State Farm is the best renters insurance business based on affordability, customer happiness, and financial stability. Depending on your location and needs, the best option may differ.
Finding the finest renters insurance policy is an efficient and cost-effective way to protect your belongings from being lost, stolen, or damaged. MoneyGeek analyzed a wide range of factors, such as customer service ratings, measures of financial stability, discounts, and premiums, to determine which homeowners and renters insurance providers are the most beneficial for customers in each of the 50 states and hundreds of cities located throughout the United States.
When seeking for reliable renters insurance in the United States, these overall rankings are an excellent beginning to begin one’s search. MoneyGeek has also researched the best firms available to meet the needs of various categories of renters. Whether you are looking for the most affordable renters insurance quote or the company with the best customer service, MoneyGeek has you covered.
However, before we look at the firms that offer the best renters insurance in the United States in 2022, let’s first analyze the meaning of the term “renters insurance.
What Is Renters Insurance and Why Do I Need It?
Tenants insurance and renters insurance are two different names for the same thing. When residing in a leased home or apartment in the United States, this is the kind of insurance policy that protects against a variety of risks, including burglary, damage from water backup, some natural disasters, bodily injuries, and more.
It is imperative that you obtain tenants insurance coverage given the fact that your landlord’s property insurance does not cover to covering your personal possessions. It is highly recommended that everyone who lives in a rented flat obtain this policy because the annual rates are almost always extremely reasonable.
The best protection for renters comes from insurance firms that are not only cost-effective but also provide outstanding service to their clients.
Who in the United States offers the best policy for renters insurance? Research conducted by MoneyGeek found that State Farm offers the most comprehensive coverage at the most reasonable price for renters insurance, with Allstate coming in a close second.
What Kinds of Things Does Renters Insurance Cover?
Listed below are the primary categories of protection that are included in a regular renters insurance policy.
Insurance for one’s own personal property
This form of insurance policy protects your personal belongings, such as your furniture, jewelry, rugs, clothing, dishes, pots and pans, electronics, and other items in your home. It protects against losses incurred as a result of incidents such as burglary, fire, smoke, vandalism, falling objects, explosions, and the weight of ice and snow.
You will be asked to choose a limit for your personal property policy, which is the maximum amount that your insurance provider will pay out in the event that your personal belongings are lost, damaged, or stolen. You might, for instance, decide that the amount of coverage should be $30,000.
You will normally have the option of selecting replacement cost coverage or actual cash worth coverage for your belongings (ACV). Because it does not factor in depreciation, coverage that is based on the replacement cost is more expensive, but it offers superior protection to policyholders. For instance, if you purchased a laptop three years ago for the price of $2,000 and it was stolen, replacement cost would pay for the cost of purchasing a new laptop at the current retail price (minus a deductible). The only amount that ACV would pay for the laptop is its current worth after it has been used.
Certain categories of damage are subject to “special restrictions” or sub-limits for some of the items’ coverage. For instance, a policy can cap the amount it will pay out for stolen jewelry at $1,000. That wouldn’t come close to covering the cost of a ring that costs $5,000, for example.
You have the option of “scheduling” high-value products, which ensures that you will be compensated the full amount for their loss in the event that they are stolen.
Insurance for legal responsibility
The coverage of personal items, such furniture, is typically the first thing that comes to people’s minds when they think about renters insurance. Renter’s insurance, on the other hand, shields you from significant legal responsibility. When you are sued by another party for causing them bodily harm or damage to their property, your liability insurance coverage kicks in. Your legal defense costs will also be covered by this coverage.
You are able to make use of your renters liability coverage in the event that you are sued as a result of someone slipping and falling in your apartment or being bitten by your dog.
The liability coverage amount that is often included in a renters insurance policy is $100,000; however, if you want the finest possible renters insurance, you can raise that amount.
Healthcare expenses paid by others
Medical payments coverage, which pays for modest medical expenditures regardless of who was at fault for an accident, is frequently included in a policy for renters insurance. For instance, if a visitor to your home trips and has a minor injury as a result of their fall, this could pay out regardless of who was at blame. Coverage amounts are typically low, beginning at $1,000 in most cases.
Extra costs associated with daily life
If you are unable to reside in your apartment due to a problem that is covered by the insurance policy, additional living expenses coverage can pay for hotel bills, restaurant meals, and other additional expenditures such as the fees associated with boarding your pet. It is imperative that you remember to keep all of your receipts in order to file a claim.
This protection is often known as “loss of use” coverage.
What Kinds of Things Does Renters Insurance Not Pay for?
The structure that you are renting does not cover within the protection of renters insurance. The structure of the building as well as common areas like corridors are protected by the landlord’s insurance policy.
In addition, renter’s insurance policies often do not provide coverage for occurrences that take place in communal areas. For instance, if a visitor were to fall while walking on an ice sidewalk, the landlord’s liability insurance would cover the incident.
Your basic renters insurance policy will not cover the belongings of your roommate, vehicle damage or theft, damage caused by insects or pets, or damage caused to your vehicle.
Coverage for natural disasters like as earthquakes, landslides, and floods is typically not included but can be acquired through the purchase of extra policies.
State-by-State Rankings of the Best Renters Insurance Companies
Your location is one of the most essential factors taken into consideration by the finest renters insurance companies when determining the amount of your premium. It makes no difference if you are a college student or if you are already a successful businessperson. As a consequence of this, it is extremely important to research the many service providers available in your region to determine which ones offer the greatest services at the lowest prices. To determine which company is the best in each state, MoneyGeek devised a ranking system that takes into account price, the quality of customer service, and the company’s capacity to remain profitable.
According to this ranking algorithm, State Farm is the best insurance provider for renters in the majority of the United States (22 states). The greatest rates for bundling auto and renters insurance can be found at Geico, while the best discount available for bundling auto and renters insurance can be found at State Farm, which is 4.7 percent. Allstate is the greatest option that comes in second place in eleven different states. On the other hand, in at least one state, the best options for renters’ insurance come from eight separate insurance companies.
Find your state below and check out the best and cheapest renters insurance companies where you live
Alabama – State Farm
Alaska – Allstate
Arizona – State Farm
Arkansas – Nationwide
California – State Farm
Best renters insurance companies review
It’s possible that finding the right renters insurance carrier for you will depend on the particular coverage you’re looking for or whether or not you qualify for any discounts. While the top two best renters insurance companies highlighted below are good possibilities for every renter, MoneyGeek also assessed organizations according to which sort of renter they suit the best. All costs reflect the standard insurance package, which includes a deductible of $500, coverage of personal property up to $20,000, and liability protection up to $100,000.
The best renters insurance companies of 2022
State Farm — Best for cheapest renters insurance
State Farm is a well-known insurance provider that consistently earns good rankings for the satisfaction of both its customers and those who have filed claims.
The benefits and savings offered by State Farm’s renters insurance
Multi-line discount: Receive a discount on your renters and auto policies when you bundle them together.
Receive a discount on your home alert protection policy if you have a smoke detector, fire alarm, burglar alarm, or any other home safety equipment installed in your home.
Inflation coverage is a type of coverage that is automatically included in your policy. Its purpose is to take into account the effects of inflation and modify your coverage as needed.
State Farm renters insurance quotes
The Insurance Information Institute estimates that the typical annual premium for renters insurance is $174, which breaks down to a monthly cost of $14.50. According to Insurify, the monthly premium for State Farm car insurance is only $10, which is much less expensive than the average premium throughout the country. Your renters insurance premium, on the other hand, will be determined by a number of criteria, including the location of your residence.
Lemonade — Best renters insurance overall
Lemonade is an economical digital platform provider that is simple to use and comes with a wide range of coverage options. Lemonade is not offered in every state, but in those areas in which it is, consumers give it high marks for its customer service.
Features and savings available with Lemonade renters insurance
You can save money by purchasing many insurance policies through the multi-policy discount.
When you sign up for the annual payment plan, you won’t have to worry about paying any additional fees for the individual payments you make during the year. (Only available in a limited number of states.)
Lemonade renters insurance quotes
The Insurance Information Institute estimates that the typical annual premium for renters insurance is $174, which breaks down to a monthly cost of $14.50. According to Insurify, the cheapest plan offered by Lemonade is $5 per month, which is much less expensive than the standard rate across the country. Your renters insurance premium, on the other hand, will be determined by a number of criteria, including the location of your residence.
Erie insurance — Best for discount opportunities
Erie is only active in a total of 12 states and the District of Columbia. It is not going to make sense for everyone, but it does have a reputation for providing outstanding customer service and claims that its customers are satisfied in the areas where it does operate. Although Erie Insurance is well-known for its competitively cheap rates across the board, the company also provides a number of discounts that can reduce your premiums by an even greater amount.
Erie renters insurance discounts
Discount for multiple policies Purchase numerous policies from Erie Insurance and receive a discount on each one.
Safety-related discounts Obtain a rebate for the purchase and installation of a sprinkler or alarm system.
Discount for advanced quote: If you get a quote at least seven days before the beginning of your renters policy, you are eligible for a discount.
Age discount for insured individuals — Receive a discount on the basis of your age.
Erie renters insurance quotes
The Insurance Information Institute estimates that the typical annual premium for renters insurance is $174, which breaks down to a monthly cost of $14.50. According to Insurify, the beginning premium for Erie is $15 per month, which is comparable to the average premium across the country. Your renters insurance premium, on the other hand, will be determined by a number of criteria, including the location of your residence.
Allstate — Best for senior renters
Allstate is a nationwide provider that has a strong reputation for providing excellent customer service; yet, the company’s insurance premiums are not always the most affordable. However, renters who are 55 years of age or older can take advantage of a discount offered by Allstate that lowers their monthly costs by 25 percent.
Discounts on renters insurance offered by Allstate
Discount for multiple insurance Purchase numerous policies from Allstate and receive a discount on each one.
55 and Retired Reduction: If you are 55 years of age or older, you are eligible to receive a discount of 25 percent off of your premiums.
Get a discount on your purchase when you sign up for our easy pay plan and have your payments made automatically.
Allstate renters insurance quotes
The Insurance Information Institute estimates that the typical annual premium for renters insurance is $174, which breaks down to a monthly cost of $14.50. According to Insurify, the starting rate for Allstate auto insurance is $15 per month, which is comparable to the average rate throughout the country. Your renters insurance premium, on the other hand, will be determined by a number of criteria, including the location of your residence.
Farmers — Best for business professionals
J.D. Power’s annual poll of customers’ satisfaction with their renters insurance companies places Farmers in sixth place. If you are a business professional such as a doctor, nurse, engineer, dentist, teacher, police officer, or firefighter, you may be eligible for a discount. If you are not a business professional, you are not eligible. You can receive a quote by having a conversation with a representative from Farmers insurance.
The benefits and savings offered by Farmers Insurance for renters
Discount for multiple policies Purchase numerous policies from Farmers Insurance and receive a discount on each one.
Price reduction for non-smokers: There is a possibility that households that have been smoke-free for at least two years in a row will be eligible for a discount.
Install a surveillance system as well as a fire alarm: When you install a fire alarm or an electronic security system that has been approved, you become eligible for savings.
If you are currently serving in the military or are a veteran, USAA is an option that you should think about. Its life insurance is the sole product that is available to consumers who are not in the military.
Advantages and savings with renters insurance from USAA
Discount for multiple policies Purchase numerous policies from Farmers Insurance and receive a discount on each one.
Claim-free – You will be eligible for a discount for not making any further claims.
Get a reduction on your insurance premium if you install home security devices, such as an alarm system, such as a burglar alarm.
USAA renters insurance quotes
The Insurance Information Institute estimates that the typical annual premium for renters insurance is $174, which breaks down to a monthly cost of $14.50. According to Insurify, the cost of insurance with USAA is only $10 per month, which is much less expensive than the average cost of insurance across the country. Your renters insurance premium, on the other hand, will be determined by a number of criteria, including the location of your residence.
What is the typical monthly premium for renters insurance?
According to policy conducted by the Insurance Information Institute in 2017, the typical annual premium for renters insurance was $180, which broke down to approximately $15 per month.
The cost of renters insurance can vary widely depending on a number of factors, including the location of the rental property, the renter’s credit score, the desired level of coverage, and whether or not the renter has a pet dog.
Insurance for renters is typically available at a reasonable cost, and it is occasionally possible to package it with other policies in order to achieve cost savings. If you already have auto insurance, it may be worthwhile to check with your existing insurer about whether or not they give a discount on renters insurance by requesting a price for both types of coverage from them.
You will want to do some comparison shopping and acquire pricing estimates from a number of different insurers to ensure that you are receiving the best value for the renters insurance policy you purchase. Examine the various estimates, looking for the most coverage kinds and the highest possible limitations. After that, shop for the most affordable rates that yet meet your needs.
If you do not wish to visit the websites of individual renters insurance companies, you may use a cost-free tool to compare the rates of many companies in a single location, such as the one that is provided by Policygenius.