If you rent, your landlord is not in any way legally responsible for losses to your personal property from natural disasters or break-ins. To protect yourself from financial loss, you need renters insurance – a version of homeowners insurance that covers damage to the contents of the home and pays living expenses when the home becomes uninhabitable due to a covered incident. Most top renters insurance providers also provide liability coverage for bodily injury or property damage to visitors to your home.
Before purchasing coverage, it’s always a good idea to ask for a quote from several renters insurance companies. Here are some of the things we recommend looking for when comparing top renters insurance providers: level of coverage for personal property; level of liability coverage; customer service; and monthly premium.
The good news is that the average annual premium for renters insurance is only about $180 per year, virtually unchanged from a decade ago, according to the latest figures from The National Association of Insurance Commissioners. The top renters insurance providers offer one of two things: below-average premiums with standard coverage; or average premiums or a higher level of coverage.
To help you save time on your comparison shop, we put together this list of the 10 best renters insurance companies. In our list, you’ll find some of the biggest names in renters insurance, as well as a handful of insurtech companies using technology to lower the cost of your renters coverage.
State Farm is easily the largest home insurance provider in the United States, with an 18% market share of homeowners insurance by direct premiums written and a similar market share in renters insurance. It wins our title for the best renters insurance coverage because of its wide availability (every state except Massachusetts and Rhode Island), the ease of getting a quote, and competitive pricing.
Discounts available:
Lemonade is disrupting renters (and homeowners and pet) insurance with a business model that enables it to pay out on virtually all claims. Lemonade works like this: it takes a fixed fee out of each customer’s monthly payments, pays reinsurance and other expenses, and uses the rest for paying out claims. Any leftover funds are given to charity. Because Lemonade doesn’t keep the money it doesn’t pay out, it has no incentive to reject legitimate claims. When you apply to Lemonade, its AI bot goes to work to craft the ideal coverage for you. Policies start from $5 per month, which is about as low as it gets in renters insurance.
Discounts available:
Erie Insurance is a major national insurance provider with a reputation for offering local service. With more than 13,000 agents spread across the U.S., Erie Insurance is sure to have someone in your neighborhood who can look after you. Erie’s impressive J.D. Power customer satisfaction ranking–it has easily the highest score of any of the traditional renters insurance carriers–is testament to its strong reputation.
Discounts available:
Allstate is the second-largest home insurance provider by direct premiums written, although with half (8.4%) of the market share of State Farm. According to Allstate, you may be able to pay as little as $4 a month when you add renters to your auto policy–which may just be the best auto + renters bundle on the market. In fact, Allstate renters insurance has probably the longest list of discounts on the market.
Discounts available:
Farmers Group is one of the five largest renters insurance companies by market share, and the only one of the big five that offers discounts for certain professionals. That’s right, if you’re a doctor, nurse, engineer, dentist, teacher, policeman/policewoman or firefighter, then you may be able to qualify for a discount on your renters insurance coverage. Aside from that, Farmers Group has solid customer satisfaction ratings for a major insurance carrier.
Discounts available:
USAA is an insurance company for active, deployed, and former members of the U.S. Armed Forces and their relatives. It offers a range of insurance products and financial services, including renters insurance. Purchasing homeowners insurance from USAA has many perks, including protection against losses when you’re deployed. USAA would be a clear number one on our list if not for the fact that it only serves a segment of the population.
Discounts available:
Toggle is a Farmers Insurance Group subsidiary that promises ‘renters insurance you can customize’. It offers three types of policies: Basic, for liability coverage many landlords require plus a little extra coverage for your stuff; Standard, for the person who has a little more to cover; and Premium, next-level coverage for renters living large with nicer items they want to protect. Toggle is best used if you need the first option: basic liability coverage to fulfill the requirements written into your contract by your landlord.
No discounts available.
It doesn’t stand out for any particular reason, but if you want a big insurer with an excellent financial strength rating, then it’s certainly worth requesting a quote from Nationwide. The thing we like most about Nationwide is its website, which looks more that of an insurtech company than a big insurer. On the site, you’ll find transparent information on what’s covered, how to get help repairing or replacing what you own, and how to earn discounts.
Discounts available:
American Family is another solid insurance company that makes this list for its nationwide reach and financial strength. Like Nationwide, American Family transparently lays out everything you need to know on its website. Its multi-policy is very generous, and makes it worth your while to request a quote for combined auto and renters insurance.
Discounts available:
Liberty Mutual is another major renters insurance provider that it couldn’t hurt to approach for a quote. Like other top renters insurance companies, it offers coverage for all types of rental properties, including small apartments, large apartments, stand-alone homes, townhomes, and more.
Discounts available:
As you can see, there isn’t a whole lot to separate the best renters insurance companies. Your rate can vary depending on where you live, what level of coverage you need, and a range of other factors. To get the best price on your renters coverage, we recommend shopping around and requesting a quote from at least 3-4 of the top renters insurance companies.
