Do you believe that unless you are wealthy, elderly, or possess pricey furnishings or art collections, you do not require a renters insurance policy?
If so, you have fallen victim to a renters insurance misconception. Furthermore, you’re taking a fast and loose approach to your financial future if you don’t get basic personal liability insurance for your belongings.
Protecting yourself from future financial ruin doesn’t have to cost as much as you would imagine, and peace of mind is invaluable. Thankfully, there are several affordable options available for renters insurance coverage.
The Top 11 Renters Insurance Providers in December 2023
The top renters’ insurance providers on the market are these ones. However, since no two insurance companies are the same, thoroughly weigh each one’s advantages and disadvantages before selecting a policy—don’t only focus on insurance costs.
Observe closely the opinions of independent rating agencies like A.M. Best and J.D. Power. More important than a thousand anonymous customer reviews is their word.
• Amica: Best Overall
• Erie Insurance: Best Bundle Discount
• Lemonade: Best Online Application Process
• State Farm: Best Local Agent Network
• Country Financial: Best Option for Discounts
• American Family: Best for Customized Policies
• USAA: Best for Military Families
• Allstate: Best for Policy Add-Ons
• Nationwide: Best for Actual Cash Value Replacement Coverage
• Farmers Insurance: Best for Professional Discounts
• Policygenius: Best Online Renters Insurance Broker
1. Amica: Best Overall
• AM Best rating: A+
• State availability: All states except Hawaii
• Complaint volume: 42 in the last 12 months
Amica provides courteous, affordable renters insurance with a smile. Although your actual price may vary depending on your location, the coverage you choose, and any extra add-ons you select, policies start at less than $4 per week.
Amica offers a 15% discount when you combine products like car, life, or umbrella plans. They also have a quick application process that may complete an insurance policy in a matter of minutes.
Finally, if you have been with ANY insurance carrier for at least two years, Amica offers a loyalty discount, demonstrating continuity of coverage. If you don’t have any claims for three years, they also provide you a claim-free discount.
Pros
• Low premiums
• Loyalty discount
• Rapid application process
Cons
• Fewer discounts than some competitors
• Costs extra for replacement cost coverage of personal belongings
2. Erie Insurance: The Best Discount on Bundles
• AM A+ is the best rating.
States that are available: Wisconsin, Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia
• Number of complaints: 73 over the previous 12 months
Prominent for offering significantly reduced policy bundles is Erie Insurance. You may be able to receive premium discounts of up to 25% if you combine your renter’s insurance with your auto, life, vehicle, or other policies.
In J.D. Power’s 2020 home insurance research, Erie Insurance, which has over 13,000 independent agents, came in second place overall for customer satisfaction.
At the moment, they have more than 6,000 active business, auto, and home insurance policies.
Pros
• Many coverage options
• Opportunities for discounts
• Customization options available
Cons
• No online quotes
• Limited state availability
3. Lemonade: The Finest Online App Procedure
• AM 28 states are available.
Best rating: A
• The number of complaints in the past 12 months is 173.
With a quick onboarding procedure and an all-online policy application workflow, Lemonade is a lean, agile renters and home insurance provider that makes it simple to obtain renters insurance and move on with your life.
Lemonade boasts that, in comparison to most competitors, their usual application completes in under 90 seconds.
Lemonade Renter’s Insurance offers some of the quickest claim processing times in the market, with monthly premiums as little as $5. Their AI system can accept you for insurance in less than 90 seconds, and they pay claims quickly.
Advantages:
• Quickly pays claims;
• Affordable policies
• Provides special coverage for things like water damage to your possessions.
Cons:
• Not accessible in all locationsNumerous grievances from customers
4. Best Local Agent Network (State Farm)
• AM Top rating: A++;
State availability: All states;
Number of complaints received in the last 12 months: 1,699
With almost 19,000 local agents nationwide, State Farm has the biggest network of any renters insurance provider on our list, making it one of the biggest insurers in the United States overall.
Renters insurance policies can be opened and managed without the assistance of a State Farm representative, but it’s comforting to know that you can contact a real person in your neighborhood if necessary.
Add-ons like earthquake and flood coverage and scheduled personal property protection for priceless goods are available with State Farm rental insurance policies.
Bundling renter’s and auto insurance can result in savings of up to 17%. In addition, you can choose inflation coverage to maintain the same cost of your policy even in periods of high inflation.
Pros
• Available nationwide
• Offers inflation coverage
• Offers many coverage options
Cons
• Must go through an agent
• Large number of complaints
5. Country Financial: The Greatest Choice for Savings 20 states are available.
• Best rating: A+
• Number of complaints: 37 over the previous 12 months
Country Financial offers Basic or Premier coverage to give you options with your renter’s insurance. Basic coverage is the most popular, covering damage from fire, theft, vandalism, wind, and frozen pipe damage.
The premium policy covers things like power surges and spilled paint damage in addition to the standard coverage.
Country Financial also includes options for actual cash value or replacement cost coverage to protect you financially if you must replace expensive items since costs usually increase.
They also offer coverage for high-value items and even floods. You could get discounts if you bundle auto or life insurance with your renter’s insurance, go five years without a claim, are a good payer for three years, or remain loyal to Country Financial
Pros
• Low complaint volume
• Many discount options
• Many options for coverage
Cons
• No online quote option
• Not available everywhere
6. American Family: Ideal for Particularized Regulations
• State availability:
• 19 states; highest rating: A
• Number of complaints received in the past year: 91
American Family provides a basic renter’s insurance policy with numerous add-ons for a personalized coverage. In the event of a disaster, personal property, personal liabilities, and additional living expenses are covered by their renter’s insurance. Few companies provide the add-ons that American Family offers, which include coverage for home businesses, pets, travel, sewer backup, identity protection, and credit monitoring, among other things.
American Family has great discounts as well, such as loyalty, paperless, autopay, and full-pay discounts, just like many of the businesses on our list.
Pros
• Ways to save money
• Online quotes available
• Unique opportunities for add-on coverage
Cons
• Not available everywhere
• Add-ons can make your rental insurance costly
7. USAA: The Greatest Option for Military Families
A++ is the best rating.State availability:
All states
• Number of complaints received in the last 12 months: 1,710
For military people and their families, USAA offers renters insurance for as little as 33 cents a day.
They say their claims process is easy and they have won awards for their outstanding customer service on a regular basis. USAA renter’s insurance follows you around, protecting your possessions no matter where you go.
USAA’s automatic replacement cost coverage, which replaces damaged products without depreciation deductions, is a special feature.
Bundled discounts, up to 20% off if you go three years without filing a claim, 28% off if you live on base, and up to 45% off if you’re enrolled in a U.S. military service academy are just a few of the numerous discount options that USAA provides.
Pros
• Reasonably priced premiums
Covers flood damage and provides military families with substantial savings
Cons
Requires membership in USAA; does not cover all water damage
8. Allstate: The Best Insurance Extras • AM A+ is the best rating.
• State of availability: All states
• 1,641 complaints in the previous 12 months
State Farm and Allstate are two full-service insurance companies that are frequently brought up together.
Allstate offers several special coverage options, such as identity theft restoration coverage and umbrella insurance, which is essential for pet owners in multi-tenant buildings, even though State Farm has a somewhat larger local agent network.
Renter’s insurance can be obtained for as little as $4 a month when you combine it with Allstate auto insurance.
In addition, additional living expenses and guest medical coverage for anyone hurt on your property are covered in case you have to move while your home is being restored.
Advantages:
• Provides coverage for guest injuries • Provides bundled package pricing • Contains umbrella insurance and identity theft restoration coverage
Cons:
• Low ratings for customer satisfaction
• The cost of coverage can be higher than that of other insurers.
9. Countrywide: Best Replacement Coverage for Actual Cash Value
• AM A+ is the best rating.
• States where it is available: 47
• Number of complaints received in the past year: 95
Many rivals’ typical renter’s insurance coverages are not offered by Nationwide. It includes, among other things, coverage for bodily injury, theft, natural calamities, and water backup damage.
In addition, credit card coverage is included, offering monetary security against unapproved debit or credit card purchases.
Brand New Belongings is another optional replacement cost add-on offered by Nationwide. Nationwide offers to repay you for stolen or damaged products at the expected cost of purchasing new replacements, rather than their current cash value, which is more typical, if you’re ready to pay slightly higher premiums.
After one break-in or covered loss, this policy should pay for itself.
Positives: • Adaptable choices
• Quotes can be obtained online; • Coverage for earthquakes
Cons: • Not accessible in every state
• Not open about its price cuts
10. Farmers Insurance: The Greatest for Expert Savings
• AM Top score: A
• State of availability: All states
• Volume of complaints: Not provided
One of the few renters’ insurance providers that offers rate reductions to select public servants, such as teachers and firefighters, is Farmers Insurance. These savings differ by area and might not be offered everywhere, but they give diligent, frequently underpaid tenants a significant advantage.
Farmers Insurance also provides discounts for security or fire alarms, bundled savings, and a smoke-free household discount (after two years). Personal article floaters, which are add-on coverage for any personal belongings worth more than $500, are another alternative they provide.
Advantages:
• Online quote functionality
• Various discount options
• Public service professional discounts
Cons:
• Not all deals are offered across the country.
• Premiums may be more than those of other businesses.
11. Policygenius: Top Online Provider of Renters Insurance
• AM Top rating: n/a
• State of availability: All states
• Number of complaints: 8 over the previous 12 months
Although it doesn’t publish its own policies, the quotation aggregator Policygenius is nevertheless worthwhile to be on this list.
By guiding you through the process of creating a policy, Policygenius saves you time by allowing you to compare quotes from several providers and choose from a variety of coverages, deductibles, and add-ons.
A plethora of renters insurance options will be shown to you in an understandable way, saving you the trouble of sorting through emails or wasting hours on the phone in order to choose the most affordable coverage.
Advantages:
• Easy to use; offers possibilities for personalized plans
• Facilitates easy renter’s insurance shopping
Cons
• Does not release its own guidelines
• You might have to speak with an agent over the phone or in person.
Techniques
We assess renters insurance providers using a number of critical metrics. Metrics pertaining to insurers’ propensity to pay claims, policyholders’ options and relative costs, and the general customer experience are areas in which we focus particularly.
Rating of Financial Strength
Based on financial reserves and other considerations, an insurer’s propensity to pay claims is gauged by a third-party financial strength rating. We make use of independent, well-respected rating agencies to objectively evaluate insurance.
Customer Satisfaction Rating: To ascertain how well businesses serve their customers (on average), we also make use of third-party customer satisfaction ratings that are derived from customer surveys and other data. A good customer satisfaction rating should give you some confidence that your insurer will treat you well, albeit your experience may differ.
Options for Coverage
Renters insurance isn’t as sophisticated as other insurance kinds, but it does come in a variety of formats and could include riders, or extras, that change the price and scope of the policy. Furthermore, we favor insurers who can accommodate a broad range of client needs, even though those with more coverage alternatives aren’t always superior than competitors with more specialized offerings.
Comparative Price
In general, renters insurance is less expensive than homeowners insurance. Furthermore, contrary to popular belief among new candidates, it is not as costly.
In spite of this, rates do differ by policy and insurer. Finding insurers that provide greater overall value for policyholders’ money is our goal; this isn’t always about finding the lowest price, but rather striking a good balance between cost, coverage, and claims.
Procedure for Applications
Getting a property insurance application shouldn’t be difficult. Though the majority of renters’ insurance providers now handle applications online, there are significant differences in the length and complexity of the procedure. We favor providers who make it as simple as possible to apply for renters insurance and to increase or decrease coverage.
Procedure for Claims
You have a right to anticipate a prompt processing, approval, and payment of your insurance claim by your insurance provider. Regretfully, this is not typical. We monitor both customer-reported claims concerns and independent assessments of insurers’ claim procedures to make sure we are endorsing businesses that fulfill their commitments.
FAQs Concerning renters insurance, you have inquiries. We know the answers.
What Is the Price of Renters Insurance?
Not nearly as much as you may believe. The following variables affect your real monthly or yearly premium:
• The dollar value of the policy (the utmost amount it will cover)
• The deductible of the policy, or the amount you must pay out-of-pocket before coverage begins.
• If you own any extremely precious items, including jewelry made of gold or diamonds (which may call for additional insurance)
• Whether replacement cost value (RCV) or actual cash value (ACV) of the products is covered by your policy; the former is significantly more expensive.
However, a simple ACV policy with a high deductible and a limited coverage limit is probably fairly inexpensive, perhaps costing as little as $10 or $20 a month. That’s not much more than what your preferred streaming service costs.
Continue Reading: The Most Reasonably Priced Cities for RentersHow Much Does Renters Insurance Cost and What Does It Cover?
What Is Covered by Renters Insurance?
Three primary categories of coverage are offered by renters insurance policies:
• Contents coverage, which pays you back for items destroyed or lost due to covered events
• Liability insurance, which covers the expenses of claims made by those harmed or ill in your rental
• Loss of use coverage, which assists in covering the cost of interim accommodation in the event that a covered occurrence renders your rental property unusable.
“Named perils” and “all-risk” policies are the two lenses that renter’s insurance policies employ to decide whether to cover specific situations.
Whereas the latter covers claims linked to any incident with the exception of those expressly prohibited in the policy, the former restricts coverage to events mentioned in the policy. The average premium for “named perils” insurance is less than that of “all-risk” plans.
• Continue Reading: How to Make a Claim on Renters Insurance
What Makes RCV and ACV Different From One Another?
Actual cash value (ACV) and replacement cost value (RCV) are the two separate scales used by renter’s insurance plans to determine payouts.
The replacement cost of an acceptable replacement is determined by an RCV policy using the current market value. Put otherwise, RCV covers the cost of a brand-new replacement.
ACV policies take depreciation into account. It pays what the insurance company estimates you would obtain for a used item on the market. That is considerably less than RCV for older products.
RCV insurance have higher premiums than ACV policies because they offer larger rewards. If you own a lot of relatively new items, an ACV coverage can better suit your budget and still pay out a respectable amount.
Who Requires Insurance for Renters?
Renter’s insurance is required for anyone renting a property, unless they don’t care about losing their personal possessions. Personal belongings are not covered by landlord insurance. For instance, renter’s insurance would cover it if there was storm damage and water leaked into the house, breaking your equipment. The landlord’s policy would not.
Your possessions are further protected when traveling with renter’s insurance. You are safe wherever you travel, and certain rules might even safeguard your credit or identity in the event that a hacker uses your credit cards or steals your identity.
•Continue reading:
• A Guide to Landlord and Tenant Act Laws
• Does My Apartment Require Renters Insurance?
What Typically Does Renter’s Insurance Not Cover?
The majority of renter’s insurance policies exclude coverage for landslides, floods, and earthquakes. Additionally, they might not include assets worth more than the base coverage amount or pest infestation. Thankfully, the majority of insurance providers give add-ons to cover these occurrences, ensuring you have the coverage you require.
My renter’s insurance increased; why?
The premiums for renter’s insurance, like those for any coverage, will rise annually in line with inflation. However, other things like making a claim, letting your coverage expire, or adding expensive assets to your insurance could have an impact on your premiums.
Instead of sticking with the same provider every year, shop about for coverage to see if you can discover lower rates, unless your current provider offers a respectable loyalty discount.
How to Pick the Best Provider of Renters Insurance
Think about how different renters insurance providers handle your unique coverage requirements while comparing them. Inquire about things like: • Does the insurer provide plans that include liability, contents, and loss of use coverage? Examine the policies against the coverage you require. Think about whether you want something more comprehensive, like guest coverage or identity theft protection, or if you just need coverage for your personal belongings.
• Which scale—actual cash value (ACV) or replacement cost value (RCV)—is used for payouts? You will receive a depreciated value for any items deemed lost or damaged if your policy provides actual cash value. To be sure, compare the costs of RCV and ACV. This might not be sufficient to replace them at today’s prices.
• Do policies solely cover “named perils” or “all-risk”? Examine the “all-risk” insurance carefully for any exclusions, or determine whether a “named perils” policy offers sufficient protection to cover you in any situation you might encounter.
•Is it possible to directly add extra coverage for valuables to an insurer’s policies? Make sure you have adequate coverage for the products you own because not all providers offer extra coverage for items worth more than $500.
• Are there any additional riders or changes available? The majority of renter’s insurance policies have riders or add-ons that you can use to tailor the coverage to your specific requirements.
Think about how different renters insurance providers handle your unique coverage requirements while comparing them. Pose queries such as these: You ought to evaluate elements like ratings for both financial strength and consumer satisfaction. It doesn’t matter if an insurer checks all the boxes; what matters is that they must be able to reimburse claims in the future.
