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8 Best Renters Insurance Companies in Arizona of 2022

Augustine Reyes Chan

Augustine Reyes Chan

Compare renters insurance companies in Arizona and find out how to choose the best company for your needs, what it covers, and why you need it. Learn about rates, prices, coverage limits, and more.
Arizona Phoenix

If you’re renting a property in Arizona, such as a house or an apartment, you should strongly consider purchasing a renters insurance policy. 

Renters insurance protects your belongings during an emergency or an unforeseen event.

For example, if there’s a kitchen fire in your rental, your renters insurance coverage can reimburse you for the loss of use of your damaged belongings.

Choosing the right renters insurance policy involves looking at prices, coverage options, and customer service.

A good rule of thumb about purchasing renters insurance is that if you couldn't currently afford to replace your belongings, then you should purchase renters insurance.

The average cost of renters insurance in Arizona is very affordable, at only $17 per month.

Fortunately, you can find renters insurance in Arizona that is relatively cheap and cost less than the state average.

With all the different companies out there, it can be hard to decide which one is best for you. We researched the top insurers and put together the renters insurance providers that offer the most affordable renters insurance in the state.

The Best Renters Insurance in Arizona

  • Lemonade: Best Online Presence
  • Allstate: Best Affordable Renters Insurance
  • Liberty Mutual: Best for Additional Coverage
  • Progressive: Best for Discounts
  • State Farm: Best for Local Agents
  • American Family: Best for Diminishing Deductible
  • Farmers Insurance: Best for Personal Property Coverage
  • Amica: Best Policy That Allows you to Save For Buying a Home

Lemonade: Best Online Presence

Lemonade Renters Insurance AZ

Lemonade insurance is powered by artificial intelligence, which means that the insurer only does business online.

There are no physical offices, live agents, or customer service reps.

Using the website or the mobile app means you can do everything online.

And because technology often translates to saving time, using either the site or the app allows you to take care of your insurance needs whenever you like, and wherever you are.

You can sign up for a policy, adjust your coverage, add-on additional coverage, file claims, ask questions online, and do many more things.

Lemonade’s monthly premiums start as low as $5.

That’s because Lemonade’s renters insurance is basic, so basic that it necessitates customers to increase their coverage limits.

If you increase coverage for personal belongings by adding $25,000, you will only be paying for that coverage for $3.17 a month, which is cheap. But when you add that to the basic policy cost, you’ll usually end up paying $15 a month.

How is Lemonade rated?

  • JD Power Insurance Study: 866/1,000

Read a full editor's review of Lemonade's home insurance.

Lemonade Renters Insurance Pros & Cons
ProsCons
Offers add-ons for extra coverage with no deductible covering damage and theft, worldwideNot rated by AM Best
It only takes 90 seconds to get insuredBasic personal property coverage is only $10,000
Policyholders can expect fast payouts with its automated claims systemNo sales agents
Can offer cheap rates as it does without physical presence and live customer service agentsCoverage is not nationwide

Allstate: Best Affordable Renters Insurance

Allstate Renters Insurance AZ

Allstate is the second most affordable renters insurance in Arizona.

Allstate’s rates were among the most affordable we found, costing only $14 per month. That’s only $2 more per month than the cheapest insurer, State Farm.

And your premium can be even lower if you take advantage of the insurer’s discounts.

If you bundle renters and auto insurance with Allstate, you get 10% off your auto policy and 25% off your renters policy.

That leads to a lot of savings.

You can also lower your premium if you are claims-free and enroll in autopay. And if you are retired or older than 55, you also get a discount.

People of that certain age get a discount because they are often home all day. Burglaries often happen in the day because that’s when most people are at work. But a burglary when the person is home during the day significantly lowers your chance of theft.

How is Allstate rated?

  • AM Best: A
  • JD Powers: 4/5

Read a full Allstate renters insurance review.

Allstate Renters Insurance Pros & Cons
ProsCons
One of the most affordable renters insurance in the countryRequires a higher premium for replacement cost coverage
Different ways to customize your deductibles and coveragesDiscounts and policies may not be eligible for certain states
Website helpful, resourceful, and easy to useAccording to customer reviews, customer service and coverage options are merely average
Lots of discounts are available

Liberty Mutual: Best for Additional Coverage

Liberty Mutual Renters Insurance AZ

Besides its very competitive rates, Liberty Mutual is also known for offering add-ons or riders so you can expand coverage to protect your personal property in full.

Some of Liberty’s best add-ons include:

Blanket Jewelry Coverage

This added coverage kicks in when your jewelry gets damaged or stolen. You’ll have enough coverage to fully cover that diamond ring, unlike a basic policy that only pays up to the policy limit.

Replacement Cost Coverage

ACV or actual cash value comes standard in Liberty Mutual’s basic renters policy. So, if your property is damaged or destroyed due to a covered peril, the basic policy will only reimburse you for the depreciated value.

But if you purchase replacement cost coverage, the insurer will pay in full the amount needed to replace, say, your laptop. If your laptop is three or four years old, unlike ACV, you’ll be reimbursed for a new laptop at today’s price.

The average cost of Liberty Mutual’s renters insurance in Arizona is an affordable $15 a month.

But because each add-on has a cost, and because you need these add-ons for comprehensive coverage, your premium will be around $20 per month, which is high in comparison to other similar insurers.

How is Liberty Mutual Rate?

  • A.M. Best: A
  • BBB: A
  • J.D. Power Overall Satisfaction Rating: 825 out of 1,000 points

Read a full Liberty Mutual home insurance review.

Liberty Mutual Renters Insurance Pros & Cons
ProsCons
Affordable ratesStandard coverage options
The advertised price is as low as $5 a monthPremium can be less than the state average, but only if you limit your add-ons
Comprehensive coverage to meet your needsWater damage doesn’t come with the standard policy
Easy claims processingCan only purchase up to $25,000 of personal property coverage
Multi-policy discountDiscount availability varies from state to state
Available in all 50 states and Washington, D.C.
Four Liberty Mutual offices in the Phoenix area, including Scottsdale, Mesa, Litchfield Park, and Chandler

Progressive: Best for Discounts

Progressive Renters Insurance AZ

Progressive teams up with third-party insurers to provide renters insurance.

It is the best in its class because of the many discounts it offers policyholders that will drive down their premiums.

That’s necessary, as Progressive’s basic renters insurance policy in Arizona is a high $23 a month, higher than any insurer on our list.

Without the discounts, it’s safe to say that Progressive is unaffordable to many.

In any event, since there are many discounts to choose from, here are the most popular ones.

Progressive Renters Insurance Discounts
DiscountDetails
Multi-policyYou can save an average of 3% when you bundle renters and auto insurance with Progressive. If you combine other policies, such as motorcycle and boat, you qualify for extra discounts for each
Quote in AdvanceYou’ll get a discount at least three days before your policy starts
Receive Documents by EmailIf you skip paper and opt to receive documents about your policy electronically, you’ll get another discount
Pay in FullIf you pay your entire policy upfront, you’ll also save
Secured/Gated CommunityIf you live in a gated community with a security guard, or if you add security details that deter burglaries and theft, you’ll get a discount

How is Progressive rated?

  • AM Best: A+
  • JD Power Score: 835/1,000
Progressive Renters Insurance Pros & Cons
ProsCons
Many ways to reach customer service: policyholders can contact via phone, web, app, or online chatSells renters insurance through a subsidiary or third party, which can confuse policyholders over who’s servicing the policy
HomeShield offers increased coverage for collections, watercraft, theft of firearms, and business propertyWithout discounts, policy coverage can be expensive
Additional coverage for computers and related equipment if you use them for your business and work from homeCoverage begins with an added fee, which makes the first month of coverage expensive
The app has lots of features, making it easy to file a claim or pay your bill, for examplePaperless discount only available if you do it while applying for a quote

State Farm: The Most Affordable Renters Insurance

State Farm Renters Insurance AZ

State Farm is a large industry-leading insurance company. Going with a nationally-renowned renters insurer with 19,000 agents across the states means you’ll be financially protected.

You don’t have to worry about when this insurer will reimburse you for your claim, and how long it takes. A behemoth company like State Farm has financial strength, giving you peace of mind after you make a claim.

Because State Farm is so large, it can afford to give you great customer service and affordable prices.

On average, and without extra coverage, renters insurance with State Farm costs only $12 for a basic policy with $20,000 in personal property coverage, $100,000 in liability coverage, and a $500 deductible.

Meanwhile, the average cost of renters insurance in Arizona is $17 a month.

The national average is $19 a month.

This means State Farm costs lower than the standard average in Arizona and even lower than the national average.

Along with great rates, State Farm offers some optional coverage that you can add to your policy.

This includes earthquake coverage, identity restoration, additional business property (pays for laptops and printers if you do business in your home), and additional liability coverage.    

How is State Farm rated?

  1. NAIC: 0.38.
  2. AM Best: A++
  3. JD Power Score: 836/1,000
State farm Renters Insurance Pros & Cons
ProsCons
Great for customers who want to connect with a local agentHas no replacement cost coverage
Customer service is highly regardedOffers fewer discounts than other companies
Specialized add-ons, including identity restoration and additional business propertyFew add-ons
Online quote from easy-to-use web portalDoes not cover property damage due to flooding or underground water
Pet insurance optionDoes not provide earthquake coverage on the standard policy, but it can be added on
Has fewer complaints on average than its competitors

American Family: Best for Diminishing Deductible

American Family Insurance has an advantage over similar insurers. It offers a diminishing deductible, which you rarely see in competitors.

Diminishing deductible means, after you purchase a policy with the company, your deductible will automatically decrease with each renewal.

There’s only one catch: you can only get diminishing if you haven’t made a claim.

But it works in your favor when you do file a claim. If the claim is approved, your out-of-pocket expenses will be lower.

The company also features four main riders for renters insurance in Arizona. It’s a good mix of the common and the unique.

Pet insurance

This rider covers up to $1,000 in veterinary and funeral expenses.

Identity theft

This reimburses you the cost of restoring your stolen credit and identity.

Home business

This protects your property business items like a laptop or a copy machine for people who work at home at a small-scale business.

Travel

This covers theft, trip cancellation, and global medical insurance when traveling in the U.S. or abroad.

In addition, American Family has a good number of discounts that can lower your premium.

They are common, but they are also easy to qualify for. For example, if you pay your premium in full or if you bundle your policies, or if you meet certain age requirements, you’ll get a percentage off for each.

However, one major downside of American Family is that you can’t purchase renters insurance online.

How is American Family Rated?

  • AM Best: A
  • JD Power Study 2021: 6 out of 21 companies
  • NAIC: Far fewer complaints than expected.
American Family Renters Insurance Pros & Cons
ProsCons
Offers a variety of discountsOnly available in 19 states
Fewer customer complaints than expected for a company its sizeNo online purchase option (insurance agent required)
Many coverage types offeredThis is a dealbreaker for those who like the convenience of online
Wide range of discountsYou may contact insurance agent, though the agent may only be available during specific working hours

Farmers Insurance: Best for Personal Property Coverage

Farmers will not only cover theft from your rental, as other insurance companies do, but will also go the extra mile to pay you if you experience a loss due to theft from your car or rental vehicle or theft that occurs in your hotel room while traveling.

The company is most noted for its floater insurance.

Floater insurance is a type of policy that covers personal property or goods located in any place and while they are being moved from one place to another.

It provides additional coverage over what other insurance policies do not.

It is a separate policy not included in a basic policy that is best for expensive personal belongings like collectibles or jewelry.

To qualify, your personal belongings must be valued at above $500.

On some occasions, a floater will cover one single thing, like a diamond ring.

However, a floater comes with high fees. For example, if you have $20,000 in scheduled jewelry on a policy, you can expect to pay $200 to $400 per year. 

But higher fees give you higher coverage.

Also, the Farmers mobile app is intuitive and easy to navigate. You can access bills and payments, policy documents, claims filing, and coverage management.

How is Farmers Rated?

  • BBB: A+
  • NAIC Complaint Ratio: 0.54
  • AM Best: A
Farmers Insurance Pros & Cons
ProsCons
Offers a wide variety of coverageThe annual premium is expensive and can be very high with floaters
Personal possessions are covered anywhere in the worldNot available in every state
Excellent financial strengthCovers inside water problems but doesn't cover damage from outside water sources
Quick online quote process
Off-premise event coverage
Offers replacement cost

Amica: Best Policy That Allows you to Save For Buying a Home

Renters insurance will cover your rental apartment or rental house, but have you ever heard of an insurer that allows you to save to buy a home in the future?

You’d think Amica renters insurance would like to keep you on as a policyholder.

But if you’re renting and plan on owning a home or a condo someday, Amica lets you start saving now.

Here’s how it works.

You can earn a $100 credit for each year you have the policy, accruing up to $500.

Then you can apply these credits toward a future Amica home insurance policy ($100 per year).

Amica is also a solid, affordable insurance company and it earned good scores from insurance review websites for the number of discounts it offers, its claims handling process, and the types of insurance options it makes available.

However, when it comes to customer reviews and ratings, Amica gets an average rating compared to its top competitors.

Plus, Amica’s NAIC rating is 1.95, which means the company has received more complaints than its industry peers.

Consumer complaints about Amica focus on overall poor customer service, as well as unexpected surcharges, delays in claims payments, and unsatisfactory settlements.

The delays and settlements suggest that, despite receiving an excellent grade from AM Best, Amica has average financial strength.

This explains why, in certain instances, Amica can’t reimburse you after a claim promptly.

How is Amica Mutual Rated?

  • JD Power Claims Satisfaction Study: 894/1,000
  • NAIC Complaint Ratio: 1.95
  • AM Best: A+
Amica Renters Insurance Pros & Cons
ProsCons
Offers deductible as low as $100Provides only five different discounts
No limit on personal property coverageDoes not offer renters insurance in Alaska and Hawaii
Coverage packages available for pets, special occasions, and retirement planningNeed to pay extra for replacement cost coverage for your personal items
Offers live 24/7 claims processing
Up to 18% off when you bundle
Loyalty policy discount after two years or more

Our Methodology

We thoroughly researched 30 of the top renters insurance companies in the state and narrowed the list down to those that operated in Arizona.

We surveyed insurance coverage prices for the major cities in Arizona. These included Tucson, Phoenix, Avondale, Gilbert, Prescott, New River, Peoria, Glendale, and Mohave Valley.

How We Decided

We gathered information from multiple trusted sites in renters insurance in Arizona and the websites of insurance companies and narrowed our search down with the needs of Arizona residents by prioritizing the following:

Price

You shouldn’t pay high for renters insurance. We looked at insurers who had rates lower than, or near, the state and national average and multiple discounts to lower the policy.

Coverage

A reputable insurance provider should have a range of policy coverages to cover your needs.

We looked at the basic or standard coverage option, unique features that other insurers didn’t have, and add-ons or riders to make sure your personal belongings would be sufficiently covered after a named peril destroys or damages them.

Customer Service

Great customer service is a necessity when searching for a renters insurance policy.

Customer service should have friendly reps who will make the process of buying insurance much easier, as well as save you time and reduce the stress when filing a claim. Reps then should be patient and attentive to your needs.

In addition, we focused on customer service that had live agents 24/7 and, if not, a useful website where you could easily purchase a policy.

Discounts

All renters insurance companies offer discounts, and if they had many, this could lower a policyholder’s premium significantly.

So, the number of discounts a company had helped us narrow our list when it came to pricing.

Oftentimes we found that a policy with an average or above-average premium could be lower than our two cheapest choices, Allstate and State Farm, if the company had numerous discounts that were easy to qualify for.

Technology

An insurer with its own website and app makes the process of buying a policy or making a claim easier. Using technology helps you save time, as a company’s website and app allow you to pay your bill, check on a claim, review policy documents, and more whenever you feel like it.

So, we looked at only those companies that had useful and convenient websites and apps that were not difficult to use and were easy to navigate.

Customer Reviews

We reviewed published consumer ratings and reviews of homeowners 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.

What Does Renters Insurance Cover?

In Arizona, the standard renters insurance policy covers liability, theft, medical treatment, and loss of use.

But no matter what the state, the standard policy never changes from what it offers.

What makes a basic policy unique is the customization you can get to tailor your policy to your needs, as well any add-ons or endorsements that you may want to purchase for additional coverage or protection.

The standard coverage includes:

  • 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

This pays to repair or replace property that’s stolen or vandalized or that has been damaged due to fire, windstorms, smoke damage, and other perils your policy may cover.

A covered peril is a damaging event that’s carried in your policy such as theft, vandalism, or fire, for example.

Loss of Use

This policy covers basic living expenses and temporary housing costs if you can’t live in your rental unit due to damage and destruction from fire, smoke, and heavy winds.

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.

Is Renters Insurance Required in Arizona?

Renters insurance is not required by law in Arizona.

However, some landlords may require it for you to live in their building.

They will ask you for proof of renters insurance at the time you sign a lease.

Why Do You Need Renters Insurance?

Besides the four policies that come standard with renters insurance, you should purchase the insurance if your expensive laptop gets stolen due to theft or is damaged due to unexpected events that you can’t have known about, like natural disasters.

With renters insurance, your policy will pay for the laptop.

If you didn’t have renters insurance and your laptop was stolen, you’ll have to pay out of pocket for a replacement.

However, if you lose that laptop, that’s not covered.

How Much Does Renters Insurance Cost in Arizona?

The average price of renters insurance in Arizona is $148 a year, or approximately $12 a month.

These costs are for a policy that includes personal property coverage of $20,000, liability coverage of $100,000, and a deductible of $500.

As always, you should compare renters insurance quotes to find the cheapest policy that covers your needs.

The cheapest insurer we found was State Farm, which had a basic policy that costs just $12 per year and which also included $20,000 in personal property coverage, $100,000 in liability coverage, and a $500 deductible.

As it turns out, State Farm’s premium costs the same as the average price of renters insurance in Arizona.

The cheapest runner-up was Allstate, which charges $14 a month.

As always, you should compare renters insurance quotes to find the most affordable provider for your needs.

In Arizona, you can save a hundred dollars or more by opting to go with Lemonade, which advertises that their price can be as low as $5 a month.

But that’s only for a basic policy that’s well, basic, and you have to purchase more coverage or add-ons to get to the level you need.

Lemonade’s rate is realistically around $12, which is the same cost of getting coverage from State Farm.

This makes Lemonade also a contender when looking for the cheapest quotes.

What Determines Your Premium?

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

The following factors determine your premium.

No Flood Area

If you live in a neighborhood that is not prone to flooding, your rate will be low.

However, if you live in an area where hurricanes and flood damage are common, such as in Phoenix, you’ll most likely pay more.

Crime Rate

If your city or suburb has a high crime rate, you’ll also pay more.

Safe Neighborhood

If you live in a safe, crime-free neighborhood and you have installed security cameras or alarm systems in your house, you’ll pay less.

The safer your rental, the less chance you’ll have of a burglary happening.

Fire Department Proximity

If you live near a fire hydrant, or live near a professional, not volunteer, fire department station, your premium will be reduced.

Gated Community

If your rental is in a gated community or is fortified by guards, or if you have a doorman or live on a high floor in an apartment complex, you’ll also pay less.

These additional securities mean that insurers will worry less that you’ll make a claim.

Credit Score

If you have a high credit score above 700, you’ll get a cheaper rate.

If your score is low, around under 650, you can expect a higher premium.

Claims History

If you have never made a claim for a period that is decided by your insurer, you’ll pay less.

High-Priced Possessions

If you plan on insuring high-value personal belongings with additional coverage, you’ll pay more.

Additional coverage, or an add-on, mostly comes with a fee for most insurers. So, your premium will go up if you purchase extra coverage.

Pets

Dog bites are common. Injuries caused by your dog are covered by your liability insurance, but you will pay a higher premium if you have a breed that is considered high risk, such as a pit bull or a Doberman pinscher.

Some insurers will flat out not cover these types of dogs.

Deductible

If you raise your deductible, your rate will be lowered.

Claims History

If you have never made a claim before with another insurer and then move on to a new insurer with a clean record, your rate will go down.

The Insurer You Choose

Your premium will vary from company to company for the same level of coverage.

This is why it’s important to compare policies from different companies so you can make an educated decision.

What Natural Disasters are Covered or Not Covered in a Standard Renters Policy?

The following natural disasters, often called covered perils, are covered.

  • Fire
  • Wildfires
  • Lightning
  • Windstorm and hail damage
  • Smoke damage
  • Volcanic eruption
  • Explosion
  • Weight of ice, sleet, or snow
  • Hurricanes
  • Water damage unrelated to natural floods
  • The following natural disasters are not covered in a standard renters insurance policy.
  • Earthquakes
  • Natural floods

If you want to be protected from natural floods, you can buy a flood policy from your renters insurance company at an added cost.

Since earthquakes are mostly uncommon in Arizona, there’s no reason to purchase coverage for this natural disaster.

What are the Risks to Consider in Arizona?

Arizona is at risk for two major natural disasters, fire and flash floods.

Fire

Arizona is most susceptible to extreme heat, which is why the Grand Canyon State averages 2,200 wildfires per year and has many fires occurring in the desert and in parch-dry suburbs.

Fire is common in Arizona because the hot and dry climate lasts longer than average. It is particularly common at the end of the summer.

The average temperature in August is between 99°F and 110°F statewide.

But the fire is also due to carelessness, maliciousness, and lighting.

Flash Floods

Flash floods, which come and go in a very short time, leave behind a trail of extensive damage to rental homes or owners’ homes.

Flash floods occur in Arizona’s monsoon season (June to September), but also during the states’ copious number of tropical storms.

Are Fire and Flash Floods Covered in a Renters Insurance Policy?

So what types of natural disaster policies should your purchase in Arizona?

Since the standard renters policy covers both wildfires and fires, residents here don’t need to purchase these as riders.

As for floods, it’s a little more complicated.

In general, an insurer will not cover damage to your personal possessions caused by water coming from outside the house.

This is considered flood damage rather than water damage and flood damage is not covered.

For example, if a storm surge produces a flood and ruins your personal property, you will not be reimbursed by your insurer for the damage.

Another example is that if damage ruins your belongings by the overflow of a nearby body of water, your insurer will also not cover the damage.

But if there’s water damage that ruins your belongings due to a burst pipe, a renters insurance policy will cover that.

A renters policy will also cover damage due to leaks from your ceiling,

For example, if water dripped from another apartment or from the roof onto your expensive smart TV and laptop and destroyed them, you would be able to make a claim with your insurer.

In sum, renters insurance covers water damage that is not related to weather, such as plumbing leaks.

For Arizona renters, it’s highly recommended that they purchase a flood endorsement in case water damage ruins or destroys their property that’s due to the weather.

For example, if you live in a ground-floor apartment or the basement, flood insurance is a necessity and will protect your property if the flood causes damages.

If your belongings are damaged by a flood and you don't have a flood insurance policy, you'll need to pay out of pocket to replace them.

As a renter, remember that you only need to purchase flood insurance that covers and protects your personal belongings.

Renters do not have to worry about the structure of the apartment or the home they are renting because that’s the landlord’s responsibility.

What is Covered Under Renters Flood Insurance?

Renters flood insurance can protect the following and more from flood damage:

  • Clothes
  • Electronics
  • Furniture
  • Curtains
  • Portable and window air conditioners
  • Portable microwave ovens and portable dishwashers
  • Carpets, unless they were installed over an unfinished floor

How to Get Affordable Renters Insurance in Arizona

Get Quotes

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

Then compare the quotes from different companies.

Usually, you can get an instant quote on the insurer’s website.

But if you can’t because you need to complete you application by speaking to a live agent, this takes away from your precious time and can raise a red flag.

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

Get Discounts

All renters insurance companies offer discounts that can lower the cost of your premium. Here are a few discounts you can get in Arizona.

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.

Home Security

If you install a security system, a smoke detector, or an alarm, you’ll get a discount.

If your rental building has security cameras and doormen, that’s even better.

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.

Coverage Options

You should always check an insurer’s coverage options.

Does it have the coverage you need?

Do you need to add on an additional policy because, for example, the coverage for personal belongings only goes up to the policy limit?

Do you thus need additional coverage, say, because your jewelry or personal belongings will not be covered in full and you have to pay out-of-pocket to replace them?

Then your policy will be raised.

Do you have to pay for the replacement costs as an additional coverage expense?

An insurer will often offer you ACV or actual cost value.

ACV only pays the depreciated amount of your belongings. So, if your four-year-old laptop gets damaged or stolen in a covered peril, ACV will only pay the cost of a four-year-old laptop.

The better choice is replacement cost. RCV pays you in full. For example, if that same laptop gets damaged, replacement cost will give you a brand-new model that is comparable to the one you owned at today’s prices.

Pay attention if you have to purchase RCV because some insurers will offer you RCV as standard in their basic policy.

If you do have to pay, then that insurer may not be right for you because you need to pay the added cost to get RCV and your rate will go up.

Covering Customer Service

The best policy is not just because it’s affordable. It’s also because it has great customer service.

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

If you can reach an agent via phone, text, chat, or by going online, then that means you have many ways to connect to a rep.

You also need to know how friendly, knowledgeable, and respectful an agent is.

You can do that when talking to a rep while purchasing a policy.

You don’t want the rep to be a pushy salesperson.

The rep is the face of the company.

You want a rep that will take you through the entire renters insurance process with ease and patience.

One of the reasons you want great customer service is because when you do make a claim, you’ll be confident knowing that there will be no hassles.

Company Knowledge

Before you sign with an insurer, make sure you know as much as you can about it.

One way to do this is to talk to an insurer’s agent or customer service rep.

It is important to know all that you can before taking out a renters insurance policy.

Learn about the insurance company and the protection that its policies offer before making a final decision.

Know and understand your policy limits and ask about what additional coverages you can add for your protection.

The more you know about an insurer, the more you’ll be able to choose the right insurance for you.

For example, if you purchase additional coverage for your belongings and the insurer is affordable but will put a cap on the cost of the add-on, then that’s an insurer you don’t want.

Also talk to them about floods, which can be confusing. Is damage from floods that emanate from your house the only way you’ll get coverage for water damage?

How Much Renters Insurance Do You Need?

When you buy renters insurance, you’ll need to figure out how much coverage you need.

Renters insurance is like any insurance policy, as the cost of your insurance depends on how much coverage you purchase.

Basic coverage plans typically start with $20,000 in personal property coverage.

Lability coverage starts with $100,000, which can pay damages and legal expenses if you are sued because you accidentally injured or hurt another person or damaged that person’s property.

It’s recommended by various sources that you should have enough coverage for your personal effects in the event they are damaged or destroyed.

The coverage should protect the full value of your personal belongings, from clothes to furniture and from electronics to appliances, to name a few.

It’s important to know that one of the reasons why renters insurance is cheap is because the basic policy has very low coverage limits for valuable items.

Valuable items include jewelry, art, and collectibles such as old maps, stamps, and first-edition books.

So, you will have to purchase an endorsement for full coverage, which will increase your monthly rate.

Endorsements, also known as add-ons, are additional coverages added to your insurance to raise your personal property limits.

For each add-on, your premium will rise.

What is a Home Inventory and Why Should You Do It?

Like any insurance policy, the cost of your renters insurance depends on how many personal properties you have and how much coverage you need.

The more you have to lose, the more insurance you need.

But you don’t want to pay extra for coverage that you don’t need.

You want to find the right cost for each property you own.

To determine how much coverage you should buy, you should do a home inventory.

A home inventory is simply a list of everything you own in your rental.

If you think you don’t have enough personal property to justify the cost of renters insurance, you aren’t calculating correctly how much you own, and how valuable they are.

According to Allstate, the value of the average renter’s personal property who lives in a standard two-bedroom apartment is approximately $30,000.

We all have things to insure. The most basic items you use almost every day are your laptop, your furniture like a couch, your smart TV, and your expensive clothes.

All these things need coverage because they are expensive to replace and you don’t want to pay out-of-pocket.

To do a home inventory, go through your entire rental and list in some sort of spreadsheet all the belongings you have.

Then determine the price of each item.

If you can’t remember how much you paid for an item or if you lost the receipt, use a roundabout figure.

Another way is to go on the internet and find the item online. Usually, you can discover the price when you do this.

If the belonging is no longer being made, you can choose a similar item and use its price to determine the cost.

Along with the spreadsheet, take photos or videos of your items, or have them appraised if they are pricey.

The home inventory documentation can cover you if you need to file a claim because then you will be able to prove the value of everything you own.

And if you give your documentation to your insurer before the unexpected happens, the insurer will know exactly what needs to be covered and by how much.

Frequently Asked Questions

What does Arizona renters insurance cover?

In Arizona, the standard renters insurance policy covers liability, theft, medical treatment, and loss of use.

What is the average cost of renters insurance in Arizona?

The average price of renters insurance in Arizona is $148 a year, or approximately $12 a month.

What are the type of disasters risk in Arizona?

Arizona is at risk for two major natural disasters, fire and flash floods.

What is a household inventory?

A home inventory is simply a list of everything you own in your rental.

Why do you need a home inventory?

The home inventory documentation can cover you if you need to file a claim because then you will be able to prove the value of everything you own. And if you give your documentation to your insurer before the unexpected happens, the insurer will know exactly what needs to be covered and by how much.