The Best Renters Insurance Companies in America

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The best renters insurance protects tenants’ belongings and can shield them from potential liability. It’s crucial for tenants to find quality renters insurance companies that will be there when they need it most.

When renting a home or apartment, a renter might assume that their landlord will step in to pay for repairs or replacement if the property is damaged. To a certain extent, that is true: a landlord is responsible for repairing damage to the structure of the building caused by a covered event—but that coverage doesn’t apply to a renter’s personal possessions. For instance, if a tenant’s clothes are damaged by fire, or someone breaks in and steals their electronics or jewelry, it’s up to the renter to replace those items, not the landlord. Renters insurance provides coverage to help tenants do just that.

But exactly what is renters insurance? This type of coverage—sometimes referred to as apartment insurance, although it can apply to other kinds of rental properties, too—can help tenants cover the cost of replacing their personal possessions if they are stolen or damaged by a covered event, which can include fire, smoke, wind, hail, and some forms of water damage. However, renters insurance coverage doesn’t end there. If an apartment is damaged by fire and the tenant needs to temporarily stay in a hotel while repairs are made, renters insurance can assist with the additional funds needed to cover those costs, above and beyond the renter’s normal cost of living. If a guest trips in the apartment and breaks their arm, renters liability insurance can help cover their medical costs. Having renters insurance can be very useful, as it helps to protect renters’ belongings and financial assets. It is also a relatively affordable type of coverage. As such, renters may want to think ahead about their insurance needs when they are combing through the best rental listing sites and searching for a new home or apartment. It’s important that they find the best renters insurance company to provide the coverage they need at a price they can afford. This curated list provides a good starting point for renters looking for the best coverage for their needs.

BEST OVERALL: State Farm
RUNNER-UP: American Family Insurance
BEST FOR BUNDLING: Nationwide
BEST DIGITAL EXPERIENCE: Lemonade
BEST FOR MILITARY MEMBERS: USAA

The Best Renters Insurance Companies Options — Photo: istockphoto.com

What to Consider When Choosing One of the Best Renters Insurance Companies

While price is an obvious consideration when a renter is looking into how to get renters insurance, it’s also essential for them to weigh a company’s coverage options, claims process, and customer service ratings. In particular, it’s important for potential customers to look at the coverage limits, coverage area, and discounts for each insurance provider because these individual factors can affect the price the most.

Coverage Area

Renters insurance may not be available from all insurance companies in all states, and availability may even be limited by ZIP code. When shopping for the best renters insurance, renters will want to begin by finding out whether their location is included in the renters insurance company’s coverage area. If not, they can quickly move on to the next company. This will save potential customers a lot of time and hassle when searching for a home renters insurance policy. In addition, some coverage options may not be available in every state, even if the insurance company provides renters insurance nationwide. Renters will want to check that any coverage they absolutely need is available in their exact location before proceeding with their chosen insurer.

Coverage Limits

All renters insurance policies have maximum limits for personal belongings, liability coverage, expense reimbursements, and other types of coverage. Therefore, when comparing different policies, renters will want to look at the coverage limits offered by each provider to see if those amounts are high enough to pay the full replacement cost of any damaged or stolen possessions. Although policies may cost the same in some instances, a renter may find that one policy has lower coverage limits, which could limit the size of a payout after they’ve filed a claim. Renters want to get the most value from their insurance while minimizing their own out-of-pocket costs, so it’s important for them to weigh these coverage limits when comparing the best renters insurance policies to get the appropriate amount of renters insurance coverage.

Additional Policies and Add-Ons

When shopping for renters insurance, a renter may see options for specialty coverage for jewelry or collectibles in addition to identity theft protection or even pet protection. These coverage options are not all the same. For example, coverage specifically for jewelry typically requires an additional stand-alone policy separate from renters insurance coverage. That means it may have its own premium, deductible (the amount a policyholder pays out of pocket before a claim is paid), and coverage limits. However, adding coverage for identity theft or damage caused by pets is more likely to be an option a policyholder can add to an existing renters insurance plan. Even so, add-on options will likely vary by insurance company, so renters may want to check that any extra coverage they want to purchase is available.

Quote Process

Insurance companies can offer various ways for potential customers to get renters insurance quotes. Some require a renter to contact a local agent by phone or in person to provide personal information so they can receive a tailored quote. Some insurance companies offer an online quote process to give renters a general idea of cost, and some companies offer both methods. When shopping for the best renters insurance, finding companies that provide a convenient quote process can also help renters more easily compare renters insurance rates and policy options so they find the right provider and plan to suit their needs.

Claims Process

When shopping for the best renters insurance, renters will want to look into the claims process. They’ll want to find out whether they can they file a claim online using the insurance company’s site or mobile app, whether they will need to see an agent or wait for an insurance adjuster to evaluate the situation, and how long will it take for the insurance company to approve and pay out a claim following a covered event. When it comes to replacing clothing, electronics, or other belongings, renters likely won’t want a long, drawn-out claims process when they need those funds as soon as possible to help them replace what was lost.

Discounts

To help save on insurance for renting a home or apartment, customers will want to ask insurers about any renters insurance discounts offered. For instance, customers may receive a lower rate for bundling renters insurance with a car insurance policy. Other possible cost-saving opportunities could include loyalty discounts, discounts for installing protective devices such as smoke detectors or alarm systems, paperless billing discounts, or automatic payment discounts. The availability and amount of discounts will vary from company to company, so it’s important that renters take them into consideration when comparing insurance rates. The right combination of discounts and savings could turn what would otherwise be a pricey policy into a relatively cheap renters insurance plan.

Actual Cash Value vs. Replacement Cost Coverage

A key factor for renters to review and compare when shopping for insurance is the payout method. Renters insurance policies typically pay out a claim amount based on either the replacement cost value or the actual cash value of the covered items. The replacement cost value is the amount it will cost a renter to buy a new item in like condition to the one that was lost, while the actual cash value refers to the depreciated value of the item at the time of the claim. Actual cash value could mean that a policyholder winds up receiving a lower payout than they need to replace the covered item at current prices.

Replacement cost coverage typically costs more per month than actual cash value coverage because payouts tend to be larger. Not all renters insurance providers offer replacement cost coverage, either, which can impact a tenant’s decision when choosing the right renters insurance policy for them.

AM Best Rating

As renters shop around for the best renters insurance, they may notice that many companies mention their AM Best rating. AM Best is a credit-rating agency that is widely recognized as a credible source for evaluating the financial strength of insurance companies. An insurance company’s financial strength is an important indicator of the company’s ability to pay out claims to its customers. AM Best insurance ratings fall between A++ (“Superior”) and D (“Poor”). Some ratings may include extra plus marks that may separate them from competitors. However, a rating of B+ (“Good”) or higher is a good indication the insurance company will likely be a solid choice for renters insurance.

Complaints

Reviewing customer complaints about a renters insurance company can provide renters with insight into how well it treats its customers and pays out claims. There are two critical resources for this information. The first is the National Association of Insurance Commissioners, which maintains a database of complaints about insurance companies. Renters simply need to enter the insurance company’s information on the Consumer Insurance Search page, choose “Click for Report Options,” and then ”Go to Complaint Trend Report.” They can also check to see the company’s J.D. Power ranking. J.D. Power analyzes a variety of consumer data to determine a company’s customer satisfaction ranking.

Our Top Picks

The best renters insurance companies focus on providing a range of coverage options at an affordable price while also making it easy for customers to purchase. The following companies checked all these boxes, and more, making them among the best renters insurance picks out there.

Best Overall

State Farm

Why It Made the Cut:

State Farm’s nationwide availability, multiple ways of getting a quote, strong financial strength, high customer satisfaction ratings, and affordable price all contribute to its top spot.

State Farm offers a great combination of benefits that many renters would want out of their insurance. Renters across the country can get a quote online, by phone, or by talking to a local agent. Rates are typically lower than those of competitors and the national average cost for renters insurance. And if the renter already uses State Farm for their auto, life, umbrella, or other insurance needs, they can bundle their renters insurance with those policies for additional savings. Some discounts may vary by state and not apply to all renters, but State Farm’s already low prices mean renters don’t necessarily need to rely on discounts to get a low rate.

Given that State Farm has an AM Best rating of A++, a report for excellent customer satisfaction per the National Association of Insurance Commissioners, and a seamless web experience, users can feel confident their renters insurance claim will be handled correctly and promptly should they need to file one.

Read our Bob Vila State Farm renters insurance review

Specs

Coverage area: 50 states and Washington, D.C.
Additional policies: Vehicle, life, health, small business, pet, umbrella
Quote process: Online, phone, agent
Claims process: App, online, phone, agent
AM Best rating: A++
Sample monthly cost: $11.08

Pros

Relatively low monthly costs
Excellent customer satisfaction
A++ AM Best rating
User-friendly website

Cons

Limited discount opportunities

Runner-Up

American Family Insurance

Coverage area: 19 states
Additional policies: Vehicle, life, business, umbrella, travel
Quote process: Online, phone, agent
Claims process: Online, app, phone, agent
AM Best rating: A
Sample monthly cost: $30.33

Pros

Diminishing deductible reduces every year the policy is renewed
24/7 claims support
Discounts for customers with a qualifying smart-home security device
Up to 15 percent discount for bundling policies

Cons

Limited coverage area spanning 19 states
Monthly costs can be relatively high

Why It Made the Cut: American Family Insurance has a diminishing deductible that goes down for every year the renter renews their policy, making it an excellent choice for long-term renters. American Family Insurance offers discounts up to 15 percent for bundling, making renters insurance more affordable for eligible policyholders. Tenants may also save on their out-of-pocket expenses by taking advantage of AmFam’s diminishing deductible. For every year a renter renews their policy, the deductible will go down, and policyholders can reduce their deductible by as much as $500 with this program. It should be noted that AmFam’s renters insurance policies are only available in 19 states, and policyholders may find that their monthly rates can be somewhat high in some cases. That being said, renters may be able to reduce the cost of coverage by applying discounts for having a smart-home security device. Renters can also submit a claim 24/7 online or by phone, which can speed up the claims process so policyholders can receive their payout without delay.

Best for Bundling

Nationwide

Coverage area: 50 states and Washington, D.C.
Additional policies: Vehicle, life, pet, travel, dental, accident, identity theft, umbrella, wedding
Quote process: Online, phone, agent
Claims process: Online, phone, agent
AM Best rating: A+
Sample monthly cost: $18.64

Pros

Renters can bundle multiple policies and add on additional coverage
On Your Side review allows customers to annually review and reassess policies with an agent
Online quote process is thorough and straightforward

Cons

Mobile app is geared toward auto insurance and is not as helpful for filing or tracking claims for renters insurance
Overall customer satisfaction is lower than for other companies, according to J.D. Power

Why It Made the Cut: Nationwide offers a variety of add-ons so renters can get the full amount of coverage they need, all of which can be bundled with other insurance coverage. If a renter already has car, life, travel, pet, or other insurance coverage with Nationwide, they’ll find it easy to bundle their renters insurance policy with their existing policies, which will provide additional savings. Renters also have the option to purchase additional coverage for valuables such as jewelry and sports equipment, as well as coverage for belongings in storage and for damage due to backed-up sewers or drains. The online quote process is straightforward and more thorough than that of other companies, meaning that renters are more likely to get the coverage they really need. Renters can file claims online or over the phone; Nationwide does have an app, but the app is mainly geared toward auto insurance services. J.D. Power’s customer satisfaction ranking for Nationwide is also somewhat low, but one standout feature Nationwide offers is the On Your Side review. This free service lets customers review their policies annually with an agent to ensure that their coverage is complete and they’re getting the best possible price and not paying for unneeded features.

Best Digital Experience

Lemonade

Why It Made the Cut:

As an all-online insurance company, Lemonade is ideal for consumers who prefer to handle all their renters insurance needs online.

Lemonade makes it quick and easy to get renters insurance online or through its app. Users could receive coverage in 90 seconds and, if a renter files a claim, Lemonade says the claim could be approved within seconds. If a renter appreciates doing business with socially conscious companies, Lemonade is a certified B Corp, which means it has high social and environmental standards. One example of this commitment is that Lemonade donates unclaimed money from paid premiums to the charity of each customer’s choice, so renters can feel good about their unused funds benefiting causes that are close to their hearts.

There’s no option for getting a quote or filing a claim over the phone, but this shouldn’t be a hindrance for customers who prefer online-only interactions. That’s especially true given how easy it is for users to get a quote through the company’s streamlined online quote process. Lemonade’s monthly costs can also be relatively high, depending on the coverage options selected, and the company’s coverage area is somewhat limited. That being said, customers automatically receive replacement cost coverage on any policy they purchase, which can lead to a larger payout when the time comes to file a claim.

Read our Bob Vila Lemonade renters insurance review

Specs

Coverage area: 28 states and Washington, D.C.
Additional policies: Auto, pet, life
Quote process: Online
Claims process: Online
AM Best rating: Unknown
Sample monthly cost: $13.67

Pros

Certified B Corp company with high social and environmental standards
Leftover money from customers’ premiums is donated to the nonprofit of the customer’s choice
Fast and convenient online quote process
Instant claim approval possible
Customers receive replacement cost coverage

Cons

Relatively small service area covering 28 states and Washington, D.C.
Quote and claim system are only available online
Monthly costs can be relatively high for high coverage limits and add-ons

Best for Military Members

USAA

Coverage area: 50 states and Washington, D.C.
Additional policies: Vehicle, life, health, pet, travel, dental, small business, umbrella
Quote process: Online, app, phone
Claims process: Online, app
AM Best rating: A++
Sample monthly cost: $8.89

Pros

Low renters insurance premiums
A++ AM Best rating
Standard flood and earthquake coverage included

Cons

USAA membership limited to service members and families
Limited online quote tool

Why It Made the Cut: USAA offers affordable insurance with low prices and great coverage for members of the military. Available nationwide to eligible renters, USAA has a strong reputation for renters insurance rates that typically are less than the national average. It’s also known for excellent customer service and strong financial backing, which is reflected in the company’s A++ AM Best rating. Although renters can start the quote process online, they may need to call the company to get a final quote. However, speaking directly with an agent could help prospective customers get a more accurate estimate for the coverage they want. Renters insurance through USAA also includes flood and earthquake damage coverage, which is usually treated as an add-on by other insurance companies, potentially helping policyhol

The Best Renters Insurance Companies in America