Who Needs Renters Insurance?
Anyone who rents an apartment, condo, townhome, or other type of dwelling should seriously consider getting renters insurance. Renters insurance covers a tenant’s personal property if it’s damaged or destroyed during a break-in, a storm, or another event specified in the policy. In addition, renters insurance provides coverage for personal liability and medical bills if you have a guest over and they’re injured. Finally, if there’s a fire or other catastrophic event that forces you to move out of your unit, renters insurance will cover your extra living expenses, such as hotel bills and meals out.
Unlike some other types of insurance policies, renters insurance is relatively simple. But there are some nuances when it comes to selecting a policy and insurance company, which is where this guide comes in. Below, we’ll list our top-rated renters insurance companies of 2023 and provide more information on how renters insurance works.
Kids running around in new home after moving day.
(FIZKES)
Our Best Renters Insurance Companies of 2023
#1 USAA
#1 Lemonade
#3 Erie Insurance
#4 American Family
#4 State Farm
#6 Farmers
#6 Allstate
#6 Nationwide
#9 Liberty Mutual
Compare the Best Renters Insurance Companies of 2023
The Best Renters Insurance Companies of 2023
COMPANY SAMPLE MONTHLY COST AM BEST RATING LEARN MORE
USAA »
4.1
U.S. News Rating
N/A A++ See Review »
Lemonade »
4.1
U.S. News Rating
$14.05 N/A Learn More »
Erie Insurance »
4.0
U.S. News Rating
$20.00 A+ See Review »
American Family »
3.9
U.S. News Rating
$24.29 A See Review »
State Farm »
3.9
U.S. News Rating
$15.25 A++ See Review »
Expand List
Prices appearing on this webpage are sample rates for illustrative purposes only based on a particular consumer profile. For specific pricing, you should go either to a certified broker or directly to the insurer’s website.
Best Renters Insurance Companies of 2023 in Detail
Our top-rated renters insurance companies of 2023 include:
USAA »
USAA
4.1
U.S. News Rating
AM best rating
A++
Online Tools
Online Estimate
Multi Policy Discount Available
MORE DETAILS
SEE REVIEW
Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes.
Pros:
Standard policies cover flood damage
Available in all 50 states
Cons:
Membership limited to members (retired or active) of the U.S. armed services and their families
Doesn’t cover roommates
USAA: Available in all 50 states, renters insurance from USAA is limited to members of the U.S. military, whether they’re active duty or retired, and their immediate family members.
A standard policy from USAA provides coverage for your personal belongings, temporary living expenses should your home become uninhabitable due to a covered event as well as liability and medical liability should someone become injured in your home. USAA’s standard policy also includes flood coverage. However, it won’t cover your roommates.
For more information, read our full USAA review.
Lemonade »
Lemonade
Learn More
4.1
U.S. News Rating
AM best rating
N/A
Online Tools
Online Application
Multi Policy Discount Available
MORE DETAILS
SEE REVIEW
Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes.
Pros:
Fast sign up and claims process
Portion of revenue distributed to charities of your choice
Cons:
Not as widely available as other companies in our rating
May not be a good fit if you prefer working with an agent
Lemonade: Founded in 2015, Lemonade is among a new crop of online-only startups companies aiming to disrupt the insurance space. It operates as a peer-to-peer insurance provider, meaning premiums paid by customers go into a community pot that is used to pay out claims. One of the benefits that Lemonade claims for its business approach is that it can approve a policy within minutes and a claim almost instantly.
Lemonade advertises its insurance policies at highly competitive rates, starting at $5 a month for renters insurance and $25 a month for homeowners insurance.
For more information, read our full Lemonade review.
Erie Insurance »
Erie Insurance
4.0
U.S. News Rating
AM best rating
A+
Online Tools
Agent only
Multi Policy Discount Available
MORE DETAILS
SEE REVIEW
Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes.
Pros:
Competitive pricing
Offers replacement cost coverage
Cons:
Limited availability compared to other companies in our rating
Few discounts available compared to other companies in our rating
Erie Insurance: Founded in 1925, Erie Insurance is based in Erie, Pennsylvania. It’s probably best known for its auto and leisure insurance, but it also offers renters, homeowners, property, life, and business insurance. Erie Insurance sells relatively low-cost insurance in the mid-Atlantic and Midwest regions through 13,000 independent agents.
For more information, read our full Erie Insurance review.
American Family »
American Family
3.9
U.S. News Rating
AM best rating
A
Online Tools
Agent only
Multi Policy Discount Available
MORE DETAILS
SEE REVIEW
Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes.
Pros:
Offers a variety of discounts
Coverage for home-based businesses is available
Cons:
No online purchase option
Limited availability compared to other companies in our rating
American Family: Based in Madison, Wisconsin, American Family offers car insurance, homeowners insurance, and renters insurance, along with life insurance and other types of policies. It has agents in 19 states and serves the entire country through affiliates The General and Homesite. American Family offers a wide selection of renters insurance add-ons, like travel insurance, pet insurance, as well as coverage for home businesses and identity theft.
For more information, read our full American Family review.
State Farm »
State Farm
3.9
U.S. News Rating
AM best rating
A++
Online Tools
Online Estimate/Online Application
Multi Policy Discount Available
MORE DETAILS
SEE REVIEW
Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes.
Pros:
One of the least expensive companies in our rating
Extensive network of local agents
Cons:
Doesn’t offer as many discounts as some of the other companies in our rating
State Farm: Bloomington, Illinois-based State Farm started out selling auto insurance and now sells renters insurance and about 100 other products. More people have car insurance and homeowners insurance with State Farm than with any other provider in the U.S., to the tune of more than 84 million policies and accounts. State Farm has a large network of agents and consistently high customer service ratings. It also now offers pet insurance through its partner Trupanion.
For more information, read our full State Farm review.
Farmers »
Farmers
Learn More
3.8
U.S. News Rating
AM best rating
A
Online Tools
Online Estimate
Multi Policy Discount Available
MORE DETAILS
SEE REVIEW
Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes.
Pros:
Rates among the most affordable in our rating
Offers limited mold coverage
Cons:
Not as widely available as other companies in our rating
Farmers: Farmers Insurance was founded in 1928 and currently sells insurance policies of various types to more than 10 million households. Riders can be added to a Farmers policy to include coverage for identity theft, home improvements, and even mold. It offers highly customizable policies, as well as discounts for households that have been smoke-free for at least two consecutive years or have an approved security system or fire alarm. Doctors, nurses, engineers, dentists, teachers, police, and firefighters may also be eligible for discounts.
For more information, read our full Farmers Insurance review.
Allstate »
Allstate
3.8
U.S. News Rating
AM best rating
A
Online Tools
Online Estimate
Multi Policy Discount Available
MORE DETAILS
SEE REVIEW
Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes.
Pros:
Available in all 50 states
Identity theft restoration coverage option available
Cons:
Limited policy options
Slightly higher than average premiums for companies in our rating
Allstate: Allstate was founded in 1931 as a mail-order auto insurance company by Robert E. Wood, president and board Chairman of Sears, Roebuck & Co. Based in Northbrook, Illinois, Allstate is the largest publicly held personal lines insurer and claims over 16 million customers.
Allstate is available in all 50 states and Washington, D.C. It also offers add-ons to the standard renters insurance policy, including a personal umbrella policy, which helps protect you from large liability claims, and personal property coverage.
For more information, read our full Allstate review.
Nationwide »
Nationwide
3.8
U.S. News Rating
AM best rating
A+
Online Tools
Online Estimate
Multi Policy Discount Available
MORE DETAILS
SEE REVIEW
Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes.
Pros:
Basic policy provides stolen credit card coverage
Provides coverage for alterations to a rental unit
Cons:
Must work with an agent to purchase a policy
Nationwide: Columbus, Ohio-based Nationwide Mutual Insurance Company is one of the largest insurance and financial services firms in the U.S. It features many types of insurance for individuals and companies, including auto, life, pet, homeowners, and business insurance, as well as financial products like mutual funds. Nationwide employs some 30,000 people throughout the U.S. and can provide insurance quotes and policies online or through an agent.
For more information, read our full Nationwide review.
Liberty Mutual »
Liberty Mutual
Learn More
3.6
U.S. News Rating
AM best rating
A
Online Tools
Online Estimate
Multi Policy Discount Available
MORE DETAILS
SEE REVIEW
Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes.
Pros:
Available in all 50 states and Washington, D.C.
Replacement cost add-on available
Cons:
Standard policy doesn’t cover water damage
Liberty Mutual: Liberty Mutual started in 1912, is based in Boston, and is one of the largest global property and casualty insurers in the U.S. About 50,000 people around the world work for Liberty Mutual. Its renters insurance premiums start as low as $5 a month, and it provides the option of replacement cost coverage. In addition to renters insurance, it offers auto, homeowners, commercial, workers’ compensation, general liability, surety, and commercial property insurance, as well as specialty insurance lines.
For more information, read our full Liberty Mutual review.
Cheapest Renters Insurance Companies of 2023
Your monthly premiums for renters insurance can quickly add up depending on a number of different factors, including the amount of coverage you have and the coverage options you select. To help you find the best affordable policies, we’ve done the research and found the Cheapest Renters Insurance Companies of 2023.
This rating is based on the median price of a number of sample quotes for the companies in our list of the Best Renters Insurance Companies of 2023.
The Most Affordable Renters Insurance Companies of 2023
COMPANY SAMPLE MONTHLY COST AM BEST RATING LEARN MORE
Nationwide »
3.8
U.S. News Rating
$13.43 A+ See Review »
Lemonade »
4.1
U.S. News Rating
$14.05 N/A Learn More »
State Farm »
3.9
U.S. News Rating
$15.25 A++ See Review »
Erie Insurance »
4.0
U.S. News Rating
$20.00 A+ See Review »
Farmers »
3.8
U.S. News Rating
$21.64 A Learn More »
Prices appearing on this webpage are sample rates for illustrative purposes only based on a particular consumer profile. For specific pricing, you should go either to a certified broker or directly to the insurer’s website.
How To Choose the Best Renters Insurance
There are several steps to follow when selecting a renters insurance policy. They include:
Decide what you want to cover. The Insurance Information Institute explains that there are three basic types of coverage included in most renters insurance policies: personal possessions, liability, and additional living expenses.
Consider your circumstances to decide which of these you want to cover:
Your personal possessions include things like clothes, bedding, sports and hobby equipment, small appliances that didn’t come with the rental property, and anything else you own that’s stored in the unit.
Liability coverage that comes with a renters insurance policy will pay for legal fees and medical bills arising from an injury to a guest in your unit.
Additional living expense coverage will reimburse you for hotel bills, restaurant meals, and other costs above and beyond your normal living expenses if you have to move out of your unit after a covered event.
We provide a more extensive list of coverage options for renters insurance in our What Does Renters Insurance Cover? guide.
Determine how much renters insurance you need. To figure out how much renters insurance you need, take an inventory of all of your personal property. Walk through each room of your home and note everything you own, including things stored out of sight, such as in a bedroom closet. All of these things might have to be replaced after a major disaster, so be sure to purchase enough coverage. Especially valuable items like expensive jewelry might require a supplemental or add-on policy.
Choose a replacement cost policy or an actual cash value policy. A replacement cost policy has a somewhat higher premium, but it will reimburse you for the cost to replace your lost or damaged items with new equivalents. By contrast, an actual cash value policy will only compensate you for what those items were worth in their used condition. For certain types of property, especially things like electronics that depreciate rapidly, an actual cash value policy will leave you short of funds for buying new items.
Choose a renters insurance company. When selecting a policy, look at companies that use their own agents, those that use independent agents who refer clients to more than one insurance company, and those that sell policies directly online and by phone. Family, friends, and realtors can provide valuable recommendations. Ask for quotes from three or more companies, but don’t just look at the price. Customer service and a strong financial rating from agencies like AM Best are equally important, if not more so.
Choose a policy. Finally, choose a policy with enough personal possession and liability coverage. Read the fine print and make sure you understand all the terms of your policy, including what it covers and doesn’t cover, so there are no unpleasant surprises later. Finally, consider adding additional coverage for floods, earthquakes, or other types of disasters endemic to your area that might not be covered by a standard policy.
For more information, see How to Buy Renters Insurance.
Should I Bundle Renters and Car Insurance?
Bundling renters and car insurance policies is up to you; however, bundling might not always be the cheapest option. Many insurance companies in our ratings have bundling options for these two policies, which can result in lower premiums. But, your actual savings will vary based on the details of the policies being bundled.
Similar discounts might be available for other types of policies. For example, Allstate will let you bundle renters insurance with term life insurance or auto coverage, while Nationwide will let you bundle renters and motorcycle coverage.
It is possible you could save more by purchasing individual policies from separate companies. For more information, see our How to Bundle Renters and Car Insurance guide.
What Does Renters Insurance Cover?
If you rent, your landlord’s insurance protects the building you live in, but not its contents. In the event of an accident, your landlord cannot be held financially responsible for any damage to your belongings. Renters insurance is designed to protect the contents of your dwelling, similar to homeowners insurance.
A typical renters insurance policy also covers the following:
Theft. If your house or apartment is broken into and things are stolen, you would submit a claim to your renters insurance company who would compensate you for the stolen items. Often, renters insurance policies protect you from thefts that occur outside your dwelling – for example, if you are pickpocketed or your phone is stolen while you’re out and about.
Living expenses. Loss-of-use coverage helps cover additional living expenses that are a result of damage to your home. If, for example, a fire occurs in your building and makes your apartment uninhabitable, loss-of-use coverage may help pay for a hotel room for you to stay in.
Injury to guests. Personal liability coverage kicks in if someone is injured or their property is damaged and you are blamed for the incident. Your renters insurance policy may also cover medical payment for the guest’s medical bills or your legal defense, should the injured party take you to court.
The financial amount that an insurance company will pay in these scenarios depends on the renters policy that you purchase. The payout caps often change depending on the premiums (the monthly payments you make for the policy) and the deductible (the amount you must pay out-of-pocket before the insurance policy kicks in.)
When purchasing renters insurance, don’t just focus on price, though. The company with the lowest premiums might not have the coverage you need or good customer service agents. The Consumer Federation of America notes that good customer service is especially important because it will make the process of filing a claim much easier and more pleasant.
For more information, see How Does Renters Insurance Work.
Do I Need Renters Insurance?
There are several reasons you may want to consider a renters insurance policy.
Landlord requirements. Some landlords and rental agencies require tenants to maintain a rental policy. Consult your rental agreement or contact your existing or potential landlord to determine if you need coverage.
Coverage for your possessions. It’s likely your landlord already has an insurance policy to protect their building, but their policy won’t cover your possessions in the event of a theft, fire, water damage, or other circumstance that may leave you with damaged property. Renters insurance can help you protect your valuables or everyday essentials, including clothing, laptops, and appliances.
Liability protection. Most renters policies include liability coverage. If someone is injured or their property is damaged and you’re found legally responsible, having a policy can help you pay for repairs, property replacements, or medical bills.
Financial support after a disaster. Renters policies generally include “loss of use” coverage, which can help you pay for a hotel or other essential costs (e.g., daily meals) if you’re displaced due to a covered peril.
Worried about costs? Check these affordable renters insurance companies.
Do College Students Need Renters Insurance?
According to the National Center for Education Statistics, burglaries accounted for 33% of on-campus crime in 2019. A renters insurance policy will repair or replace personal belongings after a covered loss and cover living expenses if you need to find a new place after a covered loss makes the residence uninhabitable. It will also cover liability if you accidentally damage the property or injure someone on it.
Regular homeowners insurance policies typically have a sub-limit allocated to off-property personal belongings, like those in a dorm room. However, off-campus apartments or housing will likely not be covered and will need a separate renters insurance policy.
Electronics like cell phones and computers might have their own stand-alone insurance, according to the Insurance Information Institute (III), and you could be eligible for an auto premium discount if a student is leaving their car at home while they’re at college.
Learn more about how renters insurance policies work in our guide on How to File a Renters Insurance Claim.
How Much Does Renters Insurance Cost?
The cost of a renters insurance policy is affected by a number of factors:
Where you live
The type and amount of coverage you want
The amount of your deductible
Whether you choose a replacement-cost policy or a less expensive, actual-cash-value policy
You add supplemental coverage for natural disasters like earthquakes, or to insure high-value possessions such as jewelry or art
According to a 2021 study by the National Association of Insurance Commissioners, the average annual cost of a renters insurance policy in 2018 was $179 per year. Some companies even offer policies as low as $5 a month. Compared to the average annual homeowners insurance premium of $1,249 per year, renters insurance is a relative bargain when you consider the cost of replacing personal items or an injury to a houseguest. Our guide How Much Is Renters Insurance? provides more details on factors contributing to cost.
A common way to save money is by bundling your renters insurance with your car insurance policy. For more information, read our guide on How To Bundle Renters and Auto Insurance.
What Should I Look For in a Renters Insurance Policy?
There are several things to look for when purchasing a renters insurance policy, including:
A policy with enough coverage to reimburse you for all your personal property
A replacement cost or actual cash value policy
A policy’s personal liability and additional living expenses coverage
When it comes to coverage, you want to make sure you have enough to reimburse you for personal property that is damaged in a storm, fire, or other covered disasters. To do this, take inventory of all your property by writing down everything you own and the approximate value. If you have receipts, make sure to save them. You will also want to note valuable items like jewelry or electronics, as these might require add-on coverage.
You will also want to check if your policy has a replacement cost or an actual cash value policy. A replacement cost will reimburse you for the cost of replacing your property with comparable new items. An actual cash value will only reimburse you for the depreciated value. Used items would not be worth as much, so your compensation would be lower. The policy you choose will depend on how you balance the risks to your property with monthly premium payments.
Check to see what types of disasters are covered. For example a policy from one insurer may include coverage for flood in its standard renters policy, while another insurer may offer it as an optional add-on or refer you to another insurer.
Lastly, examine a policy’s personal liability and additional living expenses coverage. Whether they are what you need depends in part on how likely a guest is to be injured on your property and the probability of having to move out due to damage to your unit.
Does Renters Insurance Cover Roommates?
Most renters insurance policies won’t cover roommates. So, if your roommate’s belongings are damaged or stolen it won’t be covered by your policy.
While some insurance companies may allow you to add a roommate to your policy this isn’t always recommended. For example, any claims your roommates makes on the policy will show up on your claims history and the coverage limits for the policy may not increase despite adding another person to the policy.
You should consult with your insurance agent or company to ensure that you are fully informed.