Texas is a place where everything is bigger, according to the old saying. Unfortunately, this may also apply to your renters insurance rates. Renters insurance in Texas tends to be more expensive than the national average. However, shopping around can help you get lower rates. NerdWallet has compared the prices of renters insurance across Texas to help narrow down your options.
What is the cost of renters insurance in Texas
The average cost of renters insurance in Texas is $197 a year, or about $16 a month. This is higher than the national average of $168 per year.
Texas renters insurance companies that are affordable
NerdWallet looked at rates from several companies in Texas to determine which ones offered the best renters insurance.
The cheapest companies
Allstate: An Allstate renters policy is worth considering for older tenants, thanks to a discount of up to 25% for being at least 55 years old and retired. Bundling your renters policy and Allstate auto insurance can help you save even more.
The Hartford: This partnership with AARP allows for renters insurance to be offered primarily to seniors. For certain major claims exceeding $27,500, the Hartford will waive its renters insurance deductible up to $5,000.
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.
Mercury: You could save money on renters insurance if you live in a gated community that has a guard and smoke alarms.
Guard: Renters who have Guard can get multi-policy discounts, as well as add additional coverage types such identity fraud and protection for their home systems.
Amica: Amica has many ways to save money on renters insurance. You can get up to 15% off when you bundle your auto and renters policies. Sign up for paperless billing and set up automatic payments to your premiums. You will also save money.
State Farm: You can add identity restoration coverage to your State Farm renters insurance policy for $25 a year. This coverage is available to help with credit monitoring, data recovery and any other expenses related to identity theft or cyber attacks.
Texas Farm Bureau: To get insurance from Texas Farm Bureau, you’ll need to be a member. Learn more about Farm Bureau Insurance.
Republic Group: Republic Renters can be upgraded to include replacement cost coverage. This means that if your belongings get stolen or damaged, the company will pay enough to purchase new replacements. Instead of relying on their depreciated value, your payout will actually cover the replacement costs. For valuable items like jewelry and fine art, you can add additional coverage.
Texas FAIR Plan Association: Founded by the Texas government in Texas, the FAIR Plan Association provides coverage for those who have been rejected by at least two companies. It is not the most affordable option in Texas for renters insurance but it is available to some tenants.
American Strategic: When you buy Progressive renters insurance, this is one of the companies that may actually issue your policy. Progressive is the owner of American Strategic Insurance Corp.
UPC Insurance: UPC provides standard coverage for liability, personal property and additional expenses in the event that you have to move from your home during repairs.
USAA: USAA renters insurance includes flood coverage, which is a departure from most other insurance companies. Only veterans and active military personnel can purchase USAA renters insurance.
Here are some facts about Texas renters insurance
Texas is prone to natural disasters like tornadoes or tropical storms. Your landlord’s insurance will only cover the structure of your home, and not your personal property. It is important to understand what coverage you have when looking for renters insurance in Texas.
According to the Texas Department of State Health Services floods are the most severe state disaster. Standard renters policies do not cover them. 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.
Are you thinking of renting a property on the Gulf Coast. Renters insurance should cover damage caused by hurricanes and tropical storm winds. Although most standard renters policies cover wind-related damages, coverage may not be available if you are located in high-risk regions near the coast. Texas Windstorm Insurance Association offers hail and wind policies to those who cannot find coverage elsewhere.
Even if your area is not prone to hurricanes you might still need wind coverage. On average, more than 100 tornadoes hit the state each year.
Wildfires are another major disaster in Texas. While most renters policies will cover damage from fire, it is important to ensure that you have sufficient personal property coverage to cover all of your possessions in the event of a catastrophe. This calculator can help you determine the value of your possessions.
What is the Texas Renters Insurance Rate?
Depending on many factors, you may pay more or less than average annual premiums.
Your location. You may be charged more for renters insurance if you live in an area with high crime rates or on the Gulf Coast.
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. Renters insurance rates are usually cheaper for those with higher credit scores.
Nationwide, which charges $230 per year on average, was the cheapest renters’ insurance company in Texas, according to our rate analysis.
Your claim history. Your claims history. In some cases, your insurer might charge you more for your renters insurance policy if you have filed any claims in the last few years. NerdWallet examined Texas renters insurance rates and found that Allstate, which charges $108 per year on average, was the most affordable option.
Limits on coverage. Renters insurance will typically cost more if you have more possessions or valuable possessions to cover.
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.
You may also be eligible for other policies. If you buy your renters and auto insurance from the same company, you can often get a bundling discount.
You home’s security features. Discounts may be available for home security systems, fire alarms, and 24-hour security guards.
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. For Spanish and English speaking service, you can call the 800-252-3439 consumer helpline.
Your insurance company must give you a copy of Texas’ Consumer Bill of Rights when you renew or buy a renters insurance policy. This document is well worth reading: It describes how Texas insurance companies can use credit information and establishes timelines to process claims. It also lists situations under which your policy cannot be cancelled.