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The Best Renters Insurance Companies

Purchasing renters insurance is an intelligent financial move and personal safety decision. Renters insurance is reasonably priced and can save you financially if your apartment is ruined or your personal items are lost.

Best Overall
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Renters insurance is worth purchasing because it will shield against unforeseen disasters for an affordable cost. According to various insurance companies, the typical renter has possessions ranging from $20,000 to $30,000.

If your personal property is stolen or damaged, renters insurance will cover the loss. 

Furthermore, suppose your rental home, apartment, or condo grows uninhabitable due to an unexpected traumatic event. 

In that case, a renters insurance policy will compensate for costs above your everyday expenses, ensuring your budget remains the same if you need to live elsewhere temporarily.

Summary of the Best Renters Insurance Companies

Detailed Reviews of the Best Rental Insurance

When considering purchasing a renter's insurance policy, consider coverage, cost, and peace of mind. The following companies are good choices for home, apartment, or condo insurance. 

1. Lemonade - Best Overall

Lemonade is the best overall choice for rental insurance. 

Lemonade is an excellent choice for people who are happy to purchase and manage a renters insurance policy online. The company offers express registration and a streamlined claims process. Indeed, depending on your claim, Lemonade may accept it immediately.

Lemonade donates a portion of their revenue, unused clients' premiums, to nonprofits of the customer's choice. According to the company, the "giveback program" has donated $1.1 million to 34 nonprofits.

Pros

  • Prospective clients can sign up for coverage within minutes.
  • Lemonade donates to a charity of your choosing
  • Swift claims process if disaster strikes
  • Affordable

Cons

  • Available in only 27 states and Washington, D.C.
  • Agents are not available to work with during the claims process.

2. Liberty Mutual - Best for Apartments

Liberty Mutual offers a rental plan that is best for apartments. 

Liberty Mutual renter's insurance coverage offsets legal defense expenses and settlements if a visitor to your apartment suffers physical injury. Furthermore, the insurance will cover costs relating to medical bills accessed if a person is harmed in your apartment. 

Additionally, personal property coverage pays subscribers to replace possessions, like clothing, computers, or furniture, if a fire or theft happens. If your apartment becomes unlivable, Liberty Mutual renter's insurance will cover extra expenses, like a hotel or Airbnb.

Pros

  • Offers sundry discounts depending on affiliations and statuses.
  • Provides online, telephone, and in-person assistant to respond to consumer questions.
  • Gives individualized quotes and policies tailored to your needs.
  • Provides insurance coverage nationwide.

Cons

  • Monthly cost is a bit more pricey than Lemonade or Allstate.
  • Do not reward customers with lower prices for loyalty.

3. Allstate - Best for Retirees

For people who have retired, Allstate's rental insurance plan is the best for retirees. 

Allstate renters insurance policy online is available for purchase via the company's website or through local agents. The policy includes standard coverage like personal property reimbursement and medical payments coverage if an injury occurs in your rental home. 

Furthermore, Allstate will cover hotel and restaurant bills if you have to move out because of unintentional damage or a natural disaster. 

Additionally, clients can add coverage options, including insurance on expensive individual items like jewelry or electronics, which would be worth more than the standard coverage. Uniquely, Allstate also includes identity theft coverage as an addition to your renter's insurance.

Pros

  • Helps calculate the value of your personal belongings.
  • Offers additional coverage for expensive items like jewelry.
  • Choice of replacement cost (RCV) or actual cash value (ACV) insurance for personal property coverage.
  • Comprehensive option for retirees.

Cons

  • Not explicit about what events count as covered losses.
  • Coverage amounts for personal property, loss of use, liability, and medical payments vary by state.

Why Renters Insurance is Important

Renters need to purchase renters insurance because it protects personal belongings and offers peace of mind. 

A landlord's insurance policy covers damages to the physical building. However, your personal property is not included in the homeowner's coverage, so selecting and purchasing a renter's insurance policy is important. 

Reasons to purchase renter's insurance include affordability, loss coverage, liability protection, and compensation for unexpected temporary housing expenses. Ensuring that your property is protected in the face of theft or natural disaster is a primary reason to buy renter's insurance. 

Whether you have hundreds of heirloom antiques in your apartment or a collection of witty coffee mugs, rental insurance serves to protect your property and compensate you for the loss or damage of your cherished items.

How to Compare Renters Insurance

When researching which renter's insurance plan is best for you, price, coverage limits, and customer service are the most critical factors. 

Coverage limits apply to a renter's insurance policy, meaning there is a maximum amount the policy will disburse for a given incident. 

If requesting renters insurance quotes from multiple companies, select the same coverage option and deductible amount for each to make an accurate side-by-side comparison. 

While nearly all renter's insurance plans are budget-friendly, some providers offer options where you can choose to pay a higher deductible if a property-damaging accident occurred, which would decrease your monthly payment. 

Furthermore, a preliminary step might be to inventory all of your personal property, including serial numbers from all electronics, to see what the estimated value of your belongings would be before seeking coverage. 

It's essential to ensure your coverage amount would be enough to reimburse you if an incident happened.

FAQ's

New renters often have questions about rental insurance. Answers to these common questions can steer you toward acquiring rental insurance.

What does renters insurance cover?

Renters insurance covers expenses connected to destruction or theft of personal property, emergency medical expenses for visitors, personal liability damages, and additional expenses if you need to relocate temporarily. 

Different insurance companies offer various add-ons to basic rental insurance, so researching what is best for your needs will help determine which company to join. 

Most insurers cover expenses related to damages caused by fire, wind, smoke damage, theft, mold, and volcanoes, but consult with your plan provider for a comprehensive list.

What does renters insurance not cover?

Renters insurance will rarely cover costs associated with earthquakes, riots, or pests.

Pests from insects to mice are considered a maintenance issue by insurers and should be discussed with your landlord. 

Further, basic rental insurance plans do not cover expenses associated with flood damage, although some offer that coverage for an additional cost. If you live in a place prone to flood or experience earthquakes, consider a separate insurance policy for those contingencies.

What is the average cost of renters insurance?

In 2021, the average cost for basic renters insurance coverage in the United States is approximately $170 annually or about $14 per month. 

If you choose add-ons or have costly items of personal property, then your monthly fee might increase. Prices are also associated with your age and the location of your rental home.

How Do I File a Claim?

To file a claim, first, contact your insurance company for specific details. Depending on the type of loss or damage, an insurance company might need a police report, photographs, or other supporting materials. 

If you are seeking reimbursement from a temporary housing situation, be sure to keep all receipts and maintain clear records. 

Overall, insurance companies are working to make the claims process more accessible by adding portals on webpages and smartphone apps to streamline payments to the insured and establishing clear communication.

Does renters insurance cover my roommate?

Unfortunately, your renter's insurance will not cover damage, loss, or theft of a roommate's property. However, if the roommate is listed on your policy and their items are accounted for in the coverage, they would be protected. 

Additionally, roommates can each hold policies for their respective items within one rental space. If you are sharing a rental space with someone else, it is vital to have a discussion early on about renter's insurance.

Is Paying Renters Insurance Worth It?

Yes, paying for renter's insurance is worth it to protect your personal property, help others if they are accidentally injured in your rental space, and provide additional peace of mind if a natural disaster damages your property. 

As you research and shop for the best renter's insurance plan, consider your needs:

  1. Take stock of all of your personal property and estimate how much coverage you might need.
  2. Review your budget and select an affordable insurance carrier.
  3. Understand factors like your age and the location of your rental space affect how much you will be charged for coverage as you enter the purchasing process. 

After review and research, the three best companies for rental insurance include Lemonade, Liberty Mutual, and Allstate. All three provide flexible coverage options and reliable customer service. Additionally, each has its distinct benefits too. 

For instance, Lemonade offers expedited registration while Allstate will help you value the property in your home, and Liberty Mutual offers a variety of discounts, making an already affordable option a "no-brainer."

Make your list, review various provider's websites, and initiate a plan. If you are a renter, do not hesitate, purchase a renter's insurance plan for your home today. 

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Lemonade is America's top-rated insurance company that protects your family and your belongings—at home, and everywhere else.

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