How to Compare Renters Insurance for the Best Prices
Comparing renters insurance can help you find affordable coverage that meets your needs.
Compare Cheap Renters Insurance in Your Area
A renters insurance policy provides protection against property damage or theft, plus legal liability and additional living expenses if your home becomes uninhabitable. Renters insurance can be purchased by anyone renting a single-family house, apartment or other living space.
Comparing renters insurance quotes is an important part of shopping for a policy. The best renters insurance combines affordable rates, reliable customer service and coverages tailored to your needs.
How to compare renters insurance
Comparing renters insurance companies is an important part of shopping for a policy. Before you buy renters insurance, you should calculate how much coverage you need, compare rates and research insurance company reviews.
Step 1: Calculate how much coverage you need
To determine your coverage limits, you'll need to consider how much personal property you have and your liability exposure.
Your personal property coverage limits should be high enough to replace all of your belongings in the event of a disaster. Start by taking inventory of your belongings and the price to replace them to get an idea of the total value of everything in your home.
Once you have a general idea of what your personal property is worth, you need to decide whether you prefer a policy that pays out claims based on actual cash value or replacement cost. Actual cash value will pay you the depreciated value, which factors in the wear and age of your belongings, meaning that you'll get a check for less than they were worth when you bought them. On the other hand, a policy with replacement cost coverage ensures that you'll receive the amount you originally paid for your items.
Take note of any high-value items like jewelry, a bike, electronics, business property or artwork. Insurance companies place limits on their payout for high-value items like these.
For example, the standard limit for jewelry is $1,500. That means if your $5,000 engagement ring is stolen, you will only receive up to $1,500 to replace it.
Most insurers offer the ability to schedule personal property that is worth more than the limit included in your policy. Not only does this ensure that you'll receive the replacement value for important items, but you'll also be covered for accidental loss or damage, which is not part of a standard renters insurance policy.
Lastly, consider the amount of liability insurance you'll need. Standard renters insurance policies include $100,000 of liability insurance, but adding more liability insurance is inexpensive. Liability coverage is especially important for renters who have a pool, a dog or other potential hazards at their home.
Renters insurance policies include loss of use coverage, but the amount is often automatically calculated as a percentage of your personal property limit.
However, you should still pay attention to the level of coverage included in your quote. That limit should be able to cover reasonable accommodations if your home becomes uninhabitable.
Step 2: Compare renters insurance rates
Now that you've determined how much coverage you need, you can start comparing renters insurance quotes. We gathered quotes from across the country to help you compare the top renters insurance companies.
Our renters insurance quote comparison found that State Farm has the most affordable rates with an average premium of $156 a year. That's $50 less annually than the second-cheapest insurer, Travelers.
Cheapest insurance companies
Find Cheap Renters Insurance Quotes in Your Area
Average national cost of renters insurance
Company | Annual premium | Monthly premium |
|---|---|---|
| State Farm | $156 | $13 |
| Travelers | $206 | $17 |
| Nationwide | $209 | $17 |
| Allstate | $222 | $18 |
| Average | $223 | $19 |
| Liberty Mutual | $232 | $19 |
| Geico | $261 | $22 |
| Farmers | $308 | $26 |
Step 3: Compare renters insurance company reviews
There are a number of factors to consider when comparing renters insurance quotes. Although rates are one of them, customer service and financial stability are equally as important.
J.D. Power ranks the level of customer satisfaction for top renters insurance companies. Of the insurers that we considered, Lemonade has the best J.D. Power score. State Farm and Travelers received top marks for financial stability from AM Best, showing that they have a high likelihood of being able to pay out claims, even in difficult economic times.
Company | Financial stability rating | J.D. Power score |
|---|---|---|
| Lemonade | A (Demotech) | 870 |
| State Farm | A++ (AM Best) | 866 |
| Nationwide | A+ (AM Best) | 834 |
| Allstate | A+ (AM Best) | 833 |
| Farmers | A (AM Best) | 831 |
| Liberty Mutual | A (AM Best) | 823 |
| Travelers | A++ (AM Best) | 815 |
Step 4: Choose your insurance company
Once, you've determined how much coverage you need, compiled quotes and researched the customer service and financial stability of the companies you're considering, it's time to choose the right rental insurance company for you.
To make your decision, consider the pros and cons of each company. Then, you'll need to determine how they line up with the things that are most important to you in a policy. Is staying within a budget crucial, or are you more concerned about being able to buy brand new belongings if yours are damaged? Do you value talking to an agent if you have to file a claim, or would you rather manage your policy online?
If you're having a hard time deciding, we put together a list of top renters insurance companies across different categories to help you make the right choice.
What does renters insurance cover
Renters insurance typically includes four main coverages:
- Personal property insurance covers the cost of replacing or repairing your personal property if it is stolen or damaged by a peril covered by your policy.
- Personal liability insurance protects you if someone is injured or their property is damaged and you are at fault. Liability insurance pays any settlement and legal costs that you are responsible for.
- Loss of use or additional living expense coverage reimburses you for expenses related to having to live away from home — like hotels, food and additional transportation costs — if your rental becomes uninhabitable.
- Medical payments coverage reimburses guests for minor medical expenses if they're hurt in your home.
However, coverage options vary by company. Some companies include expanded coverage in their standard policy, while others offer a number of options that you can add onto a base policy to customize it to fit your needs.
Compare quotes with these top renters insurance companies
The best renters insurance company is affordable and has reliable customer service along with policy coverages that meet your needs. We compared top renters insurance companies across different categories to make it easy to find the right policy for you.
Cheapest renters insurance: State Farm
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ValuePenguin rating4.5/5ValuePenguin rates companies based on cost, coverage, service and unique features.
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Financial stabilityA++Rating comes from AM Best.
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J.D. Power score 866/1,000
Top customer service scores: Lemonade
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ValuePenguin rating4/5ValuePenguin rates companies based on cost, coverage, service and unique features.
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Financial stabilityARating comes from Demotech.
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J.D. Power score 870/1,000
Renters insurance for apartments: Assurant
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ValuePenguin rating2/5ValuePenguin rates companies based on cost, coverage, service and unique features.
Home renters insurance: Nationwide
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ValuePenguin rating4/5ValuePenguin rates companies based on cost, coverage, service and unique features.
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Financial stabilityA+Rating comes from AM Best.
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J.D. Power score 835/1,000
Renters insurance quotes by state
The price you pay for renters insurance varies based on where you live. Utah has the cheapest rates in the country on average — $138 a year or $11 a month. On the other hand, Louisiana renters pay the highest rates at $442 a year or $37 a month.
Cheapest insurance companies
Renters insurance rates by state
State | Annual premium | Monthly premium |
|---|---|---|
| Alabama | $345 | $29 |
| Alaska | $187 | $16 |
| Arizona | $206 | $17 |
| Arkansas | $366 | $30 |
| California | $194 | $16 |
| Colorado | $184 | $15 |
| Connecticut | $208 | $17 |
| Delaware | $244 | $20 |
| Florida | $290 | $24 |
| Georgia | $313 | $26 |
| Hawaii | $203 | $17 |
| Idaho | $194 | $16 |
| Illinois | $174 | $15 |
| Indiana | $238 | $20 |
| Iowa | $193 | $16 |
| Kansas | $205 | $17 |
| Kentucky | $218 | $18 |
| Louisiana | $442 | $37 |
| Maine | $158 | $13 |
| Maryland | $192 | $16 |
| Massachusetts | $173 | $14 |
| Michigan | $347 | $29 |
| Minnesota | $176 | $15 |
| Mississippi | $315 | $26 |
| Missouri | $260 | $22 |
| Montana | $163 | $14 |
| Nebraska | $167 | $14 |
| Nevada | $219 | $18 |
| New Hampshire | $140 | $12 |
| New Jersey | $195 | $16 |
| New Mexico | $264 | $22 |
| New York | $152 | $13 |
| North Carolina | $202 | $17 |
| North Dakota | $184 | $15 |
| Ohio | $237 | $20 |
| Oklahoma | $353 | $29 |
| Oregon | $184 | $15 |
| Pennsylvania | $165 | $14 |
| Rhode Island | $266 | $22 |
| South Carolina | $226 | $19 |
| South Dakota | $146 | $12 |
| Tennessee | $282 | $23 |
| Texas | $339 | $28 |
| Utah | $138 | $11 |
| Vermont | $164 | $14 |
| Virginia | $170 | $14 |
| Washington | $181 | $15 |
| Washington, D.C. | $213 | $18 |
| West Virginia | $235 | $20 |
| Wisconsin | $184 | $15 |
| Wyoming | $186 | $16 |
Renters insurance quotes by city
Premiums across the country can vary greatly, and the same is true for major metropolitan cities. We analyzed 10 of the most populated cities, and San Diego has the cheapest renters insurance we found at $178 a year, while rates in Houston are close to 240% more expensive at $426 a year.
Cheapest insurance companies
Renters insurance rates by city
Frequently asked questions
Do I need renters insurance?
Some landlords and property management companies require tenants to purchase renters insurance. Even if you're not required to have coverage, we recommend that all renters consider purchasing renters insurance to protect themselves from the costs associated with property damage, theft and lawsuits.
How do I get renters insurance?
Getting a renters insurance policy is easy — most major companies allow you to get a quote and purchase your policy online. To compare renters insurance quotes, you'll need to provide your personal information (name, address and Social Security number) and the amount of coverage you need. Some companies will also ask questions about the building you're renting, including the number of units and external building materials.
Who has the cheapest renters insurance?
State Farm has the cheapest renters insurance with an average rate of $13 a month or $156 a year. That's $50 a year less than the next-cheapest option, Travelers. State Farm also has the lowest renters insurance rates in 36 of the 50 states, so it's likely that the company's prices will be competitive near you.
How often should you shop around for renters insurance?
You should compare renters insurance quotes every year at the end of your policy term. Getting multiple quotes isn't time-consuming since you can compare rates from most major insurers online. Don't forget to review your home inventory to make sure that you still have the right amount of personal property coverage before renewing or starting a new policy.
How is renters insurance different from homeowners insurance?
Renters insurance is different than homeowners insurance in that it does not cover the structure of the building that you live in. For example, if the roof of your rental home starts to leak from hail damage, homeowners insurance would help replace the roof, while renters insurance will not. However, if the leak damages your furniture, or is your fault, it will be covered by a renters insurance policy. Your landlord should have their own insurance policy to cover structural damage that is not caused by you.
Methodology
To calculate average renters insurance rates, we compiled quotes from the five largest insurance companies in each state, where the data was available. Our sample renter is an unmarried 30-year-old male, with no pets or roommates, living in a multiunit building with the following 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.
