Renters insurance protects you by covering the cost of replacing your damaged personal property and managing any liability claims made against you. With a variety of renters insurance companies available, it can be difficult to know which provider is best for you.
Keep reading to see our comprehensive guide on the eight best renters insurance companies nationwide.
The Top 8 Renters Insurance Providers of 2021
The highest-rated renters insurance companies of 2021 include:
- Best Overall: Allstate
- Best Discounts: American Family
- Best Personal Property Coverage: State Farm
- Best Endorsements: Nationwide
- Quickest Sign-Up: Lemonade
- Most Experience: Liberty Mutual
- Best Deductible Options: Farmers
- Best Natural Disaster Coverage: USAA
1. Best Overall: Allstate
- Offers discounts up to 25%
- Provides an online tool to calculate how much personal property coverage to purchase
- Has resources to help guide you through buying insurance
Why We Chose Allstate
Allstate has the best renters insurance in the industry because of its customizability, discounts, and customer service. Not only can you choose personal property protection up to $150,000 (about $50,000 more than what other companies cap it at), you can choose between a replacement cash value (RCV) and actual cash value (ACV) policy that will either replace damaged items as if they were new or based on what they’re worth now.
You can further customize your Allstate policy by adding one of five additional coverage options—two of which allow you to protect more valuable items, like jewelry and collectibles. Allstate policies are in line or lower than the national average, which is partially due to the five available discounts that make the premiums affordable, including savings for bundling with auto insurance.
We also found Allstate to be one of the best homeowners insurance providers, so it could be perfect for any renters looking to purchase in the future who will want to keep their provider. Additionally, when you need to file a claim for a covered event, you have access to a mobile app, customer portal, and customer representatives 24 hours a day, seven days a week.
2. Best Discounts: American Family
- Offers five renters insurance discounts, including one for being a longstanding customer and another for bundling insurance policies
- Provides 24/7 customer service
- All policies are RCV
Why We Chose American Family
American Family renters insurance looks similar to Allstate, with standard personal property, liability, additional living expenses, and medical payments to others coverage and seven endorsement options. All personal property coverage is RCV, but the policy still stays affordable because of the five discounts that help bring down the price, including:
- Multi-policy discount: This discount can save renters up to 15% on their policy and up to 29% on their auto insurance policy when they purchase the policies together from American Family.
- Generational discount: Renters who are between ages 18 and 30 and have parents with an American Family policy can save on their renters insurance with this discount.
- Smart home discount: This discount helps renters save if they have smoke alarms, fire alarms, water detection systems, or a home security system.
- Autopay discount: Setting up automatic billing can help you save with American Family and ensure that your bills are paid on time without any penalties.
- Loyalty discount: After 12 months of being with American Family, renters can take advantage of lowered premiums through a loyalty discount.
Like Allstate, you’ll receive 24/7 customer service through the American Family portal, app, and phone number.
3. Best Personal Property Coverage: State Farm
- Customers can purchase up to $110,000 worth of personal property protection online
- Provides competitive premiums that are less than or equal to the national average
- Offers a unique add-on for a waterbed
Why We Chose State Farm
State Farm allows you to purchase as much personal property coverage as you want. Online, you can purchase up to $110,000, but if you have more to protect, you can talk to your local agent to extend that amount. If you want additional coverage for more valuable items, you can use the jewelry, computer, or business property add-ons to make sure every part of your home is protected. It also offers worthwhile bundle discount for customers who already have a State Farm auto insurance policy.
If you’re a policyholder thinking about buying a home in the future, you can seamlessly purchase a State Farm homeowners insurance policy after cancelling your renters insurance.
4. Nationwide: Best Endorsements
- Offers nine endorsements, including personal injury and refrigerated property
- Provides credit card, ordinance, and building additions and alterations coverage for all policies
- Customers can choose between an RCV and ACV policy
Why We Chose Nationwide
Nationwide goes above and beyond the standard liability, loss of use, personal property, and medical payment coverage. With every policy, you get credit card, ordinance or law, and building additions and alterations protection on top of the four base areas of coverage. As if the policy wasn’t already unique enough, you can add one of nine endorsements to make it even more tailored to your home.
5. Quickest Sign-Up: Lemonade
- Signing up for a policy takes 90 seconds with the Lemonade app
- Policies start at $5 per month
- Giveback program donates leftover money to charitable causes
Why We Chose Lemonade
With the company’s user-friendly mobile app, you can sign up for a Lemonade renters insurance policy in less than two minutes. The company also touts that its speedy service extends to the claims process, where policyholders can get paid in as little as three minutes when filing a claim through the app.
Even if a handy mobile app isn’t your priority, Lemonade is worth considering if you’re seeking a company that supports a good cause. The provider takes a flat fee, and once a year, it pools all money that was not used toward claims and donates it to charities. In 2020, Lemonade has donated over $1 million to various organizations chosen by its customers.
Policies through Lemonade start at just $5 per month. You can get a customized quote by visiting the company’s website.
6. Most Experience: Liberty Mutual
- Has over 100 years in the insurance industry
- Customers can purchase up to $1 million of liability coverage
- Monthly premiums are as low as $5
Why We Chose Liberty Mutual
Liberty Mutual has the most industry experience out of the insurance providers in this review, with more than 100 years in business. The company has mastered extensive and affordable policies with premiums starting as low as $5 per month and liability coverage going up to $1 million, which is higher than the industry average of $500,000.
While the maximum amount of personal property coverage is low at $25,000, you can compensate for that by purchasing a jewelry endorsement for your more valuable belongings.
7. Best Deductible Options: Farmers
- Provides six deductible options starting at $100
- Offers a unique non-smoking discount
- Established insurance company that has been around for more than 90 years
Why We Chose Farmers
Farmers has some of the most deductible options in the industry with choices for $100, $250, $500, $1,000, and $2,500. You can even choose a split deductible that’s $100 for theft and $250 for everything else. While Farmers renters insurance is only available in 36 states, the residents in those states get to work closely with a company that has more than 90 years of experience and an A+ rating by the Better Business Bureau (BBB).
8. Best Natural Disaster Protection: USAA
- Includes flood and earthquake coverage in every policy
- Gives access to USAA membership perks, like travel deals and car rental discounts
- Customers can decide to exclude personal property or liability coverage from their policy
Why We Chose USAA
USAA renters insurance is available only to past or current military members and their immediate family. If you fit that definition, you get to enjoy policies that start at $10 per month and membership perks like travel and car buying discounts. One of the most unique features of a USAA policy is that floods and earthquakes are included in the list of covered perils, while other companies require you to buy an add-on for that coverage.
The providers in this review offer some of the best renters insurance policies in the industry. While Allstate, American Family, and State Farm are our top picks, any of the eight will provide you with comprehensive coverage for $30 per month or less.
Before deciding which company you like best, get a quote from at least three renters insurance companies so that you can compare coverage and costs.
Though we recommend any of the eight providers in this review, Allstate, American Family, and State Farm stand out for their affordable premiums, customizable coverage, and long tenure in the business. Scan the table below to see what unique features each of them offers.
Compare Renters Insurance Companies
|Companies||Allstate||American Family||State Farm|
|Companies||Allstate||American Family||State Farm|
|Personal property coverage limits||$25,000–$150,000||$10,000–$100,000||No limit|
|Liability coverage limits||$100,000, $200,000, $300,000, or $500,000||$100,000, $300,000, or $500,000||$100,000, $300,000, $400,000, $500,000, $750,000 or $1,000,000|
|ACV or RCV||ACV or RCV||RCV||ACV or RCV|
|Monthly price||About $16||Less than $15||About $12|
|Unique add-ons||Scheduled personal property, uninsured/underinsured motorist||Travel protection, personal injury||Waterbed, computer|
|Customer service||24/7||24/7||Hours vary by department|
What Does Renters Insurance Cover?
Most renters insurance policies have four types of coverage—personal property, loss of use, liability, and medical payments to others. In addition to these four areas of coverage, renters insurance companies typically allow you to customize your policy with other endorsements.
- Personal Property: This protects the personal belongings that you own in your rental and in your car. You’ll want to take inventory of those items and estimate their value to make sure you get the right amount of coverage. Personal property coverage won’t protect valuable items, like jewelry and collectibles, so you’ll have to purchase an endorsement for those items.
- Loss of Use: If an event makes your home temporarily uninhabitable for repairs, your policy will cover additional living expenses during that time. This may include the cost of a hotel room or temporary rental, the cost of laundry, or the cost of meals. Loss of use coverage is usually expressed as a percentage of your personal property coverage, so the more personal property coverage you get, the more loss of use coverage you’ll receive.
- Liability: Landlords typically require this type of coverage so that they aren’t held liable for events that happen to your rental. This coverage protects you when you’re responsible for causing bodily injury to your neighbor or for damaging their personal property. It may even cover legal fees if that neighbor sues you.
- Medical Payments to Others: If a guest injures themselves in your home, your renters insurance policy will cover bills if that injury requires medical attention.
- Endorsements: While you’re not required to buy any sort of additional protection, you have the option to cover all of your belongings. Examples of popular endorsements include identity theft protection, earthquake coverage, schedule personal property, jewelry protection, and water backup.
Note: Whenever you file a claim with your insurance provider, you’ll be responsible for paying a deductible so that the coverage provided by the areas above can kick in.
Here’s an example of what a typical renters insurance policy could look like:
- Personal property: $25,000 of coverage
- Loss of use: $5,000 of coverage
- Liability: $100,000 of coverage
- Medical payments to others: $1,000 per person
- Deductible: $500
How Much Does Renters Insurance Cost?
The average cost of renters insurance in 2018 was around $15 per month, or $179 per year, according to the Insurance Information Institute. However, certain factors such as your age, claims history, location, and credit score can affect your premium.
Here are a few ways you can decrease your premium to make your policy more affordable:
- Adding DIY home security systems
- Adding fire alarms
- Bundling with auto insurance
- Keeping a policy for more than a year
- Purchasing your policy online
- Signing up for paperless billing
- Shopping for a policy before your current policy expires
- Selecting higher deductibles
How to Find the Best Renters Insurance
To find the best renters insurance policy, ask yourself these questions during your search:
1. Determine how much money you can afford to spend.
Decide how much room in your budget you have for renters insurance because that will affect what company you can buy from and how much renters insurance coverage you can get.
There are a few factors that may affect your insurance premium. Most renters pay a monthly premium, which might cost more than an annual premium because the provider adds interest onto the monthly cost. If you can afford to pay $180 upfront, you’ll save money in the long run.
If you’re looking to get your cost down, you can choose a higher deductible. The average deductible is $500 per covered event, but if you choose $1,000 or $2,500, your premium will be lower.
You can also look for companies that offer discounts. The company that provides your auto insurance will likely give you a discount for buying rental insurance through them. Other common discounts include having safety features, like smoke detectors and fire extinguishers, in your home and being claims-free.
2. Decide how much personal property coverage you should get.
Personal property coverage should be tailored to the amount of belongings you have. Take an inventory of all the items in your home and estimate their value. One factor to keep in mind is whether you want an ACV or RCV policy.
If you want your insurance provider to cover the cost of buying a new item if that item is damaged, then estimate your items as if they were new and look for a company with an RCV option. The alternative is estimating your item’s value based on depreciation and purchasing an ACV policy.
Another way to estimate your property’s value is by using a tool that insurance providers like Allstate and Geico offer. This tool breaks down your belongings by room and makes it easier to determine what everything is worth.
Note: Loss of use is often automatically calculated as 20% of your personal property, and most landlords require $100,000 worth of liability, so most of your coverage levels are already determined going in.
3. Look for a company that offers 24/7 customer service.
A covered event could happen at any time, and when it does, you want to make sure you can file a claim right away. The best renters insurance company is one with 24/7 customer service. If another company has the policy you want at the price you can afford, ensure it at least has a claims center that’s open 24/7 or you have a customer portal and mobile app to file a claim yourself.
4. Think about whether or not you live in a state with natural disasters.
If you live in a state like California or Florida that’s vulnerable to natural disasters, you may want to consider a company that provides specific coverage for those events.
Most companies won’t include natural disaster coverage in your base policy, so you’ll likely have to pay extra for an endorsement. If you’re eligible for USAA and want natural disaster coverage, we recommend getting a quote from them since it’s the only company in our review that includes flood and earthquake coverage under all policies.
If you aren’t eligible for a USAA membership, almost all companies offer at least an earthquake add-on that adds $1 to $2 to your monthly premium.
Frequently Asked Questions About Renters Insurance
Is it worth it to get renters insurance?
Most renters don’t have thousands of dollars in the bank to cover replacing personal belongings or handling liability claims, which is why renters insurance can offer protection if an unexpected event occurs.
Who has the cheapest renters insurance?
Of the providers in this review, Liberty Mutual advertises the lowest premiums starting at $5 per month. However, the cheapest quote we received was from State Farm for $7.58 per month. Other affordable insurance providers to consider include Lemonade and Toggle who both have base policies starting at $5 per month.
To get a free quote from Lemonade, visit the company’s website.
Can you be denied for renters insurance?
Yes. A company may choose to deny you coverage because of your personal information or because of your property. For example, if you have a history of filing a lot of insurance claims or your property is too far from a fire station, the insurance company may perceive you or your property as too risky to insure.
How long do you have to have renters insurance before filing a claim?
As soon as you purchase a policy, your coverage begins and you can file a claim at any time. This differs from other protection policies, like home warranties, that have an average waiting period of 30 days before coverage starts.
What’s not covered under renters insurance?
A standard policy will not cover all events and all items. Here are few areas that will typically not be included in your renters insurance policy:
- Pest damage
- Natural disasters
- Car theft
- Roommate property
To share feedback or ask a question about this article, send a note to our Reviews Team at email@example.com.