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The 10 Best Renters Insurance Providers of 2020

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. 

1. State Farm – Best renters insurance company overall

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:

  • Combining renters + auto insurance
  •  Installing a home safety device
  • Choosing higher deductibles

2. Lemonade – Best newcomer on the renters insurance scene

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:

  • Combining renters insurance with pet insurance or other home (homeowners, co-op, condo) policies

3. Erie Insurance – Best insurer for getting highly personal, local service

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:

  •  Combining renters + auto insurance

4. Allstate – Best home renters insurance discounts

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:

  • Auto + renters multi-policy discount
  • Safe home discount for installing safety devices – up to 15% off
  • Automatic payments from checking or savings account – save up to 5%
  • 55 and retired discount – up to 25% off
  • Claim-free rewards – up to 20% off for every year you stay claim-free

5. Farmers Insurance Group – Best renters insurance for medical professionals, teachers, and emergency services

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:

  • Multi-policy discount with auto, life or umbrella policy from Farmers
  • Special incentives for households that have been smoke-free for at least two consecutive years
  • Installation of an approved electronic security system or fire alarm

6. USAA – Best renters insurance for members of U.S. Armed Forces and relatives

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:

  • Multi-line bundling with other insurance products
  • Claims-free discounts
  • Installation of monitored security alarm

 7. Toggle – Best for meeting basic renters insurance needs

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.

8. Nationwide – Major insurance company with solid financial strength rating

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:

  • Combining auto + renters
  •  Installation of protective device (e.g. smoke detectors, fire alarms, burglar alarms)
  • Claims-free for consecutive years

9. American Family – Solid insurer you can rely on in times of trouble

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:

  • Bundle auto + renters – save 29% on auto coverage and 15% on renters coverage
  •  Autopay with automatic funds transfer or electronic recurring payments
  • Installation of qualifying smart home device (e.g. smoke/fire alarm, water/moisture detection system, or Ring Video Doorbell)

10. Liberty Mutual – Major provider of renters insurance

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:

  • Claims-free for five years or more
  • Early shopper discount
  • Multi-policy discount – auto + renters
  • Automatic payment discount
  • Online purchase discount

Compare Top Renters Insurance Providers to Find the Cheapest for You

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.


How we created this
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Compiled from “Best of” lists published by the world’s most trusted sources, and with our own recommended brands peppered in - this Top10 list aims to help consumers make smarter decisions.