Are you a potential Austin resident confused about renter’s insurance? Trust us, you’re not alone.
We understand that renting an apartment can be a complicated process, and you likely have a lot of questions. What is renter’s insurance and what does it cover? Do I have to have it?
At Paseo, we’re here to support future residents every step of the way, from finding the perfect home to navigating important details after signing your lease. That’s why we’ve put together this guide to simplify renter’s insurance for you.
In this article, we answer your questions about renter’s insurance, including:
- What is renter’s insurance?
- Do you need renter’s insurance?
- What is the average cost of renter’s insurance?
- How do you get renter’s insurance?
What is renter’s insurance?
Generally, renter’s insurance covers damage to you or your landlord’s property caused by theft, fire, natural disasters or other catastrophes.
There are different types of renter’s insurance policies, so it’s essential to review the details of a plan before purchasing. For example, while some policies cover personal property (belongings that you own), others cover personal liability (legal costs if you are liable for an injury that happens to someone in your home).
Do you need renter’s insurance?
In most cases, yes!
While Texas law doesn’t require renter’s insurance, many landlords do. Property owners can also set a minimum coverage amount that tenants must carry.
Nearly every apartment in downtown Austin (and most apartments in general) require renter’s insurance. Most apartment complexes will offer their own policy; however, most of the time this only covers the building’s property. This means that if there are any damages, it doesn’t cover the resident’s personal property.
A common misconception is that landlords are responsible for covering damages, even when the tenant isn’t at fault. However, in most cases, a landlord is not obligated to replace your belongings if they are damaged or stolen.
For example, if a pipe bursts and floods your apartment, ruining your laptop, TV and couch, you’ll have to cover the cost of replacing them, unless you have renter’s insurance. Having a policy ensures that your personal items are protected, offering peace of mind in case of an accident.
What is the average cost of renter’s insurance?
In Texas, the average cost of renter’s insurance ranges from $19 to $29 per month.
This price can vary greatly depending on where you live and how much coverage you decide you need when selecting your policy. Be sure to check your lease, as it may outline a specific amount of liability coverage required.
How do you get renter’s insurance?
To get renter’s insurance, you can purchase your own policy, or you can use your landlord’s policy if they offer one.
Some landlords offer their own insurance policy that you can opt into, or it may be added automatically. A landlord’s insurance usually covers damages to the building and personal liability, but it often won’t cover your personal items. If your landlord offers their own policy, read through it and ask questions to find out exactly what is covered.
At Paseo, residents are required to carry liability coverage of at least $100,000. You can meet this requirement in one of two ways:
- Provide proof of your own renter’s insurance policy with at least $100,000 in liability coverage.
- Opt into Paseo’s Damage Waiver Program, which costs $16/month and covers up to $100,000 in property damage from negligence.
The Damage Waiver Program does not cover your personal belongings, so many residents still choose to purchase a separate renter’s insurance policy for added protection, such as coverage for their personal property. Affordable, customizable options are widely available online.
We hope that this article helps you understand the importance of renter’s insurance at any apartment in downtown Austin. If you have any questions about renter’s insurance at Paseo or about your housing search in general, contact our leasing staff!
James Idunate
James is a leasing professional at Paseo, born and raised in Austin. He’s passionate about building authentic relationships and helping create a community here at Paseo. When he’s not at work, you’ll find him on the golf course, out on the lake or finding new restaurants around Austin. James' go-to Daydreamer Café order is a mocha with oat milk and honey!
August 4, 2025