Unless your landlord requires it, purchasing renters insurance might seem like an unnecessary expense with relatively little benefit. But you might be surprised at just how cheap renters insurance can be – less than a dollar per day in many cases – and how effective it can be at protecting your belongings and assets.
To help you find affordable coverage, we’ve evaluated nearly two dozen providers and narrowed them down to a list of the five best renters insurance companies based on price, coverage and service.
Compare Cheap Renters Insurance
| Reviews.com Score Score is based on company’s customer experience, financial stability, and coverage options. | AM Best Financial Strength AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. Power Overall Customer Satisfaction J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|
| Pin American Family | 3.75/5 | A | 840/1,000 | |
| Pin Lemonade | 2.7/5 | N/A | 866/1,000 | |
| Pin Nationwide | 3.75/5 | A+ | 831/1,000 | |
| Pin State Farm | 3.25/5 | A++ | 836/1,000 | |
| Pin USAA | 3.75/5 | A++ | 888/1,000 |
American Family
If you’re looking for ways to save money on renters insurance, American Family’s long list of discounts can help.
Best discounts
Why we chose it
Why we chose it
Pros
- Offers discounts for autopay, smart home devices, and loyalty
- Save up to 29% when you bundle multiple policies
- Three tiers of renters policies to choose from
- Optional diminishing deductible coverage
Cons
- Only available in 19 states
- Limited coverage for jewelry and valuables
- Must work with an agent
Discounts available
- Bundling discount
- Smart home discount
- Autopay/full pay/paperless discount
- Loyalty discount
- Generational discount
Unique features
American Family’s multi-policy and smart home discounts aren’t out of the norm, but the company does an extraordinary job of rewarding longtime customers. Loyalty discounts start after just one year, and renters under the age of 30 whose parents have an American Family policy can ask for a generational discount.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on American Family:
- American Family renters insurance review
- American Family homeowners insurance review
- American Family auto insurance review
Lemonade
Tech-driven insurance provider Lemonade makes purchasing renters coverage fast and painless.
Best service
Why we chose it
Why we chose it
Pros
- Easy to purchase coverage online
- Most claims are paid instantly
- Prices start at $5 per month for renters insurance
Cons
- Available in only 24 states
- Requires a smartphone
- Not good for bundling policies
Discounts available
- Bundling discount (with pet insurance)
Unique features
Lemonade’s Giveback program takes any leftover money not used to pay claims and gives it to a charity of your choice. Over $1.1 million was donated in 2020 alone.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on Lemonade:
Nationwide
Nationwide’s flexible renters policies provide coverage for much more than just your belongings.
Best coverage options
Why we chose it
Why we chose it
Pros
- Basic policy includes coverage for home improvements and credit card fraud
- Five optional add-on coverages available
- Free annual policy evaluation
Cons
- Less affordable than competitors
- Below average customer service ratings
- No online tools or resources
Discounts available
- Bundling discount
- Safety device discount
- Claim-free discount
Unique features
Nationwide’s Brand New Belongings feature is optional coverage that helps you get more money back if your personal property is stolen or damaged. When you file a claim, Nationwide will reimburse you for the depreciated value of the items. If it costs more to repair or replace them, just send in the receipt and they’ll cover the difference.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on Nationwide:
- Nationwide renters insurance review
- Nationwide homeowners insurance review
- Nationwide auto insurance review
State Farm
Remote workers and freelancers can find coverage for both their personal and business activities through State Farm.
Best for working from home
Why we chose it
Why we chose it
Pros
- Good selection of personal and business coverages
- Affordable premiums
- Covers personal items left in your vehicle
Cons
- Few discounts available
- Only offers bundling discounts with auto insurance
- Must be purchased through an agent
Discounts available
- Bundling discount (with auto insurance)
- Safety device discount
Unique features
State Farm is a great insurance option for self-employed freelancers and small business owners. Tailored coverage is available for a variety of professions, from pet sitters to graphic designers.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on State Farm:
- State Farm renters insurance review
- State Farm homeowners insurance review
- State Farm auto insurance review
USAA
Service members and veterans can find affordable renters coverage through USAA, with policies tailored to the unique demands of military life.
Best for military
Why we chose it
Why we chose it
Pros
- Worldwide coverage for personal belongings
- Excellent customer service ratings
- Very low premiums
- Includes flood coverage
Cons
- Only covers eligible service members, veterans and their families
- Limited number of discounts
- Belongings not covered if damaged due to temperature change while moving
Discounts available
- Bundling discount
- Safety device discount
- Claim-free discount
Unique features
With 17 covered perils in its standard renters policy, USAA offers a much broader range of protection than most competitors. The company includes disasters like floods and earthquakes that you’d normally need to pay extra for.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on USAA:
Methodology
We evaluated these companies based on their customer rating and experience, financial stability, and coverage. To compare renters insurance companies across the board, we then calculated a Reviews.com score based on the following:
● Customer Ratings – Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Renters Satisfaction ratings.
● Coverage – As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
● Confidence – It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this factor using AM Best.
● Customer Experience – The amount of complaints a company receives is an indicator of the overall customer experience. We based this measure on the NAIC National Complaint Index.
How To Buy Cheap Renters Insurance
- Consider your budget. Calculate how much you can afford to spend each month on a renters insurance policy. Decide whether you can come up with the cash to pay for a year’s worth of premiums up front; many insurers offer discounts if you pay in advance.
- Decide how much coverage you need. Think about the amount and type of coverage that would best fit your personal situation. Keep reading for a more detailed guide on deciding how much renters insurance you need.
- Research companies. Look for top renters insurers in your area and identify a few options that stand out based on coverage options, average pricing, and customer reviews.
- Gather quotes. Reach out to at least three insurers to ask for the price of a policy to cover your unit. Compare renters insurance costs from each provider and choose the most affordable option.
- Ask about discounts. Don’t forget to make sure you’re getting all the discounts you qualify for when signing up for renters insurance.
What Does Renters Insurance Cover?
Renters insurance coverages vary slightly by company, but they generally include the same items. Most renters policies include:
- Personal property coverage: Helps repair or replace your belongings if they’re stolen or damaged due to a covered peril. Perils typically include fire, theft, vandalism, and certain weather events.
- Liability coverage: Pays for your legal expenses and court-awarded judgments if someone sues you for bodily injury or property damage.
- Medical payments: Covers the cost of care if someone is injured on your property and needs medical attention or hospitalization.
- Loss of use: Helps pay for your living expenses if your home becomes uninhabitable as the result of a covered peril.
- Additional coverages: Depending on your needs, you may decide to purchase policy riders to cover valuables or certain perils like floods.
What Is Not Covered By Renters Insurance
Renters insurance offers many different types of protection, but it doesn’t cover everything. Here’s what won’t be covered by your policy.
- Your unit’s structure: If the home you’re renting is damaged or destroyed, you’ll have to rely on your landlord’s insurance policy.
- Certain perils: Most renters insurance companies exclude specific perils. The most common exclusions are floods and earthquakes. If this type of protection is important to you, you’ll likely need to purchase additional coverage.
- Your roommate(s): Renters who live with roommates need to make sure they’re listed on the policy. Otherwise, they won’t be covered.
- Your vehicle: Anything that happens to your car should be claimed under your auto insurance policy, even if it’s parked in your driveway. However, many insurers cover your belongings if they’re damaged or stolen while being stored in your car. This coverage varies by company.
- Pests: Your renters insurance policy won’t cover damage from rodents or insects.
- Pet damage: If your dog or cat damages your unit, the cost of repairs will come out of your security deposit after you move out. Renters insurance doesn’t cover this.
How Much Renters Insurance Do I Need?
Not sure how much coverage to buy? Take these three items into consideration when shopping for affordable renters insurance.
- Take a home inventory. A home inventory can help you more accurately pinpoint how much personal property coverage you need. Go through every room in your home and make an itemized list of your possessions, including their approximate value and how much you’d need to spend to replace them. Compile receipts for expensive items like electronics.
- Determine how much liability coverage you need. Renters insurance typically includes this coverage to help protect your assets if you’re sued. You should make sure you purchase a renters insurance policy with a liability limit that covers the value of your net worth.
- Choose the right deductible. Going with a higher deductible may help get you cheaper renters insurance, but you shouldn’t set your deductible any higher than you can afford to pay out of pocket.
FAQs
Can I cancel renters insurance during my lease?
Yes, most renters insurance companies will let you cancel your policy anytime. However, you may need to pay a cancellation fee. Ask your insurer for their specific cancellation policy.
Can my landlord require me to get renters insurance?
While no U.S. laws mandate renters insurance, most states allow landlords to require it. If renters insurance is mentioned in your lease, a cheap renters insurance policy can help you meet those requirements without draining your bank account.
Does my renters insurance cover my roommate?
It’s usually possible to include your roommate in your renters insurance policy, but you’ll need to add them to the policy when signing up and pay an extra premium. Discuss insurance with any non-family members living in the home to decide if sharing the cost of coverage is a good idea.
About the Authors
Lisa Melillo is a personal finance writer for Reviews.com. Over the past seven years, she’s covered insurance, travel, and home-related topics for a variety of online publications and businesses.
