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
|Company||National Monthly Average Sample Rate|
Lemonade: Best Online Service
- Insurance claims are processed at record speed.
- Available in 29 states.
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.
Lemonade Renters Insurance Coverage
Lemonade renters insurance policy has several types of basic coverage. This includes lightning, hail, vehicles, fires, and more.
Loss of use coverage will help you if your home is temporarily unavailable due to specific damages. If you are unable to live in your home, Lemonade will pay for temporary living arrangements until your home is livable again.
Personal property coverage protects your personal belongings in case of a fire, etc. If. If your items were to be ruined, Lemonade will pay you at the depreciated value for the item and give you actual cash.
Portable electronics coverage protects your jewelry, electronics, and any other expensive valuables.
- Loss of Use Coverage
- Personal Property Coverage
- Portable electronics coverage
Lemonade Renters Insurance Discounts
While there are not many discounts available, the two discounts that Lemonade provides are pretty easy to attain.
Installation of a home protection device, sprinkler system, fire alarms, etc.
Lemonade Renters Insurance Pros & Cons
- Lemonade will donate any unused policy money to a charity of your choice.
- Affordable coverage starting at $5.
- Only available in 28 states.
- There is no bundling of renters insurance.
|J.D. Power (out of 1,000)||853|
|NAIC Complaint Index||1.94|
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.
Allstate Renters Insurance Coverage
Allstate brings the regular coverage you would usually receive, such as liability and personal property coverage. While coverage usually isn’t limited, a 12-month limit may come into play.
- Personal property
- Additional living spaces
Allstate Renters Insurance Discounts
With Allstate renters insurance policy, you can receive discounts to lower your premiums. You may be eligible for the following discounts based on location and other factors.
- Multi-policy discount: This is a discount considering that Allstate is great for bundling an auto policy with your renters insurance. This can reduce your renters premium significantly.
- Autopay discount: Find savings when you enroll online for autopay.
- 55 years and retired discount: Get up to 25% off if you're 55 and older and retired or not looking for full-time employment.
Allstate Renters Insurance Pros & Cons
- Provides a 24/7 claims service via internet or phone.
- Different ways to customize your deductibles and coverages.
- Great bundling policies.
- Discounts and policies may not be eligible for certain states.
- Not as cheap as the other companies.
- Lacks in customer service.
|J.D. Power (out of 1,000)||837|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||2.05|
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.
Liberty Mutual Renters Insurance Coverage
If you’re looking for a basic policy with some extra coverage, then the standard renters insurance from Liberty Mutual will be more than enough.
- Liability and medical
- Personal property
- Additional living expenses
Liberty Mutual Renters Insurance Discounts
Liberty Mutual has some of the best renters insurance discounts around. You can easily receive discounts just by purchasing a claim online or by not filing a claim for more than five years.
However, it is important to note that these discounts may vary from state to state.
- Multi-policy discount: Save just by purchasing more than one policy.
- Early shopper discount: You may receive a discount if you ask for a quote before your current renters insurance ends.
- Claims-free discount: If haven't filed a claim with your previous insurer, you can qualify for a discount.
- Preferred payment discount: If you sign up for automatic payment, you can save both money and time.
- Online purchase discount: Purchase your policy online and save.
Liberty Mutual Renters Insurance Pros & Cons
- Customer service options include telephone, online, and being face to face with an agent.
- There are approximately seven different discounts you can choose from.
- Liberty Mutual allows you to customize your quotes to your satisfaction.
- While there are plenty of ways to reach customer service, reviews advise that the quality is not so great.
- There are better prices out there for renters insurance.
- Loyal customers who have been with Liberty Mutual for years do not receive additional benefits.
|J.D. Power (out of 1,000)||834|
|A.M. Best - Financial Strength Rating||A|
|NAIC Complaint Index||2.37|
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.
State Farm Renters Insurance Coverage
- Guest medical coverage
- Personal property coverage
- Family Liability coverage
- Personal liability coverage
State Farm Renters Insurance Discounts
Discounts are important when it comes to renters insurance, and you may already qualify for a discount if you have a home alert protection device. State Farm only provides two different types of discounts, which may be a deterrent if you are looking for more savings.
- Home alert protection discount: This type of discount is usually reserved for homeowners but State Farms offers their renters insurance policyholders a discount if they have protective devices installed in their rental such as smoke/fire detectors, security systems or home monitoring systems.
- Multi-policy protection discount: You can save money when you bundle renters with auto insurance.
State Farm Renters Insurance Pros & Cons
- Offers multiple add-on options
- No limit on personal property coverage
- Does not provide round the clock customer service
- Customers are only eligible for two different types of discounts
|J.D. Power (out of 1,000)||836|
|A.M. Best - Financial Strength Rating||A++|
|NAIC Complaint Index||1.77|
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.
USAA Renters Insurance Coverage
USAA renters insurance provides extensive coverage options and goes above and beyond when it comes to theft. If you have a break-in, USAA will repair or replace items such as jewelry, phones, bicycles, furs, and more.
- Personal property
- Additional living expenses
USAA Renters Insurance Discounts
USAA offers a minimum amount of basic discounts such as safety device installation, insurance bundling, and claims-free discounts. Though they offer few discounts or deals, USAA already provides affordable premiums.
- Bundling discount: Save up to 10% when you bundle renters and car insurance at USAA.
- Claim-free discount: Get a discount if you remain claims-free.
- Security discount: Qualify for a discount if you have a home monitoring system in place.
USAA Renters Insurance Pros & Cons
- Affordable rates.
- Ample coverage.
- Does not provide many discounts.
- Availability is limited.
|J.D. Power (out of 1,000)||886|
|A.M. Best - Financial Strength Rating||A++|
|NAIC Complaint Index||0.88|
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.
Erie Insurance Renters Insurance Coverage
Erie provides a standard renters insurance plan covering personal property, loss of use, and liability. However, they take it further by providing global protection for your personal possessions.
- Liability protection
- Living expenses in cases of loss of use of home
- Medical liability
- Worldwide protection of your personal property
Add-ons are exceptional as options not normally offered are available through Erie.
- Sewer back-up coverage: Coverage of your property damaged by sewer or drain back-up issues.
- Earthquake coverage: Protects your possessions and property against damage from earthquakes.
- Flood coverage: Coverage for damage from floods.
- Home-sharing: Adds extra coverage for renters who also sublet their homes or use home-sharing websites.
- Additional options for North Carolina residents include scheduled personal property coverage and identity theft protection.
Erie Insurance Renters Insurance Discounts
Erie Insurance provides great discounts when you bundle their basic renters insurance policies and also offers extra coverage for different needs.
- Discounts for installing protective devices: Get a discount for installing a home monitoring security system.
- Multi-policy discount: Sometimes bundling with auto can offset the cost of renters completely with Erie.
Erie Renters Insurance Pros & Cons
- Policies are affordable with discounts if bundling with auto insurance.
- Awarded high financial strength rating from A.M. Best.
- Not available in all 50 states.
- No mobile app provided; limited online services.
|J.D. Power (out of 1,000)||851|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||0.63|
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.
Travelers Insurance Renters Insurance Coverage
Travelers offers a great standard renters policy which includes up to $100,000 of coverage of financial protection when it comes to personal liability.
- Personal property coverage
- Personal liability coverage
- Medical coverage
- Home improvement coverage: Travelers will pay to replace improvements you made to the rental unit on your own that are under-covered incidents.
Travelers has a few add-ons to enhance your policy.
- Extra coverage for valuable items: You can purchase extra coverage for high-value items such as jewelry, art, home electronics, and other expensive personal possessions.
- Replacement value coverage: This add-on offers extra coverage for your personal items. Travelers will pay to replace the item regardless of depreciation if your possessions are lost or damaged in a covered peril. It's important to note that there are deductibles and coverage and payout limits are specific items.
Travelers Renters Insurance Discounts
Travelers also has a few ways to save like the average renters insurance company, such as installing protective devices and bundling.
- Multi-policy discount: You can save up to 5% if you bundle it with auto insurance. However, you have extra opportunities to save with additional policies such as an umbrella or boat insurance.
- Claims-free discount: Speak to an agent about your eligibility to save if you've not filed a claim for a certain period.
- Protective device discount: Renters can save with a number of different devices, such as indoor sprinkler systems, security alarms, or home monitoring systems.
|J.D. Power (out of 1,000)||801|
|A.M. Best - Financial Strength Rating||A++|
|NAIC Complaint Index||3.88|
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.
Amica Mutual Renters Insurance
Amica Mutual's standard renters insurance policy covers the basics you'd expect from a solid policy from a trusted company.
- Personal Property Coverage
- Personal Liability Coverage
- Loss of Use Coverage
You can also purchase extra coverage in the areas of your choose. Amica offers four extra options.
- Personal Property Replacement: This provides additional coverage in that you will be given the funds to replace your personal possessions which are lost or damaged by a covered peril, rather than the actual value of said items.
- Scheduled Personal Property: This add-on is appropriate protection for your most high-value possessions such as jewelry, art, and other luxury goods.
- Identity Fraud Protection: This is extra monetary protection for the unauthorized use of your identity or credit cards.
- Smart Devices and Computers: Extra coverage for all your personal electronics and smart devices.
Amica Mutual Renters Insurance Discounts
Amica Mutual offers a robust number of discounts for would-be policyholders. Some of the discounts are more typical for homeowners insurance, such as a discount for paperless billing.
- Loyalty Discount: Qualify for a discount when you have been with an insurance company for two years or more. Uniquely, this applies even if you've been with a different insurance carrier. The amount of discount also varies depending on the length of time you've been with an insurer.
- Multi-policy Discount: Save up to 15% when you bundle renters with car insurance.
- Claims-free Discount: In order to receive a discount for this, you'll need to be claims-free for at least three years.
- Auto-pay Discount: Get a discount for enrolling in automatic payments of your premium.
- Paperless Discount: Save when you sign up for electronic-only billing and policy information.
|J.D. Power (out of 1,000)||854|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||0.32|
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.
Nationwide Renters Insurance Coverage
Nationwide’s basic renters insurance covers a few different scenarios for your protection. The basic coverage ranges from common items such as personal liability to not-so-common such as credit card coverage.
- Credit card coverage: You pick the dollar amount you want to be protected up until, and you will be covered for unauthorized purchases on your credit and debit cards.
- Personal liability: If someone hurts themselves in your home, you can receive help to pay for any covered accidents.
- Building additions and alterations: Covers damages to any improvements, renovations, installations, etc., being made to your property.
- Of course, there is some amazing additional renters insurance coverage such as valuable protection, water backup, theft extension, and more.
- Theft extension: Provides additional protection for any personal belongings that were stolen while being stored in a motor vehicle, trailer, or type of watercraft.
- Water backup: You will be covered if the sewer or drain backs up and causes you any type of loss.
- Valuables Plus: Receive extra protection for valuable items such as antiques, art, jewelry, etc.
Nationwide Renters Insurance Discounts
Nationwide makes saving money easier with the various discounts that they offer. You can save money easily by doing basic procedures such as installing a protective device such as a smoke detector or bundling up on insurance policies.
- Claims-free - If you have no claims on your policy, then you may be eligible for a better price.
- Protective device - Installation of safety devices since as smoke detectors and burglar alarms, then you may be eligible to lower your premium.
- Multi-policy - Combining renters insurance with your auto or insurance policies can help you save.
NationWide Renters Insurance Pros & Cons
- Claims center is open 24/7.
- Provides coverage for any unauthorized purchases made on your credit card.
- Premiums cost more than $15 a month.
- Customer service is limited to certain hours.
|J.D. Power (out of 1,000)||859|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||0.04 (Very Low)|
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.
Jetty Renters Insurance Coverage
Jetty’s standard renters policy plan includes a fair number of options. The basic coverage is geared towards property managers and owners to help cover any damages or injuries from their guests,
- Provides coverage for any unintentional damage done to another person or their property.
- Coverage for up to $300 for bedbug infestations that a licensed pest control expert has done.
- Any items that were damaged/stolen on your property.
You can customize your policy with any additional policies in case you are looking for more besides Jetty’s standard coverage policy. These extra options (Jetty calls them “power-ups”) can include personal electronics protection, Airbnb host theft protection, and valuables protection.
Additional Coverage Protection
- Personal electronics protection: Provides extra coverage for damaged electronic objects outside the standard policy, such as dropping and breaking the item.
- Airbnb host theft protection: Provides your rental property with the same liability coverage you would usually receive but may also protect you if you experience loss of rental income.
- Valuables protection: Covers items worth more than $1,000
Jetty Renters Insurance Discounts
Currently, the only type of renters insurance discount that Jetty provides is for installing a security alarm system. However, even if you have a security alarm system, you must meet certain criteria to receive discounts.
Be prepared to answer the following questions:
- Is your security system new, or did it come with the property when you moved in?
- Is your alarm system connected to a central reporting facility?
- Discount for having a security system (certain rules apply)
Jetty Renters Insurance Pros & Cons
- Jetty’s “power-ups” provide extra coverage options outside their standard policy.
- The standard policy includes bedbug coverage.
- Only has one discount available.
- You can only receive Jetty renters insurance if you live in a property that partners with Jetty.
|A.M. Best - Financial Strength Rating||A|
|Company||PropertyNest Rating||J.D. Power (out of 1,000)||A.M Best Rating||BBB Rating|
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.
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.
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.
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.
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.
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.
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.
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.
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.
|Liability Coverage||Liability protects you against lawsuits from someone who has bodily injuries or property damages that you or your family caused to them. Liability also covers your legal defense.|
|Personal Property Coverage||Personal property coverage pays to replace property that’s stolen or damaged due to a covered peril. A covered peril in a standard policy is theft, burglary, and vandalism, as well as climate changes like lightning, windstorms, hurricanes, explosions, water damage, and other events listed in your policy.|
|Loss of Use||This policy covers basic living expenses and temporary housing costs if your unit becomes uninhabitable due to a covered peril like a fire.|
|Medical Payments||This policy pays for medical care if there is bodily injury to a person that occurs in your rental unit, regardless of fault.|
|Cash or Other Forms of Currency||Bank notes, bullions, gold or silver (non-jewelry), coins, medals, smart cards, stored value cards.||Most renters insurance policies will only cover up to $200 in stolen cash.|
|Electronic Equipment||Phones (iPhones, Androids, etc.), computers, laptops, iPads, earbuds, smart watches, TV sets, gaming systems, Alexa or Google home devices, etc.||Standard renters insurance policies cover the loss or damage of electronic devices.|
|Clothing||Designer purse/handbags, shoes, jewelry, designer watches||Standard renters policies cover your personal clothing or designer handbags etc.|
|Power Tools||Drills & drivers, saws.||Covered under the personal property coverage.|
|Kitchen appliances||Refrigerators, microwaves, blenders, electric mixers, ice makers, coffee machines, and other appliances.||Renters insurance covers personal appliances if they are damaged, stolen, or destroyed by a covered peril.|
|Prescription drugs||Will not cover stolen prescription drugs.|
|Personal information||Bank accounts, identity information stolen from documents, or stolen personal equipment.||Most companies do not include identity theft as a covered peril in a standard renters insurance policy.|
|Firearms||Pistols, rifles||Legal firearms are covered under personal property coverage.|
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.
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.
We thoroughly researched the state's top renters’ insurance companies and narrowed the list down to those that operated in the U.S. We rated them on criteria that included ease of use, ratings, financial strength, customer, affordability, and more. Read our full in-depth renters insurance methodology.
How We Picked the Best Renters Insurance Companies
We looked at several factors to determine the best renters insurance company in the U.S.
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.
Every renter has different insurance coverage needs. So, when evaluating insurers, we looked for companies with a wide range of useful coverage options.
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.
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.
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 renters insurance rate.