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Whether you're renting a studio apartment or an entire single-family home, renters insurance covers what your landlord's policy does not. If a fire destroys your rented home, renters insurance could cover your personal belongings and valuables. If someone sues you for injuries on your property, renters insurance will ensure you're covered.
Best Renters Insurance Companies of 2023
- Lemonade Renters Insurance: Best Overall
- State Farm Renters Insurance: Best for Cheap Renters Insurance
- Erie Renters Insurance: Best for Discounts
- Allstate Renters Insurance: Best for Seniors
- Farmers Renters Insurance: Best for Business Professionals
- USAA Renters Insurance: Best for Military Members
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Compare The Best Renters Insurance Companies
Our Methodology: How We Chose The Best Renters Insurance Companies
Customer satisfaction: We use JD Power's renters insurance customer satisfaction survey to evaluate the quality of service a company provides to its customers. Renters insurance providers that offered the best customer service ranked No.1 and 2.
Financial stability ratings: We use AM Best to determine a provider's financial strength. AM Best is a credit rating agency that assesses an insurance company's ability to pay claims to its policyholders. A company that receives an A++ to B+ is stable in financial strength, while anything lower than a B means that a company is unstable or unable to meet its financial obligations.
Market share: The higher a company's market share, the more popular it is among policyholders nationwide. We gathered data on market shares from the S&P Global Market Intelligence.
Average premiums: While lower home and renters insurance premiums do not mean quality insurance, we do our best to balance a policy's cost with the value an insurer provides. A good premium is on par with or below the average cost of renters insurance which is $174 annually, according to the most recent data from the Insurance Information Institute.
Insider gathered data from several renters insurance companies based on customer service and premium prices where available. We base our sample quotes on data for two people renting a two-bedroom, one-bath, single-family with no pets in Philadelphia.
See our insurance rating methodology to learn more.
Why You Should Trust Our Recommendations
At Business Insider, we aim to inform consumers, giving you the information you need to make decisions about your insurance. Our reviews and guides are not for sale. All product features are based on facts gathered. We consider industry standards, customer reviews, and other factors to get a complete perspective on each product.
Renters Insurance Frequently Asked Questions:
Renters insurance covers personal property when damaged by a covered peril, or a loss listed in your policy, like fire, smoke, theft, and storms. Your landlord's insurance policy will typically cover the building and the structure, and your insurance covers anything inside your home.
The average cost of renters insurance in the US is about $15 per month, or $174 a year, according to 2019 data from the Insurance Information Institute. Premiums may vary based on zip code, any history of claims, and more. You could get additional savings by bundling your renters insurance policy with car insurance or other types of insurance.
Find the best cheap renters insurance policy by collecting quotes from at least three insurers and looking for the insurance policy with the most coverage, the smallest premiums, and the lowest deductible.
Best Renters Insurance Overall
Lemonade
Lemonade Renters Insurance is an easy-to-use digital platform provider that offers affordable coverage. Lemonade isn't available in all states, but it has good customer service ratings.
The average renters insurance, according to some reports, costs $174 annually or $14.50 per month. According to Insurify, Lemonade starts at $5 a month, significantly more affordable than the national average. However, your renters insurance will be based on several factors like where you live.
Best Renters Insurance for Cheap Rates
State Farm
State Farm Renters Insurance is an established insurance company that receives high customer and claims satisfaction marks.
The average annual premiums for renters insurance cost are $174, according to the Insurance Institute. However, bundling discounts may lower costs (if you bundle it with your auto or other insurance). Some apartment buildings also partner with specialty renters insurance companies, which offer more coverage and exclusive perks as long as you live in a certain building.
Best Renters Insurance for Discounts
Erie
Erie Renters Insurance only operates in 12 states and Washington, D.C. It won't make sense for everyone, but it does have a reputation for good customer service and claims satisfaction in the regions where it does operate. Erie Insurance is known for its low prices across the board, however, it also offers a number of discounts to curtail your premiums even further.
Erie's renters insurance starts at $15 a month, slightly below the national average. However, your renters insurance will be based on several factors, like where you live.
Best Renters Insurance for Seniors
Allstate
Allstate Renters Insurance is a national carrier that ranks well for customer service, but its insurance premiums aren't always the cheapest. However, Allstate has a discount that allows renters who are 55 years or older to enjoy 25% of their premiums.
Insurify finds Allstate monthly premiums start at $15 monthly, which is on par with the national average. Allstate is known for its bundling and other discounts. So if you're already a loyal Allstate company, you'll probably find your most competitive rates here. Allstate's personalized service with captive agents may also appeal to seniors.
Best Renters Insurance for Business Professionals
Farmers
Farmers takes the sixth spot in J.D. Power's renters insurance customer satisfaction survey. You may qualify for a discount if you are a business professional such as a doctor, nurse, engineer, dentist, teacher, police officer, or firefighter. You can obtain a quote by speaking to a Farmers insurance representative.
Best Renters Insurance for Military Members
USAA
If you're in the military or a veteran, USAA is an option worth considering. Its life insurance is the only product open to non-military customers.
Insurify states USAA is priced at $10 a month, significantly more affordable than the national average. However, as you may already know, USAA insurance coverage is limited to US military members, veterans, and their immediate families. Civilian renters are not eligible for its rock bottom pricing.
Average Annual Premium for Renters Insurance by State
Like homeowners insurance and car insurance, the cost of renters insurance will vary by state. Where you live will play a significant role in the amount you pay in premiums.
Here's the average annual premium for renters insurance by state, according to the Insurance Information Institute.
| State | Average annual premium |
| Alabama | $225 |
| Alaska | $186 |
| Arizona | $164 |
| Arkansas | $210 |
| California | $171 |
| Colorado | $161 |
| Connecticut | $180 |
| Delaware | $151 |
| District of Columbia | $159 |
| Florida | $182 |
| Georgia | $212 |
| Hawaii | $176 |
| Idaho | $148 |
| Illinois | $157 |
| Indiana | $164 |
| Iowa | $136 |
| Kansas | $162 |
| Kentucky | $157 |
| Louisiana | $247 |
| Maine | $148 |
| Maryland | $160 |
| Massachusetts | $172 |
| Michigan | $181 |
| Minnesota | $134 |
| Mississippi | $256 |
| Missouri | $172 |
| Montana | $153 |
| Nebraska | $143 |
| Nevada | $179 |
| New Hampshire | $147 |
| New Jersey | $154 |
| New Mexico | $180 |
| New York | $173 |
| North Carolina | $160 |
| North Dakota | $116 |
| Ohio | $162 |
| Oklahoma | $226 |
| Oregon | $154 |
| Pennsylvania | $152 |
| Rhode Island | $183 |
| South Carolina | $186 |
| South Dakota | $118 |
| Tennessee | $187 |
| Texas | $216 |
| Utah | $147 |
| Vermont | $151 |
| Virginia | $152 |
| Washington | $158 |
| West Virginia | $179 |
| Wisconsin | $128 |
| Wyoming | $146 |
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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