Why Renters Insurance Is Essential
Whether you’re in an apartment, house, or other rental, renters insurance is a must-have. It’s an affordable way to gain valuable protection, offering both liability insurance and coverage for your personal belongings. When choosing a renters insurance provider, it’s important to look at cost, coverage options, and company reputation.
Best Renters Insurance Companies
Based on our analysis, the leading companies in the renters insurance market are:
- State Farm: Offers competitive pricing and strong coverage options.
- Westfield: Known for its ability to bundle with auto insurance, offering convenience and potential savings.
- American Family: Provides discounts for families and a variety of coverage choices.
- Auto-Owners: Stands out with its extensive discount offerings.
- USAA: Best suited for military personnel and their families.
- Allstate: Offers affordable rates, particularly for those with less-than-perfect credit.
- Country Financial: Provides expanded coverage options.
- Nationwide: Great for add-on coverage options.
How Costs Stack Up
According to our research, the average cost for renters insurance is approximately $12 a month for a policy that includes $15,000 in personal property protection. The costs can vary, so it’s crucial to compare quotes from different insurers.
State Farm: Best for Price
State Farm stands out as a top choice because of its competitive pricing. It offers some of the most affordable rates in the market while also providing a reliable level of service and comprehensive coverage. It has a very low level of customer complaints, making it an excellent choice.
Pros:
- Offers some of the lowest average rates in the market.
- Offers optional coverage for cyber attacks, cyber extortion, and identity restoration.
- Sells earthquake insurance for renters.
Cons:
- Not many renters insurance discounts available.
State Farm Availability
State Farm renters insurance is available nationwide.
Westfield: Great for Combining Auto and Renters Insurance
Westfield offers a convenient solution to combine auto and renters insurance under one policy. Their Wespak policy allows you to simplify your insurance management and potentially reduce costs. They also have competitive rates and a very low level of customer complaints.
Pros:
- Very reasonable renters insurance rates, especially for higher levels of personal property coverage.
- Low numbers of customer complaints.
- Offers a bundling discount for auto and renters insurance.
Cons:
- Limited availability, with services available in only 10 states.
- Not many discounts available for renters.
Westfield Availability
Westfield renters insurance is offered in these states: Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, Tennessee, and West Virginia.
American Family: Best for Families
American Family is a strong option for families, especially those with young adults. They offer competitive rates, a low level of complaints, and a variety of coverage options. American Family has a strong reputation for customer satisfaction, and for offering discounts.
Pros:
- Offers a “generational discount” for young adults who are children of American Family customers.
- Offers a variety of optional coverage types, such as equipment breakdown, sewer backup, and flash flood insurance.
- Offers other discounts such as, for paying with automatic funds transfer and smart home system discounts.
Cons:
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Limited availability in 19 states.
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Liability for dangerous dogs and exotic animals is limited.
American Family Availability
American Family sells renters insurance in: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.
Auto-Owners: Best for Discounts
Auto-Owners is favored for the generous amount of available discounts. It provides affordable renters insurance and offers a variety of optional coverage.
Pros:
- Offers many discounts, such as having multiple policies, going paperless, and having protective devices in your rental (deadbolt locks, smoke detectors, and fire extinguishers).
- Low-cost renters insurance for $15,000 of personal property coverage.
- Optional Renters Plus package.
Cons:
- Renters insurance rate for $200,000 of personal property coverage is on the high side compared to top competitors.
- Rates for renters with lower credit scores are fairly high.
Auto-Owners Availability
Auto-Owners sells renters insurance in 26 states: Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia, and Wisconsin.
USAA: Best for Military
USAA is known for its commitment to the military community, offering competitive rates for military personnel and their families. They are known for strong customer service.
Pros:
- Especially low rates for $15,000 in personal property coverage.
- Offers various discounts for military members, such as for living on base or being enrolled in a service academy or military college.
- Has a very low level of complaints, which indicates quality customer service.
- USAA’s optional technology coverage.
Cons:
- Available only to active military personnel and veterans and their families.
- Rates are higher than average for persons with poor credit.
USAA Availability
USAA sells renters insurance in all 50 states and Washington, D.C.
Allstate: Best for Renters With Poor Credit
Allstate is the best option for those with less than perfect credit scores. They offer reasonable rates and good coverage options, but not a large choice of extra options. They also have a very low numbers of customer complaints.
Pros:
- Cheapest rates for renters with poor credit among the companies we evaluated.
- Cheap renters insurance for $15,000 of personal property.
- Offers building improvements coverage for renters.
Cons:
- Doesn’t offer many extra coverage options.
- Has only a few discounts available for renters.
- Rates for higher levels of renters insurance coverage are more expensive than most competitors.
Allstate Availability
Allstate sells renters insurance in all 50 states and Washington, D.C.
Country Financial: Best for Expanded Coverage
Country Financial provides excellent renters insurance, mainly due to their expanded coverage options. While rates are a little higher on average, the additional options make it worth considering. They also have low customer complaints and a “welcome” discount for new customers.
Pros:
- Offers a Premier option.
- Optional coverage for sump pump failure and sewer or drain backups.
- Provides a “welcome” discount to new customers.
- Low level of complaints.
Cons:
- Only available in 19 states.
- Costs for all levels of renters insurance we analyzed are on the high side.
Country Financial Availability
Country Financial sells renters insurance in: Alabama, Alaska, Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nevada, North Dakota, Oklahoma, Oregon, Tennessee, Washington, and Wisconsin.
Nationwide: Great for Add-On Coverage
Nationwide has a strong reputation, and is commended for its add-on coverage options. They also have very competitive rates for renters with various property coverage limits, and the cost-effectiveness makes them worth considering.
Pros:
- Offers a good number of add-on coverage options, such as identity theft coverage, water backup and sump pump overflow coverage, and a “brand new belongings” endorsement to replace your damaged items with new items.
- “Protection boost” raises your coverage.
- Low level of complaints made about it to state insurance departments.
- Discount for having protective devices such as smoke detectors, fire alarms, burglar alarms or other devices.
Cons:
- Doesn’t have many discounts available to renters.
Nationwide Availability
Nationwide sells renters insurance in Washington, D.C., and 43 states. It is not available in Alaska, Florida, Hawaii, Louisiana, Massachusetts, New Jersey, or New Mexico.
Expert Tips for Finding the Best Renters Insurance
We consulted several experts to create our guide to the best renters insurance, here are additional tips.
- Create a Home Inventory: To determine the right amount of coverage, create a home inventory to assess the value of your personal property. This can be done with a pen and paper, a spreadsheet, or use photos and video on your smartphone. Then use this inventory to set your personal property coverage level.
- Assess Liability Needs: Purchase enough liability insurance for your assets, like bank accounts, real estate, and vehicles. When you have enough liability insurance, an umbrella insurance policy can be used, for even more coverage.
- Go With Replacement Cost Coverage: Replacement cost coverage is preferable, as it pays to replace damaged or stolen items with brand-new items, without factoring in depreciation.
- Schedule High-Value Items: Schedule high-value items can get your insured items covered for their full value.
- Ask for Discounts: Ask your insurance agent about available discounts if you bundle or have protective devices.
- Compare Quotes: Get quotes from multiple insurers to ensure you secure the best price. Make sure the quotes have the same coverage levels for a fair comparison.
How to Find the Best Renters Insurance for Different Situations
Your living arrangement may affect your renters insurance policy.
As a Pet Owner
The liability section covers the health care costs of others, if your pet injures them. It offers coverage for property damage or legal fees if someone sues you. Some companies exclude coverage for certain dog breeds. If this impacts you, seek a separate policy, or insurance companies.
With a Roommate
Some companies ask each roommate to have a separate insurance policy. Each renter can protect themselves this way. Having your own policy can ensure that you only file claims for your belongings, especially if a roommate moved out, or if your state or insurance allow you to share.
As a College Student
If you rent off-campus, your landlord may require renters insurance. It is advantageous to have insurance to recover from lost or damaged property, legal fees, and temporary housing costs.
What Renters Insurance Covers
Renters insurance protects your personal belongings, provides liability coverage, and helps with living expenses.
What Is Renters Insurance?
Renters insurance meets the needs of tenants. This insurance protects your personal belongings. Without renters insurance, the renter would have to replace all belongings if a disaster, such as a fire, ripped through the property.
How Much Does Renters Insurance Cost?
Renters insurance costs an average of $12 a month for a policy with $15,000 of personal property coverage. Renters insurance is inexpensive, and it is a great way to protect yourself and get liability protection.
What Does Renters Insurance Cover?
Renters insurance has personal property coverage, liability insurance, protection against additional living expenses and even pays for guest medical costs.
Personal Property Coverage
Personal property coverage protects your belongings from theft, fire, smoke damage, vandalism, and other covered events. It also pays for losses from explosions, and falling objects. You will choose a policy limit for the maximum amount your insurance company will pay if your personal belongings are damaged or stolen, and you will make several choices, such as replacement cost coverage or actual cash value coverage.
Liability Insurance
Liability insurance covers injuries or property damage to others. It pays for your legal defense.
Medical Payments to Others
Medical payments coverage pays smaller medical bills no matter who was at fault.
Additional Living Expenses
Additional living expenses coverage pays for hotel bills and restaurant meals if you cannot live in your apartment because of a problem covered by the policy. Remember to save all receipts.
Does Renters Insurance Cover Roommates?
You may share renters insurance with roommates, if your insurance company and state permits it. To share coverage, you will name your roommate as an insured on your policy. If a roommate does not carry their own policy, their belongings will not be covered if stolen or destroyed.
Is Renters Insurance Worth It?
Renters insurance can be very worthwhile and is a great way to protect your property and offers liability insurance, and covers extra expenses.
Benefits of Renters Insurance
- Your personal belongings are destroyed: Insurance helps you replace what you lost.
- Your personal belongings are stolen: It covers items stolen inside and outside your home.
- You own high-value items: If you own expensive items such as, jewelry, art, or musical instruments, renters insurance can pay to replace them.
- Someone gets hurt while visiting your home: Insurance helps protect you from an accident by covering medical bills, legal costs, and judgments.
- You have a dog: Insurance covers your dog’s actions.
- You need money to live elsewhere if your apartment is being repaired: Coverage for additional living expenses covers extra costs, such as hotel bills and restaurant meals.
How to Get a Renters Insurance Quote Online
Getting a renters insurance quote online is simple, and you can do it from your couch. Insurance company websites generally offer free quotes. You should have basic information about your coverage needs, liability insurance, as well as your personal belongings.
Renters Insurance Claims
Complaints collected nationwide have shown problems with claims issues.
Methodology
To find the best renters insurance, we reviewed based on each company on renters insurance, and complaints.
Other Companies to Consider
If you are not sure which company to choose, please consider any of these insurance companies:
- Allstate
- American Family
- Auto-Owners
- Chubb
- Country Financial
- Erie
- Farmers
- Lemonade
- Nationwide
- Progressive
- State Farm
- Travelers
- USAA
Frequently Asked Questions About Renters Insurance
Can a landlord require renters insurance?
Some landlords require tenants to buy renters insurance.
Should I bundle renters and car insurance?
You can often get discounts.
Does renters insurance cover theft?
It covers theft of personal belongings.
How do I file a renters insurance claim?
Contact your landlord to inform them of any situation, then file a police report if needed, and inform your insurance company.
Do college students need renters insurance?
Renters insurance for college students can be a wise decision if a college student lives off campus, and who owns expensive items.
