10 Best Renters Insurance Companies in 2020

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Renters insurance is affordable. You deserve to be compensated if a fire, leak, or other emergency causes you to lose your belongings. That’s why renters insurance is so important and not worth skipping.

While homeowner’s insurance covers the building itself, renters insurance will cover you, no matter where you’re living. It’s the best way to protect yourself and your personal property while you’re renting your house, apartment, or condo.

The 10 Best Companies For Renters Insurance

Here are the 10 best companies offering affordable, comprehensive renters insurance plans today. All of these companies have ratings of A or higher with AM Best, and will provide top-quality, flexible coverage to keep you safe!

1. Lemonade

If you’re like me, the idea of buying insurance makes you think of complicated paperwork and a long, painstaking application process. But that’s not the case anymore!

Lemonade is an insurance company for the modern world. Applying for insurance through Lemonade is quick and easy. Everything is online, and you can even file claims through their website or mobile app just by uploading photos.

On top of the convenience, Lemonade’s renters insurance is super affordable. Basic plans start as low as $5 per month. Their plans are flexible, and can be customized to each renter’s needs.

All in all, this is an awesome insurance company for young renters – it’s fast, easy, and convenient.

Pros

  • Speedy claims: Lemonade uses AI to file claims faster than any other insurance company out there. According to their website, they can process a claim in as little as 3 seconds!
  • Giveback program: When you buy an insurance plan with Lemonade, you can choose a non-profit that they will donate to on your behalf once a year.
  • Easy application: You can buy a renters insurance plan with Lemonade in a single day, stress-free.

Cons

  • Not available everywhere: Lemonade is a new company, and unfortunately still isn’t available in all states. Check their website to see if you have access where you live.
  • No bundling: You won’t have the option to bundle your renters or homeowners insurance with auto insurance through Lemonade.

2. Erie Insurance

If you live in a state where Erie Insurance is available, they’re an awesome choice for your renters insurance plan.

On top of being one of the most affordable renters insurance providers out there, Erie is highly rated for their overall customer experience. Their claims service is straightforward and easy to navigate. Friendly customer service agents are always available to help you out at any stage.

Most of Erie’s renters insurance policies will provide full coverage on lost property, no matter the situation. An average monthly premium for those policies is around $11.50 – that’s hardly more than a couple cups of coffee per month!

If you own a vehicle, you can also bundle your renters and auto insurance with Erie for a pretty steep discount.

Pros

  • Customer service: A lot of insurance companies can feel pretty cold, but Erie’s service is always friendly and reliable.
  • Bundling: Bundle your home and auto insurance to save money, and simplify your monthly payments.
  • Affordable: This is one of the most affordable insurance companies out there – awesome for students and young families.

Cons

  • Not as flexible: There aren’t many add-ons available for Erie’s policies. In most cases, what you buy is what you get.
  • Limited availability: Erie Insurance is only available to residents of: District of Columbia, Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and Wisconsin.

If you live in one of those states, you should definitely check them out.

3. Allstate

Allstate is one of the most popular companies for auto insurance in the nation – but they also offer high quality renters insurance plans.

If you already insure your car with Allstate, you can add on your renters insurance for just a few more dollars a month. Even without bundling, you can get all kinds of discounts on your Allstate plan, including a safe homes discount, and a discount of up to 20% for having a claim-free policy.

Even though they’ve been around for years, Allstate is a modern company that has kept up with the times. Today, they offer convenient digital customer service. You can use their digital locker app to manage your policy, and online estimation tools to figure out what kind of coverage you need.

One unique option offered by Allstate is their green improvement plan. With this add-on, you can get extra coverage for replacing your damaged appliances with more eco-friendly models – helping the environment and your budget!

Pros

  • Available everywhere: As one of the biggest insurance companies in the nation, you can access Allstate coverage no matter where you live.
  • Easy tools: Convenient apps and web tools make it easy to buy and manage your policy online.
  • Discount options: Between bundling with your auto insurance and other accessible discounts, you have tons of options to lower your monthly premium with Allstate.

Cons

  • Not great customer service: Because Allstate is such a big company, some customers have reported challenges filing their claims. Of course, experiences with every local agent will be different.
  • Higher price without discounts: If you can’t bundle your renters insurance and don’t qualify for discounts, individual renters insurance plans can be a little higher – over $20 per month.

4. Nationwide

Similar to Allstate, Nationwide has been providing affordable auto and home insurance for decades, and is available all over the country.

This is one of the best companies for renters insurance with tons of optional add-ons. That means you can customize your policy to fit your budget and priorities – so you’re only paying for what you need.

One of those add-ons is an extension that covers personal property theft. That’s not just for the items inside your home, but for items you were storing inside a car, boat, or trailer that was stolen. They also offer “brand new belongings” coverage that will make sure you get enough coverage to buy brand-new items, instead just the current value of what you lost.

The best built-in feature of Nationwide’s renters insurance policies is coverage for additional living expenses (ALE) that extends for up to 24 months. So, if you lose your home in an emergency, your living costs are covered for up to 2 years while you find a new place.

Pros

  • Easy online tools: You can apply for insurance and manage your policy easily on their website.
  • Customizable coverage: All of Nationwide’s optional add-ons make their policies customizable for every renter’s needs.
  • Affordable: With an average monthly premium of around $16, Nationwide coverage is accessible for anyone.

Cons

  • Average customer service: Nationwide is a huge company, so not all agencies are going to have excellent customer service. JD Power ranks their general customer satisfaction as average.

5. Liberty Mutual

Liberty Mutual is a popular choice for auto insurance, but they also offer great renters insurance policies that you can bundle to save money.

With a standard monthly premium of about $20, Liberty Mutual isn’t the cheapest option on its own. But, if you bundle it with their auto insurance, you can save on both and simplify your monthly costs. They also offer extensive discounts and plenty of add-ons, so you can customize your policy without overpaying for features you don’t need.

One thing that sets Liberty apart from some of the other big insurance companies out there is that they offer both online and over-the-phone customer service. Instead of speaking to an agent personally, you can quickly file your claim through their website. That makes it a lot easier for someone with a busy schedule.

Pros

  • Option to bundle: Bundling your home (or renters) insurance with your auto insurance is always recommended. Liberty Mutual makes it easy to save on both.
  • Accessible: The advantage of working with a big insurance company is that they’re available all over the country – even if you move, you can stick with your policy.

Cons

  • Varying rates: Liberty Mutual’s rates tend to vary more than some other companies, depending on your individual situation as a renter.
  • Higher cost: If you can’t bundle with your auto insurance, you might pay a little more per month for your policy than with another company.

6. Amica Mutual

One of the lesser-known insurance companies, Amica Mutual is a great choice for their affordable rates and friendly customer service. They are top ranked by JD Power & Associates and AM Best for customer satisfaction.

Amica is a mutual insurance company, which means that when you buy a policy with them, you’re also buying a share in the company. That can mean dividends to help you pay your premium!

Those premiums are super low anyway – starting at around $16 per month. They offer optional add-ons for personal property theft, replacing electronics, and coverage for identity fraud. You can also get a discount if you bundle with your auto insurance, or if you’re a loyal customer for more than 2 years.

The coolest feature of Amica’s renters insurance is that chance to save up for your homeowners insurance policy if you’re planning on buying a house in the future. You can earn credits of up to $100 a year, which will eventually be applied toward home insurance.

Pros

  • Investment opportunity: Amica Mutual offers a chance to diversify your investment portfolio while paying for your renters insurance policy.
  • Bundling: Bundle your renters insurance with your car insurance to save money – plus, work towards turning that renters policy into a homeowners policy in the future.
  • Excellent customer service: Amica offers personalized, friendly customer service for renters all over the country. 

Cons

  • Can’t file online: Even though Amica’s customer service is highly rated, you don’t get the convenience of filing your claim through a website or app.

7. Jetty

Similar to Lemonade, Jetty is a new, modernized insurance company that’s perfect for Millennials and younger renters.

They only got their start in 2015, but they’re backed by 2 well-established insurance companies: State National Insurance Company and National Specialty Insurance Company, which both have A ratings with AM Best.

Jetty is all about ease-of-access, which is why it’s great for young renters. You can apply online to get accepted quickly, and you can use their mobile app to manage your policy. Their policies are affordable enough to fit into a college budget – plus, they’re available in almost every state.

To top it off, Jetty offers an optional extension for renters who want to host AirBnB guests in their home. The Host Guest Protection add-on will extend your coverage to your guests while they’re staying with you.

Pros

  • Accessible: Anyone get easily apply and get a policy with Jetty, no matter what your budget looks like.
  • Convenient online features: Customize your policy and set up payments easily online, without having to speak to an agent.
  • AirBnB coverage: The option to extend coverage to your AirBnB guests is awesome for someone who wants to supplement their income.

Cons

  • Can’t file online: Even though you can do just about everything else online, you still have to file your claims over the phone with a Jetty representative.
  • Not many discounts: Jetty’s rates are low, but there aren’t many discounts available to make them even lower. You also can’t bundle your auto and renters insurance with this company.

8. USAA

If you or an immediate family member is an active duty, retired, honorably discharged or enlisted member of the US military, you qualify for insurance through USAA.

USAA is widely regarded as one of the most affordable and customer-friendly insurance companies in the nation. Because their access is limited to members of the military, they can focus on keeping their rates low and providing speedy service.

A standard renters insurance policy with USAA comes with built-in features that most other companies would charge for as optional extensions. For example, you can get flood, earthquake and fire coverage standard, without any additional costs.

For active duty military members, you can keep your coverage for your car and other personal property even if it’s stored while you’re away from home.

Pros

  • Extended built-in coverage: With USAA, you get more coverage on built into your policy than with other companies. That means your comprehensive coverage will be more affordable.
  • Friendly customer service: USAA’s customer services is highly rated as one of the best insurance companies in the country.

Cons

  • Limited access: USAA insurance is only available to former or current members of the military, plus their children and immediate family members.
  • Less convenience: They have great customer service, but you can’t quickly apply or file a claim online with USAA.

9. State Farm

Another good option if you want to bundle your renters and auto insurance, State Farm is top rated by AM Best and trusted by renters all over the country.

Like a lot of large insurance companies, you can get discounts on your renters insurance with State Farm, and customize your policy to make sure you aren’t paying for anything more than what you need. A standard monthly premium is around $13 – much more affordable than some of the other big companies.

They’re also great for convenience. You can get a free quote online in minutes. Once you buy a policy, you can use the mobile Pocket Agent app to check what you’re covered for, get a quote, file a claim, or even locate a nearby ATM.

That said, if you’d rather meet with an agent in person, they also have local agents all over the country you can chat with any time.

Pros

  • Affordable: Compared to some of the other large insurance companies on this list, State Farm offers highly affordable renters insurance policies, plus tons of discount options.
  • Bundling: You can bundle your policy with your auto or life insurance to save money.
  • Handy app: The mobile Pocket Agent app is great for quickly filing a claim or getting a quote, without ever having to speak with an agent.

Cons

  • Varying rates: Depending on your situation, you may have to pay more for a State Farm policy than with other companies. Fortunately, you can find out what your rates will look like before you buy, if you get a free quote on their website or app.

10. Toggle

Last but not least, Toggle is a convenient insurance company just for renters. They’re a newer company, but their parent company, Farmer’s, is well-established and highly rated for both home and auto insurance.

Toggle’s philosophy is to “hit refresh” on renters insurance – they make it easier, faster, and more affordable than traditional insurance companies.

They offer three unique insurance plans: basic, standard, and premium. Rates start at just the price of a cup of coffee per month, and every plan is customizable with add-on features and coverage extensions.

Toggle is all about convenience. You can get a free quote on their website right now, and buy your plan right away. Best of all, your coverage follows you all over the world. Even if you lose your phone or laptop in another country, you’re covered to replace it.

Pros

  • Easy to access: Toggle makes sure that everyone has access to affordable renters insurance.
  • Option to cover your business: Their “side hustle” extension allows you to cover your small side business with your renters insurance policy.
  • Coverage while you travel: If your electronics are covered at home with Toggle, they’re also covered wherever you go in the world.

Cons

  • Limited availability: As of now, Toggle is only available in about half of US states. Check their website to see if you have access in your area.

What is renters insurance?

We all know about homeowners insurance, but a lot of people don’t realize that affordable coverage is also available for renters.

Renters insurance works a lot like homeowners insurance: it covers the cost of damages to personal property, as well as liability if a guest is injured in the home and a variety of other features. The key difference is that instead of being tied to one home, renters insurance is tied to the individual policy holder.

So, if you have a renters insurance plan, you can move between rental properties and still be covered in the case of an emergency. Like any other insurance plan, renters insurance can be bought with a low premium, or monthly cost. There are a variety of different plans available that come with varying features and add-ons.

What are the benefits?

The main benefit of buying a renters insurance plan is that your property is insured in case of damage to the house or apartment. If you keep a lot of valuables in your home – TVs, laptops and other technology, jewelry, art, etc. – you shouldn’t risk losing that value just because you don’t own your home.

Another key benefit is that renters insurance will protect you from liability if someone else is injured in your home. In other words, if someone gets hurt while visiting, repairing your appliances, or making a delivery, and chooses to sue, your renters insurance can cover the costs.

Perhaps most importantly, renters insurance will cover you if a fire, flood, or other emergency forces you to leave your home. Your plan will help you pay for a hotel while you’re waiting to get back into your home, or searching for a new place to live.

Types of coverage:

You can look at your renters insurance policy as a bundle of coverage types. Most insurance companies will have a few kinds of coverage built into their policies, and offer optional extensions and add-ons so you can customize your policy and choose what you want to pay for.

Here are the most common types of coverage you’ll see in renters insurance policies:

  • Personal Property Coverage: This is considered standard for renters insurance with most companies. Personal property coverage means that your property, including electronics, furniture, clothing, and jewelry, is insured in case of an emergency.
  • Liability Coverage: This type of coverage will protect you if you are found liable, or responsible, for someone else’s injury on your rental property.
  • Additional Living Expenses: ALE, or additional living expenses coverage, will pay for your housing if you suddenly lose your rental home in an emergency. With most insurance companies, ALE coverage can last for up to a year while you’re getting resettled.

There are plenty of other types of coverage you can find in each insurance company’s unique policies. To find out what kinds of coverage you can get, talk to a representative at your insurance company, or get a quote on their website.

Who should buy renters insurance?

So, should everyone who rents their home buy renters insurance?

While renters insurance is great, not everyone wants to pay a monthly insurance premium on top of their monthly rent. Before you start shopping for a renters insurance plan, consider your priorities.

First: is the value of the possessions in your home enough to make a monthly premium worth it? The average cost for a standard renters insurance plan is around $200 a year – that’s not much, but if you don’t think your possessions are worth insuring (if you’re just starting out on your own, or keep most of your valuables somewhere else), you might prefer to save on that cost.

Second: do you have somewhere to go if you’re forced out of your home? If you don’t have family in town or a place to stay in the case of an emergency, renters insurance is a dependable way to keep yourself safe if you lose your home in a storm or fire.

If you ask me, renters insurance is always worth it. It will give you peace of mind, no matter what the future brings. The cost is pretty minimal, and can be worked into a tight budget – why stress about the possibility of losing money?

How much coverage do renters need?

As you probably noticed, every company on this list offers diverse coverage options for varying costs. So, how much coverage do you actually need?

It all depends on your priorities, and the value of the property in your home. A basic renters insurance plan will cover the costs of lost property in case a pipe bursts or other damage makes your valuables unusable. However, most basic plans won’t cover your property in the case of a natural disaster, or if you have something stolen outside of the home.

To find out what kind of coverage is right for you, the best thing to do is to speak to an agent at a trustworthy insurance company. Any of the companies on this list will provide helpful quotes without any obligation to buy. They’ll help you figure out the value of your personal property and build a policy that fits your budget.

In addition, you can always talk to your landlord to find out what kind of coverage they recommend, or require, for you and your property to stay safe while you’re renting from them.

Choosing the best renters insurance company for you

Renters insurance is affordable, easy to apply for, and customizable. If you’re working with a dependable company you trust, you’ll never have to worry about losing money as a renter. That’s definitely worth it for the cost of cup of coffee or a meal out each month!

Don’t hesitate to shop around and pick the best insurance company for you. Every renter’s needs are different, and you want to make sure you’re not paying for extra coverage or features you don’t need.

To start, if you’re able to bundle your renters insurance with your auto or life insurance, I would recommend going with that company. It will help you save money on both policies, and you won’t have to worry about adding another monthly payment into your budget.

It’s also important to consider your time – if you’re too busy to meet with an agent when you need to file a claim or discuss a policy, I’d recommend choosing a company like Lemonade or Jetty, with convenient online tools that will save you time.

Whichever company you choose, your renters insurance policy will give you peace of mind and security. It’s something every renter should consider.

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