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If you’re a renter, buying renters insurance is a smart financial move. Renters insurance is inexpensive but can save you financially if you literally lose everything you own. It also contains important benefits like liability insurance and coverage if you can’t live in your apartment because of damage.
To help you find the best renters insurance, we evaluated popular renters insurance companies based on price and customer happiness.
Excellent
93%
Lemonade was the clear price leader for renters insurance, with policies as low as $5 a month in some cases. Combined with the high percentage of customers who will renew, Lemonade outpaces its competitors for renters insurance.
Very good
85%
Very good
85%
State Farm’s marks were consistently high across the categories we analyzed, making it a solid choice for renters who want a good price combined with good service.
Good
81%
Allstate can provide renters with a good foundation of insurance at a competitive price
Good
80%
Liberty Mutual is a good bet for renters who want a good price and good track record of customers who will renew their policies
Good
82%
Progressive’s renters insurance rates and high level of customer renewal make it a top pick
Fair
80%
Farmers’ track record of low complaints is superior
Fair
82%
Fair
82%
Geico has a solid level of customers who say they will renew their renters insurance policies.
Poor
82%
Poor
82%
American Family has a high level of customer happiness, based on high renewals and low complaints
Poor
80%
Poor
80%
Nationwide provides an solid level of customer happiness based on renewals and low complaints
Company | Price competitiveness | % of customers who will renew | Complaint track record | Forbes Advisor rating |
---|---|---|---|---|
Lemonade | Excellent | 93% | Poor | |
State Farm | Very good | 85% | Excellent | |
Allstate | Good | 81% | Good | |
Liberty Mutual | Good | 80% | Good | |
Progressive | Good | 82% | Varies | |
Farmers | Fair | 80% | Excellent | |
Geico | Fair | 82% | Varies | |
American Family | Poor | 82% | Excellent | |
Nationwide | Poor | 80% | Good |
Renters insurance is a type of insurance that is specifically designed to meet the needs of renters.
Renters can’t rely on a landlord’s insurance, which covers the building but not a renter’s belongings. Without renters insurance, a tenant has no compensation if a fire, tornado or other disaster rips through the building.
Renters insurance not only covers your personal belongings, but it also includes liability coverage and insurance for additional living expenses. While renters often focus on insuring their belongings, these other coverage types can prove just as essential.
Buying renters insurance can be broken down into a simple process. Here’s how to get renters insurance:
There are three main types of coverage in a typical renters insurance policy.
This coverage type covers your personal property—your furniture, jewelry, rugs, clothing, dishes, pots and pans, electronics and other times. It covers damage from problems such as theft, fire, smoke, vandalism, falling objects, explosions and the weight of snow and ice.
You’ll select a policy limit for personal property, which is the maximum amount your insurance company will pay if your personal belongings are damaged or stolen.
You’ll typically have a choice between replacement cost coverage and actual cash value (ACV). Replacement cost coverage is more expensive but it provides better coverage because it doesn’t take depreciation into account. For example, if you bought a laptop for $2,000 three years ago and it’s stolen, replacement cost would pay to replace the laptop at today’s retail prices (minus a deductible). ACV pays the depreciated value of the laptop.
Be aware that certain items have what are called “special limits” or sub-limits for certain types of losses. For example, a policy might limit stolen jewelry coverage to $1,000. That would be insufficient for a ring worth $5,000, for example.
If you need more coverage for high-value items, you can “schedule” them so you get paid what they’re worth if they’re stolen.
Many renters think of renters insurance only in terms of coverage for physical property such as furniture. But renters insurance also gives you important liability protection. Liability insurance kicks in when you’re sued for injuries or property damage to someone else. This coverage also pays for your legal defense.
So if someone falls in your apartment—or your dog bites someone—and you get sued, you can tap your renters liability coverage.
A typical liability coverage amount within a renters insurance policy is $100,000 but for the best renters insurance you can increase that amount.
A similar coverage, called medical payments coverage, is typically included in a renters insurance policy and pays for smaller medical bills no matter who was at fault. Coverage amounts are small and usually start at $1,000.
If you can’t live in your apartment because of a problem covered by the policy, additional living expenses coverage pays for hotel bills, restaurant meals and other expenses, like pet boarding fees.
For example, if you can’t live in the apartment because of a fire, you can get reimbursed for the hotel bill. Remember to save your receipts for all extra living expenses in these cases.
This coverage is also called “loss of use.”
Renters insurance doesn’t cover the physical building you’re living in. The landlord’s insurance covers the building structure and common areas such as hallways.
Renters insurance also typically won’t cover incidents that happen in common spaces. For example, if a guest slips on an icy sidewalk, that would fall under the landlord’s liability insurance.
Like home insurance, even the best renters insurance won’t cover floods, earthquakes or mudslides.
You may be able to add other coverage types to get even better renters insurance, such as:
To determine how much renters insurance you need, evaluate your need for the coverage offered with a policy. Here’s how to do it:
You can get free renters insurance quotes online or from an insurance agent.
Your best bet to get cheap renters insurance is to compare quotes from multiple insurance companies. Prices can vary for the same exact coverage, so don’t just pick a company based on a clever commercial.
You can also save on your renters insurance by asking for discounts. One of the most common types of discounts is a multi-policy discount, which is when you buy more than one type of insurance with the same company, such as bundling your car insurance with renters insurance. You can also snag small discounts for paperless billing, enrolling in auto-pay and paying your premium in full.
Pro tip: Don’t rely too strictly on price. If you have to file a renters insurance claim, you want to have good customer service.
The average cost of renters insurance is $193 a year, according to Forbes Advisor’s data. This average price is for $20,000 in coverage for belongings, with a $1,000 deductible and $100,000 in liability coverage.
Renters insurance rates will be based on factors such as:
Renters insurance is an affordable way to cover personal belongings, but don’t forget about its liability insurance and coverage for additional living expenses.
Here are some common scenarios that renters insurance can cover:
See Forbes Advisor’s ratings of the best cities for renters.
We scored insurers on three main categories in order to find the best renters insurance companies:
Renters insurance rates (60% of score): We evaluated renters insurance rates for each company in 21 random ZIP codes across the country. Companies with lower average rates received more points.
Percent of renters insurance customers who will renew (20% of score): We used data provided by Clearsurance, a leading provider of consumer insurance satisfaction ratings and reviews based on evaluations of nearly 160,000 customer reviews across car, home and renters insurance. A high portion of customers who will renew is a good indicator of superior customer service.
Complaint track record (20% of score): We used complaints compiled nationwide by the National Association of Insurance Commissioners. We evaluated homeowners insurance complaints, a category that includes renters insurance. A good track record for complaints is an indicator of superior customer service.
Because Geico and Progressive sell renters insurance policies from other companies, complaints can vary. To compensate for this we used Geico and Progressive’s policy renewal scores in place of complaints.
Excellent
93%
Lemonade was the clear price leader for renters insurance, with policies as low as $5 a month in some cases. Combined with the high percentage of customers who will renew, Lemonade outpaces its competitors for renters insurance.
A common misconception is that landlord insurance will cover a tenant’s possessions. Unfortunately that’s not the case, and you’ll need your own renters insurance policy.
With renters insurance, you can get reimbursement if your belongings are stolen or damaged by common problems such as fire.
The average annual renters insurance rate nationwide is $193, according to Forbes Advisor’s research. That works out to about $16 bucks a month.
Renters insurance policies include loss of use, also known as additional living expenses coverage. If you can’t live in your apartment because of damage covered by the policy, this coverage pays for a hotel room and other extra costs.
Yes, renters insurance covers theft of personal belongings both inside and outside your home. But renters insurance will only pay up to your policy limits. For example, if you have $20,000 worth of coverage, it will only pay up to that amount. You can buy higher policy limits.
Keep in mind, renters insurance has what are called “special limits” for certain types of items. For example, your policy might only cover $1,000 for all stolen jewelry. That won’t cut it for expensive items such as a valuable watch. It’s a good idea to schedule personal property for high value items so you’re paid what they are worth if they are stolen.
Jason Metz is a writer who has worked in the insurance industry since 2007. As a former claims handler and fraud investigator, he’s seen a lot, and enjoys helping others navigate the complexities and opaqueness of insurance. He has a B.S. in Criminal Justice from Kutztown University and an M.F.A. in Creative Writing from the University of California Riverside, Palm Desert.