Reviews Report

• Several leading renters insurers, including Auto-Owners, Travelers, USAA and State Farm, hold AM Best “Superior” category financial strength ratings (A+ or A++), signaling strong claims-paying ability.
• USAA remains a strong choice for eligible active duty, veterans and their families, with military-focused benefits and solid service marks in independent evaluations.

In the same way that lenders require an active homeowners insurance policy to approve a mortgage, many rental agreements require the tenant to have an active renters insurance policy for financial protection. A landlord’s insurance will cover the building itself, but not the belongings of the renters who live there – it will also not cover liability or medical claims if someone is hurt or their property damaged in the apartment or rented home. Whether it is required by the landlord or not, it may be in your best interest to have a renters insurance policy in place to protect your finances in the event of a loss or liability incident. Note that standard renters policies typically exclude flood and earthquake; renters can consider contents-only flood coverage via the NFIP and, where applicable, separate earthquake coverage options.

We refreshed our evaluation for 2025 using pricing, coverage and endorsement breadth, financial strength, customer satisfaction, complaint experience, digital tools, and availability. Recent industry roundups commonly highlight leaders like State Farm, USAA (eligibility required), Amica, Erie, Nationwide, Travelers and digital-first Lemonade; check current-year satisfaction benchmarks from J.D. Power and complaint indices from the NAIC when comparing options.

The 7 Best Renters Insurance Companies of 2025

• Auto-Owners: Best Renters Insurance for Discounts
• Amica: Best Renters Insurance for Optional Coverage
• Hartford: Best Renters Insurance for Digital Experience
• Allstate: Best Renters Insurance for Overall Satisfaction
• Erie: Best Renters Insurance for Unique Coverage
• Travelers: Best Renters Insurance for First-time Renters
• USAA: Best Renters Insurance for Military-Focused Coverage

*USAA is not officially ranked due to eligibility restrictions

Auto-Owners

Amica

The Hartford

Allstate

Erie Insurance

Travelers

USAA

The Average Cost of Renters Insurance

Renters insurance covers your personal property inside your rental dwelling that is not part of the structure. For those who rent apartments or homes, the landlord’s policy covers damage to the building itself — but not to the belongings of those who live there in the event of a covered loss. Landlord insurance will also not cover liability costs if someone is injured in the rental unit. Renter’s insurance provides financial protection for these circumstances.

According to the Insurance Information Institute (III), the average cost of renters insurance is $179 per year (latest official benchmark from NAIC data), which works out to about $14 per month. Current market studies suggest typical costs roughly $170–$215 per year ($14–$18 per month) for common coverage limits, with many consumers in 2025 seeing about $190–$220 as rates have firmed (ValuePenguin; Bankrate). Like all types of insurance, renters premiums are customized: your state, ZIP code, insurance-based credit (in most states), claim history, the amount of coverage you buy, and your deductible all affect price.

Renters insurance is significantly cheaper than home insurance, primarily because renters insurance offers no protection for the structure itself. Renters are only responsible for the personal property damage or liability incidents occurring inside the unit. The landlord will have a separate policy that provides coverage for the structure of the building, much like regular home insurance. That said, average premiums have edged higher since 2022 amid inflation and elevated catastrophe losses (BLS CPI; Swiss Re Institute).

What Renters Insurance Covers

Renters insurance offers comprehensive coverage for many of the most common perils that a renter can face. Here are some of the things that renters insurance will cover:

• Personal property coverage: Renters insurance provides coverage for your personal belongings, like clothing, furniture, and small appliances. It offers limited coverage for valuable items and electronics.
• Liability coverage: If someone gets injured in your apartment or you accidentally damage someone else’s property, renters insurance will typically provide financial protection for a qualifying incident, up to policy limits.
• Medical payments coverage: Medical payments coverage helps pay for medical expenses if a guest is injured  at your home, even if you are not responsible for causing the injury.
• Additional living expense coverage: If your home gets damaged or destroyed in a covered peril and you have to move out during the course of repairs, additional living  expenses (also called “loss of use”) will pay for things like a hotel, restaurant meals, or parking.

Most renters insurance companies also offer optional coverages that you can purchase for an added fee. Common endorsements include scheduled personal property coverage, contents replacement cost coverage, identity theft/personal cyber coverage, and water/sewer backup; some carriers also market service line and equipment breakdown add-ons. See guidance from the Insurance Information Institute and the Texas Department of Insurance, and an example of personal cyber coverage from Nationwide.

What renters insurance doesn’t cover 

Before you buy a policy or get renters insurance quotes, it may be helpful to know what your policy won’t cover. Here’s a list of perils that are typically not covered by a standard renters insurance policy:

• Flood damage
• Earthquake damage
• General wear and tear
• Pets and infestations
• Pet damage
• Your vehicle
• Your roommates’ belongings
• The structure of the building

Some insurers may include perils like flood or earthquake in a standard renters policy; check with your insurance agent to see exactly what’s covered in your policy. Renters who need these risks can consider contents-only flood insurance through FEMA’s NFIP and, where available, earthquake coverage (for example, the California Earthquake Authority). In coastal states, verify whether special wind or hurricane deductibles apply (learn more).

How to Pick the Best Renters Insurance Company 

Dozens of insurance companies sell renters insurance, but the best company for you might not be the best option for your friend, or even your roommate. Compare at least three to four quotes for the same limits and deductible, verify financial strength (for example, via AM Best), check current satisfaction benchmarks from J.D. Power, and review complaint experience using the NAIC Complaint Index.

Renters Insurance FAQ

Methodology

We evaluated renters insurance companies based on availability, customer satisfaction, financial stability, and coverage to create our best renters insurance reviews. To compare renters insurance companies with other providers across the board, we focused on the following:

• Coverage: The more options a renters insurance company has for insurance add-ons and coverages, the higher it scores in our methodology.
• Customer Experience: We reviewed the National Association of Insurance Commissioners’ National Complaint Index and compared each renters insurance company’s complaint rating.
• Customer Satisfaction: With J.D. Power’s 2025 Home Insurance Satisfaction Study, we assigned a score to each company based on the rating it received.
• Financial Stability: Reviews.com utilized AM Best ratings to assign a score based on each renters insurance company’s financial stability.
• Discounts: We scored each renters insurance carrier based on the number of discounts advertised on its website.

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