Anyone who rents an apartment, condo, townhome, or other type of dwelling should seriously consider getting renters insurance. Renters insurance covers a tenant’s personal property if it’s damaged or destroyed during a break-in, a storm, or another event specified in the policy. In addition, renters insurance provides coverage for personal liability and medical bills if you have a guest over and they’re injured. Finally, if there’s a fire or other catastrophic event that forces you to move out of your unit, renters insurance will cover your extra living expenses, such as hotel bills and meals out.
Unlike some other types of insurance policies, renters insurance is relatively simple. But there are some nuances when it comes to selecting a policy and insurance company, which is where this guide comes in. Below, we’ll list our top-rated renters insurance companies of 2023 and provide more information on how renters insurance works.
The Best Renters Insurance Companies of 2023
Prices appearing on this webpage are sample rates for illustrative purposes only based on a particular consumer profile. For specific pricing, you should go either to a certified broker or directly to the insurer’s website.
Our top-rated renters insurance companies of 2023 include:
Best Renters Insurance Company of 2023
Pros:
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Least expensive company in our rating
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Inflation coverage available
Cons:
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Must be purchased through an agent
- Online Tools
- Online Estimate
- Sample Monthly Cost
- $13.04
more detailsState Farm is the least expensive insurer in our rating with a monthly premium of $13.04. This makes it more than $17 cheaper per month than the most expensive company in our rating. Renters insurance policies with State Farm are also available with inflation coverage. This will automatically adjust your coverage limits to match inflation so that your level of coverage doesn’t effectively decrease over time.
While you can obtain a quote online, you will need to work with a State Farm agent if you want to purchase a renters policy. This is a potential downside for anyone looking to complete the entire process online.
Availability: All 50 states and Washington, D.C.
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Includes Flood and Earthquake Coverage
Pros:
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Flood and earthquake coverage included
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Provides military-specific coverage
Cons:
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Only available to USAA members
- Online Tools
- Online Estimate
- Sample Monthly Cost
- N/A
more detailsUnique among companies in our rating, USAA includes flood and earthquake coverage in its standard policy. Most companies list that as optional coverage. As a company that caters to the military community its renters insurance includes several military-specific benefits. For example, if you live on base USAA offers a discount on your premiums. Also, your military uniform and gear are covered by your policy, and you won’t have to pay a deductible on them should you file a claim.
One of the downsides to USAA is that its renters insurance policies are only available to its members. USAA membership is restricted to members of the military, veterans, as well immediate family members such as spouses and children.
Availability: All 50 states and Washington, D.C.
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Entirely Online Service
Pros:
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Entirely online, from quotes to policy management
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One of the least expensive companies in our rating
- Online Tools
- Online Estimate
- Sample Monthly Cost
- $15.09
more detailsLemonade is an online insurance company. Interactions with the company will primarily take place through its app and website, including obtaining quotes and purchasing a policy. For those who want a streamlined application process they can complete from home, this can be a major plus. It is also one of the least expensive companies in our rating based on our data, earning the No. 2 spot in our Cheapest Renters Insurance Companies of 2023, with a rate of $15.09 per month.
Compared to companies like USAA and State Farm, availability is limited, with policies only available in just over half of U.S. states and the District of Columbia. Also, as an online-focused insurance company, there are no local agents available. This could be a drawback if you’re used to interacting with an insurance company through your agent.
Availability: 28 states and Washington, D.C.
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Pros:
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Can purchase a policy online or with an agent
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Variety of ways to save money
Cons:
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Most expensive company in our rating
- Online Tools
- Online Estimate
- Sample Monthly Cost
- $30.49
more detailsWith American Family you can purchase a policy online, but there are also local agents available. This will appeal to those who want the reassurance of working with a local agent as well as those who appreciate the convenience of online applications.
American Family is the most expensive company in our rating, with a monthly premium of $30.49, but it offers a couple of ways to save money through discounts and a diminishing deductible. Discounts available include bundling renters and auto policies, setting up automatic payments, and staying with the company for at least one year. With diminishing deductibles, American Family will reduce your deductible by $100 each year up to $500.
Another downside is its limited availability, it is unavailable in more the half of the states.
Availability: 19 states
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Pros:
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Optional add-ons available
Cons:
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Only available through agents
- Online Tools
- Agent Only
- Sample Monthly Cost
- $23.00
more detailsErie Insurance is a regional insurance company only available in 12 states and Washington, D.C. You can bulk up its standard policy with additional coverage for sewer or drain backups, homesharing, and personal belongings whose value may exceed standard coverage limits. While it is one of the more expensive options in our rating, with a monthly premium of $23, there are several discounts available such as for bundling, having a home security system, and getting a quote more than seven days before the start of the policy.
To obtain a quote or purchase a policy, you must work with an Erie Insurance agent.
Availability: 12 states and Washington, D.C.
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Pros:
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One of the least expensive companies in our rating
Cons:
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Must purchase through an agent
- Online Tools
- Online Estimate
- Sample Monthly Cost
- $21.50
more detailsWith a monthly premium of $21.50, according to our data, Allstate is No. 5 in our Cheapest Renters Insurance Companies of 2023. In addition to one of the lowest premiums in our rating, there are a number of discounts available, including one for renters 55 years or older who aren’t currently seeking full-time employment. Allstate says this discount can save policyholders up to 25% off their premiums.
In addition to its standard policy, there are coverage options for your personal belongings whose value might exceed your base coverage limits, identity theft restoration, and a personal umbrella policy.
While you can get a quote through its website, in order to purchase a policy, you must work through an Allstate agent.
Availability: All 50 states and Washington, D.C.
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Pros:
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Wide variety of discounts
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Optional jewelry coverage doesn’t require an appraisal or deductible
Cons:
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One of the more expensive companies in our rating
- Online Tools
- Online Estimate
- Sample Monthly Cost
- $24.17
more detailsLiberty Mutual has the second-highest monthly premium of the companies in our rating at $24.17, according to our data. For context, the least expensive company in our rating had a monthly premium of $13.04. But, the insurer does offer an assortment of discounts, including ones for bundling renters and auto policies, setting up automatic payments, purchasing your policy online, and getting a quote before your current renters policy expires.
In addition to its standard policy, there are a number of options including for replacement cost and blanket jewelry.
Replacement cost means that the insurance company will determine the value of your personal belongings without taking depreciation into account. And with its blanket jewelry coverage, you set a specific amount of coverage for your entire collection instead of basing it on the total valuation of each piece. This means that you don’t have to get your jewelry appraised first. You also won’t need to pay a deductible should you file a claim on your jewelry.
Availability: All 50 states and Washington, D.C.
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Pros:
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One of the least expensive companies in our rating
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Replacement cost valuation available
Cons:
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Not available in all states
- Online Tools
- Online Estimate
- Sample Monthly Cost
- $18.42
more detailsFarmers’ sample rate of $18.42 per month for a standard policy, according to our data, makes it one of the three least expensive companies in our rating. In addition to this, there are discounts available such as bundling and having protective devices such as a home security system installed. There is also a discount if your household has been smoke-free for at least two years.
If you want to expand beyond the standard renters plan, you can include add-ons like extra coverage for personal property or replacement cost coverage. This will make it easier to replace or repair damaged or destroyed belongings as it doesn’t take depreciation into account when determining their value.
On the downside, it isn’t available in eight states and Washington, D.C.
Availability: 42 states
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Pros:
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Water backup and personal injury options available
Cons:
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One of the more expensive companies in our rating
- Online Tools
- Online Estimate
- Sample Monthly Cost
- $22.69
more detailsProgressive is widely available across the U.S., but it doesn’t offer renters policies in California and Massachusetts. It also has one of the highest monthly premiums in our rating, according to our data, at $22.69. That rate is almost $10 a month more than the least expensive in our rating.
But, as with many companies in our rating, Progressive has a number of discounts that will lower their premiums. Some of these include bundling, paying for your policy upfront, and obtaining a quote at least three days before your new policy would start, as well as others.
You can bulk up a standard policy with options for water backup and personal injury. Water backup provides coverage if there is a backup from a sewer or drain. And personal injury provides coverage for specific types of lawsuits, such as slander or libel.
Availability: 48 states
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Pros:
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One of the least expensive companies in our rating
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Covers damages to alterations you have made to the building
Cons:
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Not available in seven states
- Online Tools
- Agent Only
- Sample Monthly Cost
- $19.67
more detailsIf you’ve made updates to your rental home, those would be covered by a standard renters policy from Nationwide. This would cover updates like installing new flooring, but wouldn’t necessarily apply to the structure of the building such as the outside walls. For most renters insurance policies, the building itself isn’t covered. Among the optional coverages available are replacement cost valuation, water backup, and extra coverage for your valuables.
It is also one of the least expensive companies in our rating, with monthly premiums of $19.67, according to our data. There are also discounts for bundling, having protective devices such as a smoke detector or burglar alarm, and being claim-free.
Availability: 43 states and Washington, D.C.
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How we determined our sample rates
Premiums were based on the median of quotes in four different cities. The sample unit was a two-bedroom, 1.5-bathroom unit between 1,000 and 1,999 square feet. Coverages included $25,000 for personal belongings, $100,000 in liability, $3,000 for portable electronics, and a $500 deductible.
Your monthly premiums for renters insurance can quickly add up depending on a number of different factors, including the amount of coverage you have and the coverage options you select. To help you find the best affordable policies, we’ve done the research and found the Cheapest Renters Insurance Companies of 2023.
This rating is based on the median price of a number of sample quotes for the companies in our list of the Best Renters Insurance Companies of 2023.
Prices appearing on this webpage are sample rates for illustrative purposes only based on a particular consumer profile. For specific pricing, you should go either to a certified broker or directly to the insurer’s website.
There are several steps to follow when selecting a renters insurance policy. They include:
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Decide what you want to cover. The Insurance Information Institute explains that there are three basic types of coverage included in most renters insurance policies: personal possessions, liability, and additional living expenses.
Consider your circumstances to decide which of these you want to cover:
- Your personal possessions include things like clothes, bedding, sports and hobby equipment, small appliances that didn’t come with the rental property, and anything else you own that’s stored in the unit.
- Liability coverage that comes with a renters insurance policy will pay for legal fees and medical bills arising from an injury to a guest in your unit as well as protect you from negligence claims against you outside of your unit.
- Additional living expense coverage will reimburse you for hotel bills, restaurant meals, and other costs above and beyond your normal living expenses if you have to move out of your unit after a covered event.
- Determine how much renters insurance you need. To figure out how much renters insurance you need, take an inventory of all of your personal property. Walk through each room of your home and note everything you own, including things stored out of sight, such as in a bedroom closet. All of these things might have to be replaced after a major disaster, so be sure to purchase enough coverage. Especially valuable items like expensive jewelry might require a supplemental or add-on policy.
- Choose a replacement cost policy or an actual cash value policy. A replacement cost policy has a somewhat higher premium, but it will reimburse you for the cost to replace your lost or damaged items with new equivalents without a deduction for depreciation. By contrast, an actual cash value policy will only compensate you for what those items were worth in their used condition. For certain types of property, especially things like electronics that depreciate rapidly, an actual cash value policy will leave you short of funds for buying new items.
- Choose a renters insurance company. When selecting a policy, look at companies that use their own agents, those that use independent agents who refer clients to more than one insurance company, and those that sell policies directly online and by phone. Family, friends, and realtors can provide valuable recommendations. Ask for quotes from three or more companies, but don’t just look at the price. Customer service and a strong financial rating from agencies like AM Best are equally important, if not more so.
- Choose a policy. Finally, choose a policy with enough personal possessions and liability coverage. Read the fine print and make sure you understand all the terms of your policy, including what it covers and doesn’t cover, so there are no unpleasant surprises later. Finally, consider adding additional coverage for floods, earthquakes, or other types of disasters endemic to your area that might not be covered by a standard policy.
Bundling renters and car insurance policies is up to you; however, bundling might not always be the cheapest option. Many insurance companies in our ratings have bundling options for these two policies, which can result in lower premiums. But, your actual savings will vary based on the details of the policies being bundled.
Similar discounts might be available for other types of policies. For example, Allstate will let you bundle renters insurance with term life insurance or auto coverage, while Nationwide will let you bundle renters and motorcycle coverage.
If you rent, your landlord’s insurance protects the building you live in, but not its contents. In the event of an accident, your landlord cannot be held financially responsible for any damage to your belongings. Renters insurance is designed to protect the contents of your dwelling, similar to homeowners insurance.
A typical renters insurance policy also covers the following:
- Living expenses. Loss-of-use coverage helps cover additional living expenses that are a result of damage to your home. If, for example, a fire occurs in your building and makes your apartment uninhabitable, loss-of-use coverage may help pay for a hotel room for you to stay in.
- Personal liability. Personal liability coverage kicks in if someone is injured or their property is damaged, and you are blamed for the incident.
- Guest medical expenses. Your renters insurance policy may also cover medical payment for the guest’s medical bills or your legal defense, should the injured party take you to court.
The financial amount that an insurance company will pay in these scenarios depends on the renters policy that you purchase. The payout caps often change depending on the premiums (the monthly payments you make for the policy) and the deductible (the amount you must pay out-of-pocket before the insurance policy kicks in.)
When purchasing renters insurance, don’t just focus on price, though. The company with the lowest premiums might not have the coverage you need or good customer service agents. The Consumer Federation of America notes that good customer service is especially important because it will make the process of filing a claim much easier and more pleasant.
There are several reasons you may want to consider a renters insurance policy.
Landlord requirements.
Some landlords and rental agencies require tenants to maintain a rental policy. Consult your rental agreement or contact your existing or potential landlord to determine if you need coverage.
Coverage for your possessions.
It’s likely your landlord already has an insurance policy to protect their building, but their policy won’t cover your possessions in the event of a theft, fire, water damage, or other circumstance that may leave you with damaged property. Renters insurance can help you protect your valuables or everyday essentials, including clothing, laptops, and appliances.
Liability protection.
Most renters policies include liability coverage. If someone is injured or their property is damaged and you’re found legally responsible, having a policy can help you pay for repairs, property replacements, or medical bills.
Financial support after a disaster.
Renters policies generally include “loss of use” coverage, which can help you pay for a hotel or other essential costs (e.g., daily meals) if you’re displaced due to a covered peril.
According to the National Center for Education Statistics, burglaries accounted for 33% of on-campus crime in 2019. A renters insurance policy will repair or replace personal belongings after a covered loss and cover living expenses if you need to find a new place after a covered loss makes the residence uninhabitable. It will also cover liability if you accidentally damage the property or injure someone on it.
Regular homeowners insurance policies typically have a sub-limit allocated to off-property personal belongings, like those in a dorm room. However, off-campus apartments or housing will likely not be covered and will need a separate renters insurance policy.
Electronics like cell phones and computers might have their own stand-alone insurance, according to the Insurance Information Institute (III), and you could be eligible for an auto premium discount if a student is leaving their car at home while they’re at college.
Companies in our rating offered renters insurance premiums that ranged from $13.43 per month up to $24.29 per month. The cost of a renters insurance policy is affected by a number of factors:
- Where you live
- The type and amount of coverage you want
- The amount of your deductible
- Whether you choose a replacement-cost policy or a less expensive, actual-cash-value policy
- You add supplemental coverage for natural disasters like earthquakes, or to insure high-value possessions such as jewelry or art
According to a 2021 study by the National Association of Insurance Commissioners, the average annual cost of a renters insurance policy in 2019 was $174 per year. Some companies even offer policies as low as $5 a month. Compared to the average annual homeowners insurance premium of $1,272 per year, renters insurance is a relative bargain when you consider the cost of replacing personal items or an injury to a houseguest. Our guide How Much Is Renters Insurance? provides more details on factors contributing to cost.
There are several things to look for when purchasing a renters insurance policy, including:
- A policy with enough coverage to reimburse you for all your personal property
- A replacement cost or actual cash value policy
- A policy’s personal liability and additional living expenses coverage
When it comes to coverage, you want to make sure you have enough to reimburse you for personal property that is damaged in a storm, fire, or other covered disasters. To do this, take inventory of all your property by writing down everything you own and the approximate value. If you have receipts, make sure to save them. You will also want to note valuable items like jewelry or electronics, as these might require add-on coverage.
You will also want to check if your policy has a replacement cost or an actual cash value policy. A replacement cost will reimburse you for the cost of replacing your property with comparable new items. An actual cash value will only reimburse you for the depreciated value. Used items would not be worth as much, so your compensation would be lower. The policy you choose will depend on how you balance the risks to your property with monthly premium payments.
Check to see what types of disasters are covered. For example a policy from one insurer may include coverage for flood in its standard renters policy, while another insurer may offer it as an optional add-on or refer you to another insurer.
Lastly, examine a policy’s personal liability and additional living expenses coverage. Whether they are what you need depends in part on how likely a guest is to be injured on your property and the probability of having to move out due to damage to your unit.
Most renters insurance policies won’t cover roommates. So, if your roommate’s belongings are damaged or stolen, it won’t be covered by your policy.
While some insurance companies may allow you to add a roommate to your policy, this isn’t always recommended. For example, any claims your roommate makes on the policy will show up on your claims history, and the coverage limits for the policy may not increase despite adding another person to the policy.
You should consult with your insurance agent or company to ensure that you are fully informed.
Other Renters Insurance Companies
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Other Ratings From 360 Reviews
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1. We researched the companies and products people care most about.
U.S. News analyzed and compared a variety of publicly available data, including internet search data, to determine which cell phones Americans are most interested in. We found 24 insurance companies and agencies that stand out in terms of volume of searches and research among consumers, as well as across the different rating sources.
We then compared the available renters insurance across several criteria, including a sample monthly cost, coverages, discounts, available additional coverages, financial strength, and state availability. Research shows that these are the most important criteria for people shopping for a cell phone.
2. We created objective 360 Overall Ratings based on an analysis of third-party reviews.
U.S. News’ 360 Reviews team applied an unbiased methodology that includes opinions from professional reviews as well as consumer reviews.
Our scoring methodology is based on a composite analysis of the ratings and reviews published by credible third-party professional and consumer review sources. The ratings are not based on personal opinions or experiences of U.S. News. To calculate the ratings:
(a) We compiled two types of third-party ratings and reviews:
- Professional Ratings and Reviews. Many independent Renters Insurance evaluating sources have published their assessments of renters insurance companies and agencies. We consider several of these third-party reviews to be reputable and well-researched. However, professional reviewers often make recommendations that contradict one another. Rather than relying on a single source, U.S. News believes consumers benefit most when these opinions and recommendations are considered and analyzed collectively with an objective, consensus-based methodology.
- Consumer Ratings and Reviews. U.S. News also reviewed published consumer ratings and reviews of renters insurance companies and agencies. Sources with a sufficient number of quality consumer ratings and reviews were included in our scoring model.
Please note that not all professional and consumer rating sources met our criteria for objectivity. Therefore, some sources were excluded from our model.
(b) We standardized the inputs to create a common scale.
The third-party review source data were collected in a variety of forms, including ratings, recommendations, and accolades. Before including each third-party data point into our scoring equation, we had to standardize it so that it could be compared accurately with data points from other review sources. We used the scoring methodology described below to convert these systems to a comparable scale.
The 360 scoring process first converted each third-party rating into a common 0 to 5 scale. To balance the distribution of scores within each source’s scale, we used a standard deviation (or Z-Score) calculation to determine how each company’s score compared to the source’s mean score. We then used the Z-Score to create a standardized U.S. News score using the method outlined below:
- Calculating the Z-Score: The Z-Score represents a data point’s relation to the mean measurement of the data set. The Z-Score is negative when the data point is below the mean and positive when it’s above the mean; a Z-Score of 0 means it’s equal to the mean. To determine the Z-Score for each third-party rating of a company, we calculated the mean of the ratings across all companies and agencies evaluated by that third-party source. We then subtracted the mean from the company’s rating and divided it by the standard deviation to produce the Z-Score.
- Calculating the T-Score: We used a T-Score calculation to convert the Z-Score to a 0-100 scale by multiplying the Z-Score by 10. To ensure that the mean was equal across all data points, we added our desired scoring mean (between 0 and 10) to the T-Score to create an adjusted T-Score.
- Calculating the common-scale rating: We divided the adjusted T-Score, which is on a 100-point scale, by 20 to convert the third-party rating to a common 0-5 point system.
(c) We calculated the 360 Overall Score based on a weighted-average model.
We assigned “source weights” to each source used in the consensus scoring model based on our assessment of how much the source is trusted and recognized by consumers and how much its published review process indicates that it is both comprehensive and editorially independent. The source weights are assigned on a 1-5 scale. Any source with an assigned weight less than two was excluded from the consensus scoring model.
Finally, we combined the converted third-party data points using a weighted average formula based on source weight. This formula calculated the consensus score for each product, which we call the 360 Overall Rating.
U.S. News 360 Reviews takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.
