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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.
Insider compiled data from different renters insurance companies based on customer service and premium prices where available. For sample quotes, we entered data for two people renting a two-bedroom, one-bath, single-family with no pets in Philadelphia. From there, we determined the best.
Our top picks for the best renters insurance are below:
The best renters insurance companies of 2021
Sample quoteCustomer rating*Available in all 50 states? 1. State Farm renters insurance$15.678Yes2. Lemonade renters insurance$16.841No, available in 28 states3. Erie renters insuranceN/A2No, available in 12 states4. Allstate renters insurance$23.004Yes5. Farmers renters insurance$21.836YesBest for military: USAA renters insuranceN/AN/AYes, only to military members and family
J.D. Power Customer satisfaction 2020
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. Renters insurance policies are 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), the value of your personal belongings, and even whether you have a dog.
More on the best renters insurance companies of 2021
Here’s some more detail on our winners:
Nationwide coverageLowest monthly rate Ranked in top 10 for customer service
Other companies offer more discount options
Learn more about State Farm renters insurance »
Easy online quoting and purchasingRanked #1 in customer satisfactionB-corp status with corporate focus on giving back to charities chosen by customers
Only available in 28 statesNo bundling discounts — Lemonade only offers home and renters insurance
Learn more about Lemonade renters insurance »
Ranked No. 2 in customer satisfactionLow-cost policies
Only available in the Mid-Atlantic, North Central, and Southeast regions of the USOnline process includes speaking with an agent
Learn more about Erie renters insurance »
Nationwide providerRanked in top 10 for customer serviceMulti-policy discounts available
Policies start at $20, which is higher than other companies’ starting costs
Learn more about Allstate renters insurance »
5. Farmers renters insurance
Good marks for customer satisfactionBundling discounts available
Not the cheapest renters insurance
Learn more about Farmers renters insurance »
Best for military
High marks for customer satisfactionRated highly for other types of insurance, like car and homeowners
Quotes not available online
Learn more about USAA renters insurance »
The best renters insurance based on customer satisfaction
How much people like their renters insurance providers may factor into your decision. According to a J.D. Power survey, these are the top renters insurance companies in the US, based on customer rankings:
LemonadeErieAllstateAmerican FamilyFarmersAuto Club of Southern CaliforniaState FarmASI ProgressiveNationwideLiberty MutualThe HartfordTravelersCSAA
verage annual premium for renters insurance by state
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.
Here’s the average annual premium for renters insurance by state, according to the Insurance Information Institute.
State Average annual premiumAlabama$235Alaska$166Arizona$178Arkansas$212California$182Colorado$159Connecticut$192Delaware$159District of Columbia$158Florida$188Georgia$219Hawaii$185Idaho$153Illinois$167Indiana$174Iowa$144Kansas$172Kentucky$168Louisiana$235Maine$149Maryland$161Massachusetts$194Michigan$182Minnesota$140Mississippi$258Missouri$173Montana$146Nebraska$143Nevada$178New Hampshire$149New Jersey$165New Mexico$187New York$194North Carolina$157North Dakota$120Ohio$175Oklahoma$236Oregon$163Pennsylvania$158Rhode Island$182South Carolina$188South Dakota$123Tennessee$199Texas$232Utah$151Vermont$155Virginia$152Washington$163West Virginia$188Wisconsin$134Wyoming$147
Frequently asked questions
How did we choose the best renters insurance companies?
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.
Insider compiled data from different renters insurance companies based on customer service and premium prices where available. From there, we determined the top five. To find out how much policies typically cost, Insider obtained sample quotes for renters insurance for a two-bedroom, one-bath home with a smoke detector and no pets with two occupants in Philadelphia, Pennsylvania.
Customer satisfaction was also considered as a factor, with almost all of the companies taking top spots for customer satisfaction in J.D. Power’s renters insurance satisfaction survey.
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: the location, your credit score, the amount of coverage you’re looking for and whether you have a dog.
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: personal property coverage and personal liability coverage. It also provides “loss of use” coverage if your rental becomes unlivable due to damage.
Personal property 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 your personal 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.
Personal liability protection
Personal liability protection from your renters insurance policy could help protect you if someone sues you for injuries that happened in your rental or if your pet bites someone. Depending on your coverage, it could help cover you up to a certain dollar amount.
How can I 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.
If you don’t want to visit renters insurance sites individually, you can use a free tool like the one offered by Policygenius to compare quotes from multiple companies in one place.
Related Content Module: More on Homeowners Insurance
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By: Liz Knueven and Ronda Lee
Title: The best renters insurance of 2021
Sourced From: www.businessinsider.com/personal-finance/best-renters-insurance-companies
Published Date: Tue, 10 Aug 2021 13:19:19 -0400