According to a Harvard University study, there are 44 million renter households in America. The study also found that many of these households do not have adequate insurance coverage.
The best renters insurance companies offer affordable rates and a variety of discounts and coverage options. To select the best renters insurance company, we analyzed data on both costs and customer complaints to provide a comprehensive and balanced analysis.
Best renters insurance company
- Best for Cheap Price: Allstate
- Good for customer satisfaction: Nationwide
- Good for rates for higher personal property limits: state farm
- Best for coverage upgrades: Country Financial
- Good for bundling policy: Westfield
- Best for Discount: chub
- Best for reducing: American family
Best renters insurance company
Best for cheap rates
Good for customer satisfaction
Better rates for higher personal property limits
Best for coverage upgrades
Good for bundling policy
Best for discounts
Best for reducing deductibles
Compare the best renters insurance companies in 2023
Who needs renter’s insurance?
Some landlords require their renters to insure their rent, but even if you don’t, renters insurance is worth considering. It’s one of the cheapest insurance products out there, and it can save you thousands of dollars in the event of theft, loss, or damage.
average cost Renters insurance with $30,000 in personal property coverage is only $19 a monthAccording to our analysis of rates.
What does rental insurance cover?
Unlike home insurance, renters insurance does not include dwelling coverage to protect the structure of the home. Because the landlord owns the property, you have no financial responsibility for the building structure.
Here are the main types of coverage in a standard renters insurance policy.
Personal property coverage
Personal property coverage covers your belongings, furniture, clothes, electronics and other personal items if any are stolen or damaged due to a covered problem such as smoke, fire or vandalism.
When you buy renters insurance, you choose a policy limit for personal property, such as $30,000. This is the maximum amount your insurance company will pay if your belongings are stolen or damaged.
Standard renters insurance typically reimburses you for the actual cash value (ACV) of your belongings, which means depreciation is factored into paying the claim. However, most of the best renters insurance companies offer a replacement cost coverage upgrade, so you can get reimbursed for your items at today’s prices.
You’ll also choose a deductible, which can range from $500 to $2,000 depending on the insurance company. The amount deducted from your claim amount before your insurer reimburses you for repairs or new items. The higher your deductible, the cheaper your insurance – just remember that you’ll be paid less when you file a claim.
Loss of use coverage
Also known as excess living expenses (ALE), loss of use coverage applies when your rental property becomes uninhabitable due to a problem covered by your policy.
ALE can pay for hotel, meals and other approved expenses such as laundry service and pet boarding. Loss of use coverage is based on a percentage of your personal property coverage limit, such as 40%.
Liability insurance pays for someone else’s medical expenses if you are responsible for their injuries, such as if your dog gets loose in the park and bites someone and they need medical attention. It can also pay for your legal fees and settlement if you litigate the matter.
And, if you damage someone else’s property, such as accidentally hitting a golf ball through your neighbor’s window, liability insurance can help pay the repair bill.
You can usually get up to $300,000 in liability coverage, but the limit can vary by company.
Others cover medical payments
This type of coverage pays for small medical expenses if someone is injured at your rental property, regardless of who was at fault. You can typically get up to $5,000 in this type of coverage.
What types of damage does rental insurance cover?
Renters insurance typically covers 16 different named perils or issues. These include:
- Fire and lightning.
- Storm and hail.
- the riot
- the smoke
- Objects moving downwards.
- Weight of snow, ice and sleet.
- Accidental overflow or discharge of water and/or steam.
- Sudden and sudden tearing, cracking, burning or swelling.
- to freeze
- Sudden and accidental damage from short circuit.
- Volcanic eruptions.
This means that if a fire in your apartment destroys your belongings, you can file a renters insurance claim to repair and replace them. And if a fire makes your apartment uninhabitable, the loss-of-use coverage portion of your renter’s insurance policy may pay you to temporarily move into another place, such as a hotel.
Which renters insurance doesn’t cover
As with any type of insurance policy, there are some things renters insurance won’t cover. Exclusions from renters insurance include:
- Earthquakes and sinkholes.
- the flood
- Roommate stuff.
- Pest damage, including extermination services.
- Damage to pets (your belongings).
- The physical structure of the home or building (homeowner’s insurance covers this since it’s the landlord’s property).
- Listing a rental on a home share app like Airbnb (you need short-term rental insurance), or subleasing it.
Additional renters insurance coverage
Renters insurance doesn’t cover all types of damage or may limit coverage for certain items, but many insurers offer riders that you can add to your policy for additional coverage. These vary between insurers, but common offerings include:
- Replacement cost coverage: Most basic renters insurance policies use actual cash value, meaning they factor in the depreciation of personal property before issuing a payout. With replacement cost coverage, you can replace lost or damaged items with new ones of the same quality and value.
- Water backup coverage: Renters insurance covers some water-related issues, but sewer and sump pump issues are not covered. Having water backup coverage as an add-on to your policy covers repairs to your personal property in case of damage caused by a sump pump, sewage or drainage backup.
- Prescribed Property Coverage: Jewelry and high value items are usually limited to a certain limit for theft, such as $1,500 for jewelry. Fixed property coverage extends this limit so you get what’s valuable if an item is stolen.
- Identity Fraud: If your identity is stolen through vandalism or cybercrime, an identity theft rider helps cover legal fees, lost wages and other costs associated with restoring your identity and credit.
How much does renter’s insurance cost?
Here’s how much rental insurance costs by company and coverage amount.
Renter’s Insurance Exemption
To score a lower rate, ask your insurance company if they offer discounts like the following:
- multi-policy, If you purchase another insurance policy from your rental insurance company, such as car insurance.
- home security discount, If you install fire alarms, smoke detectors, burglar alarms and more.
- payment discount, If you pay your premiums in one lump sum.
- loyalty discount, If you stay with the insurance company for a certain amount of years.
How to Choose the Best Renters Insurance Company
While many insurance companies provide coverage for renters, some companies charge higher rates and others only cover select states. If you want specific riders, you may need to shop around to find a company that offers them.
Here are some tips for choosing the best renters insurance.
- Consider how much coverage you need. Before taking out a policy, value your belongings to ensure you don’t under-insure your personal property. Given that the average renter has about $30,000 in belongings, it’s a good idea to know how much coverage you need before starting the search.
- Get multiple quotes. The cost of renters insurance can vary greatly from company to company and even across the same amount of coverage, so it’s important to review quotes carefully before making a decision.
- Maximum discount. Review the discounts available from insurance companies to see where you can save money. If you own a car, you may be able to bundle your rental and car insurance policies Some companies offer loyalty, set up automatic payments or discounts for a certain period of time without having to file a claim.
- Consider useful riders. Not all insurance companies offer the same rider, so you may need to shop around to find an option that meets your needs. A company may offer replacement cost coverage but not identity theft protection, so keep shopping around until you find the right combination to meet your needs.
Our insurance experts have collected information on 166 renters insurance companies. Factors we scored out of a possible 100 points include the following
Rate: 50 points. We analyzed renters insurance rates from Quadrant Information Services. Average rates are based on policies with $15,000, $30,000 and $50,000 in personal property coverage.
Complaint: 50 points. We collected complaint data from the National Association of Insurance Commissioners, which shows the volume of renters insurance consumer complaints against each company. When a consumer files a complaint with their state’s insurance department — often about an insurance company’s claims process, delay, denial or settlement — those complaints are logged.
Why some companies didn’t make the cut
Insurance companies with rates significantly higher than the national average, or with a substantial number of customer complaints, did not make the cut. Renters insurance companies that are only available in a few states are also not included.
Why you can trust us
Our insurance experts follow strict editorial guidelines to ensure fairness and unbiased reviews. Prices are courtesy of Quadrant Information Services and are based on average personal property coverage limits of $15,000, $30,000 and $50,000.
Frequently Asked Questions (FAQs)
No federal or state law requires tenants to carry a renters insurance policy, but it is not uncommon for landlords to require such coverage as a condition of the lease. Even if your landlord doesn’t require renters insurance, getting a policy can provide peace of mind and save you money in the event of a costly loss.
It depends on the insurance company. While a standard renters insurance policy will cover liability related to dog bites or property damage up to the policy limits, some companies exclude large breeds of dogs or those with a tendency for aggressive behavior. Since requirements vary from company to company, it’s best to ask about any exclusions or restrictions when shopping for different policies.
Yes. Many insurance companies that offer renters insurance offer bundling or multi-line discounts for customers who combine their renters and car insurance. This usually results in discounts on both types of insurance, making it a worthwhile thing to consider. If you need insurance for other assets, including motorcycles, pets, boats or RVs, you may be able to bundle these policies with your rental insurance to secure additional discounts.