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If you’re currently renting your home, renters insurance is coverage you should probably have — especially considering how little it costs.
Whether you’re renting a studio apartment or an entire single-family home, renters insurance picks up where your landlord’s insurance policy leaves off. If a fire destroys your rented home, your renters insurance could help to replace your belongings. Similarly, if someone hurts themselves in your rented home and sues you, this coverage could help.
The average renters insurance policy costs between $15 and $20 per month, much cheaper than homeowners insurance. Renters insurance policies is available from a variety of insurers, and it might be smart to bundle it with car insurance or other types of insurance to get the best price on both policies.
If you’re searching for a new company for your renter’s insurance policy, know that many factors can change the price you’re quoted, including your credit score in some states, characteristics of the home you’re renting, and even whether you have a dog.
Business Insider obtained sample quotes from some of the top companies offering renters insurance for a rented, two-bedroom, one-bath, single-family home in Philadelphia. Data on customer satisfaction and state availability were also considered.
The below companies are listed from lowest to highest sample quote:
*Customer satisfaction rating out of 1,000
State Farm took the top spot, offering coverage for less than $16 per month. Several other companies also offered coverage for under $20 per month, including Travelers and Lemonade.
The biggest provider of renters insurance in the US
Lowest monthly rate
Highly rated for customer service
Covering computers and jewelry could add to your policy’s cost
State Farm is the biggest provider of private renters insurance in the US, taking the majority of the market in 44 states. This company had some of the lowest renters insurance rates in Business Insider’s sample scenario, with a policy for a typical home in Philadelphia costing less than $16 per month.
State Farm’s renters insurance is a solid starting plan, covering the basics of the items you own, your expenses if something happens to your rented home, and liability. However, it may cost more to cover some items, like jewelry and computers, under this policy.
Minimum coverage may be more than some renters need
Travelers renters insurance is a good option for anyone who wants more coverage than the standard $10,000 or $20,000 policy has to offer. Travelers’ renters insurance coverage limit is higher than the typical policy, starting at $30,000. While that may be more than you need, Travelers still came in second for price in Business Insider’s quotes.
No bundling discounts — Lemonade only offers home and renters insurance
Lemonade offers renters insurance policy purchasing and quotes online with a very smooth and easy online experience. If you want to work with an agent, this probably isn’t the company for you. But, for an easy and affordable renters insurance policy, Lemonade may be a good option.
This insurer is currently only available in 28 states and the District of Columbia. However, Lemonade only does homeowners, renters, co-op, and condo insurance, so you may be able to get better rates by bundling through other companies.
Policies start at $20, which is higher than other companies’ starting costs
Nationwide offers renters insurance policies in addition to several other types of polices, making it a great option for anyone who wants to keep their insurance in one place. While its insurance prices aren’t the cheapest on this list, bundling policies could make it much more affordable.
Rated highly for other types of insurance, like car and homeowners
Quotes not available online
Only available to military members and family
For military families or anyone eligible, USAA could be a good option as well. While quotes aren’t available online, USAA consistently earns top marks for insurance coverage in other categories, including car insurance and homeowners insurance. It also took the top spot for customer satisfaction in JD Power’s customer satisfaction survey. If it’s an option for you, a quote from USAA would be a good place to start your search.
Like homeowners insurance and car insurance, renters insurance can vary a lot by state. Where you live will play a big role in your quote, and each company will consider that differently.
That said, there are some pretty stark trends in which insurance companies are the most popular in each state, and it might be worth getting a quote to compare from the company that’s most popular in yours.
Here’s the most popular insurance company by state in 2019, according to S&P Global data.
Most popular insurance company
District of Columbia
New Jersey Manufacturers Group
Vermont Mutual Group
American Family Insurance
Even though one company may be the overwhelmingly most popular in your state, it’s still worth shopping around and comparing quotes before buying a policy.
How were the winners determined?
The best renters insurance company is one that offers the most coverage for the least amount of money, and also has a good reputation for customer service.
For this ranking, Business Insider only included companies that allowed customers to get quotes and purchase policies online (with the exception of USAA, because of its exemplary customer-satisfaction ratings). To find out how much policies typically cost, Business Insider obtained sample quotes for renters insurance for a single-family, townhouse-style home in Philadelphia, Pennsylvania with two occupants. This sample property did not have pets, and had only a local smoke detector system. The companies were then ranked based on the sample premium.
Customer satisfaction was also considered as a factor, with almost all of the companies taking top spots for customer satisfaction in JD Power’s renters insurance satisfaction survey. Additionally, only companies with insurance available in more than half of US states were considered.
How much is renters insurance?
According to data from the Insurance Information Institute, the average renters insurance policy cost $180 per year in 2017, or about $15 per month.
The amount you’ll pay for renters insurance can vary based on several factors, including the location, type, and size of home you’re renting, your credit score, and the amount of coverage you’re looking for. Other things may also play a role in the price of your renters insurance, including whether you have a dog, and how many people live with you.
Renters insurance is generally pretty affordable, and can sometimes be bundled with other policies for better rates. If you already have car insurance, it might pay to get a quote from your current insurer including renters insurance to see if it offers a discount.
What does renters insurance cover?
Sure, your landlord has an insurance policy on your rented home. But, it probably won’t cover you or your things if anything happens to your building, or if you’re facing a lawsuit from someone hurt on your property. Renters insurance doesn’t cover any structural damage that happens to your home, however.
There are two main parts of coverage to a renters insurance policy: property coverage, and liability coverage.
If a fire burns down your rented home, for example, your landlord’s insurance policy will help to rebuild it. But, it won’t help you, the tenant, replace or repair your items. That’s what renters insurance is for.
Renters insurance can help to replace or pay for property that you bring into the home if something unexpected happens to it, from fires to theft. If your items are stolen or damaged, you could get help with the cost of replacing those items from your renters insurance policy.
Sometimes, renters insurance will also cover property left in vehicles, or other items that could be stolen. Some renters insurance policies also include identity theft protection.
Liability protection from your renters insurance policy could help protect you if someone sues you over damage or an accident that happens on your property. Depending on your coverage, it could help cover you up to a certain dollar amount.
How to find the best cheap renters insurance
To be sure that you’re getting the best price for your renters insurance coverage, you’ll want to shop around and get quotes from several different insurers. Compare the quotes, and look for the most coverage types and limits. Then, look for the lowest premiums that fit your budget.