Best and Cheapest Renters Insurance as Rated by Customers in 2022
SEE FULL RANKINGS IN YOUR STATE
Searching for the best renters insurance? We've compiled a rankings of the best renters insurance companies that is based solely on which companies customers have rated the best.
In the table above, you can sort through all the renters insurance companies ranked on Clearsurance. The rating next to each company the insurer's Clearsurance score is based exclusively on the thousands of ratings provided by policyholders. Note: Only those companies with at least 25 renters insurance reviews are eligible to appear in the best renters insurance rankings.
Interested in learning more about one of the companies on the list of the best renters insurance? You can visit the company's profile page to find more information about coverages and discounts, and read reviews to learn from the experiences of other policyholders.
How much is basic renters insurance?
Renters insurance is generally much cheaper than car or homeowners insurance. The average cost of a renters policy in the United States is $185 annually, according to most recent data from the Insurance Information Institute. That equates to renters insurance costing about $15 per month. To put those numbers in perspective, the average cost of homeowners insurance according to the same data is $1,192 annually or about $100 per month.
Why is cheap renters insurance easier to find than cheap homeowners insurance? The difference in price can largely be attributed to the different coverages they provide. The cost of homeowners insurance is driven up by the fact that it covers the entire structure. So if you owned a home worth $200,000, you'd need dwelling coverage up to $200,000. However, renters insurance coverage doesn't account for your apartment.
Instead, your landlord is responsible for insuring the structure of your building. You are responsible for insuring your personal property coverage, which typically requires a much lower limit than coverage for an entire dwelling. Still, purchasing renters insurance is important because without it, your personal belongings aren't protected. And though you may not realize it, you likely own tens of thousands of dollars worth of personal property that is worth getting renters coverage for. When you consider how much it would cost to replace all of your belongings without insurance, paying around $185 annually for renters insurance seems like a wise investment and an affordable insurance option, not to mention the added security and peace of mind!
How do you get the best renters insurance?
Finding the best renters insurance is important to properly protect yourself and your personal property. Getting the best renters insurance requires some research and shopping, but other renters have done the bulk of the work for you. Thanks to thousands of renters insurance reviews from customers, we've been able to put together this ranking list of the best renters insurance companies.
The best renters insurance isn't simply the cheapest company or the one with the best customer service; it's a combination of many factors. A company's overall rating, which is based solely on customer feedback, encompasses both the best and cheapest renters insurance factors. We have more on how we rank renters insurance companies below.
When finding a company to protect your belongings, we recommend by starting with the best renters insurance rankings table above and filtering by your state. This provides you with the top renters insurance companies, according to renters like you, that sell policies in your area.
By visiting these companies' profile pages, you can learn what discounts they offer, what other coverages they offer and read reviews from their policyholders to learn from the experiences of other renters.
Once you've identified the companies you're interested in, it's important to get quotes to see how the policies compare. While renters insurance costs shouldn't be your only consideration, this can help you compare the best renters insurance companies that offer the best rates for your needs.
What is the best renters insurance for college students?
Whether or not college students need renters insurance depends on where they are living while attending school. College students living in an on-campus dorm typically don't need to purchase a renters insurance policy as they're usually covered by their parents' homeowners insurance policy. If you live in a dorm, check with your parents' homeowners policy to ensure your belongings are covered under their policy.
College students living in an off-campus apartment, however, do need to purchase renters insurance for their personal property coverage. Property such as your laptop, TV, furniture, and textbooks can all be covered and protected from things like theft and fire.
The above rankings of the best renters insurance companies qualifies as the best renters insurance for college students. One thing to consider is if you have your own car insurance policy, you can look for a renters insurance company that also offers auto insurance and a good student discount. If you qualify, this may be a great way to get the most affordable renters insurance while also protecting your vehicle.
Should my roommate and I share a renters insurance policy?
It's not advised that roommates share a renters insurance policy. Instead, each roommate should buy their own renters insurance policy. Insurance companies price a policy based on the risk of an individual and their belongings; adding a roommate to the policy would change the policy needs and potentially the risk of filing a claim.
Plus, in the event you bought the policy but your roommates laptop is stolen and they need to file a property claim, the claim will count against your record because you're the policyholder. Having claims on your record can lead to more expensive insurance renters insurance premiums in the future. It can also further complicate things if your roommate moves out or if there's a dispute about who owns what in the apartment.
While some renters insurance companies may allow policyholders to list other individuals on the policy, it's not recommended. The few dollars you may save by sharing a renters insurance policy isn't worth the risk. There are a few exceptions depending on the state you live in and the individual you're renting with (such as a sibling or spouse). If you're unsure if you should share a policy, you should contact an available insurance agent or company to get the policy details. Chances are there are multiple licensed insurance agents waiting to discuss possible renters insurance coverage options with you.
Who offers the best renters insurance rates?
According to customers, Lemonade offers the best renters insurance rates.
On Lemonade's website, it listed renters insurance rates starting at a monthly price of $5, which is definitely one of the cheapest options. In the table below, you can see the average price rating for the 10 companies with the best renters price rating on Clearsurance. Note: Only companies with at least 100 renters insurance reviews on price qualified.
|Rank||Company||Price rating||# of reviews|
|1||Lemonade Insurance Company||4.81||136|
|7||American Family Insurance||4.15||196|
- Lemonade, a startup insurtech company founded in 2015, has the cheapest renters insurance prices according to reviews on Clearsurance. Lemonade Insurance leverages technology to get renters insured in just 90 seconds, and it also uses artificial intelligence to pay claims in a matter of minutes. Lemonade's unique business model and technology has helped it earn a reputation as one of the best renters insurance companies.
- Erie Insurance, a regional insurer based in Pennsylvania that sells in 12 states and Washington, D.C., has a reputation for affordable renters insurance rates. Erie's prices earned the second-best rating from customers, and it's service also lands it on the list of the top 10 best renters insurance companies.
- USAA, a military-only insurance company, also ranks at the top of the best renters insurance companies. USAA's 4.52 price rating out of 5 ranks as the third best renters insurance price from policyholders. Read more about what customers say about USAA renters insurance.
- AAA may be best known for its car insurance and roadside assistance, but customers report cheap renters insurance premiums with the company as well.
- Geico, which actually sells renters insurance through other licensed insurance companies, also has a good reputation for its affordable renters insurance rates. Read more about what customers say about Geico renters insurance.
How are renters insurance rates calculated?
The price you pay for renters insurance is based on a number of factors, which is why it's all but impossible to pinpoint exactly what each individual will pay. While the average annual renters insurance cost is $185, each person will likely pay a little more or a little less depending on things like their zip code, what coverage types they have and their deductible. This is why it’s important to always get a formal insurance quote in advance, as it makes it more likely you will find an affordable price and save on your annual cost.
Some of these factors that determine renters insurance annual premiums are obvious. It makes sense that someone with a $25,000 personal property limit and a $1,000 renters insurance deductible will pay less for their insurance than someone living in the same area with a $50,000 personal property limit and a $500 deductible.
Here's a list of some of the things that renters insurance companies consider when pricing your policy:
- The level of coverage
- The types of coverage
- The amount of your deductible
- The geographic location of your rental unit
- The type of building you live in
- Your credit score (in some states)
- Your previous claims record
Is renters insurance worth it?
Given the affordable cost of purchasing a renters insurance policy, renters insurance is generally worth it for tenants even if it isn't required by your landlord. With a national average cost of $185 per year, you can cover your belongings from theft or disaster at an affordable insurance rate.
If you don't have enough money to replace all of your belongings if they were destroyed in a disaster, rental insurance offers a way to ensure you could financially recover if the unimaginable happened. And even in the event you could replace all your belongings out of pocket, wouldn't you rather pay a small deductible rather than tens of thousands out of pocket after a loss? It's a small price to pay to save the rest of your finances in the grand scheme of things that can happen to your property.
The cost of renters insurance per month is comparable to many of the monthly expenses customers have each month.
|Service||Average monthly cost|
|Netflix standard subscription||$13|
What does renters insurance cover?
A standard renters insurance policy, often seen as HO-4 insurance policy, will cover your personal belongings from a list of perils that are named in your policy. Your renters insurance will protect your personal items up to your policy's limits, less a deductible.
For instance, you may have a $25,000 personal property limit with a $500 deductible. In the event you had $9,000 worth of belongings damaged or destroyed in a covered peril, such as a fire, you'd receive a check for $8,500 from your renters insurance company after you paid your $500 deductible.
What are the typical perils that a renters insurance policy protect you against? There are 16 types of perils usually found in a policy, the same as a standard homeowners policy.
- Fire or lightning
- Hail or windstorm
- Riots or civil commotion
- Damage caused by aircraft
- Damage caused by vehicles
- Vandalism or malicious mischief
- Falling objects
- Volcanic eruption
- Weight of ice, snow, or sleet
- Overflow or accidental discharge of steam or water from an appliance, heating, plumbing, air conditioning, or automatic fire-protective sprinkler system
- Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system
- Freezing of a heating, air conditioning, plumbing, or automatic, fire-protective sprinkler system, or of a household appliance
- Sudden and accidental damage from an artificially generated electrical current (not including loss to a tube, transistor, or similar electronic component)
Many renters insurance policies also offer some sort of additional liability coverage and medical payments for a non-resident's accident that occurs on your rental property. This type of coverage protects you from potentially expensive claims, like a lawsuit filed against you for non-resident's property damage or medical costs from a bodily injury that a non-resident suffers on your rental property. A typical liability limit is $100,000, though you can select a higher limit from most insurers.
Additional coverage options may include what's usually referred to as “loss of use” coverage or “additional living expenses” coverage. This optional coverage would help cover your expenses if you're displaced from your apartment because of a covered peril. It is worth considering for some situations, even though it would be an additional cost. If you have valuable items, this may be a valuable coverage for you.
What does renters insurance not cover?
Renters insurance most notably does not cover the structure of your apartment or rental unit. If your building is destroyed in a fire, tornado or other disaster, your renters insurance won't cover the cost to rebuild. But don't worry renters aren't supposed to have insurance for the structure of the building. A landlord is usually responsible for insuring the structure of the building with a landlord’s insurance policy. Just keep in mind that even though your landlord has insurance, you still need renters insurance to protect your belongings and for liability protection.
So what else doesn't renters insurance cover? A standard renters insurance policy typically doesn't cover your belongings from weather-related flooding or from earthquakes. If you live in an area prone to either of these disasters, you should consider purchasing a separate policy to ensure you're covered.
Additionally, renters insurance typically doesn't cover bed bugs, termites, mold (in some cases), damage from neglect, power failures, sinkholes or war.
How can you get cheap renters insurance?
While the price of renters insurance is considerably lower than car and homeowners insurance, you still want to find competitive rates. So how do you get cheap renters insurance? The best way to get cheap renters insurance is by obtaining renters insurance quotes from multiple companies so you can compare them side by side. You can start by getting an online quote. Just keep in mind that saving a few bucks may not be worth sacrificing quality service, and be sure that each policy has the same coverage and limits so you're truly doing an apples to apples comparison.
You can also get cheaper renters insurance rates by qualifying for discounts that will lower your premium. Here are four common discount options that some renters insurance companies offer:
- Bundling policies: If you also have a car insurance policy, look into buying a renters insurance policy from the same company. Many insurers who sell auto and renters insurance offer a multi-line discount for bundling the policies with them.
- Claim free: Some insurance companies will offer you a discount if you’ve been without a claim for a certain number of years.
- Safety features: If your rental unit is equipped with smoke detectors, carbon monoxide detectors, a home alarm system or other safety features, you may be able to get a renters insurance discount.
- Gated community: Some renters insurance companies offer cheaper rates if you live in a gated community.
Aside from asking your insurance company about discounts you qualify for, there are some additional ways that you can lower your renters insurance rates. Here are four potential ways to get cheaper renters insurance rates:
- Raise your deductible
- Determine the value of your personal property (and potentially lower your limits)
- Pay in full by check
- Bundle your policies
How does Clearsurance rate and rank renters insurance companies?
Consistent with its mission towards greater transparency, Clearsurance does not keep its rating and ranking formulas in a black box. Our algorithm analyzes a range of inputs from our independent community of insurance customers, including:
- Customer Service
- Claim service
- Likelihood to renew
The algorithm also takes into account the percentage of what customers say the company does well vs. the percentage of what customers say the company could do better.
The Clearsurance customer ratings and rankings used for this list of the best renters insurance are derived entirely from customer reviews and ratings.
Frequently Asked Questions
How much is renters insurance?
Renters insurance is generally much cheaper than car or homeowners insurance. The average cost of renters insurance in the United States is $185 annually, according to most recent data from the <a href="https://www.iii.org/fact-statistic/facts-statistics-homeowners-and-renters-insurance" target="_blank">Insurance Information Institute</a>. That equates to renters insurance costing about $15 per month. To put those numbers in perspective, the average cost of homeowners insurance according to the same data is $1,192 annually or about $100 per month.
Who offers the best renters insurance rates?
According to consumers, Lemonade offers the best renters insurance rates.