Renters insurance helps protect yourself and your belongings. The coverage is highly affordable and gives you financial protection and peace of mind. Find out more about renters insurance, along with the best companies to consider when purchasing your policy.
What Is Renters Insurance?
When you rent, the insurance your landlord has on the property does not cover your personal belongings. If something happens to your possessions, you must pay for their replacement out of your own pocket. Renters insurance fills that gap by offering policies to compensate you financially for the loss of your possessions from theft, vandalism and certain damages.
Top Renters Insurance Companies
These are some of the best renters insurance companies in terms of coverage, cost and customer service.
State Farm is a well-known insurance company with great ratings and reviews. It is widely available, and you can purchase multiple policies to get a discount. You can also purchase add-ons for your insurance. Consumers can get a quote for a customizable policy online in seconds. Some policy exclusions include water damage from flooding, damage from settling and deterioration, and damage from animal activity.
Lemonade has a reputation for settling claims fast, saying that up to 40% are completed immediately. Through the mobile app, customers can easily get quotes and file claims. Lemonade offers basic policies as well as extra coverage for valuable items. Prices start at just $5 per month, and the company offers discounts. Lemonade is not available in all states, though.
Customers rate Farmers highly for claims satisfaction, and you can get all of your insurance policies in one place for added convenience and discounts. Obtaining a quote or filing a claim is easy, with the option to complete these tasks online. If you prefer to speak with an agent, customer service and claims service are available 24/7.
Nationwide gives customers the choice of basic renters insurance or additional coverage for high-value items and more extensive covered events. Policy prices are a bit higher than some other companies and start at $20 per month.
You can get a discount for purchasing multiple policies or by having home protection devices such as a burglar system and smoke alarms. The On Your Side feature reviews your insurance to help you select the right coverage and take advantage of every discount possible.
Filing a claim is easy with Liberty Mutual. Customers can complete the process in just 10 minutes online. Liberty Mutual also has discounts for bundled coverage. It’s a great choice for affordable coverage that meets your needs. You can customize your insurance policy and pay as little as $5 per month.
Erie Insurance has exceptional customer service and affordable policies. Lower the rate even further with a discount when you purchase multiple policies. One of the negatives of this company is the limited availability. Coverage is available only in select states.
American Family Insurance offers standard policies with the option for add-on coverage. Customers can quickly obtain quotes online, take advantage of several discounts and enjoy a diminishing deductible.
If you want comprehensive coverage, take a look at Toggle. This company provides coverage for home-based business equipment and supplies. Choose from basic, standard, and premium policies and enjoy a diminishing deductible every year that you don’t file a claim. On the downside, Toggle is available only in 26 states.
MetLife is available in all 50 states and is well-known for its excellent customer service and the inclusion of Identity Protection Services with every policy.
Customers can purchase a basic policy or additional coverage for high-end items. Discounts are available for bundling policies. One drawback is that MetLife does not include loss of use in the standard policy. Customers can get basic quotes online but need to speak with an agent for an exact figure.
Allstate is a great pick for availability, with coverage options in every state. The company has a mobile app for customers who prefer to do most of their business online. There is a wide range of policy options, with discounts available for bundled policies, automatic payment withdrawals and customers 55 and older.
What Does Renters Insurance Cover?
Renters insurance does more than cover the cost of replacing personal possessions. Here are the types of coverage offered:
- Personal property: Financial protection from loss of your personal property from theft, vandalism, fire, smoke damage, water damage, lightning, explosions and other events. Read the terms of your policy carefully to discover what is and is not a covered event.
- Liability: Protection from lawsuits and costly damages related to either property damage or injuries to others caused by yourself or a family member.
- Medical payments: Coverage for the cost of medical expenses required due to an injury that happened on your rental property.
- Loss of use: Coverage for out-of-pocket living expenses you incur if a covered event results in loss of use of your rental unit.
Standard policies typically include liability coverage in the amount of $100,000 or more, between $10,000 to $15,000 for personal property, and $1,000 to $5,000 in medical coverage. Some policies allow you to purchase higher coverage limits.
Covered property includes items such as clothing, computers, jewelry and books. High-value items are often partially covered only up to a maximum value unless you purchase a rider to increase the limit. Common exclusions from renters insurance include certain dog breeds considered aggressive, vehicles, and natural disasters such as floods and earthquakes.
How Much Does Renters Insurance Cost?
The cost of coverage is minimal. Most renters find it affordable, especially when compared with the potential price tag of replacing items out of pocket or the cost of court fees and liabilities. The monthly premium is $15 to $30 on average. The coverage limits you choose affect the price. Some insurance companies offer discounts if you bundle renters insurance with another policy, such as car insurance.
How Do Renters Insurance Claims Work?
Filing a claim involves a few steps. This is what you need to do:
- Submit a copy of the police report if the claim relates to vandalism or theft.
- Include a list of all items that sustained damage or were lost.
- Provide additional photographic or video documentation of your items if possible.
- Submit a record of your living expenses if the claim involves loss of use of the rental.
Depending on your insurance company, you may need to file your claim online or submit paper forms.
How to Get Renters Insurance
If you rent your living space, you can benefit from renters insurance. You may never need to file a claim, but the protection is there if you need it. As with other insurance types, it’s best to obtain three quotes to compare policies before purchasing your coverage. Once you get your policy, you can rest easy knowing that should the worst happen, you are covered.
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