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According to the National Multifamily Housing Council, 36% of households today are renter-occupied. While your landlord may have separate insurance to cover your apartment, that coverage doesn't necessarily extend to your personal belongings or your liability if someone gets hurt at your home—if your dog bites someone at the rental property, for example.
To protect yourself from these situations, it’s important for you to get renters insurance. This kind of coverage can give young people who don't own their own place or seniors transitioning to a more manageable living environment like a condo a way to protect their belongings and safeguard against many types of accidents.
No matter your age or type of residence, renters insurance protects you against theft, fire, liability, and more, starting at about $10 a month. Many companies that provide homeowners insurance also offer policies for renters. We reviewed more than a dozen carriers based on price, coverage, and customer satisfaction to determine who can give you the best renters insurance.
The 7 Best Renters Insurance Companies of 2020
Best Overall: Allstate
We chose Allstate as the best overall renters insurance company because it has some of the most comprehensive renters insurance available, along with great customer service and several potential discounts. The company also has an A+ rating from the Better Business Bureau (BBB).
Allstate offers personal property coverage plus reimbursed living expenses if you're displaced due to a disaster, liability coverage if you or someone else gets hurt on your property, and identity restoration coverage in the event of identity theft. They offer renters policies bundled with auto insurance so you can save even more.
Some of the discounts available from Allstate include:
- Safe home
- Easy pay plan
- 55 and Retired
Many Allstate customers have been satisfied with their experiences when it comes to coverage and pricing. The one area that Allstate could improve upon is their claims service, as some customers feel the process was complicated or the company was not responsive enough to their situation.
With rates starting at just $4 per month when bundled with auto insurance, Allstate may be the best option for renters insurance. They also offer free quotes, so you know exactly what you’re getting and how much it will cost before you sign up.
Runner-Up, Best Overall: Amica
Amica insurance has been in business since 1907 and has an A+ rating with the BBB. We selected the company as our runner-up because they offer comprehensive coverage and have more than 100 years of experience providing Americans with the protection they need. In addition to standard personal property, liability, and loss of use coverage coverages, Amica offers a number of optional add-ons, including riders for pricier jewelry and electronics, as well as identity theft coverage.
Amica offers several discounts, including:
Amica quotes prices as low as $4 a week, which doesn’t beat Allstate’s $4 per month baseline pricing. But, for around the cost of a Netflix subscription, you can protect everything in your home and then some.
Amica also has one of the highest customer service ratings for renters insurance companies, with an A+ rating from the Better Business Bureau and accreditation since 1957. These excellent customer satisfaction ratings are indicative of the company’s high-quality service and easy-to-use claims process.
Best for Customized Coverage: Liberty Mutual
Liberty Mutual offers a wide variety of coverage options and straightforward claims service. The company provides insurance in all 50 states and 19 countries around the world and has an A- ranking from BBB. What sets Liberty Mutual renters insurance apart in our review is the level of customization available to give you just what you need in your policy.
Renters insurance from Liberty Mutual can be used to cover personal property like furniture and clothing, along with medical expenses and a place to stay if you need it. You can also get jewelry protection, earthquake damage benefits, and replacement costs for your other belongings. Liberty Mutual's simple calculator helps you see how much coverage you need and how much it might cost.
We ran a quote through the calculator for a hypothetical suburban New York apartment with $6,900 in possessions and determined that renters insurance would cost $14 per month. The calculator bases the quote on the average cost of possessions, including electronics, furniture, household items, clothing, and hobby items.
Liberty Mutual offers some additional perks we didn’t find with other companies. For instance, the Emergency Home Repair Service allows you to find a contractor to repair your home fast while you recover from disaster or theft, and the coverage calculator helps you decide which options fit your needs and your budget before you even get a quote.
The Liberty Mutual website offers a host of information for first-time renters, people sharing a house, and young adults who may have questions about renters insurance. Hailed for their customer service, ease-of-claims, and flexible policies, Liberty Mutual is a great pick if you are looking for renters insurance you can tailor to meet your specific needs and budget.
Best Price: State Farm
State Farm is a nationwide insurer known for low rates and high-quality service, as evidenced by an A rating with BBB. While State Farm offers few discounts for renters insurance, you'll still find a great rate since their prices are already so reasonable. Your rates will vary depending on where you live, but in general, State Farm has affordable coverage all over the country.
The downside to renters insurance from State Farm is that some of the savings the company offers come from a lack of coverage for specific events. While State Farm does offer coverage for natural disasters, you'll pay an extra fee to protect against earthquakes, floods, hurricanes, and similar events. However, if you live in a low-risk area, you're more likely to reap the benefits of their rates.
While State Farm also offers bundling, they don’t have as much standard coverage as other insurance companies, which could account for why they have such low prices and so few discounts. Nevertheless, State Farm has high customer and claims satisfaction. Most people find that their claims are handled quickly with professional representatives.
Best Claims Process: American Family Insurance
American Family Insurance has an A rating with the BBB and many reports from satisfied customers, especially regarding their claims service. While American Family offers all the expected renters insurance coverage, from furniture and electronics to medical bills to hotel costs, they also go a step further by providing a better claims process.
Many insurance companies receive complaints that claims processes are long or complicated. American Family does its best to simplify it that process. The company makes things more accessible by offering 24/7 claims service, and its customer support representatives are always available to help resolve customers' issues.
Aside from its excellent claims service, American Family gives you plenty of options for add-ons, including pet insurance and trip cancellation insurance for renters who have particular needs. Renters' insurance from AmFam can even cover your belongings when they're outside your home, like if your computer gets stolen from a restaurant.
Best for Veterans: USAA
Coverage from USAA is only available to its members, who include qualified veterans, active members of the U.S. military, and their families. The company provides unique services and discounts for veterans and military members, such as specialized coverage for military equipment and uniforms for service members. They also provide coverage for war damages and no deductible if your property is damaged while you're on active duty.
While most insurance companies make you pay extra to cover certain natural disasters, USAA includes earthquake and flood damage in their standard policy. They also cover your belongings, even if they're not in your home at the time they are damaged. For example, if your TV is stolen or damaged by a flood during the moving process, USAA will cover the loss with their replacement cost coverage.
One downside to getting renters insurance from USAA is that the company does not make coverage details available online, including pricing. In order to get a detailed quote, you must first join USAA. Then, once you're a member, you can work with an agent to get a quote for individualized coverage that will meet all of your needs.
Best Customer Service: Erie Insurance
Erie Insurance was named the top renters insurance company by J.D. Power and Associates in 2019 for overall customer satisfaction. The company’s A+ rating by the Better Business Bureau also exemplifies their exemplary customer experience. Erie covers your living expenses if your home is damaged and you can't stay there, offers liability protection for you and your guests, and covers your personal property wherever you go.
While Erie Insurance is only available in 12 states, it has local advisors who can help you understand your options and your policy, putting their customer service above the rest. Erie's representatives are responsive and professional. Most customers feel their claims process was efficient, making for an overall positive experience.
In terms of discounts, Erie lets you bundle auto and renters insurance so you can save. However, there aren't many other discounts to choose from, which means that any savings you get from Erie depend on your area, your chosen policy, and how you customize it. So, if Erie offers coverage in your area, it may be worth considering, especially if you need multiple policies that might qualify you for discounts.
What Is Renters Insurance?
Much like homeowners insurance protects your house in the event of fire, theft, or damage, renters insurance covers the items inside your rented home or apartment. Renters insurance coverage falls into three distinct categories:
- Personal property: Covers the cost to fix or replace your possessions
- Liability: Covers you if you or someone who lives with you gets injured in your apartment or on the property, your dog bites someone outside your home, or a tree limb on your property falls and damages someone else’s property
- Living expenses: Offsets costs if your apartment is uninhabitable due to property damage or other reasons
The best renters insurance policies cover all three contingencies for a reasonable price. However, individual premiums will vary based on where you live, your coverage limits, and whether you opt for an actual cash value policy (which pays you for items lost after depreciation) or replacement value (which covers you for the full cost to replace that item with one exactly like it).
How We Chose the Best Renters Insurance
When renting a house, apartment, or condo, it’s important to find a company that provides the coverage you need, whether that’s a simple plan, a custom policy to protect pricey collections, or a policy to cover you and your personal items while you’re on vacation. That’s why, when choosing the best renters insurance companies, we considered coverage options, independent consumer reviews, Better Business Bureau ratings, and pricing.