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Insurance Renters Insurance

Best Renters Insurance Companies

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.

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).

NATIONWIDEBest overall$1 million
LEMONADEBest for cheap coverage$1 million
FARMERSBest for smoke-free renters$500,000
THE HARTFORDBest for customer reviews$500,000
ALLSTATEBest for discounts$300,000

>>Read more: How your state affects renters insurance

Best overall: Nationwide

Nationwide offers a wide variety of basic renters insurance coverages and add-ons, and there are also a number of discounts you can leverage to lower your premiums. Personal liability coverage goes up to $1 million*. The company is also highly rated by AM Best, Moody’s S&P, and more.

  • Reimbursement type: Renters are reimbursed for the depreciated value up front, but once the item is replaced, Nationwide will pay the difference
  • Coverages: Contents/personal belongings, loss of use, personal liability, medical payments, building additions/alterations, credit card
  • Maximum liability coverage: $1 million*
  • Policy discounts: Multi-policy, claims-free periods, protective devices (smoke detectors, fire alarms, burglar alarms)
  • Available add-ons: high-value items, earthquake, extended theft, water backup damage

Best for cheap coverage: Lemonade

Lemonade only offers renters insurance, and they make it extremely affordable. Plans start at a mere $5 per month. For an additional cost, you can add coverage for jewelry, art, bikes, musical instruments, and more. There are also discounts if you have security/safety devices in your unit.

  • Reimbursement type: Actual value
  • Coverages: Personal property, portable electronics, personal liability, loss of use, medical payments
  • Maximum liability coverage: $1 million*
  • Policy discounts: Burglar alarm, fire alarm
  • Available add-ons: Jewelry, fine art, bikes, cameras, musical instruments, water backup

Best for smoke-free renters coverage: Farmers

Farmers renters insurance policies come with the basics, including personal property coverage and loss of use coverage. There are also a number of add-ons if you want to protect your electronics, your pets, or even your identity. Non-smokers get a discount on their policies.

  • Reimbursement type: Renters are reimbursed for the depreciated value up front, but once the item is replaced, Farmers will pay the difference
  • Coverages: Personal belongings, personal liability, loss of use
  • Maximum liability coverage: $500,000*
  • Policy discounts: Multi-policy, non-smoker, security system, fire alarm
  • Available add-ons: Identity theft, electronics, pet injuries, high-value belongings

Best customer reviews: The Hartford

The Hartford offers basic renters insurance as well as a wide variety of add-ons, including assisted living care, identity theft, equipment breakdown, and more. Hartford’s policies also have a unique feature that waives your deductible (up to $5,000) if you experience $27,500 in damages or more.

The company website claims 4.7 out of 5 stars on more than 16,000 reviews, so if you’re looking for an insurer with solid service and customer satisfaction, this one’s probably it.

  • Reimbursement type: Actual value or replacement cost
  • Coverages: Personal property, personal liability, medical payments, property damage to others, loss of use
  • Maximum liability coverage: $500,000*
  • Policy discounts: Multi-policy, security service, renewals
  • Available add-ons: Valuable items, additional personal injury, earthquake, water backup, equipment breakdown, identity fraud, assisted living care

Best for discounts: Allstate

If you’re looking to minimize your premiums as much as possible, Allstate is your best bet. The company offers several discounts, including ones for seniors, claim-free periods, and auto-payments. The company’s basic renters policy covers personal items, loss of use, and medical payments, though you can add on additional coverage for high-value belongings and identity theft protection.

  • Reimbursement type: Actual value or replacement cost
  • Coverages: Personal property, loss of use, liability, medical payments
  • Maximum liability coverage: $300,000*
  • Policy discounts: Multi-policy, safety/security devices, autopayments, 55 and retired, claim-free periods
  • Available add-ons: High-value property, identity restoration

Who needs 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.

In some cases, landlords and apartment complexes may require renters insurance. Check with yours to see if you need it (and if so, how much).

Ultimately, having renters insurance is oftentimes an inexpensive way to get some peace of mind and financial protection – even for college students. 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.

>>Read more: Impact of pets on renters insurance

Does renters insurance require an inspection?

Renters insurance is designed to cover damage to your belongings—not the property itself. Because of this, your rental property does not need to be inspected before you can secure a renters insurance policy.

How can I choose the best renters insurance plan?

There are a lot of factors you’ll want to consider before choosing your insurance policy. First and foremost is likely the premium, which is how much you’ll pay annually for coverage.

You’ll also want to take into account:

  • Coverage: What items are covered? In which scenarios can you be reimbursed for them? Are there any add-on coverage options you might find useful?
  • Reimbursement type: Are you reimbursed for the replacement cost of your belongings or their depreciated value? Are there any deductibles you need to meet first?
  • Customer reviews and ratings: What do past customers have to say about the insurer? How are they rated by AM Best, the Better Business Bureau, J.D. Power and Associates, and other ratings agencies?
  • Service and convenience: How easy was it to get an insurance quote? How accessible is customer service? What does the claims process look like?

Policies can vary by company, so get several online quotes when you apply for renters insurance.

What are the types of renters insurance?

When it comes to renters insurance, there are a number of different coverages from which you can choose.

Here are some of the most common:

  • Personal property: This coves damage, theft, or vandalism of your personal belongings in the rental unit—things like your clothes, electronics, jewelry, and other items.
  • Liability and medical payments: Liability coverage protects you if someone is injured on the property you’re renting. It can also pay for their medical treatment and your legal defense if you’re sued.
  • Loss of use: If a natural disaster hits or something else renders your rental property unusable, loss of use coverage can compensate you for alternative living expenses (hotel costs, meals, etc.).

Sometimes, you can also get specialized or extended coverage for things like collections, high-value jewelry, and outdoor vehicles like ATV or snowmobiles.

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.

What affects the costs?

The cost of renters insurance depends on a lot of 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. How many belongings you have (and how valuable they are) will also influence your insurance premium..

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.

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.

What discounts are available?

Most insurance companies offer a number of discounts to policyholders, which can reduce their premiums significantly.

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 will also give non-smoking renters a discount, as it reduces the chance of fire and smoke damage in the home.

Is renters insurance worth it?

Renters insurance can be a smart way to protect yourself and your pocketbook should something go awry. In many cases, landlords actually require it.

If your landlord does not require insurance, consider the value of your belongings and personal items. Since the average cost of renters insurance tends to be fairly affordable, it may still be a smart idea to insure yourself just in case.

To get a better understanding of renters insurance’s worth, check out our guide on whether renters insurance is worth it.