Best renters insurance companies of August 2023
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BLUEPRINT
Published 4:30 a.m. ET Aug. 1, 2023
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There are 44 million renter households in America, according to a study by Harvard University. 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. In selecting the best renters insurance companies, we analyzed data related to both cost and customer complaints to provide a comprehensive and balanced analysis.
Why trust our insurance experts
Our team of experts evaluates hundreds of insurance products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 830 rates reviewed
- 96 coverage details evaluated
- 5 levels of fact-checking
Our verdict
Allstate and Nationwide are the best renters insurance companies, according to our analysis. Also noteworthy: Westfield is good if you’re looking for bundling savings, Country Financial is best if you want coverage upgrades and State Farm is good if you want high personal property coverage limits.
Best renters insurance companies
- Best for cheap rates: Allstate
- Good for customer satisfaction: Nationwide
- Good for rates for high personal property limits: State Farm
- Best for coverage upgrades: Country Financial
- Good for bundling policies: Westfield
- Best for discounts: Chubb
- Best for diminishing deductible: American Family
Compare the best renters insurance companies of 2023
| Company | Monthly cost | Our rating | Complaint Level | LEARN MORE | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Allstate | $9 | 5 stars | Very low | Compare Rates | Compare rates offered by participating partners | |||||||
| Nationwide | $10 | 5 stars | Very low | Compare Rates | Compare rates offered by participating partners | |||||||
| State Farm | $10 | 4.5 stars | Very low | Compare Rates | Compare rates offered by participating partners | |||||||
| Country Financial | $12 | 4.5 stars | Very low | Compare Rates | Compare rates offered by participating partners | |||||||
| Westfield | $13 | 4.5 stars | Very low | Compare Rates | Compare rates offered by participating partners | |||||||
| Chubb | $10 | 4 stars | Very low | Compare Rates | Compare rates offered by participating partners | |||||||
| American Family | $13 | 4 stars | Very low | Compare Rates | Compare rates offered by participating partners | |||||||
| Farmers | $14 | 3.5 stars | Very low | Compare Rates | Compare rates offered by participating partners | |||||||
| Erie | $17 | 3 stars | Very low | Compare Rates | Compare rates offered by participating partners | |||||||
| Travelers | $30 | 2.5 stars | Very low | Compare Rates | Compare rates offered by participating partners | |||||||
| USAA | $16 | 2.5 stars | Very low | Compare Rates | Compare rates offered by participating partners | |||||||
| Progressive | $18 | 2.5 stars | Low | Compare Rates | Compare rates offered by participating partners | |||||||
| The average monthly cost is based on $15,000 personal property coverage, $100,000 in liability coverage and $1,000 for medical payments. Source: Quadrant Information Services. | ||||||||||||
What is renters insurance?
Renters insurance is a type of property insurance that provides financial coverage for your belongings. In addition to providing personal property coverage, renters insurance also includes liability coverage if you cause accidental property damage or injury to others. If your home becomes uninhabitable and you need to move elsewhere for a period, additional living expenses cover approved costs for things like hotel stays, restaurant meals and pet boarding.
Because your landlord’s insurance covers the property’s structure and common areas, this is not included in renters insurance.
Do I need renters insurance?
Some landlords require their tenants to have renters insurance, but even if yours doesn’t, renters insurance is worth considering. It’s one of the cheapest insurance products out there, and it can help save you thousands of dollars in the event of theft, loss or damage.
The average cost of renters insurance with $30,000 in personal property coverage is only $19 a month, according to our analysis of rates.
What renters insurance covers
Unlike home insurance, renters insurance does not include dwelling coverage to protect the structure of the house. This is because the landlord owns the property, so you have no financial responsibility when it comes to 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, clothing, electronics and other personal items if any are stolen or damaged by a covered problem, like smoke, fire or vandalism.
When you buy renters insurance, you’ll 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 usually reimburses you for your belongings’ actual cash value (ACV), meaning depreciation is factored into the claim payout. However, most of the best renters insurance companies offer a replacement cost coverage upgrade, so you can get reimbursed at today’s prices for your items.
Renters insurance covers damage from these causes.
- Fire and lightning strikes.
- Windstorm and hail.
- Explosions.
- Riots.
- Aircraft.
- Vehicles.
- Smoke.
- Vandalism.
- Theft.
- Falling objects.
- Weight of snow, ice and sleet.
- Accidental overflow or discharge of water and/or steam.
- Accidental and sudden tearing, cracking, burning or bulging.
- Freezing.
- Accidental and sudden damage from short-circuiting.
- Volcanic eruptions.
Loss of use coverage
Also known as additional living expenses (ALE), loss of use coverage applies when the property you rent becomes uninhabitable because of a problem covered by your policy.
ALE can pay for hotels, 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, like 40%.
Liability coverage
Liability insurance pays for someone else’s medical expenses if you’re responsible for their injury, like if your dog gets loose at the park and bites someone and they need medical attention. It can also pay for your legal fees and settlements if you get sued over 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 bills.
You can typically get up to $300,000 in liability coverage, but limits can vary by company.
Medical payments to others coverage
This type of coverage pays for smaller medical expenses if someone is injured in your rental property, regardless of who was at fault. You can typically get up to $5,000 in this type of coverage.
What renters insurance doesn't cover
As with any type of insurance policy, there are some things renters insurance will not cover. Exclusions to renters insurance include:
- Earthquakes and sinkholes.
- Floods.
- Mold.
- Roommate’s belongings.
- Pest damage, including extermination services.
- Pet damage (to your belongings).
- Physical structure of the house or building (landlord insurance covers this since it’s the landlord’s property).
- Listing rental on home share apps like Airbnb (you’ll need short-term rental insurance), or subleasing it.
Does renters insurance cover roommates?
Renters insurance typically doesn’t cover roommates. Your roommate may need to purchase their own renters insurance policy to financially protect their belongings and liability. Your landlord may even require each roommate to take out their own policy.
Depending on the insurance company, you may be able to add your roommate to your renters insurance policy as a “named insured.” If their name is on the policy, make sure you increase your coverage limits so you’ll be reimbursed for the value of both of your belongings in the event of a claim.
How much does renters insurance cost per year?
Here’s the average annual cost of renters insurance by company and by coverage amount.
Factors that impact the cost of renters insurance
When calculating your renters insurance rates, insurers consider several factors, including:
- Your location. If you live in an area with a high home break-in rate or an area that sees frequent natural disasters, you may see higher rates.
- Your rental property’s build materials and age. Newer buildings are typically built with upgraded materials and are lower risk to insure.
- Your credit score. If you have poor credit, you’ll likely pay more for renters insurance.
- Proximity to fire services. If you live close to a fire station or hydrant, you may see lower rates.
- Safety features. If you have a burglar or fire alarm, insurers may reward you with a discount.
- Coverage amounts. The higher your coverage limits, the more you’ll likely pay for renters insurance.
- Claims history. If you’ve filed a renters insurance claim recently, your rates may go up.
- Your deductible. A deductible is the amount that is subtracted from your claim payout. So if you file a claim for $1,000 and your deductible is $500, the insurance company will reimburse you $500. The higher your deductible, the cheaper your rates will be, but the less you’ll get in a claim reimbursement.
Additional renters insurance coverage
Renters insurance doesn’t cover all types of loss or may limit coverage for certain belongings, but many insurers provide riders that you can add to your policy for extra coverage. These vary among 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 similar quality and value.
- Water backup coverage: Renters insurance covers some water-related issues, but issues with sewers and sump pumps are not covered. Taking out water backup coverage as an add-on to your policy covers repairing your personal property if any is damaged due to sump pump, sewage, or drainage backups.
- Scheduled property coverage: Jewelry and high value items are typically capped at a certain limit for theft, such as $1,500 for jewelry. Scheduled property coverage ups this limit so you get paid what items are worth if they’re stolen.
- Identity theft: If your identity is stolen through vandalism or cybercrimes, an identity theft rider helps with legal fees, lost wages and other expenses related to restoring your identity and credit.
How to choose the best renters insurance company
Although 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 selecting the best renters insurance.
- Consider how much coverage you need. Before taking out a policy, tally the value of your belongings to make sure you don’t underinsure your personal property. Given that the average renter has approximately $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 widely by company and even across the same amounts of coverage, making it important to carefully review quotes before making a decision.
- Maximize discounts. Review available discounts from insurance companies to see where you can save money. If you own a car, you may be able to bundle your renters and car insurance policies. Some companies also offer discounts for loyalty, setting up automatic payments or going a set amount of time without filing a claim.
- Consider useful riders. Not all insurance companies provide the same riders, so you may need to look around to find an option that meets your needs. One company may offer replacement cost coverage but not identity theft protection, so keep shopping until you find the right combination to meet your needs.
How to get cheap renters insurance
Here are some ways to save on renters insurance.
- Compare companies and quotes. Shopping around and comparing rates can help you make sure you’re not missing out on a better deal elsewhere.
- Raise your deductible. The higher your deductible, the cheaper your renters insurance, but the less you’ll be reimbursed in the event of a covered claim.
- Ask about discounts. Most major insurers offer discounts, such as a payment discount if you pay your premiums in one lump sum. You may also qualify for a loyalty discount if you stick with the same insurer for a certain amount of time.
- Install safety features. An easy way to score a discount could be by installing a fire and/or burglar alarm.
- Bundle your car and renters insurance policy. If you buy renters insurance and another insurance policy — like car insurance — from the same company, you can typically get a bundling discount.
How to file a renters insurance claim
After an incident, be sure to collect as much information as possible before filing a claim with your renters insurance company.
- File a police report if your belongings were stolen or vandalized.
- Contact your insurance company to let them know you’ll be filing a claim.
- Take photos and videos of any damage.
- Report damages to your landlord.
- Read your lease before initiating temporary repairs.
- Keep receipts for any temporary repairs you make.
- Review your renters insurance policy for coverages, limits and your deductible.
- File a claim on your insurer’s app or website, or contact the claims department to start the process.
Methodology
Our insurance experts collected data on 166 renters insurance companies. The factors we scored out of a possible 100 points include the following.
Rates: 50 points. We analyzed renters insurance rates from Quadrant Information Services. The average rates are based on policies with personal property coverage of $15,000, $30,000 and $50,000.
Complaints: 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 lodges a complaint to their state’s department of insurance — often about an insurance company’s claims process, delays, denials or settlements — these 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 for this rating. Renters insurance companies that are only available in a few states were also not included.
No federal or state law requires renters to take out a rental insurance policy, but it’s not uncommon for landlords to require this type of coverage as a stipulation of the lease. Even if your landlord doesn’t require renters insurance, taking out a policy can provide peace of mind and potentially save you money in the event of an expensive 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 policy limits, some companies exclude large-breed dogs or those with aggressive behavior tendencies. Because requirements vary from company to company, it’s best to ask about any exclusions or restrictions when shopping around for different policies.
Yes. Many insurance companies that provide renters insurance offer bundling or multi-line discounts for customers who combine their renters and car insurance. This typically results in discounts on both types of insurance, making it a worthwhile thing to consider. If you require insurance for other assets, including motorcycles, pets, boats or RVs, you may be able to bundle these policies with your renters insurance as well to secure additional discounts.
If you have homeowners insurance and your child lives temporarily away from home, your policy may extend coverage to them. Check with your insurance company to make sure your student is listed as insured on your policy and their belongings are covered while they are living in a dorm or off-campus.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
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