10 Best Renters Insurance Companies of 2022

A new renter may not think that renters insurance is necessary, but the landlord is not responsible should something happen to your personal belongings.

Renters insurance protects you and your belongings in various situations such as damage, theft, flood, etc.

Picking the right renters insurance involves work, time, and knowing what you want.

The PropertyNest team has analyzed customer service, affordability, and accessibility to determine the best renters insurance companies. We compared coverage options for each provider in 50 States.

Among the popular renters insurance companies we analyzed, the average cost of renters insurance was $192 a year.

Find out what renters insurance companies are the best for your needs.

Lemonade: Best Online Service

Lemonade is one of the newer insurance companies out there that relies solely on technology. Using technology versus live agents helps Lemonade cut down on costs while still providing plenty of customer service.

Simplistically speaking, Lemonade relies on data, property records, and other demographic information and statistics to make an assessment on the value and cost of damages and your premium alongside any information you provide them.

But being a technology-centric company comes with its perks such as the speed of getting a quote, setting up an account, making any changes to a policy, filing claims, and claims turnaround, which can be completely done online or through their app.

Lemonade offers a number of different plans to suit your needs and budget, starting with the basics for only $5 per month. However, if you want even more features, an additional fee can be applied.

Lemonade is great for those who are looking for a tech-savvy app for immediate access to your policies, discounts, claims, and more.

This may be a very attractive option for a renter who doesn't want to bother spending too much time thinking about personal property itemization and speaking to an agent.

It is not ideal, however, for someone who would rather speak directly to an agent.

Read a full Lemonade home insurance review.

Liberty Mutual: Best For Discounts

While there are plenty of discounts offered for homeowners and car insurance, renters insurance is usually a type of policy overlooked when it comes to discounts.

Liberty Mutual is perfect for those looking to save money through their many opportunities for discounts.

Their standard renters insurance policies are pretty straightforward and can stand on their own without adding any customizable options.

Liberty Mutual has been in the insurance industry for over 100 years, and for a good reason.

They are known for their great discounts, but their policies themselves are not the most affordable on the market.

Read a full Liberty Mutual home insurance review.

Allstate: Best for Policy Bundles

Allstate is well-known in the insurance industry, especially when it comes to bundling policies. You get a great selection of basic policies while also having the option to purchase additional coverage if needed. You also receive great discounts for bundling your policies, helping you save more in the long run.

Allstate insurance starts at $4/Month when you bundle renters with car insurance. When you add the cost of your auto to this package, it will be well worth protecting both properties with one company.

Allstate has a claims center that is always open; however, they do lack customer service. They are more expensive than other companies, but you can save by bundling certain policies.

If you bundle your policies, you will have contact with a local agent and may be eligible for discounts.

Read a full Allstate renters insurance review.

State Farm: Best Customer Service

The best national overall company should be affordable, reliable, and easily accessible. State Farm is available in all 50 states and is well known for their customer service. Founded in 1922, State Farm currently sells around 100 various types of insurance, including renters insurance.

Since State Farm is so widely available, your chance of speaking with a local representative is very high. Having a rep who is local is helpful since they should be savvy of any specific rules for your location.

State Farm’s basic policy covers personal property, medical payments, and other living expenses. If extra coverage is needed, you can add options such as identity theft and pet medical insurance.

State Farm is doesn't just excel in providing customers with a human touch but offers quality coverage.

Although State Farm is one of our top picks for renters insurance, it still has its pros and cons, just like any other company. While State Farm provides a variety of add-on options, it does not provide round-the-clock customer service in case something goes wrong.

Read a full State Farm renters insurance review.

USAA: Best for Military Members and Veterans

USAA was created in 1922 and now has over 12 million members and offers services such as insurance coverage, planning for retirement, loans, and more.

For those in the military, veterans, or immediate families of the person in service, you may qualify for insurance with USAA.

USAA has one of the best reputations as a financial institution, known for its amazing customer service, rates, loans, and other financial products. They are consistently highly rated by customers in most financial categories.

The major con is that not everyone is eligible for coverage as their services are solely available only to active-duty and retired military personnel and their families. On the plus side, limited access means that customers receive more attention.

Erie Insurance: Best for Add-On Options

Erie insurance was created in 1925 and provides renters insurance and home, life, and auto insurance. Available in 12 states, Erie Insurance is limited but also exclusive.

While their coverage area is somewhat limited they make up for it for all the extra add-on options they have available to their policyholders.

Most insurance companies offer some common add-ons such as scheduled personal property, enhanced liability, and in some cases flood insurance. However, Erie's renters insurance not only goes beyond the standard coverage that renters normally offers, but their add-on options are also exceptional.

For instance, their standard renters policy not only covers you personal property but it cover it worldwide--meaning if you property is damaged, lost, or stolen outside of your home, even your country, you are eligible to make a claim.

As far as add-ons go you just get more with Erie. Not only is flood insurance and option to add-on, but also earthquake insurance, as well as sewer back-up and drainage coverage and even special coverage for people who sublet their home or are a part of a home sharing community.

These are rarely seen as options for renters insurance.

Travelers: Best For Home Improvement Repairs Coverage

Travelers is a well-trusted insurance company that offers many different types of policies.

Some renters really invest in their rental units by making improvements (of course, with permission from their landlord) and making their homes more comfortable and habitable.

If you've made your own repairs or improvements, Travelers can help you out by providing coverage of those repairs or improvements.

They allow policyholders to allocate up to 10% of their personal property coverage to home improvement replacement coverage--making Travelers one of the few insurance carriers that do.

Travelers is a great option for a renter who is very hands-on as well as handy.

Amica Mutual: Best for Future Homeowners

Amica Mutual Insurance Company is a major insurance player that serves the contingent states of the U.S., although they may not push a large online or television marketing campaign.

Unbeknownst to many, this company has been around well over a hundred years and solid financially during that period. They're also ranked as one of the best when it comes to customer service.

However, we've selected Amica Mutual as one of the best national renters insurance specifically for their special renters package they call Renters Essentials®. It bundles their standard renters coverage plus extras like identity theft protection and a unique program that helps future homeowners save big on homeowners insurance they may need in the future.

Amica Renters Essentials® simply helps you save up equity for insurance while you are saving to buy that home. Every year you have your renters policy with Amica, you can earn $100 ($500 total limit).

Once you're ready to buy a home you can potentially have $100 per year go towards your homeowners insurance premiums.

Nationwide: Best for Fraud Protection

Nationwide is one of the best-known and reputable insurance companies in the country and customers can rest assured of their financial health and stability.

Nationwide provides a wide range of options to help you customize your dream policy.

With Nationwide, their claims center is open 24/7; however, you can only speak with a customer service representative during limited hours, which is one of the features that Nationwide is known for even though online services are also available.

What makes them stand out is that credit card and fraud protection come standard with basic coverage. Not only will you be covered if someone uses your credit card illegally but this protection also applies to other fraud such as forged checks and etc.

This policy is best for someone who's had issues with fraud and identity theft in the past or is just looking for some extra financial protection.

It can provide them with peace of mind, knowing that they don't have to be on the financial hook for such losses.

Jetty: Best for Airbnb Hosts

If you rent out your property as a vacation rental via Airbnb or another platform, you may not have thought about getting renters insurance to cover your guests.

Jetty has only been around since 2015, but has already partnered with two experienced businesses: State National Insurance Company and National Specialty Insurance Company.

Jetty renters insurance is fairly exclusive and offers limited discounts; however, you receive a unique service for your rental business to make sure that everything is covered, plus some.

How We Picked the Best Renters Insurance Companies & Methodology

We looked at several factors to determine the best renters insurance company in the U.S.

Discounts

Discounts help to make renters insurance affordable.

So if you found an insurer that best suits your need but has a high premium, you should look into how many discounts the insurer offers.

Chances are, if you qualify for many discounts, a high premium will be more favorable in terms of cost.

Coverage

Every renter has different insurance coverage needs. So, when evaluating insurers, we looked for companies with a wide range of useful coverage options.

Technology

We only considered an insurer if it had a useful and easy-to-use website and mobile app where you could do a number of things—get a policy online, file a claim online, pay your bills on a mobile app, and much more.

The most important thing we looked at is whether a company allowed you to get a quote on its website instantly and then purchase a policy in a short amount of time, such as ten to fifteen minutes. Doing so makes getting insured easy.

If a company allowed you to get a quote online but made you speak to an agent to finalize it, then the process is time-consuming, and we tried to avoid such an insurer.

Customer Reviews

We reviewed published consumer ratings and reviews of renters insurance providers.

We spent a good amount of time looking at verified third-party reviews.

Insurers with a good number of quality consumer ratings and reviews were included in our list.

For example, we looked at A.M. Best to determine an insurer's financial strength, the NAIC to see how many complaints an insurer received, and JD Power’s customer satisfaction score to determine how well-received an insurer is.

Price

Insurance providers that had low premiums or had plenty of options to lower your premium (such as discounts), ranked higher on our list than others.

In particular, we favored Allstate, State Farm, and Lemonade because all three had policies lower than the average rate of renters insurance.

Do You Need Renters Insurance by Law?

There is no federal law that requires tenants to carry renters insurance.

However, some landlords may require proof of renters insurance as part of the lease agreement.

What’s the Difference Between Homeowners Insurance and Renters Insurance?

Homeowners insurance is designed for homeowners, and it covers both the structure of their home and the contents within.

Renters insurance is purchased by tenants, and it covers damage due to theft of their personal property, but no damage to the building itself.

Landlords have their own insurance to pay for damage to their apartment buildings.

Why Do You Need Renters Insurance?

If your personal property was stolen due to a burglary or damaged due to a covered peril like a fire, you would have to replace your items on your own or out of pocket if you didn’t have renters insurance.

Renters insurance is relatively cheap, and it is the only way—and the most affordable way—you can get coverage for your personal belongings.

How Much Insurance Do You Need?

If you don’t have many things to insure and believe you don’t need the added expense of a renters policy, look around your rental and do a personal inventory that includes itemizing each possession and ascertaining its price.

You can use the internet to research the cost of each item if you can’t recall it. Once you factor in the price, the total is how much insurance you would need if you had to replace everything after a fire or a burglary.

The things you use the most are not taken into consideration because you don’t think they are valuable.

But they most likely are, as all the followings that you use daily counts: your sofa or other pieces of furniture, your laptop, and your smart TV, for example.

They don’t have to be high-cost jewelry or musical instruments or designer bags and clothing, although these too are covered by renters insurance.

The one thing you need to beware of is that if you have these expensive items, you will most likely have to buy additional coverage for them in the form of add-ons because the basic renters insurance only covers up to the policy’s limit.

The standard limit for personal property coverage in a basic renters insurance policy is usually $30,000 per claim.

So, if your diamond necklace is appraised at $35,000, you have to suck it up and pay the extra $5,000 if the jewelry is stolen or damaged.

Any damaged or stolen belongings that exceed your personal property limit will not be covered, leaving you to pay the difference for replacements.

But consider the coverage amount allowances. If a renters insurer puts a cap on how much additional coverage you may want to buy, maybe that’s not the company you want to go with.

And if a rental insurer has no personal property limit, which means you can add as much coverage as you desire, that’s a company worth looking into.

So, you’ll want to increase your personal property limit, so it’s close to or greater than the value of your belongings.

Or, to make sure that your jewelry is insured to its full value, you can add a rider or endorsement to your policy that comes with an additional expense.

A rider or endorsement adds more benefits to your basic renters insurance policy.

How Much is Renters Insurance?

The best renters insurance companies combine many coverage options and dependable customer service.

They also should have affordable policies.

The average cost of renters insurance for American families in the U.S. is $16 per month or $192 per year.

What Natural Disasters are Covered in a Renters Policy?

Tornadoes, fires, hail, storms, heavy rain, and snow are covered perils.

However, because natural disasters impact your premium, you won’t be paying less than $20 per month. That rate doesn’t include flood insurance, which tends to be expensive to purchase.

What are Natural Disasters Not Covered in a Renters Policy?

Like homeowner’s insurance, the basic renters policy does not include coverage for floods or earth movement such as earthquakes and sinkholes.

Are There Other Factors That Determine Your Premium?

The premium you pay differs from another policyholder. Each person will get a different quote due to certain factors.

Besides living in a city with a high crime rate that’s also susceptible to a large number of natural disasters, the additional factors that determine your premium are as follows.

Credit Score

Your credit score can negatively impact your premium.

People who have a high credit score generally pay less.

And those with poor credit scores will pay more.

That’s because the insurer believes that those who have good credit are statistically more likely to pay their monthly premium on time.

Whether You Choose an Actual Cash Value or a Replacement Cost Value Plan

With ACV, insurers pay only for the depreciated value of your items if they are stolen or damaged.

With RCV, insurers pay the total cost of your items at today’s prices.

For example, if your laptop is four years old and gets destroyed, damaged, or stolen, you’ll be reimbursed for the total cost using today’s prices.

RCV, which often doesn’t come standard in a basic policy, will raise your rate.

Claims History

If you've ever filed a claim on any of your insurance policies, you are considered a risk and will thus have your premium raised.

Amount of Coverage

Your standard renters policy probably won't provide enough coverage to replace all your items, especially those high in cost like jewelry.

So, you will probably need to buy extra coverage for them through an endorsement to pay them in full if a covered peril damages or destroys them.

Adding coverage to a basic policy will increase your rate. However, taking on the extra costs for enhanced or more comprehensive protection could be worth it.

Since renters insurance isn't mandatory, you can customize your policy according to your needs.

The Size of Your Building or Unit

Insurers usually give lower premiums to people who live in large buildings with many units.

And they often will give you a higher premium if you live in a smaller building with only a few units.

Overall, apartments are less expensive to insure than full houses. Apartments are typically smaller and outfitted with smoke alarms, sprinkler systems, and carbon monoxide detectors.

The limited outdoor space means insurance companies don’t need to insure you for outdoor accidents like slips and falls.

On-site management will also decrease your premium.

Building Construction

If you rent a house, apartment, or condo made of brick or masonry, insurers will charge you less than they would if your rental was constructed using a less stable or less solid material.

Sturdier material is less affected by earthquakes, fires, and other covered perils.

Fire Prevention

If you install fire detection and prevention devices and purchase multiple fire extinguishers, your rental will be considered safe, and your rate will be lowered.

Security Measures

If your apartment or condo is on a high floor, has doormen or front-desk security or security cameras in the lobby, and is located in a gated community, your insurer will reduce your premium.

That’s because it’s perceived that you will be less likely to make a claim due to theft or burglary.

Deductible

Your deductible will also affect your premium. The more you’re willing to cover before your insurance kicks in, the less expensive your premium will be.

How to Get the Cheapest Renters Insurance

The easiest way to get affordable renters insurance is to get quotes from as many insurers as possible.

Then compare the quotes from different companies.

Usually, the best insurers allow you to get an instant quote on the insurer’s website.

But if you can’t and need to complete your application by speaking to a live agent, this takes more time than going online.

The less convenient it is to get a quote, the more you’ll turn to other insurers with a good online presence.

Customer Service

The insurance company you pick should be partly based on how easy it is to reach the company’s agent and your experience with one of the agents.

An insurer’s rep or agent should be available 24/7, or at least 24/7 for claims processing.

Thus, you should check to see how convenient it is to reach customer service, especially when rushing to make a claim.

If you can reach an agent in several ways, then you have both choice and convenience.

For example, if you can speak to an agent via phone, text, chat, or by going online, that’s an insurer you may want to work with.

For example, Farmers offer all these ways to connect to an agent. You should thus get a quote from the company.

In addition to availability, you should feel comfortable when speaking to a rep. That means, for example, you should be able to ask as many questions about a policy as you want, and the agent will be professional enough to take the time to answer all of them smoothly and compassionately.

Discounts

All renters insurance companies offer discounts that can lower the cost of your premium. Here are the most popular discounts you can get:

Compare the Best Local Renters Insurance Companies

We've made our recommendations above based on insurers that are widely available throughout the country. But we found some of the best and cheapest home renters were locally-based companies.