People living in rental apartments, town homes, or other quarters must consider getting renters insurance. Rental insurance can cover a resident’s personal property if impaired or destroyed during a break-in, a storm, or an event defined in the policy. Moreover, rental insurance allows for personal liability and medical bills even if your guest gets injured. In case of fire or another catastrophic event that pushes you to move out of your apartment, renters insurance will cover living expenses like hotel bills and meals.
Unlike some other types of insurance, renters insurance is relatively straightforward. However, when it comes to a policy and an insurance company, there are certain intricacies to consider, which is where this advice comes in. We’ve compiled a list of our top-rated renter insurance companies for 2022 and further information on how renters insurance works.
9 Best Renters Insurance Companies
1. USAA
A regular USAA insurance covers your items, temporary living expenses if your house is rendered uninhabitable due to a covered occurrence, and liability and medical responsibility if someone is hurt in your home. Flood insurance is included in USAA’s standard policy. It will not, however, cover your roommates.
Pros:
- Standard insurance policies cover flood damage.
- It’s legal in all 50 states.
Cons:
- Members of the United States armed forces (retired or current) and their families are eligible to join.
- Doesn’t apply to housemates
2. Lemonade
It is a peer-to-peer insurance company, which means that customers’ payments go into a communal pot used to cover claims. Lemonade claims that one of the advantages of its business model is that it can approve a policy in minutes and process a claim virtually instantaneously.
Lemonade markets its insurance coverage at extremely low rates, with renters insurance at $5 per month and homeowners insurance at $25 per month.
Pros:
- Easy sign-up and claim process
- A portion of the money is going to your favorite charity
Cons:
- Not as widely available as other organizations in our ranking
- Lemonade is not right for you if you want to work with an agent
3. Erie insurance
Those who want to get a quote using the most up-to-date technological instruments are out of luck. Erie still requires potential consumers to contact one of its 13,000+ local independent agents to get a price and buy insurance. You can access and share policy documentation, check the status of your claim, and pay your bill using Erie’s mobile app. However, if you’d like individualized assistance and to speak with a live person, you can call your local agent.
Pros:
- Competitive Pricing
- Covers the expense of replacement.
Cons:
- In comparison to other companies in our ranking, there is a lack of availability.
- When compared to other organizations in our ranking, fewer discounts are offered.
4. American Family
American Family Insurance has competitive rates and a Diminishing Deductible policy. If you don’t file a claim after purchasing insurance, your deductible will automatically reduce with each renewal. A reduced deductible benefits you because your out-of-pocket payments will be lower if you file a claim and it is granted.
Pros:
- Provides several discounts
- There is coverage for home-based enterprises.
Cons:
- There is no way to buy it online.
- In comparison to other companies in our ranking, there is a lack of availability.
5. State Farm
While the cost of renters insurance deviates based on where you live, the size and type of home you have, and the amount of coverage and policy limitations you select, our research has determined that State Farm’s national average for renters insurance is among the most reasonable in our ranking. While its renter’s insurance doesn’t offer a wide range of discounts, the generally cheaper costs may still make it affordable.
Pros:
- In our ranking, this is one of the cheapest companies.
- A large network of local agents is available.
Cons:
- Offers fewer discounts than some of the other firms in our ranking
6. Farmers
Add-ons such as replacement cost coverage and identity theft protection are available for customers who want to customize their policy. You can add on limited mold coverage, protecting your items from mold damage or losses. You might be allowed to add coverage for changes you made to the building, unlike many insurance companies that offer renters insurance.
Pros:
- Coverage for mold, identity theft, and building updates is offered.
- There are numerous options for filing a claim.
Cons:
- Not all 50 states have it.
7. Allstate
In our ranking of the Best Renters Insurance Companies in 2022, Allstate is ranked No. 6. In all 50 states and Washington, D.C., Best Renters Insurance Companies Allstate renters insurance products are accessible through its network of agents. However, Massachusetts and Rhode Island have limited availability.
According to our data, premiums are slightly more than the other carriers in our list, although there are reductions available for the budget-conscious. A policyholder who bundles their policies or is 55 and older, for example, may be eligible for a discount.
Pros:
- Provides solutions for identity theft repair and flood insurance coverage.
- It’s legal in all 50 states.
Cons:
- Add-on coverage options are limited.
8. Nationwide
Best Renters Insurance Companies Nationwide offers low Pricing and a few extras that many other renters insurance companies don’t: standard coverage includes protection from stolen credit cards and changes to your rented apartment, among other things. And Nationwide will pay for covered damages if you modify or alter your leased house. Fraudulent debit card transactions, counterfeit money, and forged checks are all covered under the stolen credit card policy.
Pros:
- Coverage for credit cards that have been stolen
- Coverage for replacements is provided
- Provides coverage for changes to the structure
- A Nationwide representative can provide renters with specialized support.
Cons:
- For individuals who do not want to work with an insurance agent, this is not the greatest option.
9. Liberty Mutual
Best Renters Insurance Companies Liberty Mutual is one of just a few insurance firms that can provide coverage in all 50 states and Washington, D.C. This insurer distinguishes the number of savings accessible to policyholders and a quick online quote process. You’ll be able to find discounts for enrolling in autopay, completing the purchase process online, and receiving a quote before the expiration date of your current policy, as well as discounts for enrolling in autopay, completing the purchase process online, and receiving a quote before the expiration date of your current policy. Also, you may contact Liberty Mutual nearly entirely without calling a person because of their mobile app and online claims process.
Pros:
- All 50 states of Washington, D.C., and the US. Are covered.
- Coverage for replacement costs is provided.
Cons:
- Water damage coverage is not in the standard policy.
- Not all regions are covered by earthquake insurance.
How to Select the Most Appropriate Renters Insurance
When choosing a renters insurance coverage, there are numerous procedures to take.
- Decide on the topics you wish to address. According to the top Insurance Information Institute, most renters’ best insurance policies give three coverage types: personal belongings, liability, and additional living expenses.
Consider the following factors while deciding which of these to cover:
o Your personal belongings include clothing, bedding, sports and hobby tools, small appliances that did not come with the rental property, also anything else you hold that is kept in the apartment.
- And a renters insurance policy’s liability coverage will cover legal fees and medical bills resulting from hurt to a guest on your property.
- Suppose you have to move out of your unit due to a qualifying occurrence. In that case, additional living expense coverage will compensate you for hotel bills, restaurant meals, and other charges over and beyond your typical living expenses.
In our What Does Renters Insurance Cover?
In an article, we go over a more detailed list of coverage alternatives for renters insurance.
- Calculate how much renters insurance you’ll require. Take an inventory of your own personal belongings to determine how much renters insurance you need. Walk through each house room and list everything you own, even items hidden away in places like your bedroom closet. After a catastrophic tragedy, all of these items may need to be replaced, so make sure you have enough insurance. A supplemental or add-on coverage may be required for particularly costly things, such as pricey jewelry.
- Also, decide if you want a replacement cost or an actual cash value policy. A replacement cost coverage has a higher premium, but it reimburses you for the cost of replacing lost or damaged things with new ones. An actual cash value coverage, on the other hand, will only compensate you for what the objects were worth in their previous state. A basic cash value policy will leave you short of funds for purchasing new products for certain types of property, particularly items like electronics that deteriorate quickly.
Should I combine my renters and car insurance policies?
However, bundling isn’t always the most cost-effective alternative whether or not to bundle your renters and car insurance plans. Bundling these two policies is available from many insurance providers in our ratings, resulting in reduced prices. However, the amount you save will depend on the specifics of your bundling plans.
Other types of coverage may be eligible for similar savings. Allstate, for example, allows you to combine renters insurance with term life insurance or auto coverage, and Nationwide will enable you to connect renters and motorcycle coverage.
You might be able to save more money if you buy individual plans from different firms. See our How to Bundle Renters and Car Insurance guide for more information.
What Is Covered By Renters Insurance?
If you reside in a rented home, your landlord’s insurance covers the structure but not the contents. Your landlord cannot be held financially liable for any damage to your goods in the event of an accident. Renters insurance, like homeowners insurance, is designed to safeguard the contents of your property.
A basic renters insurance policy also covers the following:
- If your home or apartment is split and valuables are robbed, you can file a claim with your renter’s insurance carrier, and they will reimburse you for the items taken. And renters’ insurance packages often cover thefts outside your home, such as being pickpocketed or having your phone taken while you’re out and about Best Renters Insurance Companies.
- Also, costs of living Additional living expenses incurred due to damage to your house are covered under loss-of-use coverage. If a fire dies out in your home or building and renders, your flat uninhabitable, loss-of-use coverage may assist you in obtaining a hotel room.
- Moreover, damage to visitors. Personal liability coverage comes in if someone is hurt or their property is harmed, and you are held responsible. Your renter’s insurance coverage may also cover medical payments for the guest’s medical bills and your legal defense if the injured party brings a lawsuit against you.
Is Renters Insurance Necessary?
There are various reasons why you might think about getting renters insurance.
- Requirements of the landlord Some landlords and rental agencies impose a rental policy on their renters. Look over your rental agreement or contact your current or potential landlord if you require coverage.
- Protection of your individual belongings. Your landlord’s insurance coverage will most certainly cover their building. Still, it will not cover your belongings in theft, fire, water damage, or another occurrence that leaves you with damaged property. Your possessions or everyday necessities, such as clothing, laptops, and appliances, are safe with renters insurance.
- Liability insurance. The majority of renter’s insurance policies offer liability coverage. If you’re legally responsible for someone’s injury or property damage, having coverage can help you pay for repairs, property replacements, or medical bills.
- Financial assistance in the aftermath of a calamity. Most renters’ policies provide “loss of use” coverage if you’re displaced due to a covered risk, which can help you pay for a hotel or other needed costs (like daily meals).
