The Best Renters Insurance Companies
Lemonade and State Farm have the best renters insurance for most people.
Find Cheap Renters Insurance Quotes in Your Area
The 3 Best Renters Insurance Companies
The best renters insurance companies combine low-cost coverage, dependable customer service and the right amount of protection for your situation.
To compare renters insurance quotes, we analyzed rates from major insurance companies across every state in the U.S. Quotes are based on $30,000 in personal property coverage, $100,000 in liability protection and $1,000 in medical payments to others, with a $500 deductible.
Best insurance for most renters
The best renters insurance depends on the coverage you need and where you live.
Company | Best for | Editor's rating | Average monthly rate |
|---|---|---|---|
| Lemonade | Overall | 4.0 out of 5 | $12 |
| State Farm | Widely available cheap rates | 4.5 out of 5 | $14 |
| Amica | Customer service | 3.0 out of 5 | $17 |
| Nationwide | Extra coverage options | 4.0 out of 5 | $18 |
| USAA | Military families | 4.5 out of 5 | - |
Find the best renters insurance in your state
Find Cheap Renters Insurance Quotes in Your Area
Best for cheap renters insurance: Lemonade
-
Monthly rate$12We compiled quotes from five of the top insurance companies in each state, based on data availability. Read our methodology.
Best major renters insurance company: State Farm
-
Monthly rate$14We compiled quotes from five of the top insurance companies in each state, based on data availability. Read our methodology.
Best renters insurance company for customer service: Amica
-
Monthly rate$17We compiled quotes from five of the top insurance companies in each state, based on data availability. Read our methodology.
Best for extra renters insurance coverage: Nationwide
-
Monthly rate$18We compiled quotes from five of the top insurance companies in each state, based on data availability. Read our methodology.
Best renters insurance for military families: USAA
How much is renters insurance?
Renters insurance costs $18 per month on average.
Lemonade offers the cheapest renters insurance quotes, with an average rate of $140 a year, or $12 a month. That's 35% cheaper than the national average, which is $214 per year.
Cheapest insurance companies
Find Cheap Renters Insurance Quotes in Your Area
If you're looking for an affordable renters insurance policy, it's worth comparing quotes from State Farm. Its average rate is $2 per month more than Lemonade's, but individual rates may be cheaper in your area.
Monthly renters insurance rates by company
Company | Average monthly rate | |
|---|---|---|
| Lemonade | $12 | |
| State Farm | $14 | |
| Amica | $17 | |
| Nationwide | $18 |
How to choose the best renters insurance company
Before you buy renters insurance, it's important to compare quotes from multiple companies. The cost of a policy is important, but you also need to make sure that it includes enough coverage to protect you and your belongings. In addition, you'll want to choose a company that has good customer service reviews. That way, you know you'll be taken care of if you ever have to file a claim.
Decide how much insurance coverage you need
Before you start shopping for the best renters insurance company, it's important to determine how much coverage you need.
Personal property coverage
Personal property coverage protects all of your belongings. That means the limit should be high enough to replace all of your stuff if it's destroyed or stolen. The best way to determine how much coverage you need is to create a home inventory listing all of your belongings and an estimated cost to replace them.
Actual cash value vs. Replacement cost
Most insurers offer two options when it comes to replacing your personal property. Standard policies typically pay you based on actual cash value, which takes into account any wear and tear on your items.
If you upgrade to replacement cost, your insurer will pay to replace your items with the same or similar new ones.
While the overall limit is the most important thing to consider, pay attention to coverage for expensive or valuable items. Insurers cover a maximum amount in certain categories, like jewelry. If your valuables exceed the coverage limit, you may need to purchase additional insurance.
Examples of items that you may need to purchase additional insurance for include:
- Engagement and wedding rings
- Expensive electronics
- Business property
- Musical instruments
- Artwork
- Pricier sports equipment, like bikes or golf clubs
Liability insurance
Personal liability coverage protects your assets if you cause damage to someone else's property or hurt somebody. The amount of coverage you need depends on how likely you are to be sued and the value of the assets you need to protect.
Standard renters insurance policies include $100,000 of liability coverage. However, you may need more coverage if your apartment or home poses an increased risk to guests. For example, if you rent a home with a pool, you're at a greater risk of being held responsible for a slip and fall.
Additional living expenses
Additional living expenses (ALE) coverage covers your cost of living if you have to move out of your home after a loss. This coverage can help pay for a hotel room or rent and moving costs. It may also cover additional transportation expenses associated with living away from home and the cost of food if your temporary space doesn't have a kitchen.
Your additional living expenses limit is usually calculated as a percentage of your policy's personal property coverage.
Renters insurance protects you against large expenses, like having to replace all of your stuff. That's why coverage limits are so important. Cheap renters insurance might not be worth the savings if it doesn't include enough coverage to protect you and your belongings.
Determine whether you need additional coverages
The best renters insurance company for you should offer whatever additional coverage options you think are necessary.
Coverage and who needs it | Major companies that offer it |
|---|---|
| Decreasing deductible | Travelers |
| Earthquake insurance | Geico, Nationwide, Progressive, State Farm |
| Equipment breakdown | Lemonade, Travelers |
| Extended liability | Allstate, Nationwide, Progressive, State Farm, Travelers |
| Identity theft protection | Allstate, Amica, Assurant, Farmers, Geico, Liberty Mutual, Nationwide, Progressive, State Farm, Travelers |
For people who want the most comprehensive list of add-ons, Nationwide and Travelers are the best options.
Renters who feel they don't need extra coverage — a standard policy provides enough protection — should consider Lemonade or State Farm. Although a policy from one of these companies is fairly basic, coverage usually costs less.
Compare renters insurance companies
Once you know how much insurance you need, you can start comparing quotes. Make sure that each policy has the same coverage limits so you can make an apples-to-apples comparison.
In addition to coverage options, you should consider:
- Rates: The cost of renters insurance is based on a number of factors, including where you live, how much coverage you need and your insurance history. You’ll want to compare your renters insurance quotes to national and state averages to make sure you’re getting the best rates.
- Reviews and ratings: It's important to choose an insurance company with great reviews and ratings because they tell a lot about its claims process and how it will treat you. If you ever need to file a claim, you’ll have peace of mind knowing that your insurer will help you get your life back to normal quickly.
- Financial strength: Your renters insurance policy is only as good as your insurance company’s ability to pay out claims. A company with a great financial strength rating should be able to make claim payments, even in difficult economic situations.
The best renters insurance companies offer affordable rates, adequate protection and reliable customer service.
Company |
Editor's rating
|
J.D. Power
|
NAIC
|
AM Best
|
|---|---|---|---|---|
| State Farm | 4.5 out of 5 | 866 | 0.32 | A++ |
| USAA | 4.5 out of 5 | 893 | 0.2 | A++ |
| Lemonade | 4.0 out of 5 | 870 | 0.61 | A (Demotech) |
| Nationwide | 4.0 out of 5 | 834 | 0.16 | A+ |
| Travelers | 3.5 out of 5 | 815 | 0.19 | A++ |
How to save on renters insurance
There are a number of ways for you to save money on your renters insurance. Qualifying for policy discounts is an easy way to reduce your costs. You should also compare quotes from multiple companies to find the cheapest renters insurance rates.
Raising your deductible will also lower your monthly bill. However, you'll end up paying more if you file a claim.
Renters insurance discounts
Many insurers provide discounts for customers who take steps to make their homes safer, or for those who buy multiple policies. Common discounts available to renters include:
- Multipolicy discount
- Safety discount
- Claim-free discount
- Payment discount
- Online shopping discount
Renters insurance deductible
A deductible is the amount of money you have to pay when you file an insurance claim.
How your deductible works
Your couch is insured for $3,000 and needs to be replaced. If you have a $500 deductible, your insurance company will send you a check for $2,500. However, if your deductible is $1,000, your payout will only be $2,000.
Higher deductibles mean less protection and lower rates, while lower deductibles equal more protection and higher rates.
Ultimately, choosing a deductible comes down to your preference for risk. You either save money on your monthly bill or save money on any potential claims.
Frequently asked questions
Who has the best renters insurance?
The best renters insurance company is not the same for everyone. State Farm has some of the cheapest renters insurance rates and is available nationally. For renters with military ties, USAA may be the best option for renters.
Who has the cheapest renters insurance quotes?
Renters can get the cheapest quotes from Lemonade — a policy costs $12 per month, on average. However, it's only available in 29 states and Washington, D.C.. Renters who can't buy a policy from Lemonade should consider State Farm, which offers affordable rates across the country.
Which company has the best rental insurance coverage?
Renters who need extra protection should consider Nationwide, which offers lots of coverage options, like earthquake protection and replacement cost coverage. Coverage from Nationwide is also affordable at $18 per month, on average.
Which company has the best renters insurance reviews?
Amica offers the best customer service. Its reputation for a quick and easy claims process will help alleviate stress in an emergency situation. Renters can also get dependable coverage from USAA, but it's only available to people with ties to the military.
Methodology
To find average nationwide renters insurance rates, ValuePenguin compiled quotes from the largest insurance companies in each state, based on data availability. The sample renter is an unmarried 25-year-old man with no roommates or pets and no history of insurance claims.
Quotes are based on the following coverage limits:
Coverage | Amount |
|---|---|
| Personal property | $30,000 |
| Personal liability | $100,000 |
| Medical | $1,000 |
| Deductible | $500 |
About the Author
Senior Writer
Lindsay Bishop is a Senior Writer at ValuePenguin, where she educates readers about home, auto, renters, flood and motorcycle insurance.
Lindsay began her career in the insurance and financial industry in 2010. She was a licensed auto, home, life and health insurance agent and held Series 6 and 63 financial licenses.
After a hiatus from the financial sector, Lindsay returned to the industry as a content writer for ValuePenguin in 2021. She enjoys having the opportunity to help readers make smart decisions about their insurance so they can be prepared for anything life throws their way.
When Lindsay isn't writing about insurance, you can find her spending time with family, enjoying the outdoors on Sunday long runs or riding her Peloton.
How insurance helped Lindsay
As a homeowner for 15 years located in South Carolina, Lindsay has plenty of experience navigating the coastal insurance market and managing the claims process. That includes successfully negotiating a full roof replacement claim.
Expertise
- Home insurance
- Car insurance
- Flood insurance
- Renters insurance
- Motorcycle insurance
Referenced by
- CNBC
- Yahoo Finance
- Miami Herald
Education
- BS/BA Economics, University of Nevada Las Vegas
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
