Best Renters Insurance Companies of September 2021

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If you’re a renter and believe that your landlord or apartment complex is responsible for your personal belongings if something happens, we have news for you: they’re not.

That’s why there’s renters insurance, which covers your personal belongings from damage or theft, additional living expenses if you have to move out, and legal fees and medical expenses if someone is injured in your home.

“Renters insurance gives you a lot of protection for the money. It’s probably more affordable than you might think. Bundling it with your auto insurance could even reduce the cost,” says Laura Adams, an insurance expert with Clearsurance, an online insurance marketplace, and host of the “Money Girl” podcast.

If you’re not sure where to start, we can help. We sifted through dozens of insurers who offer renters policies and evaluated them based on financial strength, ease of filing and tracking a claim, coverage options, discounts, and other factors. Here are the best of the bunch. 

Best Renters Insurance Companies

State Farm

State Farm stands out as an insurance company for many reasons: affordable rates, excellent customer satisfaction, an easy-to-navigate claims service, and the availability of renters insurance in all 50 states. But it’s not just State Farm’s availability that makes it a good option for renters insurance; it’s also known to offers some of the lowest rates. You can also take advantage of its discounts for bundling and for protective devices in the home, and lower your premium even more. State Farm’s standard renters policy covers personal property, personal liability, medical payments, and additional living expenses. If you want more protection, State Farm has many coverage add-on options such as pet medical insurance and identity theft insurance.

State Farm Renters Insurance Coverage

  • Personal property coverage
  • Personal liability coverage
  • Loss of use coverage
  • Medical payments coverage

State Farm Renters Insurance Discounts:

  • Multi-policy discount
  • Home alert protection discount

USAA

USAA offers renters insurance coverage everywhere in the U.S. exclusively for military members, veterans, and their families. Although USAA isn’t available to everyone, it consistently scores high for customer satisfaction, has competitive rates, and offers a more robust standard renters insurance policy than many of its competitors. On top of that, USAA offers discounts for bundling and for certain protective devices in the home.

USAA’s basic renters insurance policy includes personal property, liability and loss of use, flood coverage, and medical expenses and property damage to other guests. It’s notable that flood coverage is included in USAA’s renters insurance policies because it’s typically not included in policies with most insurers. You also don’t have to pay extra for earthquake coverage, and your personal belongings are still covered if you’re a military member who’s deployed or moves abroad. If the basic policy isn’t enough, USAA has many coverage add-on options such as valuable personal property insurance and collectibles insurance.

USAA Renters Insurance Coverage:

  • Personal property coverage
  • Personal liability coverage
  • Medical payments coverage
  • Flood insurance

USAA Renters Insurance Discounts:

  • Discount for living on base or post
  • Multi-policy discount 
  • Loss-free discount
  • Home alert protection discount 

Erie Insurance 

Erie Insurance has a strong reputation among consumers and the insurance industry, scoring exceptionally high for customer satisfaction in J.D. Power’s recent survey. Although it’s only available to residents in 12 states and D.C., its standard renters insurance policies come with good discounts for bundles. If typical renters insurance isn’t enough for you, Erie offers additional coverage for more specific needs, such as coverage for identity recovery and coverage for valuable personal items like jewelry and electronics. Erie offers insurance in the District of Columbia, Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin through 12,000 independent agents. 

Erie Renters Insurance Coverage:

  • Personal property coverage
  • Loss of use coverage
  • Personal liability coverage
  • Medical payments coverage

Erie Renters Insurance Discounts:

  • Multi-policy discount
  • Protective device discounts 

Lemonade

Lemonade is a relatively new company that offers renters insurance with low rates and easy-to-use technology in 28 states. Lemonade differentiates itself by using AI and online tools and offers its services only online. Lemonade’s renters insurance starts as low as $5 per month for basic coverage, making it easily accessible and affordable. Around 70% of Lemonade’s customers said the price influenced their decision to pick it as their renters insurance company, according to J.D. Power. In 2020, it ranked highest for renters insurance in J.D. Power’s 2020 insurance study, beating legacy insurers that have been around for decades. 

Lemonade Renters Insurance Coverage:

  • Personal property coverage
  • Personal liability coverage
  • Loss of use coverage
  • Medical payments coverage

Lemonade Renters Insurance Discounts:

  • Multi-policy discount
  • Protective device discounts

Best Renters Insurance of September 2021 Summary

INSURANCE COMPANYJ.D. POWER CUSTOMER SATISFACTION SCORE, 2020A.M. BEST RATING, 2020STATES AVAILABLE
State Farm836A++50
Erie Insurance 865A+12
USAA 888A++50
Lemonade 866N/A28

How to Compare and Choose a Renters Insurance Provider

The average cost of renters insurance is about $42 a month, but the price of a renters policy can vary, and it shouldn’t be the only thing you take into consideration when picking a renters insurance provider.

You’ll also need to consider how much coverage you need when comparing renters insurance providers. A standard renters insurance policy will cover personal property, personal liability, loss of use, medical payments, legal fees if someone is injured on your property, and additional expenses for relocation. When you’re shopping for renters insurance quotes, make sure to enter the same limits of each type of coverage to get an accurate comparison.

You’ll also want to take a look at each company’s optional coverages, which you can pay extra to add to your policy. Depending on your needs and what you own, it may make sense to pay a little extra to protect any items that are highly valuable to you, such as an engagement ring or a pricey musical instrument. Every insurer has slightly different add-on options, and some insurers even include certain types of coverage in a basic renters insurance policy without charging extra, so it’s worth taking the time to do some research and shop around. 

Don’t forget to pay attention to discounts when you’re shopping for a renters insurance provider, since it can save you quite a lot of money in the long run. For example, Erie Insurance offers multi-policy discounts that range from 16% to 25%, depending on where you live. 

Finally, consider the company’s claim process. Do you have to get in touch with an agent to file a claim, or can you file and track claims online? If you prefer doing everything online, it’s worth figuring out how the company handles claims and other issues before you buy your policy to save you some hassle later.

Common Scenarios to Consider When Picking the Best Renters Insurance 

Your living situation plays a significant role in what type of renters insurance you need. For example, if you have a dog or a roommate, you’ll need to consider that when shopping for renters insurance. Here are a few common scenarios that can affect how much coverage you buy:

You Have a Roommate

There are insurers that let roommates share a renters insurance policy in certain states. But just because you can doesn’t mean you should. It’s usually a safer bet for roommates to get their own separate policies since they don’t have an insurable interest in each other’s belongings. One roommate could drive up the cost of the policy if they have a lot more belongings to cover than the other roommate(s) —or worse, it may not protect you from your roommate if there’s an accident or a dispute occurs. If you have a spouse or other family members who live under the same roof, then it makes more sense to share a renters insurance policy. 

You Have a Pet 

A lawsuit against you over an incident with your pet and someone else could put a strain on your finances for years. The most common example is a dog bite. Depending on your dog and your appetite for risk, it may be worth making sure that dog bites are included in the liability portion of your renters insurance. Most dog breeds are automatically covered by renters insurance personal liability protection, but you should verify whether your policy has any breed exclusions.

You Have a Tight Budget

If you’re on a tight budget, there are ways to reduce the policy cost. First, shop around and compare rates from at least three to five companies to find an affordable policy that meets your needs. Once you have a list of potential insurers, look at what discounts they offer. Most insurers offer at least two to three discounts for renters insurance policies, from discounts for security alarms to discounts for bundling. You could also consider increasing your deductible, which is the amount you pay out of pocket when you file a claim, to lower your monthly payments. But only do that if you’re comfortable knowing that you’ll have to pay more out of pocket initially if your stuff were stolen or damaged. To learn about more affordable options, see our list of best cheap renters insurance.

You Own Valuable Jewelry or Electronics

Many insurance companies will only cover up to a certain amount, typically around $1,000 or $1,500 total, for valuable items such as jewelry or electronics. If you own expensive electronics or jewelry, you may need to purchase extra coverage, often called a “floater” or “scheduled coverage,” to make sure they are insured up to their full value.

Frequently Asked Questions

What does renters insurance typically cover?

Renters insurance typically covers things that aren’t covered by your landlord’s insurance policy. For example, a standard renters insurance policy usually covers damage to your personal belongings, additional living expenses if you have to relocate, and medical bills and legal costs if a guest is injured in your home. Similar to homeowners insurance policies, covered events generally include fire, theft, falling objects, severe weather (except earthquake or flood), and medical coverage for guests.

How do you file a renters insurance claim?

If you need to file a renters insurance claim, use your insurer’s online claims form or get a claims form directly from the insurer to process any claim. Your insurer may ask for certain things like:

  • A copy of a police report
  • A list of items that were lost or damaged
  • Any documentation of the items, such as photos or videos
  • Records of living expenses you may incur if you have to relocate

Methodology

To determine our picks for the best renters insurance companies, we started with a list of 25 of the largest home insurance companies by premiums collected, based on data from the National Association of Insurance Commissioners. From there, we applied a series of filters to narrow the field across key categories like cost, availability, and customer satisfaction. 

To gauge affordability, we analyzed average annual premiums for renters insurance and eliminated any that didn’t offer discounts. Next, we looked at J.D. Power’s 2020 U.S. Home Insurance Customer Satisfaction Study, and ruled out any companies that scored below 835 on a 1,000-point scale (the industry average was 842).

Finally, we looked at each insurance company’s A.M. Best rating, which evaluates a company’s financial standing. Financial solidity matters for insurance companies because their customers depend on them to pay their claims if they’re in an accident or experience an insured loss. In other words, an insurance company that has the wherewithal to stay in business is more dependable in the long term. We ruled out any company that doesn’t have A.M. Best’s rating of A+ or higher. We also eliminated any companies that are involved in any active fraud investigations.

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