If you rent an apartment or home, you should know that your landlord’s insurance does not cover your safety and personal belongings. This insurance is meant to only cover the physical structure of the building. For your belongings, you’ll need to take out your own renters insurance policy.
Renters insurance, which is sometimes a requirement set by a building or landlord, is an important protection that can cover your possessions, protect you from personal liability, and cover additional living expenses incurred from displacement of your home while repairs or rebuilding are being done after an insured loss occurs.
Generally viewed as an affordable protection, renters insurance is something that should be strongly considered by all renters. To find a policy that meets your needs, check out the best renters insurance companies below.
Table of Contents:
- Best renters insurance companies
- How we rated the best renters insurance companies
- Frequently asked questions
Best renters insurance companies
A renters insurance policy is likely to vary in structure from person to person. Because of this, we decided to provide a comparison of companies based on LendEDU’s rating, their AM Best rating (which is based on the financial strength of a company), and market share (the percent of the market that has taken out policies through the company).
|Company||LendEDU Rating||AM Best||Market Share 18'*|
|Nationwide||4.63 out of 5||A+||3.2%|
|Allstate||4.38 out of 5||A+||8.4%|
|The Hartford||4.36 out of 5||A+||Not provided|
|Farmers Insurance||4.34 out of 5||A||5.9%|
|Travelers||4.30 out of 5||A++||3.8%|
*Information based off of homeowners insurance. Renters insurance falls under this. Source: Insurance Information Institute
How we rated the best renters insurance
To find the best renters insurance, our Editorial Team analyzed each provider based on Trustpilot rating, Better Business Bureau rating, financial strength (including AM Best, Moody’s, and S&P), state availability, maximum liability coverage, policy discounts, and basic coverage.
All data points were averaged together evenly to determine an overall score. Learn more about our ratings and methodology here.
Frequently asked questions
How much does renters insurance cost?
The cost of renters insurance varies from one company to the next, but according to the Department of Financial Services of New York, a basic policy can cost $300 a year for around $50,000 worth of protection. Premiums are based on a number of different 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.
To learn more about the costs of renters insurance, check out our page discussing the average cost of renters insurance.
Can you get cheap renters insurance?
There are a lot of ways to find cheap renters insurance. Because each insurance company uses different rules and risk calculations in order to determine the price of a policy, you’ll need to shop around and receive quotes. In order to determine your price, an insurance company will conduct a soft credit pull, which will not affect your credit score.
If you find a policy that is substantially cheaper than others, make sure 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 a number of policies that can cover these needs. By doing this, you’ll ensure you find the cheapest policy for the necessary coverage.
Do I really need renters insurance?
Renters insurance doesn’t just help you replace your belongings in the case of a fire. It also covers you in case of theft or other damage. If you live in a higher-crime area with a higher rate of break-ins, you might want to consider getting insured.
Even if you’re not worried about replacing your own possessions, you might still want to get renters insurance. Renters insurance covers you in case you’re found liable for accidental damage to your rental suite or other rental suites.
For example, say you forget to shut off the tap in the bath and it floods the unit below you. Without renters insurance, you could end up having to pay for the repairs to the suite below out of pocket.
Renters insurance can cover you if you have a pet that bites someone or destroys someone’s property. It can also protect you from the liability you might have if someone is injured while visiting your home.
Ultimately, having renters insurance is oftentimes an inexpensive way to get some peace of mind and financial protection. That way if something terrible happens–like a fire or a break-in–the last thing you’ll be worrying about is how to pay to replace what you’ve lost.
If you are still unsure about whether or not renters insurance is worth it, it may be helpful to read about some real-life stories shared by customers of American Family Insurance. You can check out these stories here.