Best Renters Insurance Companies

If you rent an apartment or home, your landlord’s insurance doesn’t cover your personal belongings or your safety. Renters insurance is essential to protect your possessions, provide personal liability coverage, and cover additional living expenses if you’re displaced due to an insured loss. 

Landlords often require renters insurance, which tends to be affordable. To find a policy that meets your needs, check out the best renters insurance companies below.

Best renters insurance companies

Choosing the right renters insurance can provide peace of mind, knowing your belongings are protected and you’re covered in unforeseen events. Our reviews focus on the top renters insurance companies, highlighting their strengths and coverage options to help you make an informed decision. 

Whether you’re looking for the most comprehensive coverage, the best value, or specific benefits, our detailed reviews will guide you to the best policy for your needs. Below, you’ll find our top picks for renters insurance, including their maximum liability coverage and what makes each one stand out.

• Best overall: Nationwide
• Best for cheap coverage: Lemonade
• Best for smoke-free renters coverage: Farmers
• Best customer reviews: The Hartford
• Best for discounts: Allstate

Nationwide

Lemonade

Farmers

The Hartford

Allstate

How does renters insurance work?

Renters insurance protects tenants from financial losses related to their personal property and liability. It’s similar to home insurance but for people who rent instead of owning a home. 

You get renters insurance coverage by paying a premium to an insurance company, which then agrees to reimburse you for certain expenses if you experience a covered event, such as a fire, hail, windstorms, or theft. You’ll pay your insurance premium monthly or annually. 

If you need to file a claim, you contact your insurance company and provide documentation of the covered loss, such as photos, police reports, and receipts. The insurer will then review your claim and, if approved, give you the money you need to replace your belongings, cover legal costs if you’re liable, or pay for temporary living expenses. 

Renters insurance is helpful in all types of situations: 

• Someone steals your bike from your apartment’s parking garage.
• Fire damages your belongings after a cooking incident.
• Your dog bites the dog sitter, so they sue you.
• You accidentally damage your neighbor’s property.

Our expert discusses what renters insurance doesn’t cover

Erin Kinkade

CFP®

In addition to the benefits of renters insurance, it’s important to know what it doesn’t cover. Renters insurance typically doesn’t cover normal wear and tear, such as a TV that stops working for no reason or breaks, damage or losses that occurred before you bought the policy, or damage and vandalism to the dwelling, which is covered by the landlord’s insurance policy. Renters insurance doesn’t cover certain natural disasters, including floods, earthquakes, and sinkholes. However, most renters insurance policies cover tornadoes, fires, hail, and rain and snow damage (non-flooding). Most policies exclude pests, including damage caused by termites, bed bugs, mice, rodents, and mold, usually resulting from a longstanding maintenance issue or flooding. Your renters insurance policy likely won’t cover Items related to business use, including damage to your work computer, or property damage due to pillaging or looting during riots or periods of civil unrest. 

How to choose the right amount of coverage

The amount of renters insurance you need depends on the value of your personal belongings and your liability risks. Here’s an idea of how much type of coverage you may need: 

• Personal property coverage. This covers the cost to repair or replace your belongings if they’re damaged, destroyed, or stolen due to covered events, such as fire, theft, or vandalism. You can determine how much coverage you need by taking inventory of all your belongings and their estimated value. If your belongings are worth $30,000, you may want at least $30,000 in personal property coverage.
• Liability coverage. This protects you if someone is injured on your rental property or you accidentally damage someone else’s property. It can help cover legal costs and medical bills. Most policies come with $100,000 to $500,000 in liability coverage. If you have $300,000 in assets, such as bank accounts, investments, vehicles, and property, you might choose a $300,000 limit for this coverage. 
• Additional living expenses (ALE). If a natural disaster hits or something renders your rental property unusable, ALE (aka loss of use coverage) can compensate you for alternative living expenses, such as hotel costs and meals. ALE coverage is often 20% to 30% of your personal property coverage. So if you have $30,000 in personal property coverage, your ALE coverage might be $6,000 to $9,000.

Sometimes, you can also get specialized or extended coverage for collections, high-value jewelry, and outdoor vehicles, e.g., ATVs or snowmobiles.

Thinking about your budget and belongings will help you choose the right amount of renters insurance coverage. Buying more coverage means paying more in premiums, but it also means you’ll have more protection. Talk to an insurance agent if you need help finding the right balance. 

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Who needs renters insurance?

Renters insurance doesn’t just help you replace your belongings in case of a fire; it also covers theft and other damage. 

Even if you’re not worried about replacing your possessions, renters insurance covers you if you’re found liable for accidental damage to your rental unit or other units. For instance, if you forget to shut off the tap in the bath and it floods the unit below, renters insurance can help cover the repair costs.

Renters insurance can also cover liability if your pet bites someone or destroys property. It protects you from liability if someone is injured while visiting your home.

In some cases, landlords and apartment complexes may require renters insurance. Check with your landlord to see whether you need it and how much coverage is necessary. Renters insurance is often an inexpensive way to gain peace of mind and financial protection, so it’s even wise to have renters insurance for college students. In case of a fire or break-in, you’ll have one less worry about how to pay to replace what you’ve lost.

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Impact of pets on renters insurance

How can I choose the best renters insurance plan?

You should consider these factors before choosing an insurance policy. 

• Premium: How much you’ll pay annually for coverage is likely a primary concern.
• Coverage: Determine what items are covered, the scenarios in which you can be reimbursed, and any useful add-on coverage options.
• Reimbursement type: Check whether you’ll be reimbursed for the replacement cost of your belongings or their depreciated value and whether you need to meet a deductible first.
• Customer reviews and ratings: Look at what past customers say about the insurer and how A.M. Best, the Better Business Bureau, and J.D. Power and Associates rate it.
• Service and convenience: Evaluate how easy it is to get an insurance quote, the accessibility of customer service, and the claims process.

Policies vary by company, so get several online quotes when applying for renters insurance.

Consider purchasing an endorsement or rider to cover expensive jewelry, such as engagement or wedding rings, collectibles, and fine art. Speak with your insurance agent to ensure you cover the basics and options that could be helpful.

Erin Kinkade

CFP®

How much does renters insurance cost?

The cost of renters insurance varies by company, but according to the Department of Financial Services of New York, a basic policy can cost $300 per year ($25 per month) for around $50,000 worth of protection. Premiums are based on several factors, such as how much and what type of coverage you want, plus variables related to where you live that can increase or decrease the chance you’ll need to submit a claim.

You can lower your renters insurance premiums by bundling policies, installing safety and security devices, opting for a higher deductible, and maintaining a good credit score. Some insurers also offer discounts for nonsmokers or those with claim-free periods.

What affects the costs?

The cost of renters insurance depends on many factors, including the coverages you select, your location, the deductible you choose, the age and condition of your property, and whether you want to be reimbursed for the replacement cost of your items or the actual depreciated value. Your number of belongings (and their value) will also influence your insurance premium.

Can you get cheap renters insurance?

You might be able to find cheap renters insurance. Because each insurance company uses different rules and risk calculations to determine a policy’s price, you’ll need to shop around and get quotes.

If you find a much cheaper policy than others, ensure you aren’t sacrificing coverage you may need. The best approach is to first identify the coverage you’ll need for your apartment or home and then compare several policies that can cover these needs. This will ensure you find the cheapest policy for the necessary coverage.

What discounts are available?

Most insurance companies offer discounts to policyholders, which can reduce their premiums.

With your renters insurance policy, you may be able to get a discount for:

• Having multiple policies with the insurer
• Having security devices and fire alarms on the property
• Setting up autopay
• Being a senior or retired
• Claim-free periods
• Paying your premium in full

Some insurance providers also give nonsmoking renters a discount because they reduce the chance of fire and smoke damage in the home.

How does the claims process work?

After a covered accident, you can usually file a claim with your renters insurance company online, in the mobile app, or by filling out a form and mailing it in. 

1. You experience a covered event, such as a theft or fire. 
2. Contact your insurance company as soon as possible to figure out the easiest way to file a claim (often online or through the mobile app). 
3. Submit your claim form, along with any photos and documentation, such as police reports or an itemized list of damaged or stolen items. 
4. Your insurer will assign you a claims adjuster to review your claim and determine the payout amount you’re eligible for. 
5. Your insurer may ask for additional information as it conducts its investigation. 
6. If approved, your renters insurance company will issue payment to you. 

You’ll need to pay your deductible before your insurance will reimburse you for a claim. Your deductible is the amount you agree to pay upfront before insurance coverage starts. You select this amount when you sign up for a policy, and you usually pay it once per year if you file a claim. 

For example, if your deductible is $500 and your claim is $1,000, you would pay your $500 deductible first, then your insurance would pay the additional $500. But if you filed a claim earlier that year and paid your deductible in full, you wouldn’t need to pay it again. 

Depending on the nature of your claim,  your insurance company may raise your premiums afterward. That’s why some people avoid filing claims for smaller instances even if they know their insurance will cover them. 

FAQ

Can you adjust your coverage throughout the year?

Yes, you can review and adjust your renters insurance coverage anytime throughout the year. So if you buy new furniture, inherit fine jewelry from your grandmother, or increase your net worth and want to raise your liability protection, you can. 

Is renters insurance required by law?

Renters insurance is not required by law, but many landlords and apartment complexes may require it as part of the lease agreement. Check with your landlord to see whether it’s necessary.

Does renters insurance cover roommates?

Renters insurance typically does not cover roommates unless they are named in the policy. Each roommate should have their own renters insurance policy to ensure adequate coverage.

Are significant others or spouses covered?

Usually, married couples are covered under the same renters insurance policy. If you’re not married, talk to customer service about adding your partner to your policy. If you wish, you both can also have your own policies to insure your individual belongings and liability, similar to how you’d handle it with a roommate.

Does renters insurance require an inspection?

Renters insurance covers damage to your belongings, not the property itself. Because of this, your rental property doesn’t need to be inspected before you can secure a renters insurance policy.

Does the policy transfer to a new address?

Yes, if you want to keep your renters insurance policy after your move, you can log in to your account or call customer service to update the address. Then, your policy will transfer when you move. You can also cancel the policy for a prorated refund if you no longer need it. 

Can you cancel a policy?

You can cancel your renters insurance policy anytime through your online account or by chatting with customer service. If you cancel before your term expires, you’ll often receive a prorated fund for the months you don’t need coverage. Sometimes, you can cancel parts of your policy, such as personal belongings coverage, but keep other parts—for example, liability protection.

Is renters insurance worth it?

Yes, renters insurance is worth it. It provides financial protection for your personal belongings, liability coverage, and additional living expenses in case of unexpected events. Given its low cost, it offers valuable peace of mind and security.

Recap of the best renters insurance companies