|
You might be using an unsupported or outdated browser. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. |
SCROLL TO SITE
Renters insurance is often overlooked but it provides valuable coverage at a really good price. Among the popular renters insurance companies we analyzed, the average cost of renters insurance was only $165 a year for $20,000 in coverage for belongings.
Here are the best renters insurance companies based on price, coverage options and discounts.
$149
a year
19 states,
mainly in the Midwest and Pacific Northwest
$149
a year
19 states,
mainly in the Midwest and Pacific Northwest
$154
a year
29 states
$140
a year
Nationwide to those with a military affiliation
$140
a year
Nationwide to those with a military affiliation
$182
a year
12 states
in the Midwest and Eastern U.S., and Washington, D.C.
$182
a year
12 states
in the Midwest and Eastern U.S., and Washington, D.C.
$220
Nationwide
$126
a year
26 states
$126
a year
26 states
$166
Nationwide
$166
Nationwide
$151
43 states
and Washington, D.C.
$151
43 states
and Washington, D.C.
Company | Forbes Advisor rating |
---|---|
American Family | |
Lemonade | |
USAA | |
Erie | |
Progressive | |
Auto-Owners | |
Chubb | |
Nationwide | |
Country Financial | |
Farmers | |
State Farm | |
Travelers | |
Allstate |
Renters insurance is a type of insurance that is specifically designed to meet the needs of tenants.
Renters can’t rely on a landlord’s insurance, which covers the building but not your belongings. Without renters insurance, you’d have to pay to replace all your possessions 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. Plus, coverage for guest medical payments can pay out for small injuries to guests (such as up to $1,000) no matter who’s responsible for the injury. While renters often focus on insuring their belongings, these other coverage types can prove just as valuable.
Getting renters insurance can be broken down into a simple process:
Here are the main types of coverage in a standard 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. For example, you might choose $30,000 in coverage.
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 would pay only the depreciated value of the laptop.
Some items have “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 people think of renters insurance only in terms of coverage for 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.
Medical payments coverage is typically included in a renters insurance policy and pays for smaller medical bills no matter who was at fault. For example, if a guest slips in your home and suffers a small injury, this could pay out regardless of 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 can pay for hotel bills, restaurant meals and other extra costs, like pet boarding fees. Remember to save all your receipts in order to make a claim.
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.
A standard renters insurance policy won’t cover your roommate’s possessions, vehicle damage or car theft, or damage caused by insects or pets.
Coverage for floods, earthquakes and mudslides is usually excluded but can be purchased through additional policies.
You can often add other coverage types to get even better renters insurance, such as:
Renters insurance is an expensive way to protect your belongings and get valuable liability insurance. Prices among renters insurance companies are often very similar. Here’s a look at average renters insurance costs among popular insurers.
Company | Average annual renters insurance cost | |
---|---|---|
State Farm | $125 | |
Auto-Owners | $126 | |
USAA | $140 | |
American Family | $149 | |
Nationwide | $151 | |
Lemonade | $154 | |
Allstate | $154 | |
Chubb | $166 | |
Erie | $182 | |
Farmers | $191 | |
Travelers | $191 | |
Country Financial | $191 | |
Progressive | $220 | |
Renters insurance is an affordable way to cover personal belongings, and don’t forget about its liability insurance and coverage for additional living expenses.
Here are common scenarios that renters insurance can cover:
Some landlords are requiring that tenants purchase renters insurance in order to avoid potential liability claims from renters due to damaged property from problems such as fire. Theft is another reason a landlord may require renters insurance for tenants.
If your personal belongings are stolen, renters insurance typically covers this loss. Without renters insurance to recoup losses, a renter might decide to sue the landlord failing to protect the property.
Landlords who require renters insurance often do so by including a clause in the lease. For example, a lease might state that the renter must provide proof of renters insurance within 14 days of the first day of the lease.
While the cost of renters insurance is typically low, it’s good to compare quotes from multiple insurance companies. Don’t pick a company based on a clever commercial.
You can also save on renters insurance by asking about discounts. Common renters insurance discounts include:
We scored renters insurance companies based on price (20%), coverage options and endorsements (50%) and discounts (30%). Renters insurance rates are from Quadrant Information Services, an insurance data analytics company.
The average renters insurance cost is $165 a year for $20,000 in coverage for belongings, according to Forbes Advisor’s research. That works out to about 14 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 (such as a fire or tornado), this coverage pays for a hotel room and other extra costs.
Renters insurance covers theft of personal belongings both inside and outside your home. A renters insurance will only pay up to your policy limits you have chosen. For example, if you have $20,000 worth of coverage, it will only pay up to that amount. You can buy higher policy limits.
Renters insurance has what are called “special limits” for certain types of items. For example, your policy might only cover $1,000 for stolen jewelry. That won’t cut it for expensive items such as a valuable watch. You can “schedule” valuable items, which provides extra coverage.
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.