy of the department’s Consumer Bill of Rights for renters insurance. This document is worth a read: It explains how Texas insurance companies can use your credit information, establishes timelines for claims processing and lists circumstances under which your policy can and can’t be canceled.

Methodology

NerdWallet averaged rates for 30-year-old men and women from insurance companies in every ZIP code across Texas. Sample tenants were nonsmokers with good credit living in a two-bedroom apartment. They had a $500 deductible and the following coverage limits:

  • $30,000 in personal property coverage.

  • $100,000 in liability coverage.

  • $10,000 in additional living expenses coverage.

  • $1,000 in medical payments coverage.

City-level data was gathered from all counties within each city’s metropolitan statistical area as defined by the United States Office of Management and Budget.

These are sample rates generated through Quadrant Information Services. Your own rates will be different.

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