If you rent a home or apartment, getting proper renters insurance makes good, financial sense. The best part? Renters insurance costs about the same as one of those fancy coffee drinks each month, so it fits in almost any budget.
The average cost of renters insurance is around $188 per year, but there are many ways to save so you don’t overpay for this necessary expense.
And since renters insurance is so affordable, it’s paved the way for a ton of insurers to offer this type of insurance. But like so many other financial categories, having lots of choices doesn’t always make it easier to choose.
Luckily, we put together our list of the top renters insurance companies. Some of these names we’re sure you’ve heard of, but others may be lesser-known with equally notable ratings and reviews. How did these companies make the cut? We looked at the following criteria:
- Customer satisfaction scores
- Sample rates
- Available discounts such as bundling policies, smoke alarm, deadbolt locks
- Anything else that can make purchasing renters insurance easier
Renters insurance by state
Before we move on to the list of companies, it’s important to point out how renters insurance can vary from state to state. This is important for you to remember in case you move across state lines someday.
Without trying to sound too lawyerly, you should know there’s not a state that mandates you to have renters insurance. However, there are states that set coverage limits, or caps, on certain aspects of renters insurance coverage. A good example of this is Oregon, where the state puts a $100,000 limit on liability. So while you’re aren’t required to carry it, your state can still get involved in certain aspects of coverage.
Not only do different states have different requirements, but a landlord may require you to carry renters insurance. The bottom line is, check with your landlord about any requirements they have, but a good insurance agent can explain your specific state’s limitations.
Cost variations among the states
You might not realize where you live makes a big difference in how much you pay in renters insurance. Take a look at the average renters insurance rates per state, according to the latest statistics from the Insurance Information Institute.
|State||Average annual cost|
|District of Columbia||$158|
As you can see, Mississippi is much more expensive than Maine, and there are lots of variations among the states.
No matter where you live, renters insurance is valuable enough to add it to your monthly budget. But with our list of the best, you have a great place to start for renters insurance quotes and comparisons.
Overview of the best renters insurance companies
Best renters insurance companies
State Farm is at the top of the list because it’s available in all states, easy to get an online quote and fill out an online application, and there are lots of discounts available. Oh, and it’s one of the tops when it comes to customer service.
State Farm’s renters insurance includes all the standard types of coverage you need including personal property coverage, loss of use, inflation coverage, liability. You can also add coverage (for an additional insurance premium) for earthquakes, cyber events, and other specialty coverages.
The company offers several discounts, including policy bundling — so if you happen to already have a State Farm Policy for auto insurance then you’ll be rewarded with a lower annual premium. The digital assets are equally plentiful. You can download the State Farm mobile app to initiate a claim if you need to or take care of everything through the website.
The best part about State Farm is you can rest assured knowing it has the financial backing in case you need it. With its strong, A++ Superior A.M. Best rating, State Farm continues to show why it’s remained the best since 1922.
Another big name in renters insurance providers at the top of our list is Allstate. Renters can relax knowing their personal belongings are in good hands. Allstate offers personal property protection, additional living expenses, medical protection for your guests, and personal liability coverage standard with most renters insurance packages.
Allstate has a long list of disaster coverage, including collapse of building, fire, freezing, theft, and smoke and water damage. This is important to point out because not every renters insurance policy covers such a wide range of disasters.
Allstate lets you personalize your renters insurance to get you the exact coverage you need. Optional coverage includes:
- Personal Umbrella Policy (PUP)
- Flood insurance
- Coverage for a business property
- Identity theft restoration
- Scheduled personal property (additional coverage for your more expensive items)
If you like the sound of discounts, then you will love Liberty Mutual for renters insurance. Not only does Liberty Mutual have a bundling discount, but you can get one for purchasing your policy online, using preferred payment, and others. But what good is a discount if you don’t have the coverage you need?
Fortunately, Liberty Mutual offers numerous coverages as well. From personal property, liability and medical payments, to additional living expenses and personal property replacement costs. It also pays necessary repairs if someone else’s property is damaged because of an event with your property.
If you need additional coverage, for example, flood insurance, you might have the ability to add it to your policy (depending on your state).
Liberty Mutual makes it easy to get a quote and finalize your policy online, and the app is user-friendly too. Liberty Mutual has an A rating with A.M.Best, showing this Boston-based company is ready to provide you with the coverage you need.
Nationwide is a great choice for those of you who want to get a quote and purchase a policy online, or work through an agent. Whatever you want, you have options with Nationwide. You also have several coverage options with the renters insurance.
Coverage includes personal property and contents from events like fire, lightning, windstorms, hail, frozen plumbing, theft, vandalism or even vehicle impacts. Personal liability, medical payments to others, and building alterations are also included. Nationwide even covers unauthorized credit card charges and forged checks.
Another helpful tool with Nationwide is the ability to customize your policy further. You can add several add-ons including Valuables Plus (for additional high-value items), water damage, theft extension, earthquake, and Brand New Belongings. Each of these helps you tailor the policy to fit your lifestyle while providing additional coverage.
If you have roommates, you should know a Nationwide policy doesn’t cover their belongings — only the person whose name is on the policy.
Overall, Nationwide offers a good, standard policy with the ability to customize as you go. Not to mention the financial strength with the A+ Superior rating from A.M.Best.
If you’re a member of the military or a veteran, then definitely check out all USAA has to offer for renters insurance. With the competitive rates and bundling discounts available, this San Antonio-based provider could really be our top choice for renters insurance — but only for those who meet the membership requirements.
USAA offers basic coverage for personal property, medical payments for guests, personal liability up to $100,000, and coverage for additional living expenses.
USAA doesn’t stop with the basic coverage though. There are several options for add-ons to your policy so you can get coverage tailored to your needs. You can purchase flood insurance, small business insurance, umbrella insurance, collectibles coverage, and mobile phone protection.
USAA is not only a strong choice for the military community, the financial strength behind the company is quite impressive. USAA has an A++ Superior A.M.Best rating. And although it doesn’t officially rank on the JD Power 2020 U.S. Home Insurance Study and Overall Customer Satisfaction Ranking, the survey respondents gave USAA the most points, beating out all other companies.
Renters insurance through Erie is only available in 11 states: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania,Tennessee, West Virginia, Wisconsin and Washington D.C.
While the footprint may be small, Erie insurance makes big waves in the renters insurance world with its coverage options, high customer satisfaction, and super-competitive rates.
Basic renters coverage includes personal property, loss-of-use, personal liability, and guest medical coverage. Erie’s coverage provides up to $3,000 per item if it is stolen, but you can add high-value insurance to your more expensive items.
Erie allows you to further add to your policy with several riders (options) not always seen with other companies. Add-ons such as sewage and drain backup coverage, earthquake, and watercraft damage.
All quotes and applications go through Erie’s network of local agents. But with the extremely high customer satisfaction rating — coming in second overall — the agents continue to provide excellent service for policyholders.
With a company named after everyone’s favorite summertime drink, how could you go wrong? Founded in 2015, Lemonade is a startup trying to disrupt the renters and homeowner’s insurance industry by making affordable renters insurance and operating online-only.
Lemonade promises lightning-fast speed, with policies created in seconds — not even minutes. This instant message is definitely well-loved — Lemonade ranks the highest for overall customer satisfaction, beating out all the huge insurance giants we’re used to seeing.
Lemonade offers renters insurance in the following states: Arizona, Arkansas, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Washington, Wisconsin, and Washington D.C.
Coverage with Lemonade includes personal property, personal liability, medical payments for guests, and additional living expense coverage. You can purchase different extras for your policy, such as for high-value items.
Lemonade may be a young entry to the renters insurance scene, but this online-only company promises to make the purchase of renters insurance to be quick and painless. Based on reviews and customer service ratings, Lemonade appears to be living up to the promise.
Farmers Insurance seems to know a thing or two about renters insurance because it scores very high in overall customer satisfaction. Couple this with all the options Farmers has to offer, and you’ve got a great resource with the company.
Farmers offers the standard renters coverage you’d expect: personal property, personal liability, medical payments for guests, and additional living expense coverage. But what sets Farmers apart is the ability to add coverage options.
Farmers offers Identity Shield for identity theft coverage and reimbursement. Plus they have a unique option called a floater. This allows you to replace an item with the brand-new value, not just the replacement value for the older product. This is available on items over $500.
Farmers receives major kudos for the website and app, making it easy to manage your claims, make payments, and get your proof of coverage. All this, plus Farmers currently has an A rating with A.M.Best, showing excellent financial strength for its policyholders.
|Carrier||Availability||JD Power Rank||Monthly Premium*||Bundling available|
|State Farm||All states||8||$13.75||Yes|
|Liberty Mutual||All states||11||$19.58||Yes|
|Nationwide||All but AK, LA, MA or NJ||10||$16.08||Yes|
|USAA||All states (military only)||N/A but highest overall in points||N/A||Yes|
|Erie||Only in 11 states plus D.C.||2||$11.33||Yes|
|Lemonade||28 states & D.C.||1||$15.42||No|
*Sample based on a 33-year old renter in 1,200 square foot apartment. For illustrative purposes only.
What does renters insurance cover?
Renters insurance covers personal property that is stored either inside or on the property. Think of furniture, sports equipment, clothing, small appliances - anything that isn’t built into a unit.
Renters insurance almost always covers theft, bodily injury, and loss due to disasters such as fire and water. Most policies provide medical payments if someone (like a guest) is injured in your rental. Additionally, most policies cover living expenses if you have to move out of your rental due to damage.
Like homeowner’s insurance, damage from floods and earthquakes are likely not covered unless you purchase additional coverage.
How much renters insurance do I need?
The Insurance Information Institute recommends you purchase “enough insurance to replace all of your personal possessions in the event of a burglary, fire, or other covered disaster.” You can determine how much you have by taking inventory of your belongings.
If you have high-value items, such as jewelry or an antique, talk to an agent about additional coverage for these items. If you operate a small business out of your rental, you need proper business coverage too, which many insurance companies can provide.
How can I save on renters insurance?
Even though renters insurance is priced pretty low, it still may be an extra hit to your budget each month. If you need to save further, definitely ask the agent about discounts. You’d be surprised what you can get a discount on, including smoke alarms, deadbolts, or bundling policies. If that doesn’t help, look at raising your deductible. Higher deductibles lower your premiums. Just make sure you can cover the amount of your deductible should anything unexpected happen.
And don’t forget! If you purchase a renters insurance policy, ask how much of a discount you would get on other policies, such as car insurance or life insurance since you now have at least one policy with a company. It may be worth your time (and money) to switch other policies you already have in order to get a bigger discount.
Be sure to get quotes from a number of provides and compare quotes, you may find some big differences in cost. Platforms such as Gabi provide free comparison tools.
Why should you use the best renters insurance companies?
If you’re busy with moving or just trying to get your finances in order, use this list of best renters insurance companies to help you get organized. The last thing you need is one more item on your to-do list.
But on the other hand, renters insurance is too important to let it slip by. For literal pennies a day, you can get the peace of mind you need knowing you have additional coverage for your belongings.
The bottom line
Renters insurance is affordable and easy to purchase. And fortunately, many insurance companies make it seamless by allowing you to purchase directly online. No matter which of these companies you choose, having the coverage for your personal property is one of the smartest decisions you can make when getting a rental.
After looking at so many companies, State Farm comes out tops on our list. The financial stability, great customer service ratings, availability across the nation, and coverage options make it hard to beat. Add in how easy it is to get a quote and purchase your policy online, and suddenly it gets even better.