Protecting your personal possessions by way of an insurance policy can help you recover from a disaster quickly and with minimal impact on your finances. If you rent your primary residence, getting a quality renters insurance policy can cover your personal possessions in the event of unexpected disasters, such as a fire, burglary, tornado, or other unforeseen events.
Policies for renters are surprisingly affordable; many renters can secure a standard policy for $10 to $20 a month. Since many households have over $20,000 worth of personal possessions, a renters insurance policy is an affordable way to protect the investment of your personal belongings.
After reviewing the top rental insurance companies on several key factors, we selected the best renters insurance companies for 2020 below.
- State Farm
- American Family Insurance
USAA – Best for Military Members and Veterans
Reviews.com Score: 4.8/5
Unlike many of the other top renters insurance companies, USAA provides flood and earthquake coverage as part of its standard policies, which protects military and ex-military renters wherever they may live.
Although USAA provides comprehensive coverage starting at just $10 a month, renters without a military association may need to seek coverage elsewhere, as USAA only issues policies to active military, veterans, and their family members.
State Farm – Best for Coverage Options
Reviews.com Score: 3.8/5
Standard renters policies with State Farm include comprehensive protection for property, liability, medical expenses, and loss of use. State Farm also offers many add-on options, including coverage for identity restoration, pet insurance, and business protection.
American Family Insurance – Best Value
Reviews.com Score: 3.6/5
American Family Insurance provides a great combination of low premiums and comprehensive coverage, making it our pick for the best value for renters insurance. Although the company offers low premiums as a standard, it still provides plenty of opportunities for additional discounts for bundling, using AutoPay, or going paperless. Unfortunately, this company may not be for you if you don’t live in one of the 17 states that fall within their limited coverage area.
Allstate – Best for Bundling
Reviews.com Score: 3.3/5
Although nearly every insurance company offers some kind of discount for bundling, few go to the lengths that Allstate does to help customers save through bundling discounts. Allstate offers an entire page of resources for bundling, including providing easy-to-navigate options for bundling renters insurance with auto, motorcycle, off-road vehicles, or life insurance.
Nationwide – Best Self-Help Options
Reviews.com Score: 3.3/5
While Nationwide’s customer service ratings weren’t as high as other insurers, customers who prefer to use self-help options in managing their renters insurance policies may appreciate the ease of access available with Nationwide. Through the company’s online portal, customers can easily get quotes, file claims, manage accounts, and pay bills.
The 5 Best Renters Insurance Companies
Looking for the right insurer for you? We’re here to help. Check out our top-ranked renters insurance companies and see how they stack up when it comes to customer experience and financial stability:
|Company||Best For||Reviews.com Overall Score||Customer Experience Score||Financial Strength Score|
|State Farm||Coverage Options||3.8/5||4/5||3/5|
Each of our categories was rated against the highest standards. We rewarded companies that have all of the rating factors we were looking for. So a lower category score doesn’t necessarily mean the company isn’t right for you, but the lower score stems from underperformance or missing results in key studies. To learn more about how we scored these categories, check out our methodology below.
What Does Renters Insurance Cover?
- Personal property – If the building you’re renting is ever damaged or destroyed due to accidents, weather, or vandalism, it’s likely your personal property will suffer damage, too. This section of your renters insurance policy pays for repairs or to replace your items—from clothing and books to furniture and electronics—up to your policy limits.
- Liability – If your visitors incur property damage or are injured while in your rented home or apartment, the liability portion of your policy covers these costs, including medical expenses, property replacement, or legal defense for lawsuits arising from the incident.
- Loss of use – In the event you’re no longer able to stay at your home as a result of a covered loss, this portion of your policy pays additional living expenses while you’re unable to use your rental property. Covered expenses typically include a temporary hotel stay or additional gas for a longer work commute.
Other Types of Coverage
- Personal liability umbrella – Covers additional expenses for major claims that exceed the standard liability expenses.
- Scheduled property – Provides additional coverage for valuable items, such as jewelry or collectibles.
- Water backup – Protects against damage caused by backed-up sewers or drains.
- Earthquake/flood – Pays for damages caused by earthquakes or floods that would otherwise be excluded under a basic policy.
- Identity theft – Covers legal expenses and lost wages if your identity is stolen.
- Pet insurance – Pays for veterinary costs or final expenses for your pets if they are hurt during a claim incident.
- Medical payments – Provides medical care for two groups of people: those injured by you or someone in your family living with you, and those who are injured while a guest in your home.
How to Save on Renters Insurance
Although renters insurance may be an additional expense, there are several ways to save money on your monthly premiums. By bundling with other insurance products, qualifying for administrative discounts, and adjusting your deductible level, you can save hundreds of dollars each year.
The deductible is the amount you pay before your policy begins to pay out on a claim. In general, lower deductibles are associated with higher premiums, so consider increasing your deductible to reduce your monthly costs.
Most insurers offer discounts for things like autopay, paperless billing, loyalty discounts, installing smart home devices, remaining claims-free, and bundling with other product lines. Check with your provider for specifics on which discounts are available and how to qualify.
To deliver our standardized comparison, we narrowed down the field of renters insurance companies based on highest online search volume and then compared each company on customer experience and financial strength. We rated each company based on data from independent agencies, such as J.D. Power and NAIC for customer experience or AM Best, S&P, and Moody’s for financial strength. We then took an average of the category ratings to arrive at our final rating for each company.
Who needs renters insurance?
Anyone renting their primary place of residence should carry renters insurance. Although some landlords don’t require tenants to have renters insurance as a condition of their lease, insurance protects you if the property you’re renting is damaged.
Who has the cheapest renters insurance?
The cost of a renters insurance policy varies based on a number of factors, but based on our findings in general, the cheapest policies are with USAA, State Farm, and American Family Insurance.
What is not covered by renters insurance?
While renters insurance is designed to cover your possessions inside the home or apartment you’re renting, it doesn’t cover the structure itself. Renters insurance also generally doesn’t cover damage caused by natural disasters, pests, or damage to your personal vehicle.