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Whether you’re renting a studio apartment or an entire single-family home, renters insurance covers what your landlord’s policy does not. If a fire destroys your rented home, renters insurance could cover your personal belongings and valuables. If someone sues you for injuries on your property, renters insurance will make sure you’re covered.
The average renter’s insurance policy costs between $15 and $20 per month. You could get additional savings by bundling your renters insurance policy with car insurance or other types of insurance. Insider gathered data from several renters insurance companies based on customer service and premium prices where available. We base our sample quotes on data for two people renting a two-bedroom, one-bath, single-family with no pets in Philadelphia.
Compare renters insurance quotes
Best for cheapest renters insurance: State Farm Renters Insurance
State Farm Renters Insurance is an established insurance company that receives high marks for customer and claims satisfaction.
According to the Insurance Information Institute, the average renters insurance cost $174 per year or $14.50 per month. According to Insurify, State Farm Renters Insurance is priced at $10 a month which is significantly more affordable than the national average. However, your renters insurance will be based on a number of factors like where you live.
Read our State Farm insurance review here.
State Farm Renters Insurance
Best renters insurance overall: Lemonade Renters Insurance
Lemonade Renters Insurance is an easy-to-use digital platform provider that offers affordable coverage. Lemonade isn’t available in all states, but it has good ratings for customer service where available.
According to the Insurance Information Institute, the average renters insurance cost $174 per year or $14.50 per month. According to Insurify, Lemonade Renters Insurance starts at $5 a month which is significantly more affordable than the national average. However, your renters insurance will be based on a number of factors like where you live.
Read our Lemonade insurance review here.
Lemonade Renters Insurance
Best for discount opportunities: Erie Renters Insurance
Erie Renters Insurance only operates in 12 states plus Washington, D.C. It won’t make sense for everyone, but it does have a reputation for good customer service and claims satisfaction in the regions where it does operate. Erie Insurance is known for its low prices across the board, however, it also offers a number of discounts to curtail your premiums even further.
According to the Insurance Information Institute, the average renters insurance cost $174 per year or $14.50 per month. According to Insurify, Erie Renters Insurance starts at $15 a month which is on par with the national average. However, your renters insurance will be based on a number of factors like where you live.
Read our Erie Insurance review here.
Erie Renters Insurance
Best for senior renters: Allstate Renters Insurance
Allstate Renters Insurance is a national carrier that ranks well for customer service, but its insurance premiums aren’t always the cheapest. However, Allstate has a discount that allows renters who are 55 years or older to enjoy 25% of their premiums.
According to the Insurance Information Institute, the average renters insurance cost $174 per year or $14.50 per month. According to Insurify, Allstate Renters Insurance starts at $15 a month which is on par with the national average. However, your renters insurance will be based on a number of factors like where you live.
Read our Allstate insurance review here.
Allstate Renters Insurance
Best for business professionals: Farmers Renters Insurance
Farmers Renters Insurance takes the sixth spot in J.D. Power’s renters insurance customer satisfaction survey. You may qualify for a discount if you are a business professional such as a doctor, nurse, engineer, dentist, teacher, police officer, or firefighter. You can obtain a quote by speaking to a Farmers insurance representative.
Read our Farmers Insurance review here.
Farmers Renters Insurance
Best for military members: USAA Renters Insurance
If you’re in the military or a veteran, USAA Renters Insurance is an option worth considering. Its life insurance is the only product open to non-military customers.
According to the Insurance Information Institute, the average renters insurance cost $174 per year or $14.50 per month. According to Insurify, USAA Renters Insurance is priced at $10 a month which is significantly more affordable than the national average. However, your renters insurance will be based on a number of factors like where you live.
Read our USAA insurance review here.
USAA Renters Insurance
The best renters insurance companies ranked by 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:
Lemonade Renters InsuranceState Farm Renters InsuranceAmerican Family HomeownerNationwide Homeowners InsuranceAllstate Renters InsuranceFarmers Renters InsuranceInsuranceInsuranceInsurance
Average annual premium for renters insurance by state
Like homeowners insurance and car insurance, the cost of renters insurance will vary by state. Where you live will play a significant role in the amount you pay in premiums.
Here’s the average annual premium for renters insurance by state, according to the Insurance Information Institute.
State Average annual premiumAlabama$222Alaska$175Arizona$175Arkansas$211California$178Colorado$164Connecticut$188Delaware$157District of Columbia$157Florida$185Georgia$214Hawaii$181Idaho$152Illinois$166Indiana$172Iowa$144Kansas$172Kentucky$166Louisiana$234Maine$149Maryland$161Massachusetts$191Michigan$185Minnesota$140Mississippi$252Missouri$179Montana$147Nebraska$149Nevada$182New Hampshire$148New Jersey$160New Mexico$186New York$189North Carolina$158North Dakota$126Ohio$169Oklahoma$236Oregon$161Pennsylvania$157Rhode Island$185South Carolina$184South Dakota$127Tennessee$195Texas$225Utah$155Vermont$153Virginia$152Washington$160West Virginia$189Wisconsin$143Wyoming$146
How did we choose the best renters insurance companies?
Customer satisfaction: We use J.D. Power’s renters insurance customer satisfaction survey to evaluate the quality of service a company provides to its customers. Renters insurance providers that offered the best customer service ranked No.1 and #2.
Financial stability ratings: We use AM’s Best to determine a provider’s financial strength. AM’s Best is a credit rating agency that assesses an insurance company’s ability to pay claims to its policyholders. A company that receives an A++ to B+ is stable in financial strength, while anything lower than a B means that a company is unstable or unable to meet its financial obligations.
Market share: The higher a company’s market share, the more popular it is among policyholders nationwide. We gathered data on market shares from the S&P Global Market Intelligence.
Average premiums: While lower home and renters insurance premiums do not mean quality insurance, we do our best to balance a policy’s cost with the value an insurer provides. A good premium is on par with or below the average cost of renters insurance which is $174 annually, according to the most recent data from the Insurance Information Institute.
Frequently asked questions — Renters insurance
What does renters insurance cover?
Your landlord might have an insurance policy on your rented home, but it probably won’t cover everything. For instance, your landlord’s policy 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 cover 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 much is renters insurance?
Renters insurance is generally pretty affordable, and can sometimes be bundled with other policies for better rates. The average cost of renters insurance in the US is about $15 per month or $174 a year, according to 2019 data from the Insurance Information Institute.
The type of home you live in won’t play a large role in the cost of your renters insurance primarily because this insurance policy covers you and your belongings. However, your renter’s insurance costs will vary based on your location and how much coverage you need.
How can I find the best cheap renters insurance?
Get the best price on your renters insurance policy by doing your research. You can do so by collecting quotes from at least three insurers. Then, look for quotes with the lowest monthly premium and the highest coverage limit. Also, consider your deductible or the amount you’ll be responsible for paying before your insurance coverage kicks in. The insurance policy with the most coverage, the smallest premiums, and the lowest deductible is probably the best for you.