Best Renters Insurance Companies (2024)

6 Best Renters Insurance Providers

After looking at each providers financial strength, customer reviews, discounts and more we have selected the following as the best renters insurance companies nationwide:

1. Lemonade: Easiest Sign-Up
2. State Farm: Best Personal Property Coverage
3. Allstate: Best Coverage Options
4. USAA: Best Membership Perks
5. Nationwide: Best Endorsements
6. American Family: Most Comprehensive Coverage

Lemonade

Best for Easy Coverage

4.4

J.D. Power 854/1000 A.M. Best N/A

Pros and Cons

Pros 100% online sign-up and claims process resolved in as little as 5 minutes Policies start at $5 per month Giveback program donates leftover money to charitable causes Cons Not rated by AM Best Less industry experience than competitors

Why We Picked Lemonade

With the company’s user-friendly mobile app, you can sign up for a Lemonade renters insurance policy in less than two minutes. The company also touts that its speedy service extends to the claims process, where policyholders can get paid in as little as three minutes when filing a claim through the app.

Even if a handy mobile app isn’t your priority, Lemonade is worth considering if you’re seeking a company that supports a good cause. The provider takes a flat fee, and once a year, it pools all money that was not used toward claims and donates it to charities. In 2020, Lemonade has donated over $1 million to various organizations chosen by its customers.

Lemonade also offers home, pet, life and car insurance.

State Farm

Best for Valuables Coverage

4.6

J.D. Power 844/1000 A.M. Best A++

Pros and Cons

Pros Customers can purchase up to $110,000 worth of personal property protection online Provides competitive premiums that are less than or equal to the national average Offers a unique add-on for a waterbed Cons You will likely need to speak to an agent to receive a quote Is often more expensive than competitors when bundling with auto insurance.

Why We Picked State Farm

State Farm allows you to purchase as much personal property coverage as you want. Online, you can purchase up to $110,000, but if you have more to protect, you can talk to your local agent to extend that amount. If you want additional coverage for more valuable items, you can use the jewelry, computer, or business property add-ons to make sure every part of your home is protected. It also offers worthwhile bundle discount for customers who already have a State Farm auto insurance policy.

If you’re a policyholder thinking about buying a home in the future, you can seamlessly purchase a State Farm homeowners insurance policy after cancelling your renters insurance.

Even if a handy mobile app isn’t your priority, Lemonade is worth considering if you’re seeking a company that supports a good cause. The provider takes a flat fee, and once a year, it pools all money that was not used toward claims and donates it to charities. In 2020, Lemonade has donated over $1 million to various organizations chosen by its customers.

Lemonade also offers home, pet, life and car insurance.

Allstate

Best for Unique Coverage

4.7

J.D. Power 835/1000 A.M. Best A+

Pros and Cons

Pros Offers discounts up to 25% Online tool helps you calculate coverage amounts Has resources to help guide you through buying insurance Cons Lack of discounts compared to competitors Below average customer satisfaction according to J.D. Power

Why We Picked Allstate

Allstate offers some of the best renters insurance in the industry because of its customizability, discounts, and customer service. Not only can you choose personal property protection up to $150,000 (about $50,000 more than what other companies cap it at), you can choose between a replacement cash value (RCV) and actual cash value (ACV) policy that will either replace damaged items as if they were new or based on what they’re worth now.

You can further customize your Allstate policy by adding one of five additional coverage options—two of which allow you to protect more valuable items, like jewelry and collectibles. Allstate policies are in line or lower than the national average, which is partially due to the five available discounts that make the premiums affordable, including savings for bundling with auto insurance.

When you need to file a claim for a covered event, you have access to a mobile app, customer portal, and customer representatives 24 hours a day, seven days a week.

USAA

Best Membership Perks

4.7

J.D. Power 894/1000 A.M. Best A++

Pros and Cons

Pros Includes flood and earthquake coverage in every policy Gives access to USAA membership perks, like travel deals and car rental discounts Customers can decide to exclude personal property or liability coverage from their policy Cons Only available to military members and their families Expensive for those with lower credit scores

Why we picked USAA

USAA renters insurance is available only to past or current military members and their immediate family. If you fit that definition, you get to enjoy policies that start at $10 per month and membership perks like travel and car buying discounts. One of the most unique features of a USAA policy is that floods and earthquakes are included in the list of covered perils, while other companies require you to buy an add-on for that coverage.

Nationwide

Best Coverage Customization

4.5

J.D. Power 852/1000 A.M. Best A

Pros and Cons

Pros Offers nine endorsements, including personal injury and refrigerated property Provides credit card, ordinance, and building additions and alterations coverage for all policies Customers can choose between an RCV and ACV policy Cons Can be an expensive option depending on the state When not bundling with auto, you may be required to speak with an agent to get a quote

Why We Picked Nationwide

Nationwide goes above and beyond the standard liability, loss of use, personal property, and medical payment coverage. With every policy, you get credit card, ordinance or law, and building additions and alterations protection on top of the four base areas of coverage. As if the policy wasn’t already unique enough, you can add one of nine endorsements to make it even more tailored to your home.

American Family

Best Comprehensive Coverage

4.6

J.D. Power 856/1000 A.M. Best A

Pros and Cons

Pros All policies include replacement cost value (RCV) Provides 24/7 customer service Offers five renters insurance discounts Cons Limited ability to customize coverage amounts Lack of endorsement options

Why We Picked American Family

American Family renters insurance looks similar to Allstate, with standard personal property, liability, additional living expenses, and medical payments to others coverage and seven endorsement options. All personal property coverage is RCV, but the policy still stays affordable because of the five discounts that help bring down the price, including:

• Multi-policy discount: This discount can save renters up to 15% on their policy and up to 29% on their auto insurance policy when they purchase the policies together from American Family.
• Generational discount: Renters who are between ages 18 and 30 and have parents with an American Family policy can save on their renters insurance with this discount.
• Smart home discount: This discount helps renters save if they have smoke alarms, fire alarms, water detection systems, or a home security system.
• Autopay discount: Setting up automatic billing can help you save with American Family and ensure that your bills are paid on time without any penalties.
• Loyalty discount: After 12 months of being with American Family, renters can take advantage of lowered premiums through a loyalty discount.

Like Allstate, you’ll receive 24/7 customer service through the American Family portal, app, and phone number.

What Does Renters Insurance Cover?

Most renters insurance policies have four types of coverage—personal property, loss of use, liability, and medical payments to others. In addition to these four areas of coverage, renters insurance companies typically allow you to customize your policy with other endorsements.

• Personal Property: This protects the personal belongings that you own in your rental and in your car. You’ll want to take inventory of those items and estimate their value to make sure you get the right amount of coverage. Personal property coverage won’t protect valuable items, like jewelry and collectibles, so you’ll have to purchase an endorsement for those items.
• Loss of Use: If an event makes your home temporarily uninhabitable for repairs, your policy will cover additional living expenses during that time. This may include the cost of a hotel room or temporary rental, the cost of laundry, or the cost of meals. Loss of use coverage is usually expressed as a percentage of your personal property coverage, so the more personal property coverage you get, the more loss of use coverage you’ll receive.
• Liability: Landlords typically require this type of coverage so that they aren’t held liable for events that happen to your rental. This coverage protects you when you’re responsible for causing bodily injury to your neighbor or for damaging their personal property. It may even cover legal fees if that neighbor sues you.
• Medical Payments to Others: If a guest injures themselves in your home, your renters insurance policy will cover bills if that injury requires medical attention.
• Endorsements: While you’re not required to buy any sort of additional protection, you have the option to cover all of your belongings. Examples of popular endorsements include identity theft protection, earthquake coverage, schedule personal property, jewelry protection, and water backup.

Here’s an example of what a typical renters insurance policy could look like:

• Personal property: $25,000 of coverage
• Loss of use: $5,000 of coverage
• Liability: $100,000 of coverage
• Medical payments to others: $1,000 per person
• Deductible: $500

What Does Renters Insurance Not Cover?

A standard policy will not cover all events and all items. Here are few areas that will typically not be included in your renters insurance policy:

• Pest damage
• Natural disasters
• Car theft or damage
• Roommate property
• Expensive belongings such as jewelry and electronics
• Certain dog breeds and injuries

Most renters insurance companies help you limit the number of events that will not be covered by your policy by offering endorsements. Endorsements are additional coverage areas that can be added to your policy to protect you from things not covered by a standard policy such as floods and earthquakes.

How Much Does Renters Insurance Cost?

According to data we sourced from Quadrant Information Services, renters insurance costs $15 a month on average or $180 per year. For very basic coverage, though, companies including Lemonade and State Farm claim to offer plans for as low as $5 per month. Regardless of the amount of coverage you select, certain factors such as your age, claims history, location, and credit score can affect your premium.

How to Lower the Cost of Renters Insurance

Here are a few ways you can decrease your premium to make your policy more affordable and get the cheapest renters insurance:

• Add security devices to your apartment such as a doorbell camera or alarm system
• Select an apartment building with sprinklers in each room and a central fire alarm
• Bundle your renters policy with auto, life, or pet insurance to get discounts.
• If your provider offers a loyalty discount, make sure to stick with them for more than a year to get the benefits.
• Purchase your policy online so you can easily compare quotes in real time
• Get discounts by setting up auto pay and signing up for paperless billing
• Shop for a policy before your current policy expires
• Choose a higher deductible to lower your premium

How to Choose a Renters Insurance Company

To find the right renters insurance policy for your needs, consider the following:

Set the Right Budget

Decide how much room in your budget you have for renters insurance because that will affect what company you can buy from and how much renters insurance coverage you can get.

There are a few factors that may affect your insurance premium. Most renters pay a monthly premium, which might cost more than an annual premium because the provider adds interest onto the monthly cost. If you can afford to pay $180 upfront, you’ll save money in the long run.

If you’re looking to get your cost down, you can choose a higher deductible. The average deductible is $500 per covered event, but if you choose $1,000 or $2,500, your premium will be lower.

You can also look for companies that offer discounts. The company that provides your auto insurance will likely give you a discount for buying rental insurance through them. Other common discounts include having safety features, like smoke detectors and fire extinguishers, in your home and being claims-free.

Calculate How Much Coverage You Need

The amount of personal property coverage you have should be equivalent to the total value of the belongings you have. You can calculate this amount by taking an inventory of all the items in your apartment, estimating their value, and adding them together. The number you get should be the amount of coverage you choose when getting a quote on a policy.

Another factor to keep in mind when calculating your personal property is whether you want an actual cash value (ACV) or replacement cost value (RCV) policy. If you want your insurance provider to cover the cost of buying a new item if that item is damaged, then estimate your items as if they were new and look for a company with an RCV option. The alternative is estimating your item’s value based on depreciation and purchasing an ACV policy.

Another way to estimate your property’s value is by using a tool that insurance providers like Allstate and Geico offer. This tool breaks down your belongings by room and makes it easier to determine what everything is worth.

Evaluate Customer Service Options

A covered event could happen at any time, and when it does, you want to make sure you can file a claim right away. The best renters insurance company is one with 24/7 customer service. If another company has the policy you want at the price you can afford, ensure it at least has a claims center that’s open 24/7 or you have a customer portal and mobile app to file a claim yourself.

Consider the Risk of Natural Disasters

If you live in a state like California or Florida that’s vulnerable to natural disasters, you may want to consider a company that provides specific coverage for those events.

Most companies won’t include natural disaster coverage in your base policy, so you’ll likely have to pay extra for an endorsement or get supplemental coverage from another organization like the National Flood Insurance Program (NFIP). If you’re eligible for USAA and want natural disaster coverage, we recommend getting a quote from them since it’s the only company in our review that includes flood and earthquake coverage under all policies.

Our Conclusion

The providers in this review offer some of the best renters insurance policies in the industry. While Lemonade, State Farm, and Allstate are our top picks, any of the eight will provide you with comprehensive coverage for $15 per month or less.

To get started, we recommend getting a quote with Lemonade which often has the strongest coverage at the most affordable rate:

Our Rating:

Best for Easy Coverage

4.4/5

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FAQ About Best Renters Insurance

Our Rating Methodology

The Quartz Advisors Team is committed to providing comprehensive and unbiased reviews to our readers. This means earning your trust through transparency and having the data to back up our ratings and recommendations.

With that in mind, we created an objective rating system to score each home insurance company.For a full explanation of our. methodology view our Renters methodology page.  Our rating system is a weighted, 100-point scale based on the following factors:

• Coverage (30)
• State availability (7.5)
• Customer service (15)
• Technology (12.5)
• Reputation (20)
• Additional benefits (15)

Ratings listed in this article are accurate as of February 2023.

A.M. Best Disclaimer

Jesus Sanchez Garcia Author

Jesus Sanchez Garcia is a writer who specializes in producing content about home warranties, renters insurance and other home categories. He has an eye for research and regularly conducts interviews with industry experts to provide sound advice to homeowners. Jesus has a Bachelor’s Degree in Business Administration. When he isn’t producing content, you can find Jesus enjoying a cup of coffee at a local cafe or cheering on his beloved Arsenal.

Allie Rosa Author

Allie Rosa is an experienced editor with a background in crafting and refining content across various home and thought leadership categories. Allie holds a bachelor’s degree in English and completed her master’s degree at Columbia University. Away from the editing desk, Allie enjoys reading, practicing yoga and traveling.