Renters insurance protects your personal property from loss or damage. Your landlord's policy covers the building but has no coverage for your belongings. Without a renters insurance policy, you could lose everything in a fire or other disaster.
The good news is, renters insurance is relatively cheap. For just $15 to $20 a month you can get coverage for everything from your linens to your television.
If you're not sure where to start shopping for renters insurance, we've created a ranking of the best renters insurance companies to help you.
So what are the best renters insurance companies? State Farm, Allstate and American Family are among the, Read on for more.
Best renters insurance companies
Most insurance companies offer renters policies, making the process of choosing overwhelming. To simplify the process, we reviewed dozens of carriers looking for cheap renters insurance rates, options and discounts and other factors like digital tools and of course, customer service.
| Company | Best for | J.D. Power Score | NAIC ratio | A.M. Best rating | Market share | Average Rate $40k/$1k/$100k |
|---|---|---|---|---|---|---|
| Allstate | Best for seniors | 842 | 2.03 | A+ | 8.38% (2nd) | $195 |
| American Family | Best for smart homes | 840 | 0.55 | A | 3.90% (7th) | $231 |
| Farmers | Best for discounts | 839 | 0.57 | A | 5.71% (5th) | $171 |
| Lemonade | Best for customer satisfaction | 866 | 0.98 | NR | .11% (96th) | n/a |
| Liberty Mutual | Best digital tools and app | 825 | 0.79 | A | 6.48% (4th) | $488 |
| Nationwide | Cheapest renters insurance | 831 | 0.53 | A+ | 3.12% (8th) | $146 |
| Progressive | Best for bundling renters and auto | 835 | 0.95 | A+ | 1.58% (12th) | n/a |
| State Farm | Best overall | 836 | 0.74 | A++ | 17.96% (1st) | $177 |
| Travelers | Best for apartment improvements | 807 | 0.94 | A++ | 4.07 (6th) | $177 |
| USAA | Best for military | 888 | 0.51 | A++ | 6.56% (3rd) | $272 |
Allstate: Best for seniors and retirees
Allstate offers what you would expect from the best rated renters insurance companies: coverage for your personal property, reimbursed living expenses, medical coverage if a guest is injured on your property and liability insurance for covered hazards such as a burglary, fire or limited water damage. Allstate has a renter discount of up to 25% for those age 55 and over, not seeking full-time employment.
Most carriers will pay for damages caused if your water heater fails or a pipe leaks. However, if your belongings are lost due to flooding from heavy rainstorms or a hurricane, they are not typically covered. Allstate offers renters optional flood insurance if they live in high-risk areas.
Allstate’s premiums are low, the company has a big representation of local agents nationwide, as well as providing a user-friendly website and robust mobile app. The biggest drawback to Allstate renters coverage is the number of customer complaints. According to the NAIC, Allstate’s complaint index is well above average at 2.03.
American Family: Best renters insurance company for smart homes
Many homes and apartments nowadays have wireless cameras, thermostats and door locks that can be operated remotely and video doorbells. The trouble is, smart devices can be pricey. Luckily, you can offset the costs of securing your property using the latest tech when you buy renters insurance through American Family. The carrier offers smart home discounts for qualifying water sensors, security equipment and more. In addition, American Family has partnered with Frontpoint to bring you deals on a smart security system and HelloTech to set up all your devices.
Even if you don’t qualify for the smart home discount, the carrier provides other ways to save, including bundling renters and vehicle coverage. However, AmFam renters insurance is only available in 19 states.
Farmers: Best for discounts
Renters insurance does not typically come with as many opportunities for savings as you would get for auto coverage. However, Farmers has broader discount options for renters than other companies. If you’re a first responder, doctor, educator, engineer or dentist, you could earn a professional discount. In addition, being a non-smoker or having multiple policies, a fire alarm or a security system can help you save.
Farmers is one of the cheapest and best rated renters insurance companies in our review. However, you won’t have many add-ons available to customize coverage. If you’re looking for more than a personal article floater for items over $500, you may need to look at other renters insurance companies.
Lemonade: Best renters insurance company for customer satisfaction
Lemonade tops J.D. Power’s annual study on home and renters insurance, beating all carriers besides USAA. (USAA isn’t ranked #1 because coverage availability is limited.) Lemonade does renters insurance differently by providing a form of online-only, crowd-sourced coverage. When you buy Lemonade renters insurance, part of your premiums are allocated into a group pool available for claims. This means that getting reimbursed for stolen or damaged items, or a guest medical bill should happen very quickly — in just a few seconds, according to Lemonade — because the funds are paid from the pool.
However, our independent study on Lemonade renters insurance based on responses from policyholders found that the claim of near-instant payouts isn’t typical. Although our study found that policyholders are happy with pricing and insurance options, 41% of the respondents said Lemonade took too long to pay claims. As long as you don’t go in with expectations of getting instant reimbursement if you file a claim, the carrier is a great renters insurance option.
Liberty Mutual: Best digital tools and app
If you’re too busy to call or visit a local agent to get renters insurance coverage, working with a provider that has a user-friendly online platform is a lifesaver. Buying renters insurance shouldn’t be complicated. Liberty Mutual’s digital tools are some of the best and highest rated of all insurance carriers, making the process from start to finish — convenient.
Users in the App Store awarded the Liberty Mutual insurance app with a 4.8 out of 5. Android users gave it a 4.5 out of 5. You can manage your policy through the app or online, sign paperwork digitally and even file claims in just a few taps. But before you do, get renters insurance quotes from a few carriers — Liberty Mutual’s average annual premiums of $488 are twice as high as nearly all of the carriers we reviewed.
Nationwide: Cheapest renters insurance company
Our study of cheapest renters insurance found that Nationwide has the lowest annual rates of all carriers examined. Coverage is roughly $12 per month. For anyone weighing “why do I need renters insurance”, $12 per month is far less stressful than having to pay out thousands of dollars to replace your personal goods after a fire or burglary.
Nationwide’s discounts are part of the reason premiums are low. You’ll find the standard ones including bundling, claims-free and protective devices. In addition, you have access to an On Your Side Review to help you find other ways to save while making sure you are properly insured. The short, free assessment with an insurance professional is available to help you understand and make the most of your coverage. Just watch out for the Brand New Belongings optional rental coverage. The idea of having your items replaced with brand new ones sounds great, but Nationwide reserves the right to repair your items instead of replacing them with a new version.
Progressive: Best for bundling renters and auto insurance
You’ve probably noticed the mentioning of bundling discounts a few times by now. Buying (or bundling) car and renters insurance with the same carrier can help you save the most on renters insurance. Progressive can save you an average of 3% across the board when you have renters and auto through the carrier.
Although the discount isn’t significant, there is another perk to bundling car and renters insurance. You could share the same deductible for both. If you file a claim for an incident involving your rental and your vehicle, you will receive reimbursement for one of the deductibles. The biggest drawback to Progressive is knowing who exactly you’re covered by. Your Progressive renter’s policy could be underwritten by one of the carrier’s affiliates and not directly through the company.
State Farm: Best renters insurance company overall
State Farm is the largest insurer in the country and one of the oldest. In addition, the carrier consistently ranks well with customers and has the strongest financial strength rating of A++. State Farm checks nearly all the boxes of what makes a renters insurance company great:
- Low rates
- Several ways to file a claim (in-person, over-the-phone, online, through the app)
- Offices and agents available nationwide
- A full-featured website and mobile app
- Plenty of coverage options
It’s hard to find any fault with the carrier. If we had to find any, State Farm’s renter’s policies can vary from one state to another, although that’s due to regulations. In addition, the insurer doesn’t offer as many discounts as other companies, but rates are already low to start.
Travelers: Best for apartment improvements
Most landlords do not allow renters to make any changes to a space. However, some renters manage to negotiate changes to the wall colors or get permission to add wallpaper or change the floors. Depending on how much the improvements cost you, having coverage that pays for replacement in case of a loss could be wise. Travelers Insurance allows you to apply up to 10% of your personal property limit if you need to fix or replace such improvements because of a covered loss. While 10% is included in a standard renters policy, you could pay for a higher limit.
Unfortunately, Travelers doesn’t have many other coverage options. The carrier is a good choice if you are looking for basic coverage without too many bells and whistles (besides housing improvements). Otherwise, there are other carriers that offer cheap renters insurance and more coverage options.
USAA: Best for military
USAA consistently scores highest in the J.D. Power renters insurance study every year based on what policyholders have to say. It’s not the cheapest renters insurance company at $272 per year on average, but when you consider that flood and earthquake coverages are included, the $22 per month may be a bargain.
Although USAA scores high with customers and provides comprehensive renters insurance for a low price, it doesn’t win the award for best renters insurance based on one important factor — USAA isn’t available to everyone. Only individuals affiliated with the Armed Forces (or their family members) can access coverage.
Best renters insurance companies by state
Select your state below to see the average annual rate.
| Company Name | Min of $40,000/$100,000 |
|---|---|
| Allstate | $255 |
| Auto Club Enterprises Insurance Group | $183 |
| CSAA | $261 |
| Farmers | $198 |
| Liberty | $186 |
| Nationwide | $301 |
| Liberty | $186 |
| State Farm | $177 |
| Travelers | $197 |
| USAA | $169 |
How much does renters insurance cost?
Insurance.com found that the average cost of renters insurance is $326 per year, which is only $27 per month. However, your premiums may be lower based on where you live, the level of coverage you get and the carrier you choose. Based on our findings of “how much does renters insurance cost” by carrier, you could get coverage through Nationwide for just $146 per year.
Why do I need renters insurance?
It's simple: without renters insurance there is no coverage for any of your personal property. Many renters think that they don't own anything of a high value, so they don't need coverage. But imagine what would happen if the home you rent were to burn to the ground. How much would it cost to replace everything you own?
That includes all of your furniture, your clothes, your dishes, your electronics and everything else in your home. It's easy to underestimate the vale of all of your belongings. You don't have to own fancy jewelry or expensive home theater equipment to make renters insurance a worthwhile investment.
Frequently Asked Questions
Is renters insurance required?
No law requires yo to buy renters insurance, but some landlords require it as part of the lease agreement.
What factors should you consider while choosing renters insurance?
The best way to find cheap renters insurance and quality coverage is by shopping around and comparing quotes from several companies. Before you choose renters insurance, take a look at what your deductible is and the types of coverage offered. You may want to add options such as flood coverage or replacement cost to save you money in case of a claim. Our renters insurance guide gives you everything you need to know when you’re shopping around for coverage and ready to choose.
