What renters insurance is for

When you rent, the building is the owner’s to insure. The Texas Department of Insurance (TDI) is plain about it: the owner’s policy pays to fix the apartment building, and it will not pay for your personal items.

No Texas law requires you to carry renters insurance, but a landlord may require it. If the lease you are about to sign requires a policy, ask what minimum coverage it sets and whether the community has to be listed on the policy, before you buy one.

TDI puts the average renters policy in Texas at about $20 a month (TDI, updated December 10, 2025). Your price depends on the coverage, the deductible and the company.

What a policy covers

TDI describes three kinds of coverage in a typical renters policy:

• Personal property: your belongings, including things stolen from your car or while you travel.
• Additional living expenses: the extra cost of food, rent and other needs if a covered loss forces you to move out for a while.
• Personal liability: protection if someone is injured in your home, including legal costs if you are taken to court.

Most renters policies cover losses from fire, smoke, theft or vandalism, and certain kinds of water damage. Read the list of covered causes in your own policy. Those words, not the name of the policy, decide whether a claim is paid.

Replacement cost or actual cash value

This choice changes what a claim pays. Actual cash value pays what an item is worth today, after wear and age. Replacement cost pays what it costs to buy a new one at today’s prices.

TDI gives an example: a laptop you bought two years ago for $1,300, when the same kind now sells for $500. A basic policy pays $500 if it is destroyed. A replacement cost policy covers the replacement value, and it costs more.

If most of your furniture and electronics are a few years old, that gap is the whole question. Ask for the quote both ways and compare.

Limits and deductibles

Every policy pays up to a dollar limit, and some kinds of property have their own, lower limits. TDI lists common ones: $100 for cash, $2,500 for items used for business, and $500 for jewelry and watches. If you own more than that, ask about added coverage for those items.

The deductible is the part of a claim you pay yourself. In TDI’s example, a $1,000 claim with a $300 deductible pays $700. A higher deductible lowers the premium. Choose one you could pay the same week something goes wrong.

To know how much coverage you need, list what you own. TDI suggests a home inventory: photos room by room with the drawers open, and receipts for large items kept somewhere other than your home.

Questions to ask before you buy

Quotes look alike until you compare the details. Ask each company the same questions:

• Are my belongings covered at replacement cost or at actual cash value?
• Which items have their own lower limits, such as jewelry, cash or work equipment?
• What is the deductible, and is it different for any type of loss?
• Are my roommate’s things covered, or does each of us need a policy?
• Does the policy cover belongings I keep in a storage unit?
• What does liability cover, and up to what amount?
• On what date does coverage start, and how do I show proof to the leasing office?

TDI notes that you might have a different deductible for each type of coverage, so read the answers against the policy itself.

Floods are separate

Most renters policies do not pay for flood damage. Coverage for your belongings comes from a separate flood policy, through your agent or the National Flood Insurance Program, and it covers personal property up to $100,000. Most flood policies have a 30-day waiting period before they start, so it is not something to buy once a storm is forecast (TDI, updated August 7, 2025).

Texas law adds a notice to your lease. Since January 1, 2022, a landlord has to tell you in writing whether it knows the dwelling is in a 100-year floodplain, and whether it knows the dwelling flooded at least once in the five years before your lease (Texas Property Code §92.0135).

If neither box on that notice is checked, the law tells you to assume the dwelling is in a 100-year floodplain. Our Texas tenant rights guide explains what you can do if the notice was missing and a flood damages your things.

Students and dependents

If you are a dependent, your parents’ homeowners policy may cover your things even while you live away from home, usually up to 10% of that policy’s personal property coverage. In that case you may not need a policy of your own.

Check that 10% against what you actually own before you count on it. Our student apartments guide covers the rest of renting near campus.

If you need to file a claim

Texas law sets deadlines for insurance companies. After you file, your company must tell you it received the claim within 15 days, accept or deny it within 15 business days of getting all the information it needs from you, and send payment within five business days of agreeing to pay. A company that needs more time can take 45 days to decide if it tells you why (TDI, updated June 1, 2026).

If a denial comes, the company has to explain it in writing. TDI answers insurance questions at 800-252-3439. HelpInsure.com, run by TDI and the Office of Public Insurance Counsel, compares home and auto insurance policies sold in Texas.

Getting it in place for move-in

Set the policy to start on the day you get the keys. If your lease requires coverage, keep the declarations page handy: it is the first page of the policy and lists your limits and deductibles.

Before you choose an apartment, it also helps to know how the lease handles water damage and repairs. Our apartment tour checklist has the questions to ask on the visit.