10 Best Cheap Renters Insurance Companies of 2023

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.

According to PropertyNest national survey, the average monthly cost of basic renters insurance is $17 or $206 a year.

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

The Best Renters Insurance Companies

• Lemonade - Best Online Service
• Allstate - Best for Policy Bundles
• Liberty Mutual - Best For Discounts
• State Farm - Best Customer Service
• USAA - Best for Military Members and Veterans
• Erie Insurance - Best for Add-On Options
• Travelers - Best for Home Repairs Coverage
• Amica Mutual - Best for Future Homeowners
• Nationwide - Best for Fraud Protection
• Jetty - Best for Airbnb Hosts

Compare Renters Insurance Rates

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.

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.

Liberty Mutual: Best For Discounts

While plenty of discounts are 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.

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 local rep 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. You can add options such as identity theft and pet medical insurance if extra coverage is needed.

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 with 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 covers not only your personal property but also worldwide--meaning if your 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 get more with Erie. Not only is flood insurance an option to add-on, but also earthquake insurance, as well as sewer backup 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 for 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 for well over a hundred years and has been solid financially during that period. They're also ranked as one of the best in 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 helps you save up equity for insurance while saving to buy that home. Every year you have your renters policy with Amica, and you can earn $100 ($500 total limit).

Once you're ready to buy a home you can potentially have $100 per year 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.

Is Renters Insurance Mandatory to Rent an Apartment 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 is the Average Cost of Renters Insurance?

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

They also should have affordable policies.

The national average cost of renters insurance for American families in the U.S. is $17 per month or $206 per year.

What Factors Determine Renters Insurance Premiums?

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 many 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, 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:

• Multi-Policy: Bundling renters and auto insurance with the same company will get you a discount.
• Being Claims-Free: If you don’t make a claim in a set period of time determined by your insurer, you’ll receive a discount.
• Paperless: If you go paper-free and choose to receive information about your policy electronically, you’ll also get a discount.
• Payment: If you sign up for autopay using your checking account, you’ll get a discount.

Should You Bundle Renters & Car Insurance?

Bundling renters and auto insurance with the same company can save you money. When you bundle, you’ll get a single bill for both policies that could result in discounts of up to 25%.

It's important to compare rates before deciding whether to bundle or not, as some companies may offer better pricing when it comes to individual policies. Additionally, some renters insurance policies include additional coverage that may benefit you and your particular situation.

Before making a decision, it’s important to read the policy details carefully and calculate the total cost of coverage in both scenarios. Over time, bundling could save you hundreds of dollars on premiums.

What Does Renters Insurance Cover?

Renters insurance typically covers the cost of damage to personal property, such as furniture, clothing, electronics, and appliances. It also provides liability protection if visitors are injured in your home, or you’re responsible for damaging someone else’s property.

In addition, renters insurance may provide reimbursement for additional living expenses if your rental becomes uninhabitable due to a covered loss.

Considering the amount of personal items and liabilities that come with renting, renters insurance is an important investment.

Be sure to review the specifics of your policy to ensure you know exactly what’s covered in case of any potential losses or damages.

Read more: What Does Renters Insurance Cover?

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 movements such as earthquakes and sinkholes.

Flood Coverage

Most renters policies do not cover flooding. You will need to purchase a separate flood insurance policy to cover this peril. It’s important to keep in mind that flood insurance usually has a waiting period of 30 days before it goes into effect.

This means you won't be covered if flooding occurs during the first month after you purchase your policy. Before signing any agreement, make sure to read all the fine print and ask questions about coverage for any floods.

Does Renters Insurance Cover Water Damage?

In some cases, renters insurance does provide coverage for water damage caused by a leaking pipe or appliance.

However, it’s important to note that this coverage is usually only provided if the cause of the water damage is sudden and accidental. This means that your renter’s insurance policy does not cover any damage caused by prolonged leaks or floods.

It’s also important to be aware of the limitations of your renters insurance coverage when it comes to water damage. For example, many policies have maximum limits for water damage claims and may not cover all damaged property. Additionally, some policies exclude certain types of water damage from being covered at all.

Does Renters Insurance Cover Wildfire Damage?

Renter’s insurance typically does not cover damage caused by wildfires. Wildfires are generally classified as “catastrophic events”, meaning that they are outside of the scope of most standard renter’s insurance policies.

However, some individual insurers may offer additional coverage for wildfire damage if requested.

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 considered 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 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 total 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.

Do College Students Need Renters Insurance?

College students can be at risk of facing huge financial losses due to theft, vandalism, fire, and other hazards.

Even if you live in an off-campus apartment with a few roommates, it is still worth having renters insurance to protect yourself from any potential disasters.

Renters insurance will also provide coverage for your personal property such as furniture, electronics, and clothing. It will also cover liability issues if someone is injured in your living space.

Compare the Best Renters Insurance Companies in Your State

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.