- Early shopper
- Online purchase
- Blanket jewelry coverage
- Contents replacement cost coverage
- Earthquake coverage
More Liberty Mutual Insurance Reviews
The Average Cost of Renters Insurance
Renters insurance is a type of insurance that specifically covers individuals who rent a home or apartment. Renters insurance usually isn’t required, but some landlords request that tenants purchase renters insurance before moving into a property. Fortunately, renters insurance is one of the cheapest insurance policies you can get.
According to the Insurance Information Institute (III), the average cost of renters insurance is $179 per year, which breaks down to about $14 per month. But like all types of insurance, renters insurance premiums are customized for each individual. Your premium is based on personal factors like your state, ZIP code, credit score, claim history, the amount of coverage you buy, and your deductible.
Renters insurance is significantly cheaper than home insurance, mainly because renters insurance offers no protection for the building itself. Renters are only responsible for the individual unit. The landlord will have a separate policy that provides coverage for the structure of the building, much like regular home insurance.
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 cover it.
- Medical payments coverage: Medical payments coverage helps pay for medical expenses if someone gets injured at your home, even if you are not responsible.
- Additional living expense coverage: If your home gets damaged or destroyed in a covered peril and you have to move out, additional living expenses will pay for a hotel, restaurant meals, and parking.
Most renters insurance companies also offer optional coverages that you can purchase for an added fee. Common endorsements include flood insurance, contents replacement cost coverage, and identity theft coverage.
What renters insurance doesn’t cover
Before you buy or get renters insurance quotes, it’s good 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
How to Pick the Best Renters Insurance Company
There are dozens of insurance companies that sell renters insurance, but the best company for you might not be the best option for your friend, or even your roommate. Here are some things to keep in mind as you shop for and compare renters insurance:
If you purchase a renters insurance policy, it will only cover your personal belongings. It doesn’t extend coverage to your roommates, unless you add them to your policy. If you need coverage to protect your belongings and the items you share with roommates, make sure you choose a company that offers high coverage limits. Otherwise, you could be left paying out-of-pocket in the event of a covered loss.
With renters insurance, you will get reimbursed for items that get damaged or destroyed based on actual cash value (ACV) or replacement cost value (RCV). If you have an ACV policy, you will receive a check for the item’s depreciated value. If you have an RCV policy, you will be compensated for the item’s full original value. If you want the highest payout after a covered claim, choose a renters insurance company that offers RCV policies, as either a standard option for an add-on.
Don’t forget to consider your budget when you’re shopping for renters insurance. Figure out how much you want to spend, then get renters insurance quotes from multiple companies and compare them. That’s the best way to see which company can offer the lowest price for the type and amount of coverage you need. Additionally, look for renters insurance companies that have several discounts you can take advantage of, which will help you save the most amount of money.
If you own a pet, you’re responsible for their behavior. That includes when your dog or cat causes damage to your home or someone else’s property. While looking at renters insurance reviews, seek out companies that advertise coverage for pet owners. Some insurance carriers have stricter underwriting standards for applicants who live with a dog or cat. Also consider purchasing higher liability coverage limits in case your pet causes damage or injures a guest.
Renters Insurance FAQ
The average cost of renters insurance in the United States is $179 per year. However, keep in mind that every renter pays a different rate based on factors like age, credit score, ZIP code, and claim history.
There isn’t one company that has the best renters insurance. Each company has pros and cons, and stands out for unique features. To find the best provider for you, take some time to shop around and compare renters insurance quotes.
Because renters insurance premiums are personalized, it’s difficult to say which company is the cheapest. But based on our renters insurance reviews, Liberty Mutual advertises rates as low as $5 per month, which is the cheapest option we found.
A good price for renters insurance is around $15 per month, which is considered average. However, you might be able to pay less if you have a good credit score, have no prior insurance claims, and are able to take advantage of multiple discounts.
We evaluated renters insurance companies based on availability, customer satisfaction, financial stability, and coverage to determine Reviews.com score and create our best renters insurance reviews. To compare renters insurance companies with other providers across the board, we calculate each Reviews.com score based 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 2020 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.