Renters insurance — also known as an HO-4 policy — is a homeowner’s insurance policy that protects a renter’s personal belongings against covered perils, provides liability protection, covers medical payments to others and pays additional living expenses when a covered loss prevents the tenant from living in the home. This type of policy does not cover the dwelling itself.
The best renters insurance companies provide standard coverage and plenty of add-ons to help you customize your policy, all for an affordable premium. In fact, according to the NAIC, the average premium cost of a renters insurance policy is only $15 a month. The insurers listed here offer coverage options on or below that price range.
Read on to find out more about our top picks for the best renters insurance providers of the year.
Our Top Picks for Best Renters Insurance
Lemonade – Most for Customized Coverage
Erie Insurance – Best Comprehensive Coverage
Nationwide – Best Optional Add-Ons
Amica Mutual – Best Customer Experience
Allstate – Best for Retirees
Auto-Owners – Best Worldwide Coverage
State Farm – Best for Reliable Coverage
The Hartford – Best for Home-Based Businesses
Young Alfred – Best Online Insurance Agency
Best Renters Insurance Reviews
J.D. Power Claims Satisfaction Study
N/A
NAIC Complaint Ratio
N/A
A.M. Best Rating
N/A
Pros
Holds a B-Corp certification for environmental and social responsibility
Offers lower rates than other insurers
Claims can be filed through the mobile app with a video recording
Claims are filed and processed in as little as 3 minutes
Cons
No replacement cost options
Loss of use coverage has a dollar limit instead of a time limit
Unavailable in 22 states
Lemonade is an online insurance company with a unique business model. It takes a fixed percentage of all renter’s insurance premiums to cover its operational costs and then uses the remaining money to pay out covered claims. Whatever funds are leftover at the end of the year are donated to a charity chosen by policyholders.
Lemonade is an excellent choice if you are looking for basic renters insurance coverage for less. Its standard policy includes personal property, personal liability and loss of use.
You can customize your limits and deductibles to maximize savings and add scheduled personal property coverage for high-value items. Renters can also get a policy discount by paying the total annual premium upfront and installing protective devices in their home.
J.D. Power Claims Satisfaction Study
869/1,000
NAIC Complaint Ratio
0.27
A.M. Best Rating
A+
Pros
Discount for bundling auto and renters
Customizable policy bundles
Replacement cost coverage and extended personal liability coverage
Basic policy includes identity theft protection
24/7 claims phone line
Cons
Services and product offerings vary per state
ERIE Insurance offers a comprehensive base renters insurance policy and several different ways to save through bundled policy, multiple policies, safety equipment, advanced quote and age-based discounts.
Its base policy, the theErieSecure Tenant, includes worldwide personal property coverage and extended liability protection against slander, discrimination and cyberbullying. This is in addition to the standard medical payments and living expenses coverages.
ERIE’s base policy can be customized through several different bundles, including:
Advantage: increases coverage limits above base levels and includes identity theft coverage.
Plus: waives the deductible if your loss exceeds $50,000 and increases coverage limits, adding coverage for trailers, watercraft, pets and business personal property.
Select: includes everything mentioned above but offers higher limits, coverage for a larger watercraft and reimbursement of criminal defense costs up to $25,000 if you successfully fight a criminal indictment against you or your family.
Besides these, ERIE also sells optional extras like sewer and drain backup coverage, home-sharing coverage for those who rent out their apartments, earthquake coverage and flood insurance.
While you can get a renters insurance quote on ERIE’s website, you will have to go through a local insurance agent to purchase a policy.
J.D. Power Claims Satisfaction Study
892/1,000
NAIC Complaint Ratio
0.60
A.M. Best Rating
A+
Pros
Rate discount for bundling auto, home and life insurance
File claims online, on the phone or with an agent
Up to 24 months of Additional Living Expenses (ALE) coverage
Cons
Unavailable in Alaska, Hawaii, Louisiana, Massachusetts or Oklahoma
Nationwide stands out for its comprehensive basic renters insurance policy, which covers building additions, improvements or installations in your home and credit card protection against unauthorized transactions for up to the selected coverage amount. This policy also offers standard protection such as additional living expenses and medical payments to others.
You can customize Nationwide’s basic policy with optional add-ons such as:
Brand New Belongings: replace damaged or stolen items.
Valuables Plus: additional coverage for high-value items like jewelry and fine art.
Water Backup: protects your property against damage caused by backed-up sewers or drains.
Theft Extension: extended coverage for belongings stolen from any motor vehicle, trailer or watercraft.
Earthquake coverage: covers losses caused by earthquakes and volcanoes up to the selected limit.
Besides these, Nationwide offers related policies you can bundle with renters insurance for additional savings and protection, including auto and flood.
J.D. Power Claims Satisfaction Study
894/1,000
NAIC Complaint Ratio
0.22
A.M. Best Rating
A+
Pros
Policies start at $4 a week
15% discount when you bundle renters and auto insurance
Loyalty policy discount after two years
Premium reduction if you’ve been claim-free for three years
Cons
Discounts are not available in every state
Service is not available in AK and HI
Amica Mutual earns top marks for its commitment to customer service. It has the lowest complaint ratio out of all the insurers on our list and offers live 24/7 claims processing.
Apart from these benefits, Amica’s basic renters policy is relatively standard. Its Basic coverage includes personal property, liability and loss of use. This policy can be coupled with add-ons such as extended protection for smart devices and computers, identity fraud coverage and personal property replacement-cost coverage.
Amica offers a loyalty discount to those who have had a policy with the company for more than 2 years, an auto-pay discount and an e-discount if you sign up to receive your bills electronically. Policies may start as low as $4 a week.
Amica’s renters insurance features a program that allows you to earn credits — $100 a year for up to five years — to apply towards an Amica’s homeowners insurance policy if you buy a house in the future.
J.D. Power Claims Satisfaction Study
882/1,000
NAIC Complaint Ratio
0.71
A.M. Best Rating
A+
Pros
Policies start at $4 a week when bundled with auto insurance
Add-on for identity theft restoration
Cons
Requires employment information
Few policy details online
Allstate currently handles the US’s second-largest policy market share, and it’s one of the leading auto insurance providers in the US. As a reputable insurance company, Allstate offers reliable renters insurance coverage for personal property, liability, medical bills & expenses, and loss of use.
For policyholders over 55, the company offers discounts of up to 25% off the regular premiums. However, to be eligible, policyholders must not be actively seeking full-time employment.
Users can get quotes online and customize their plans based on coverage level, insurer payout limit, and deductible amount. You can customize your coverage and see how your cost would change with the different options. Additionally, Allstate offers a Home Inventory Guide and Digital Locker feature to help speed up any claims through the Allstate mobile app.
J.D. Power Claims Satisfaction Study
900/1,000
NAIC Complaint Ratio
0.24
A.M. Best Rating
A+
Pros
Worldwide personal property and liability coverage
Multiple discount options
Discount for paperless billing
Discounts for paying on time or having a favorable loss history
Discount for choosing an annual premium
Cons
No online quotes
Few policy details available online
Not available in 24 states
Auto-Owners’ basic coverage is best for those living or who plan to live abroad, as it provides property and liability coverage anywhere in the world. Medical payments to others are also included, covering anyone injured in your house, as well as additional living expenses.
With Auto-Owners, policy owners can lower their premium by:
Bundling renters insurance with auto insurance or life insurance
Enrolling in paperless billing
Paying the annual premium upfront in full.
Installing safety devices, like smoke detectors and fire extinguishers
Paying on time for 36 consecutive months or having a favorable loss history
Auto-Owners also sells optional supplements to its standard renters insurance policy, including Personal Property Replacement Cost and Renters Plus, which covers the loss of refrigerated products or damages due to water back-up.
Pros
Premium discount if you bundle auto and renters insurance
Discount for installing qualified home security devices
Cons
Discounts and additional policy offerings are not available in every state
J.D. Power Claims Satisfaction Study
880/1,000
NAIC Complaint Ratio
0.49
A.M. Best Rating
A+
As the nation’s largest auto and homeowners insurer by market share, State Farm offers policyholders the peace of mind that comes from knowing they are doing business with a financially stable and reliable company. This is especially true for anyone who has experienced the inconvenience of having their policy sold to another insurer after their company went bankrupt.
State Farm offers standard renters insurance policies that cover personal liability, property damage and medical payments to others. Those concerned about the ever-increasing costs of living may also add inflation protection to their policy for an added cost.
To receive a quote, prospective customers can use State Farm’s renters insurance quote checklist and contents calculator to properly assess their living arrangements and personal belongings. With this information, the company can offer you a premium based on your insurance needs.
Renters insurance add-ons include:
Additional liability protection coverage
Additional business property coverage
Identity theft restoration
Earthquake damage
Incidental business liability
J.D. Power Claims Satisfaction Study
885/1,000
NAIC Complaint Ratio
0.33
A.M. Best Rating
A+
Pros
Bundle with auto insurance for a discount
Above-average customer satisfaction ratings
Offers policies through AARP and independent agents
Cons
No discount for bundling renters and business insurance
No coverage in Alaska or Hawaii
With The Hartford, home-based business owners can get their renters insurance and business insurance from the same provider. The company’s renters insurance policy offers standard protection plus coverage for built-in improvements and up to $100,000 for damage to someone else’s property.
The Hartford’s is also one of the best small business insurance providers offering comprehensive coverage, which fills in any gaps left by either homeowners or renters insurance.
There are three business insurance policy options to choose from:
General Liability: covers you in the event of a lawsuit against you or your business.
Business Owners Policy: provides general liability coverage, protects your property and covers against inventory damage and loss of income.
Business Owner’s Policy with Endorsements: allows you to add extra protections based on your needs.
J.D. POWER CLAIMS SATISFACTION STUDY
N/A
NAIC COMPLAINT RATIO
N/A
A.M. BEST RATING
N/A
ProsQuotes from over 40 top insurance carriersDoesn’t sell your information to third parties24/7 online availabilityA large part of their profit goes to a charity selected by insurers
ConsPrices may vary once the insuring company completes the underwriting processPolicyholders only have access to specific policies from insurance providers
Young Alfred isn’t an insurance company, but an insurance agency and comparison site. After a few short questions, Young Alfred checks your risk level against a billion or more data points to give you customized online quotes from several top-rated renters insurance companies.
While this service is nothing new — there are dozens, if not hundreds, of insurance comparison sites on the internet — Young Alfred stands out in three important ways:
It only partners with companies rated A- or higher by financial rating firms A.M. Best and Demotech.
It doesn’t sell your personal information to other companies.
It offers a free risk assessment that details the risk of common perils in the location you want to insure, so you can decide what optional policies are right for you.
Other renters insurance companies we considered
Farmers
Pros
Discount for smoke-free households and approved security and safety systems
Identity theft protection
Replacement cost-coverage
Cons
Not available in every state
High NAIC complaint ratio
MetLife
Pros
Specialty coverage packages for electronics and luxury items
Cash-value replacement coverage
Identity theft protection
Cons
No loss of use coverage
American Family
Pros
890/1,000 points in J.D Power’s Property Claims Satisfaction Study
Loss of use protection
Discount for paperless billing, autopay, and bundling
Cons
Limited availability nationwide
High NAIC complaint ratio
USAA
Pros
A++ A.M Best Rating
Includes flood and earthquake coverage
Overseas coverage in case of deployment or moving abroad
Cons
Product is limited to military members, veterans, or family
High NAIC complaint ratio
Renters Insurance Guide
What does renters insurance cover
Renters insurance typically includes three types of coverage:
Personal property coverage
Personal property coverage protects items you own, whether they are stored inside your home, in a storage unit or even in a hotel room or car while you’re traveling. This coverage may even extend to other people’s belongings while they’re in your home.
Generally, personal property coverage applies if you suffer a loss or damage caused by any of these perils:
Fire or lightning
Windstorm or hail explosion
Riot or civil commotion
Aircraft vehicles
Smoke
Vandalism or malicious mischief and theft
Falling objects
Weight of ice, snow, or sleet
Overflow of water or steam from a heating system or appliance
Cracking or burning of a heating system or appliance
Power surge
Freezing of plumbing
Volcanic eruption
Coverage limits apply with a basic personal property policy. If the item you want to insure exceeds the covered value, like highly valuable jewelry, you will need to purchase scheduled personal property coverage, often sold as either a supplemental policy or optional insurance rider.
There are several reimbursement options for personal property claims, including:
Cash value: your personal belongings depreciate or lose value over time from the moment you purchase them. Cash value policies will reimburse you for the current value of the item, minus depreciation.
Replacement value: the policy covers the full cost of the item’s replacement, without accounting for depreciation.
Personal liability or medical payments to others
Personal liability coverage protects your assets if someone sues you for property damage or injuries sustained in your home.
It also covers:
Medical payments to guests and other third parties.
Lawsuits if your pet injures a guest or destroys their personal property while they are visiting your home.
Some, but not all, policies may also cover funeral expenses if the injuries sustained by your guests result in death.
Loss of use or additional living expenses (ALE)
ALE coverage sponsors the cost of staying somewhere else while damage to your residence is repaired or until you find a permanent place to live
Coverage may include:
The cost of a hotel room or rent for a temporary apartment
The cost of meals if you can’t cook at home and must eat out
Pet boarding expenses
The cost of personal property storage
The costs of commuting from your temporary accommodation to your place of work
You must maintain receipts of all relevant expenses in order to submit a claim for reimbursement.
Be aware that ALE offers a limited coverage amount and has a time limit. After the time is up, the policy will not pay your living expenses, even if your situation has not returned to normal.
Identity theft protection
According to the Insurance Information Institute, some renters insurance policies may afford limited protection for lost credit cards and cash. Some insurers may offer supplemental identity theft protection policies that you can pair with renters insurance.
ID theft coverage may include:
The services of a fraud specialist.
The costs of replacing government-issued IDs.
Reimbursement of legal costs and attorney fees.
Reimbursement of administrative fees and related expenses.
If you’re interested in identity theft protection but your renters insurance company doesn’t cover it, check out our guide to the best identity theft protection services to read about the best providers of the year.
Alternatively, if you’ve been the victim of identity theft and are looking to repair your credit without having to do the legwork, consider any of the best credit repair companies on our list.
What renters insurance doesn’t cover
Pet injury or death
Renters insurance may include a pet liability clause that protects you against lawsuits and medical expenses if your dog injures someone visiting your home. However, if your dog is injured or dies, you cannot file a claim with renters insurance because dogs are not considered personal property. To insure your loyal companion, look into a pet insurance policy.
Uninsured roommates
If you have roommates, your policy will not cover their personal property unless it has been explicitly added to the policy. Encourage them to take out policies for themselves so you can all be fully covered.
Although insurance companies allow joint renters insurance policies, this is not recommended because:
If your roommate files a claim, you could be considered higher risk and your insurance rates may go up as a result.
Splitting the premium could be complicated if one of you has items of higher value than the other.
Flooding or earthquakes
Renters insurance covers damage caused by fire, lightning, wind and hail, but not every natural disaster is covered. If an earthquake damages your rental house or the apartment floods renters insurance will not cover the losses.
In case of water damage due to a storm or a hurricane, it’s important to note that:
Water damage may be covered if it’s due to a window breaking or the roof blowing off, causing water to enter the residence.
Water damage is excluded from coverage if the water is in contact with the ground before reaching your home, as is the case with floods or storm surges.
If the flooding triggers a fire or explosion or your home is looted after you evacuate, you may be covered for your losses, but the damage caused by floodwater is not included as a covered peril.
If you rent in flood-prone areas, you may want to look into flood insurance policies for additional protection.
Home-based businesses
Home-based business owners must be well-informed on the landlord’s homeowners policy and their own renters insurance policy coverage. In most cases, personal items that are used for business purposes (appliances, raw materials, work computers) are not considered personal property and are excluded from renters insurance coverage.
Additionally, customers are not considered guests, which means that liability coverage does not protect you if they are injured on the premises.
To be fully protected, it’s best to look into additional small business insurance policies. This type of policy offers property protection for work-related items and income loss, along with general legal liability coverage.
What is the difference between renters insurance and homeowners insurance?
Homeowners insurance protects your home and personal property from damage or theft and extends personal liability coverage. Premiums vary by state but average around $100 per month nationally.
Renters insurance covers the tenant’s belongings and protects them from legal and medical liabilities in case a guest is injured in the home. It does not cover the dwelling or primary structure, which means it is far less expensive than homeowner’s insurance, often costing less than $20 a month.
As a separate type of policy, the landlord’s insurance will cover the actual dwelling or primary structure and other structures like tool sheds and garages. The policy also protects personal property stored on the premises if it is used to service the rental, like any maintenance equipment (lawnmowers, leaf blowers, etc.).
What is the average cost of renters insurance?
Owning a home requires ensuring the dwelling itself, and since this isn’t the renters’ responsibility, renters insurance is far less expensive than homeowners’.
According to the NAIC, the national average cost of renters insurance is $180 annually, which comes down to $15 a month.
Renters insurance rates will vary depending on:
The value of the items you’re looking to insure
The level of coverage you want and the deductible amount
Where you live
The crime rate in your area
The frequency of inclement weather like windstorms and fires
The five states where renters insurance is most expensive are Mississippi, Oklahoma, Alabama, Louisiana and Texas. With that said, the highest average renters insurance premium is only $21.50 per month.
Average Renters Insurance Annual Premium Costs by State
Alabama
$222
Alaska
$175
Arizona
$175
Arkansas
$211
California-
$178
Colorado
$164
Connecticut
$188
Delaware
$157
D.C.
$157
Florida
$185
Georgia
$214
Hawaii
$181
Idaho
$152
Illinois
$166
Indiana
$172
Iowa
$144
Kansas
$172
Kentucky
$166
Louisiana
$234
Maine
$149
Maryland
$161
Massachusetts
$191
Michigan
$185
Minnesota
$140
Mississippi
$252
Missouri
$179
Montana
$147
Nebraska
$149
Nevada
$182
New Hampshire
$148
New Jersey
$160
New Mexico
$186
New York
$189
North Carolina
$158
North Dakota
$126
Ohio
$169
Oklahoma
$236
Oregon
$161
Pennsylvania
$157
Rhode Island
$185
South Carolina
$184
South Dakota
$127
Tennessee
$195
Texas
$225
Utah
$155
Vermont
$153
Virginia
$152
Washington
$160
West Virginia
$189
Wisconsin
$143
Wyoming
$146
Source: National Association of Insurance Commissioners, “Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/ Cooperative Unit Owner’s Insurance Report: Data for 2018”
How to save on renters insurance
Shop around and request online quotes
Premiums can vary considerably by company. Look into renters insurance policies with companies with which you already hold insurance policies of other types, such as car insurance. This could save you time and money through bundling or multiple policy discounts.
Bundle your policies
Most companies offer a discount when you purchase or “bundle” two or more types of policies, such as renters insurance with auto insurance. Bundling your insurance also allows you to pay both bills at once and consolidate your claims under one account.
Ask about discounts
Many insurance companies offer discounts if you meet the requirements. Examples of these are:
Premium discount if you install safety devices around your home
Reduced premium when you don’t file a claim for a specified timeframe
Rate reductions for signing up for automatic payments or paying your policy annually instead of monthly
Choose a higher deductible
You can save by choosing a higher deductible. Some companies offer personal property deductibles as low as $250, but a lower deductible amount will increase your premium. If you opt for a higher deductible of $500 or $1,000, you can substantially decrease your monthly premium.
Negotiate a rent discount with your landlord
See if you can negotiate with your landlord for a reduction on your rent payments in exchange for having a renters insurance policy. Renters insurance is beneficial to your landlord, as it reduces their liability if one of your guests is injured on the property.
How to find the best renters insurance company
Check the company’s financial strength rating
While this won’t ensure your claims are paid out on time, it could indicate that the company is less likely to go bankrupt and sell your policy to another insurer, creating a delay in payouts for ongoing claims.
Check customer satisfaction scores
Look into customer satisfaction rankings and complaint information as reported by organizations such as J.D. Power and the NAIC.
Negative feedback against an insurer doesn’t necessarily mean they are disreputable but could shed light into their practices and treatment of customers.
Consult a broker
Speak with an independent insurance agent or broker that sells policies from multiple companies. Independent agents sell insurance products from several different companies, which could help you compare policies if you don’t know where to start.
Don’t discount word of mouth
Ask friends and relatives who they’re insured with and about their satisfaction with the company, including any claims experiences they might have had.
How to file a claim
File a police or fire department report in case of fire, flood or theft. Keep a copy of the report for your records.
Phone your insurance company, explain the situation and inform them that you will be filing a claim. The company can also provide situation-specific information on any necessary documentation, reports, photographs and statements.
Inform your landlord of the situation and any damages or losses.
Make any necessary repairs to avoid further damage (in case of flood, for example). The insurance should cover these costs. Further damage arising from your delayed response will not be covered.
Document the damage and keep receipts for repairs and any added living expenses.
Consult your policy agreement to make sure what is covered by your insurer and what responsibilities are.
Initiate a claim with the insurance company. You can do this by contacting your insurer via email, phone or mobile app.
Best Renters Insurance FAQ
What is renters insurance?
Renters insurance is a type of homeowners insurance policy also known as HO-4. Unlike traditional homeowners insurance, renters insurance does not cover the structure of the home, only the renter’s belongings (whether stored in the home or elsewhere). It also offers protection against lawsuits and will cover some living expenses if the renter is unable to live in the home due to a covered claim.
How much is renters insurance?
According to the National Association of Insurance Commissioners (NAIC), a renters insurance policy typically costs from $15 to $30 a month, depending on such factors as your location and the value of your belongings.
What does renters insurance cover?
Renters insurance covers your personal property in case of damage or theft. Coverage applies to accidents, weather damage, theft or vandalism and loss of use if your home is inhabitable for a certain period. It also protects you from liabilities and medical costs if a guest is injured in your home or by one of your pets.
How to get renters insurance
Before getting renters insurance, calculate the value of your belongings, including furniture, electronics, and jewelry. Next, find out what is NOT covered by your landlord’s insurance. Once you have this information, compare policies from several different insurance companies.
If you have high-value items, consider purchasing additional coverage through riders or floaters. Opt for a deductible you’re comfortable with, keeping in mind that higher deductibles mean lower premiums and vice versa.
Lastly, don’t forget to account for customer experience ratings for the company you’re considering doing business with, especially concerning claims processing.
Is renters insurance worth it?
Renter’s insurance can be a great investment if you own valuable items like cameras, computers or collector’s items. Your property would be covered against losses due to fires, power surges, vandalism and theft – even if you store them outside the apartment or in your car.
Consumers are often surprised to find out just how cheap renters insurance can be. Renters policies are much more affordable than other types of insurance, and many companies let you set your own deductible. The policy could be worth it if replacing your personal property out-of-pocket would be significantly more expensive than what you’d spend on the insurance premium and the deductible.
For example, if you have more than $1,000 worth of stuff, insuring it for a $150 yearly premium and a $500 deductible will be more affordable than replacing it all yourself in the event of a loss.
What does renters insurance not cover?
Renters insurance does not cover the structure of the home, any uninsured roommates, water damage or earthquake damage or any pets you may have. Read more about renters insurance exclusions in our guide section.
Is renters insurance mandatory?
According to the Insurance Information Institute (III), many landlords require tenants to purchase renters insurance before signing a lease to avoid disputes if the renter’s belongings are damaged. However, renters insurance is not mandatory otherwise.
How We Found the Best Renters Insurance Companies
When looking for the best renters insurance companies in the country, we took into account the following:
Customer satisfaction scores according to J.D. Power’s 2021 U.S. Property Claims Satisfaction Study This study looks at customer-reported data on each company’s estimate, claims and repairs processes.
Financial strength ratings as reported by insurance rating agency A.M. Best. A high financial stability rating means the company is less likely to declare bankruptcy in the near future, delaying claims payouts in the process.
Complaint index data for property insurance policies, as compiled by the National Association of Insurance Commissioners (NAIC). A low number of complaints may indicate higher customer satisfaction.
In the case of marketplaces and fintech insurers, which are not registered with the NAIC or have financial strength or customer service ratings, we considered the overall value offered.
That means we reviewed companies offering innovative quotes or claims processes or features that help customers compare policies with ease and speed.
Summary of the Best Renters Insurance Companies of 2021
Lemonade – Most for Customized Coverage
Erie Insurance – Best Comprehensive Coverage
Nationwide – Best Optional Add-Ons
Amica Mutual – Best Customer Experience
Allstate – Best for Retirees
Auto-Owners – Best Worldwide Coverage
State Farm – Best for Reliable Coverage
The Hartford – Best for Home-Based Businesses
Young Alfred – Best Online Insurance Agency
