Low complaint ratio
State Farm is the largest insurance firm in the US and among the best renter insurance providers anywhere in the world. With high-quality service and an extremely stable financial outlook, it is a must-consider for anyone seeking to insure their rented property.Read full review
NAIC Complaint Ratio
Zero Everything feature
Lemonade heralds the new age of insurance, with a modern AI-based service and incredibly low starting premiums paired with consumer-friendly coverage plans. The company is still young and is not rated by main sites like J.D. Power, but its peer-to-peer model is considered to be financially stable.Read full review
NAIC Complaint Ratio:
Wide range of discounts
Top-notch customer support
Allstate may seem a bit pricey on first glance, but it's discount options reduce premiums to some of the lowest on the market. The service Allstate provides is almost unmatched anywhere in the US, and it absolutely deserves to be ranked among the top three rental insurance companies in the country.Read full review
NAIC Complaint Ratio:
Geico is the second largest insurance company in the US, and has incredible financial stability thanks to it being backed by Warren Buffet’s flagship firm Berkshire Hathaway. While its renters insurance offer is still new and not as robust in options, Geico still offers a great service and competitive prices, making it one of the top choices to consider when looking for a quality insurer.Read full review
NAIC Complaint Ratio:
Great customer support
Erie Insurance is one of the most competitive and highly rated companies in the U.S. It offers incredibly low rates and a world-class customer support service, distinguishing itself from the rest of the companies on the market with the dedication to quality. Erie Insurance is a great choice for almost anyone looking for a stable company that respects and serves its customers right.Read full review
NAIC Complaint Ratio:
Low Complaint Ratio
Extremely Cheap Rates
With a century of experience in the insurance business, Amica is one of the most respected names on the market. Amica offers renters insurance rates that are among the lowest in the U.S. and has an incredibly low complaint ratio.Read full review
NAIC Complaint Ratio:
Best Choice For Army Members
Worldwide Customer Support
Exceptional Financial Stability
USAA renters insurance remains the top choice for any former or active U.S. military servicemen, offering stability and options that are rarely or almost never found anywhere else. It is a financially strong option with incredibly low level of unresolved complaints and affordable renters insurance coverage.Read full review
NAIC Complaint Ratio:
America has more renters than ever before. Younger people no longer see home ownership as likely or important. In the face of these trends, the number of new rental insurance firms has risen.
There are plenty of serviceable providers on the internet and down the street. But there is a clear and evident difference between a solid service and a great one. That’s why we have developed a rigorous, comprehensive rubric for rating insurance companies.
The idea is simple: We determine the essential qualities that every renters insurance company must have in order to be considered the best, and we rate them based on our long experience dealing with insurers of all kinds. With a clear guide into what makes a company stand out, it all turns to testing and research. We evaluate each company and its offerings according to four essential criteria.
1. Financial Strength
An insurance firm is as strong as its finances. If a company cannot cover the cost of renters insurance claims made by its customers, then it doesn’t matter how good its policies seem.
The best insurance companies will not only offer you great coverage, but will also clearly state what the policy covers and what it does not. The company will offer you a variety of options for wider coverage – earthquakes, floods, and so on.
3. Pricing & Discounts
Rent prices vary wildly across the country, which among other things has an impact on renter insurance rates. We feel that it is of utmost importance to feature companies that offer competitive and fair rates based on your area. The same goes for discounts. We always make sure to check for possible discounts with insurance companies and determine how valuable they are for you.
4. Customer Satisfaction
Last but certainly not least, we always research the complaints and other feedback rent insurance providers receive from customers. We scour public records for complaints and weigh the negatives with the positives to determine which companies merit your consideration.
Founded in 1922, State Farm is one of the biggest and best-rated renters insurance companies in the country. It operates across the United States and provides coverage to millions of people. State Farm is best known for its top-rated auto and home insurance, but the company also offers a world-class renters policy that we’ll be checking out today.
Buying renters insurance at State Farm is a safe choice for anyone, as this company remains the best car and renters insurance firm in America when it comes to financial stability. With over $241 billion in total assets, State Farm consistently receives the highest A++ rating by A.M Best Rating Services. You can safely trust State Farm to be around to fulfill all of its financial obligations.
State Farm renter insurance includes all of the industry-standard features, but it also offers everyone a chance to tailor their policy to individual needs through a number of options.
For example, you can opt for additional liability coverage that increases limits in the event of a lawsuit or a claim that could lead to a personal loss. The maximum liability coverage is $1,000,000, which is well above what you get from competitors. This option substantially raises rental insurance quotes.
There is also an option to purchase extra protection against earthquake damage, identity theft, or incidental business liability. State Farm renters policies can offer additional coverage on business property as well, providing you with an option to boost your insurance on business-related activities.
The starting premiums at State Farm are not among the lowest in the US. In fact, with a minimum annual premium of $158, or $13.66 per month, it comes in above the country’s $12 monthly average. If that’s an issue, you can reduce your rental insurance cost by choosing higher deductibles.
Another way to save money and reduce your State Farm renters insurance quote is to bundle it with another State Farm policy – auto insurance being the most common choice here. The discounts are not as robust as you get from some other companies, but you can lower premiums further by installing smoke detectors, burglar alarms, and home security systems..
State Farm has an A- rating from BBB, or Better Business Bureau. That means the company has a history of operating in a highly trustworthy manner. The National Association of Insurance Commissioners gave State Farm a 0.35 complaint ratio, which is much lower than the U.S. average of 1.0 for apartment rental insurance. This means that the company on average resolves many more customer complaints than its competitors, making it a safer choice for you.
The largest insurance firm in the US retains its spot among the best renter insurance providers out there. While the company does not offer a lot of discounts and it has above-average premiums, the fact is that the quality and reliability of their service makes State Farm at least a must-consider option.
Reasons to Buy:
Low complaint ratio
One of the most intriguing new faces on the scene, Lemonade aims to become the best renters insurance company by revolutionizing the way the industry operates. That’s why Lemonade takes a completely different approach from its long-established competitors. It not only offers incredibly low prices, but it also uses modern technology effectively and upends conventional thinking with its peer-to-peer model, bots, and status as a B Labs-certified B corporation, which means it is legally required to consider the impact of its decisions on its staff members, customers, suppliers, and community as well as the environment.
That’s great. But is the service solid? Is it worth your money?
Because Lemonade is still a young firm that offers purely online renters insurance, it has not yet been evaluated by credit rating companies like A.M. Best and Moody’s. It did, however, get an A (exceptional) grade from Demotech, which evaluates the stability of regional and specialty insurers. Being insured by some of the biggest names like Lloyd’s of London and XL Catlin is what elevates the financial safety of Lemonade, making it a safe choice for investing your money.
The standard coverage at Lemonade is almost identical to what’s offered by the other top insurance companies on our list. The company offers a maximum of $500,000 in personal liability coverage while allowing you to increase the coverage of expensive items like jewelry up to $50,000.
Where Lemonade renters insurance is best, and goes well beyond the competition, is its Zero Everything feature. This policy modification lets you select a $0 deductible in exchange for a slightly more expensive policy, which can prove to be incredibly valuable.
While other companies usually have larger deductibles, Lemonade allows you to recover the entire value of an item in the event of a claim, making this feature great for saving money on damaged laptops, headphones, smart watches, and so on. Lemonade also guarantees that it will not increase your renters insurance rates as long as you make fewer than three claims per year.
Lemonade represents a revolutionary step forward for the insurance industry, but it still follows certain rules when it comes to pricing. The location and condition of the property you rent will be a factor here too, for example. But the incredibly low minimum price of $5 for basic renters insurance overshadows everything else. Zero Everything increases the monthly premium by $10, which is still a great bargain.
Probably because of its cheap renters insurance premiums, Lemonade does not offer the kinds of discounts you get from its competitors. Currently, the only way to qualify for a discount is through property-specific security measures – a home-security system, smoke detectors, stuff like that.
One disadvantage of relying solely on chatbots for customer service and support is that there is no option for policyholders to talk to human beings. Still, Lemonade boasts that it takes just 90 seconds to receive renters insurance quotes and a mere three minutes to file a claim.
The company provides a smooth and fast user experience, but its business model is still weak in the area of customer support.
The chatbot approach to customer service doesn’t seem to hurt Lemonade’s overall business. The company says it has a 97% annual renewal rate, which is a great indicator of the real level of customer satisfaction.
Lemonade is a breath of fresh air and a sign of things to come. It’s a great choice for anyone looking for a modern, cheap rental insurance solution.
Reasons to Buy:
Zero Everything feature
Founded in 1931 by World War I general and Sears owner George Wood, Allstate is one of the largest and best-known companies in the US. This Illinois firm is mostly recognized for its auto insurance, but it also has a top-quality home renters insurance offering that we’ll be checking out today.
There aren’t many companies that have a financial reputation like Allstate’s. With $100 billion in total assets and almost a century of operating in the insurance business, it is no surprise that the company has one of the most favorable credit outlooks in the US.
Allstate rental insurance has a minimum coverage of $15,000 for personal property, while family liability protection can be set from $100,000 to $500,000. The standard apartment insurance policy conforms to industry norms – plus options like protection against identity theft, flood insurance, and umbrella coverage. The company lets you set the limit on guest medical protection, from $1,000 to $5,000.
Allstate has a higher-than median standard premium of about $20 a month with a $500 deductible. The maximum deductible of $1,000 can bring that price down, but the things that really set Allstate apart from the competition are its many discount options.
In addition to the usual discounts for burglary and fire protection features, you can qualify for a multiple-policy discount for bundling your auto insurance coverage with Allstate renters insurance. The company also offers discounts for remaining claims-free. And it lets you bring the renter insurance cost down by setting up automatic payment of your premiums. There is even a great retiree discount: You can save up to 25% if you’re over the age of 55 and retired.
One of the biggest advantages of Allstate renters insurance is the company’s customer support system. Allstate has an incredible array of tools for policyholders, including 24/7 live support and a treasure trove of helpful information on apartment renters insurance. A company that has served millions of customers for decades, Allstate has an A- rating with the BBB and surprisingly few complaints. It rates 0.81 on the NAIC Complaint Ratio, – well below the national average.
Allstate may seem a bit pricey, but discount options can reduce premiums to some of the lowest on the market. The service Allstate provides is almost unmatched anywhere in the US, which means it absolutely deserves its ranking in the top three rental insurance companies in the country.
Reasons to Buy:
Wide range Of discounts
Top-notch customer support
With more than 80 years of experience in the insurance business and millions of customers across the nation, Geico doesn’t need much introduction. This is the second-largest insurance company in the country and it’s backed by Warren Buffet’s flagship firm, Berkshire Hathaway, so it can hardly be a bad place to invest your renters insurance funds. But how does Geico renters insurance compare with the best that the industry has to offer? Let’s find out.
Being a wholly owned subsidiary of Berkshire Hathaway would bring any company’s rating up, and Geico’s history of financial stability only beefs up the score. The company gets top financial strength ratings across the board, regardless of who is doing the rating. Geico also holds more than $32 billion in assets, which means that it has an excellent ability to meet financial obligations to policyholders. The company’s deep pockets alone earn it a place it among the best renter’s insurance providers.
Geico renter insurance has by-the-numbers coverage that is on par with the rest of the industry. The renters insurance will cover you against common perils, will give you liability protection up to $100,000, and will insure your personal property up to $95,000. Add-ons include useful things like the protection of business property, stocks, bonds, and other expensive items.
Monthly premiums for Geico renter’s insurance can go as low as $12, but there are a lot of factors that can influence the price. Renters in certain high-risk areas pay substantially more. The overall price is still very competitive regardless of location, however. You can reduce it by choosing a higher deductible. The maximum is $500 and the minimum is $100.
Geico doesn’t offer the cheapest rental insurance, but does it compensate with great discounts? Not really. The company follows industry standard practices by giving discounts for installing overhead sprinklers and smoke alarms, as well as having a home security system. Additionally, you can bundle the renters insurance with auto insurance coverage and cut another few dollars off your premiums. But that’s about it.
Geico is a mixed bag when it comes to customer service. The company offers 24/7 support and says it prioritizes customer experience to ensure that the process of making a payment is as simple as possible. Geico also has a mobile app so you can check your renters insurance quote and review your policy information on the go.
Despite all this, the company does not have perfect customer ratings. It holds a B+ rating from BBB, while J.D. Power rates it 3 out of 5 in both customer satisfaction and consumer affairs. Geico is currently not rated by NAIC, so there is no clear information on how it compares with the competition on the number of claims.
While the company provides solid service and has immense financial stability, it is clear that renters insurance at Geico is not the company’s primary focus. The renters policy just needs to have more variety introduced to it, from discounts to coverage types and deductibles, and it will easily compete for a spot among the top providers.
Reasons To Buy:
Incredible financial stability
Like quite a few names on our list, Erie Insurance was originally created to provide car insurance. After a century in business, Erie is following modern trends and now offers low cost renters insurance coverage as well, which is exactly the feature that interests us.
Erie Insurance is rated highly when it comes to financial strength, earning an A+ (Superior) rating from A.M. Best. Experts say the company’s reserves are sufficient to pay customer claims and the company is financially stable.
The renters insurance coverage at Erie is not comparable with what you can get from some of the other companies on our list. Eerie offers standard coverage of personal property, liability, and loss of use, but not add-ons that would expand your policy to cover a wider range of issues. Basic coverage is sufficient for many people, but it would be nice to see more variety.
Erie Insurance has more than 5 million active policies, but it operates in only 12 states. This hampers the ability to truly compare its policies with average renters insurance price rates across the country, but Eerie is more than competitive within the states it covers.
The mean price of Erie renters insurance – $140 per year – is substantially less than you’ll pay with most other companies. The exact price will vary depending on your location.
To take the monthly renters insurance cost even lower, you can bundle it with an auto insurance policy, but there are no additional discount options.
What it may lack in coverage and discount options, Erie more than makes up for in customer experience. J.D. Power ranks Erie 3rd out of 21 renters insurance firms for overall customer satisfaction with property claims, giving it a 5/5 rating.
Erie tenant insurance policy does not come with 24/7 live support, but it does have a great NAIC complaint ratio of just 0.59, placing it ahead of other top names on the list. Some will surely attribute this to the fact that the company is not nationwide and it has an easier job covering a smaller territory, but it’s clear that Erie has done an exceptional job of honoring and respecting customers’ time and money.
Erie Insurance certainly deserves a place on our list. It offers great service and has a solid reputation among those seeking quality insurance. The lack of discounts and add-ons is offset by low-cost renters insurance quotes and even lower number of customer complaints, making it a perfect candidate to close out the best five renters insurance firms in the US.
Reasons To Buy:
Great customer support
Operating for more than 112 years, Amica Mutual Insurance is one of the oldest and best-known American insurance companies. The company operates in 48 states, excluding only Alaska and Hawaii, and has a longstanding reputation of rating among the industry’s top companies when it comes to financial strength and customer satisfaction. Are the policies of this veteran firm up to par with the best renters insurance companies in 2020?
Financially, Amica is consistently amongst the highest-rated insurance companies, receiving an A+ rating by A.M Best Rating Services. Amica is well above the average renters insurance firms when it comes to financial stability, making it one of the safest choices on the market.
Amica renters insurance coverage is basic. Policies cover personal property, liability, and loss of use. Optional add-ons include full repair or replacement of personal property (up to the coverage limit), protection of valuable personal items, and protection against identity fraud.
What it lacks in coverage options, Amica more than makes up in pricing and discounts. The company’s policies start as low as $4 per month. It really does offer some of the cheapest renters insurance rates in the US. Things may differ from state to state, but it is not unusual for Amica’s annual policies to be the least expensive by $100 or more.
The company offers more discounts, too. For example, you can get a lower rate if you’re willing to receive bills via email instead of regular mail. Another discounts kicks in if you set up an automatic payment system. Amica is a great choice for long-term renters. You can lower your renters insurance estimate even further by being a policyholder for at least two years or by being claim-free for at least three.
Amica renters insurance has an exceptional record when it comes to customer complaints, with a complaint rating of 0.36 from the National Association of Insurance Commissioners. Considering that the median is 1.00, this puts Amica far above almost all of the competition.
The company is consistently among the top homeowners insurance providers on J.D. Power’s list, but it does not appear on the renter insurance list. Customers have given Amica high praise and excellent marks for trouble-free claims and timely payments. Amica’s customer support team is largely credited for this high praise, especially the live chat option that is not available from most insurers.
Even though Amica does not focus primarily renters insurance, the quality of service this company provides is more than enough to earn it a place among the top 10 providers in the US. Add to this cheap apartment renters insurance policies and top-notch customer service, and we have no doubts that Amica will continue to rise even higher.
Reasons To Buy:
Low complaint ratio
Extremely low rates
Texas-based USAA is a Fortune 500 firm that provides insurance to active and former members of the US armed forces and their families. In 2016, the company had 11.9 million active customers, making it one of the largest companies in the country – and a perfect pick to feature in our in-depth renters insurance reviews.
USAA is consistently named among the most financially stable companies in the US. It has the highest marks from credit ranking firms like Moody’s and A.M. Best. Decades of quality service only underline the company’s strengths.
USAA renters insurance coverage may include better-than-average options, expanding standard policies with earthquake and flood coverage, which makes it stand out among the competition. It also does not have limits on many of the high-value items included in property insurance coverage. Personal items are covered wherever they may be located.
USAA lacks loss-of-use coverage, which makes the company stand out from the competition in an unfortunate way.
The prices for renters insurance at USAA are probably the weakest aspect in this review. The monthly rates are not higher than average, but they can’t be brought down much with discounts. Customers in certain locations can get rates as low as $12 per month, but most people aren’t eligible for this rate.
Other discounts include bundling rental insurance coverage with another company policy, as well as being claims-free for 3 years or having a monitored alarm system at your property.
USAA has a B- rating at BBB for customer satisfaction, with most customer complaints having to do with the slow responses to claims. This is offset by the company’s 0.22 score on the NAIC complaint ratio, indicating that even if responses are slow, USAA has record-high rates of resolving claims.
Add to this 24/7 support for urgent matters within the U.S. and a mobile app for easy access to your policy information, and it’s clear that the company is among the best in the country.
USAA renters insurance remains the top choice for any former or active member of the U.S. military, offering stability and options that are rarely or almost never found anywhere else. It is a financially strong company with an incredibly low level of unresolved complaints and affordable renters insurance coverage, which more than makes up for any flaws it may have.
Reasons To Buy:
Best choice for active-duty and retired military
Worldwide customer support
Exceptional financial stability
One of the most common misconceptions is that renters insurance covers your property only inside the rented space. The truth is that these policies are much more useful and offer a wider range of financial protection.
This type of coverage ensures that if your property is damaged in a covered event, your insurance company will cover the costs of the damage up to your policy’s limits. Covered events are damaging events named or not excluded from your policy, and include things like fire, windstorm, hail, lightning, vandalism, theft, damage from vehicles, riots, and more.
Renters insurance coverage also applies to your property when it’s outside your residence, meaning that the insurance company will cover the costs of stolen or damaged property even when you’re in public or traveling. There is also an option to add coverage for expensive personal items like jewelry, fine art, watches, and so on that will ensure that the most precious items you own are repaired or replaced at full value.
Personal liability & medical payments
One of the lesser-known features of renters insurance policies is that the coverage also covers damages or amounts that you’re legally required to pay. If someone sues you after being injured in your apartment, renters liability insurance may cover the costs and save you money, even paying for medical and legal fees if your guest ends up in the hospital.
This coverage extends beyond personal injuries. Your policy will likely cover damages that you cause to a neighbor’s apartment due to a fire or flood that originated in yours. And if that neighbor decides to sue, it may cover your legal fees as well. The standard level of liability coverage goes up to $100,000. Costs above your determined level will not be reimbursed by the renters insurance company.
Additional living costs
In the most severe cases of damage to your rented residence, for example losing your home in a fire or a flood, the insurance policy will cover the costs of a hotel for you to live in while your residence is repaired. Some companies even include restaurants and laundry bills in the coverage.
Policies protect you and your property in a variety of different ways, but most policies have similar exclusions.
Floods and earthquakes
Depending on where you are located, there are certain things that even the best rental insurance firms will not include in a standard policy. For example, if you are renting a place in an area that’s highly susceptible to floods and earthquakes, there is a big chance that you will have to buy separate coverage for these events. Of course this means you’ll pay more for your insurance.
Damage done by rodents, bugs, and other pests will not generally be covered by renters insurance. You don’t get reimbursed for exterminator costs either.
If your roommate does not have an insurance policy, your renters insurance will not cover damages or theft done to their property in the apartment you are renting. The only way roommates can benefit from rental insurance services that you paid for is if they happen to be related to you by blood, marriage, or adoption.
The average insurance claim for a dog bite or injury is about $32,000. It is, therefore, no surprise that a number of insurance companies will not include certain dog breeds in their insurance policies. High-risk breeds include: pit bulls, German shepherds, doberman pinschers, rottweilers, Siberian huskies, mastiffs, wolf hybrids, and others.
Damages from terrorism or nuclear war
This may seem like a strange exclusion, but there was in fact a time when renters insurance policies included protection against terrorism at no cost. This all changed after 9/11. Today you not only need to pay extra for coverage, but the policy only covers your apartment, and not the rest of the building.
Rental insurance rates are not set in stone. In fact, they vary wildly depending on the company and more importantly on certain key factors that those companies will look into before determining your rate. It is important to understand and calculate these factors when you evaluate a rate quote.
This is one of the factors that people usually can’t do much about. If you are living in a tornado-prone area or on a fault line, there is a chance that you will be paying more, even if you get the best renters insurance rates possible. The same goes for areas of high crime and risk of robbery.
The size of your building matters because insurance companies will reduce premiums for larger buildings with many units. If you are renting an apartment in a smaller building with fewer units, you can expect just the opposite.
Fire safeguards and security
Rental insurance for apartments usually gets discounted with the installation of smoke detectors and overhead sprinklers. Buildings that have good safety features or front desk security are also viewed more favorably by insurance companies.
The higher the deductible you are willing to pay, the lower your monthly premium gets, so always be sure to calculate how much you are able to pay before insurance coverage kicks in.
Insurance companies will also look into your credit, and if they are confident that you will be able to pay your premium each month, your rates are likely to be lowered as well.
Many people bundle car and rental insurance into a single policy, and not just for convenience. Insurance providers like it when people bundle auto and renters insurance because it brings more business to them, and because of this you are most likely to get around a reduction of 15% to 25% in your monthly premium.
1. How much rental insurance should I get?
Rental insurance policies come in different tiers, but the overall price is quite low compared to other kinds of insurance. Independent Insurance Agents and Brokers of America estimates that the average cost of renters insurance policies is just $12 per month for up to $30,000 in personal property coverage. The average American citizen has about $20,000 in personal belongings.
To calculate your insurance needs it is best to list all of your belongings and determine just how much it would cost to replace each item. This will help you understand whether you need a basic renters insurance coverage plan or are you better off going for something more expensive.
Perfect for students and other people who have not yet amassed much valuable property, inexpensive policies are great for those who won’t be crushed by having to pay replacement costs out of their own pockets. These policies come with high deductibles ($1,000 or more) while providing coverage limits lower than $20,000 – which means that perhaps you won’t be able to afford to replace all of your lost possessions at once.
These policies are best for younger renters with solid incomes. Deductibles range from $500 to $1,000 and coverage limits go up to $50,000. While this is a better option compared to low-cost policies, it still features large deductibles and limits that can easily be exceeded by the total value of property loss.
This is where renter’s insurance becomes much more valuable as deductibles range from $300 to $500 and coverage limits surpass $50,000. They are best-suited for couples who plan to rent for the long term but are unwilling to pay for the most expensive coverage on the market.
With deductibles of $0 to $300 and coverage limits well above $50,000, these policies offer the best renters insurance for apartments. They are perfect for minimizing costs on both total loss and itemized-loss situations.
No public law in any state requires you to get rental insurance. But you can still be forced to buy it and maintain it if the landlord decides that you must. It is even possible for a landlord to change the terms of a previously signed month-to-month rental agreement so you can be required to buy renters insurance after receiving a notice.
Landlords usually do not stipulate how much coverage you are required to have, but they will state the required levels of liability coverage. A typical liability limit is $100,000, but it is not uncommon for landlords to require more than that.
Choosing the ideal company for your renters insurance is neither a simple nor an objective task. Each person has different insurance needs and can benefit from offers that certain insurance providers cannot help them with. We suggest that you definitely read through J.D. Power, Moody’s, and A.M Best ratings, because they usually reflect the overall level of service.
In general, you should pick a policy that covers all your personal belongings and their complete value, plus ample liability coverage. Even the best renters insurance policies will have some flaws and caveats that you should be aware of, especially if you live in areas with high crime or those predisposed to natural disasters like earthquakes and floods.