Imagine going home to find out that all of your belongings were destroyed in a fire or another natural disaster. Your landlord’s insurance coverage will not help you because it only covers structural repairs and not personal possession. That is why it is crucial to have the finest renters insurance company in place for your specific needs.
Anyone renting a condo, apartment, or any other rental unit should strongly consider purchasing renters’ insurance. Not only does it protect your personal belongings in the case of a break-in, storm, or any other incident, but it covers personal liability and medical fees as well.
In comparison to other forms of insurance, renters insurance is pretty straightforward. However, there are certain intricacies to choosing a policy and insurance brand, so we have created this article for you.
We have included the best renters insurance businesses of 2021 and any additional information on how renter’s insurance works.
Top 5 Best Renters Insurance Companies – Detailed Reviews
- Liberty Mutual: Best Overall Renters Insurance
- Lemonade : Most User-Friendly Website
- Erie Insurance: Best for Auto & Leisure Insurance
- USAA: Best for Military & Veterans
- State Farm: Best Customer Services
#1. Liberty Mutual – Best Overall Renters Insurance
Imagine returning home to find that your whole possessions have been destroyed by a fire or other natural calamity. Your landlord’s insurance won’t help you because it only covers structural damage, not personal property. That is why having the best renters insurance provider in place for your unique needs is critical. Renters insurance is quite simple in comparison to other types of insurance. However, there are certain nuances to selecting a policy and insurance company, which is why we wrote this post.
Liberty Mutual has been in business since 1912 and is located in Boston. Based in 2021 gross written premium, they are the sixth largest worldwide property and casualty insurer.
You can get insured in easy and simple steps. Head over to the website, enter your zip code, address and other details. Do this, and you will receive a quotation instantly.
- Quick quotations are available on the app and on the website.
- Claims are paid immediately.
- The value of lost or stolen items can be used to purchase a new replacement.
- Exceptionally low rates
- Only available in select states
Liberty Mutual’s Highlights
Liberty mutual uses the money from the pool to pay out claims to policyholders who have suffered covered losses. They also deduct a fixed fee from each premium to cover personnel, operating expenses, and technology upgrades. If the cost of a claim exceeds the premium paid by policyholders, the guarantee will cover the difference, avoiding any surprise charges.
Homeowners Insurance Coverage
Outbuildings, residences, furniture, and other personal belongings are covered by Liberty Mutual insurance if they are damaged by theft, fire, vandalism, or natural disasters. Depending on where you reside, you can also purchase flood insurance. Renters, condo owners, home-share property owners, landlords, and income property owners are all covered by these insurance specialists.
Personal liability and guest medical insurance are included in most homeowner insurance policies to cover the costs of injuries on your property. This form of insurance also covers $5,000 in fraudulent credit card costs, but it is not available in North Carolina.
We were ecstatic to see such positive feedback for this insurance firm, as Liberty Mutual appears to be one of the greatest insurance businesses in the country. People praised the low pricing, excellent customer service, and quick insurance.
When in doubt, we always suggest that you choose this insurance company to cover your home and valuables.
#2. Lemonade – Most User Friendly Website
Low pricing and easy-to-use mobile apps are among the two main advantages of using Lemonade, but that is not all. In just a couple of minutes, prospective renters and homeowners can get prices and sign up for coverage. The procedure is quite simple, and in most cases, you can file claims and make policy changes using the app as well.
Lemonade offers a wide range of insurance packages, including house insurance, renters insurance, life-term insurance, and pet insurance. The brand was founded in 2015 and today is listed on the New York Stock Exchange.
Lemonade is one of the best renters insurance companies of 2021, offering an excellent choice for anyone that wants to buy and manage their renter’s insurance policy online. Lemonade also rewards with a quick enrollment and claim procedure depending on the source of your claim, promising to approve it right away.
- Quick quotes available through the app and website
- Instant pay for claims
- Lost or stolen belongings can be paid enough to buy a new replacement
- Highly competitive rates
- Only available in 27 states
Once you purchase a Lemonade insurance policy, you can select a charitable organization where you can receive any unclaimed premiums. The premiums you will pay will go into a pool with others that have selected the same nonprofit.
Money from the pool is used by Lemonade to settle claims for policyholders who have suffered covered losses. Lemonade also takes a flat charge fee from each premium to pay salaries, business costs, and technology updates. If it happens for the cost of the claim to exceed the premium paid by policyholders, the reassurance will pay the cost of the claim, avoiding any unexpected costs.
Their platform is so efficient that it can settle a claim in as little as three minutes, unlike the typical insurance companies, which usually take months. On the top note, they are a Certified B Corporation, which is a terrific option for new consumers wishing to save money while being socially and environmentally conscious.
Insurance Policies Specifications
If you are looking for low-cost insurance, Lemonade has the best offers in-store. The renters’ insurance starts at $5 per month, and the homeowners’ insurance starts at $25 per month. Lemonade separates itself from its competition with its high-tech business strategy, which employs a smartphone app and artificial intelligence to assist you in getting a quotation, servicing your policy, making payments, and filing claims.
What makes Lemonade so highly rated among the users is all of the advantages it provides, starting from the quick process of getting a quote online. It concentrated on interaction around their website and mobile app, allowing clients to sign up online without speaking with live agents.
This is a fully licensed and regulated insurance company providing the best insurance on the market with flexible coverage and affordable premiums. It also offers bundling discounts with auto insurance. The company makes up for it with other optional discounts and flexible, low-cost coverage.
#3. Erie Insurance – Best for Auto & Leisure Insurance
Erie has grown from issuing coverage in Pennsylvania to operating in 12 states. It is one of the longest-running insurance companies, as it was founded in 1925. This coverage ranges from densely populated areas like New York to less densely populated ones like Tennessee.
Despite the restricted state coverage, Erie is one of the top 15 companies in terms of market share in both house and vehicle insurance, and it also provides supplementary plans for life and business.
Erie has the lowest rates for every homeowner type, saving customers up to 40% of the average cost. Renters insurance is likewise reasonably priced via Erie, although the company does not provide industry-leading prices.
- Years of experience and satisfied customers
- Affordable policy and cheap renters insurance
- Covers renters in 12 states
- Excellent customer service
- Multiple discount offers
- Flood insurance and replacement cost
- Not so digital savvy
The company offers a guaranteed replacement cost as well as extra choices to help you better match your coverage to your specific needs. Erie’s house insurance policy contains conventional coverages such as dwelling, personal property, liability, and additional living expenses, as well as some optional add-ons to tailor your homeowner’s insurance.
You can sub an Erie home insurance claim by contacting your agent or dialing the 24-hour claim number. For homeowners that need to register a claim, the website also contains a must-do list. You can get your claim assigned by a case number and a handler. Then, an agent will call you to check the degree of the damage or maybe conduct a physical inspection and go over the coverage offered by your policy.
The organization is willing to work with a contractor of your choice or recommend you one if you do not have someone already in mind. Eries recommend retraining a file with the specifics of your claim so you may refer to it anytime you meet with an Erie representative.
Insurance Policies Specifications
Customers can start the quotation process through Erie’s website or by contacting their office. If you decide to go for an online form after you choose your state and city from the drop-down menu on the website, you can find a local Erie insurance agency to acquire cost information.
Their example basic coverage includes a $500 deductible based on a $20,000 personal property estimate and coverage up to 12 months. The annual cost for the basic coverage is $160. This renters insurance covers personal liability of $100,000 for every event and medical payments to others of $1,000 per person under the Home and Family Liability Protection.
Erie includes three main home insurance discounts:
Multipolicy discount: You can save money by purchasing more than one policy, such as bundling homeowners insurance with auto insurance. Specific savings will vary but average around 20%.
Safety system discount: Erie has savings for households that have fire alarms, burglar alarms, or sprinkler systems.
Advanced quote discount: If there is a new client from another insurer, they may be eligible for a discount if they request a quote 7 to 60 days before their existing policy expires.
Erie is a wonderful option for renters insurance from a business with a strong presence and high customer reviews. It has been operating for a long time and provides comprehensive renters insurance coverage.
Compared to its competitors, the firm falls short in terms of online offerings. Erie takes pride in its community participation and customer service, and this is one of the main reasons for its high reputation in the sphere.
#4. USAA – Best for Military & Veterans
USAA lands on the top in the insurance business for customer satisfaction across a wide range of insurance options. It includes comprehensive coverage ranging from basic liability to flooding coverage that is included at no extra cost, as well as unintentional damage to someone else’s property.
You can even include unintentional computer damage in the mix. These are the choices that most other brands do not provide, and USAA provides the majority of them for free. Mainly, it has been providing insurance services to those living on active military bases and retired military members and their families for over a century now. It provides a wide range of insurance products, including auto, home, life, and more.
It was ranked at the top among the best renters insurance companies in 2019 for various reasons. USAA renters protect personal belongings and valuables. While a regular insurance policy would cover things like fire and smoke, floods, wind and hail storms, lighting, building collapse, earthquake, theft, vandalism and more, USAA’s insurance is unusual in that flood and earthquake coverage are included at no additional cost with a policy.
- Highly-rated insurance company
- Belongings protection everywhere
- Low-cost rates
- Application is available 24/7 on the brand’s app
- Flexible payment plan
- Does not own a physical location
The USAA home policy focuses on two areas — liability, which is your legal obligation if someone is injured on your property, and dwelling or hazard coverage, which will assist you in restoring your house if a designated peril occurs. You may also have coverage for medical expenses as well as optional coverage, such as earthquake insurance that you can select when creating your policy.
Policyholders can make a claim using USAA’s website, mobile app, or by contacting USAA’s main phone number. Go to their website’s claims area and click on the “File a Claim” link to file a claim online.
To become a member, just go to the company’s website and click on the “Join USAA” link. Request a renters insurance quote and then enter the information such as the policyholder’s name, address, and phone number. Based on the information you submitted, USAA will provide you with an initial price.
You can change the policy to meet your specific requirements, which can be accomplished by modifying policy limits or subtracting and selecting replacement cost coverage.
When you are satisfied with the policy, you may go to the next stage. To finalize your payment methods, input the date you wish the coverage to start, and you will get the information about your new policy.
Insurance Policies Specifications
Replacement cost coverage: In addition to replacement cost plans, several insurance firms provide real cash value policies. What makes USAA stand unique is that it only provides replacement cost renters insurance. No matter how old your possessions are, the coverage will reimburse you for the cost of replacing the item with a new one.
Liability coverage: If someone or their property is harmed while on your property and you are found to be responsible, your USAA renters insurance policy will pay the costs.
Coverage for active-duty military, veterans, and family members: If you are an active-duty military member, a veteran, or a family member or either, you are qualified for USAA insurance. If you do not fall into one of those categories, you will be unable to obtain insurance through USAA.
Replacement of military uniforms and equipment: True to its history, USAA provides particular coverage for military uniforms and equipment, as detailed below on the website.
Discounts: While USAA’s discounts may appear limited, keep in mind that they are very competitive with its low rates.
The majority of USAA insurance reviews are positive, and the brand got satisfaction ratings from customers for their processing, pricing estimating process. Also, their experience with the brand’s assistant agents is up to the mark.
Judging from the reviews, customers are highly devoted to the brand, and many families have been putting their trust in USAA for decades now.
#5. State Farm – Best Customer Services
State Farm is a household name in the insurance market, inserting more houses in the United States than any other issuer. State Farm was founded in 1922, making it the second most popular insurance provider within the U.S., with roughly 60% of Americans favoring the brand.
The brand currently offers more than 100 types of policies, including home, life, and health insurance. In addition, the Illinois-based insurance brand offers additional financial services such as loans, estate planning, and investment accounts.
Because it has surprisingly low prices for such great deals, it has been regarded as one of the best renters insurance providers.
- Well-established company with decades of experience
- Competitive pricing in the insurance industry
- Special discounts and home alert discount
- Does not limit personal property coverage
- Variety of coverage options
- No 24/7 customer service
State Farm’s Highlights
State Farm’s insurance is suitable for those looking for low-cost coverage with the option of speaking with a representative in life to get assistance. Through its cooperation with Ting, the brand provides a one-of-a-kind fire safety program.
Policyholders may be eligible for a free gadget that monitors a home’s electrical systems and informs owners of problems before they become a fire hazard. Although the coverages are basic, policies are generally favorably accepted within the industry.
State Farm’s website is pretty simple to use and has information on how renters’ insurance services work. You may acquire a quotation online and even prepare for the process by using a quoting checklist. The State Farm website has a full overview of how to do a home inventory, as well as a contents calculator that may help you determine how much personal property coverage you require. The State Farm agent locator tool can help you find nearby agents, and the website is available in Spanish.
You can monitor a claim through their app, where you can also see and modify your policy. You may also use Apple or Android pay to pay your monthly bill.
Insurance Policies Specifications
The majority of State Farm’s renter’s insurance coverage includes:
- Dwelling coverage protects your home’s structure and any related structures against risks such as weather damage, theft, fire, and vandalism. Personal property coverage protects your possession and assets.
- Other structures coverage applies to unattached structures on your property, such as a shed, barn, or pool.
- Liability coverage offers protection if someone gets injured on your property and you are judged to be negligent or if you damage someone else’s property.
- Medical cost coverage pays for visitors’ injuries regardless of your fault.
- Replacement cost coverage pays the whole cost of the reconstruction of the property even if it exceeds the actual cash amount.
- Identity theft protection covers the loss of any personal data and documents in the event of an internet branch.
State Farm’s ratings, financial position, and customer satisfaction are generally favorable. State Farm also has an A++ rating from AM Best, which is the highest financial rating a firm can get. This rating reflects an issuer’s financial stability, which affects its capacity to pay claims.
State Farm is a dependable and simply accessible insurance business that offers competitive renters and life insurance that is more significant than the industry’s average with very affordable rates in comparison to its competitive business.
It is a reliable supplier with excellent customer satisfaction and a wide range of programs and services from which to choose. Moreover, it has awesome discounts and gap insurance coverage.
#6. Farmers – Most User-Friendly Website
Farmers Insurance was founded on the idea that farmers and ranchers should pay lower insurance costs due to their frequently spotless driving histories.
Do not be fooled by the company’s name or history, as you do not have to be a farmer to get insurance with this company. You may be a city person who works in an office, too. Many people opt to rent flats or homes rather than owning a property. They do not have to worry about building maintenance or establishing lasting roots.
Farmers Insurance has been operating since 1928 and offers its customers a variety of great insurance policies, including renters insurance as one of their best models, as well as the financial services.
However, to safeguard your funds from problems like water damage, theft, and fires, it is usually a good idea to get renters insurance the day you move into your apartment or house.
- Number of insurance solutions
- Variety of coverage options for newer homes
- Easy to navigate website and application process
- Transparent pricing
- Flexible billing options
- Online quotation tool
- Great discounts
- Not available in all states
Farmers Insurance provides all of the standard coverage you would expect from a company, such as property coverage, fire protection, liability coverage, and temporary relocation charges. You may also customize your plan to include replacement cost coverage for your equipment as well as identify theft recovery aid. However, this will raise your price.
To obtain renters insurance, you must be actively renting an apartment or a house. Farmers Insurance may need evidence of residency, such as a lease document.
Insurance Policies Specifications
As a renter, you confront dangers every day, no matter where you reside. For example, suppose you accidentally ignited a small fire in your apartment by lighting a candle, or suppose a guest slips on a rug in your condo and gets an injury that needs medical treatment.
The good news is that Farmers’ renters insurance will protect you. Policyholders might expect their coverage to offer a variety of benefits.
- Personal Property: Covers replacement of your sofa, bookcase, or other belongings damaged.
- Personal Liability Coverage: Pays lawsuits, legal expenses, and court awards if you have caused damage to someone else.
- Medical Payments: If your guest is wounded in your house, medical payments cover medical expenses for fewer serious injuries.
- Additional Living Expenditures: Also known as loss of usage, it might assist in covering housing and reasonable costs if you are forced to relocate temporarily.
Farmers’ deals and discounts can reduce your overall cost; therefore, it is vital to consider this when selecting an issuer. This is because even if your first insurance quotation is greater than that of other carriers, you might wind it up paying substantially less.
Farmers’ renters insurance includes several discounts that might help you save money, including:
- Multiple policy discounts: When you combine your Farmer’s renters policy with an auto insurance or umbrella policy from Farmers, you can receive multiple policy discounts.
- Smoke-free discounts: You are eligible for this if you have not been smoking for the last two years.
- Security system or fire alarm discounts: If you install a certain security system or fire alarm, you will receive a discount.
Because it provides many lines of insurance, customers not only have the freedom to tailor their coverage to their specific needs, but they also can be qualified for its multi-policy discounts. You can save up to 20% if you decide to combine your home and vehicle insurance with Farmers, which is more than a reasonable saving compared to other services.
Farmers’ main features that stand out among the companies are their mobile app and website. They have an excellent reputation in terms of customer care services. Also, they offer insurance packages to meet your specific needs.
Buying Guide – How to Choose the Best Renters Insurance
Make a Plan of What You Want It to Cover
According to the Insurance Information Institute, most renters’ insurance policies offer three basic categories of coverage — personal belongings, liability, and additional living expenses. Consider your own situation to choose which of these you wish to address.
Clothing, bedding, sports and hobby equipment, minor appliances that do not come with the rental property, and anything else you own stores in the apartment. If some visitor in your home has an injury or suffers another type of accident, a renters insurance policy’s liability coverage will pay for legal expenses and medical expenditures.
If you have to relocate due to a specific occurrence, additional living expense coverage will reimburse you for hotel bills, restaurant meals, and other charges over your usual living expense.
Which Amount of Renters Insurance Do You Require?
Take an inventory of all of your belongings to determine how much renters insurance you require. Walk through each area of your house and make a list of everything you possess, even anything hidden away, such as in a bedroom closet. After a catastrophic disaster, all of these items may need to be replaced, so make sure you have enough coverage. Particularly valuable objects, such as expensive jewelry, may need supplemental or add-on coverage.
Select Renters Insurance Provider
Consider the company that employs their own agents, that uses independent agents that refer clients to more than one insurance company, and those that sell policies online or via phone. Recommendations from family, friends, and realtors may be quite helpful. Request quotations from three or more firms, but do not focus just on pricing.
Select a Policy
The crucial part is to select a policy that provides adequate personal possession and liability coverage. Read the small print and make sure you understand the conditions of your policy, including what it covers and what insurance does not cover to avoid any unpleasant surprises later.
Finally, consider adding supplemental coverage for endemic catastrophes like earthquakes, floods, or other sorts of disasters in your region that may not be covered by a standard policy.
FAQs: Renters Insurance
Q1. What Exactly Is Renters Insurance?
Renters insurance protects you instead of your landlord. Your landlord’s insurance may protect the property you are renting, but it does not cover your personal belongings. For example, if someone broke into your home and stole your personal belongings, renters insurance would cover the expense of replacing these goods rather than having you pay for them yourself. If you are sued for something minor, such as your dog attacking a neighbor, renters insurance may help you avoid a lengthy court process or having to pay to meet a civil judgment.
Q2. Is It Worth It to Pay for Renters Insurance?
Renters insurance can protect you against financial losses for a low monthly and yearly price. While making a claim is unlikely, you may be able to come to your yearly price. You may also be able to combine your renters insurance policy with auto insurance to save more money.
To become more familiar with the insurance jargon, such as replacement cost and actual cash value, you need to make a conversation with the insurance lingo while examining the plans. The cost to replace an item is the replacement cost, whereas the real cash worth is the replacement cost minus any depreciation since you acquired it.
Q3. What Does Renters Insurance Typically Cover?
Most plans contain at least $100,000 in liability coverage and $10,000 to $15,000 in personal property coverage. Medical coverage limitations can be reduced, ranging from $1,000 to $5,000 to cover friends and relatives visiting your property.
Personal property coverage can include jewels, antiques, collectibles, books, clothing, and other items that correspond to your personal property policy. Obtaining quotes from several renters insurance companies can provide you with an idea of the basic coverage that is available.
Summing Up On Renters Insurance
Renters insurance is quite affordable and simple to purchase. In fact, one might argue that it is more expensive not to have it than it is to get one. Renters insurance cover is an important component of financial security for persons who rent houses or apartments. You should not go without renter’s insurance unless you are fully financially stable, just as you should not go without a vehicle or other form of insurance.
You deserve to be at peace knowing none of your hard-earned property will go to waste if any unpleasant accident happens. After all, it is always best to be prepared.
So, if you already do not own renters insurance and you are thinking of getting a policy, make the best choice by using our Buying Guide, where we have collected all of the necessary criteria which can help you choose the best retailer on the market. Of course, if you rely on our evaluation, we recommend going for Lemonade’s renters insurance as one of the top-rated companies currently on the market.