Just because you’re renting doesn’t mean you should skip out on insurance to protect yourself and your belongings. Home insurance isn’t just for homeowners; there are widely available insurance options out there that protect your property in the space that you’re renting. The best rental insurance makes sure that your assets are covered in case of theft or damage, as these won’t be covered under your landlord’s insurance policy.
Rental insurance can often be remarkably inexpensive for how much value it covers. For around $15 a month (the national average cost of renters insurance), you will likely be able to insure most, or all, of your personal property. Lots of insurance companies offer rental insurance, but not all insurance policies provide the same coverage and benefits. Let’s take a look at the best renters insurance companies of 2020 and who they are best suited to insure.
The top renters insurance companies of 2020
|Company||J.D. Power Rating||AM Best Rating||BBB Rating|
|Erie||3 out of 5||A+||A+|
|State Farm||5 out of 5||A++||A+|
|Allstate||2 out of 5||A||A+|
|Liberty Mutual||2 out of 5||A||A|
|American Family||5 out of 5||A||A+|
|Travelers||2 out of 5||A++||A+|
|USAA||5 out of 5||A++||NA|
Best renters insurance overall: Erie Insurance
Erie Insurance has a stellar reputation that is built upon several factors: affordable rates, excellent customer satisfaction and an easy-to-navigate claims service. Erie is known for offering significant discounts on bundles, and the policies offer guaranteed replacement cost for personal property, additional living expenses if you need to find a temporary place to live and the option for extra coverage for things like identity recovery and your more expensive personal items.
Unfortunately, Erie only offers renters insurance in roughly a fifth of the U.S. but can be an excellent choice if you live in one of the states they service. States covered are the District of Columbia, Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and Wisconsin.
Best customer service: Metlife
Renters like Metlife because it offers excellent customer service that can help you tailor your renters policy to your needs, including the option to insure expensive luxury items that wouldn’t normally be covered under your policy. Somewhat rare in the industry, each of the renters insurance policies automatically comes with identity protection.
Metlife’s renters insurance also protects against a wide array of natural disasters, including tornadoes, hail and fire, as well as theft and vandalism. As a bonus, Metlife’s monthly premiums are often less than $15, which is less than a dollar a day.
Best nationwide availability: State Farm
State Farm offers renters insurance coverage in every state throughout the U.S., which makes it a great option for renters in rural areas or areas that are underserved by other companies. But it’s not just State Farm’s wide availability that makes it a good option; this company also has exceptional ratings from companies like J.D. Power and AM Best, which make it a safe bet for your rental policy.
The basic renters insurance policy covers personal property, liability and loss of use. State Farm also offers discounts for having multiple policies and home alert protection. If the basic policy isn’t enough, the provider has numerous coverage add-on options for things such as pet medical insurance and identity restoration.
Biggest discounts: Allstate and Liberty Mutual
Allstate offers a ton of discounts for things like multiple policies, safe homes and seniors, and you may even be rewarded for having a claim-free policy with a discount of up to 20 percent on your rental insurance premium. Allstate also offers a wide variety of coverage along with those discounts, including high-end items and coverage for sewage and water backup, which is not the norm. Making it even more unique, Allstate allows you to opt-out of certain coverages to save money on your premium, and the provider has some of the best digital technologies for consumers in the form of apps.
Liberty Mutual is also known for offering steep discounts on rental insurance, including a military discount, a discount for being claim-free and a discount for renewing your policy before it expires. The standard policy covers personal property, personal liability, medical payment to others and additional living expenses. For add-ons, LIberty Mutual offers coverage for jewelry, earthquakes and personal property replacement costs.
Least expensive: American Family Insurance
American Family Insurance may not be the first company you think of for renters insurance, but perhaps it should be if you’re looking to save. It’s known for saving customers money with well below average premiums, and you won’t be compromising your coverage. You can also get discounts for fire protected and burglary protected rentals.
American Family renters policies include coverage for things like electronics and firearms, and the provider has excellent policies to protect you against mold damage and identity theft, on top of the three traditional coverages: personal property, personal liability and loss of use. The policies are customizable with numerous add-on coverage options, including but not limited to travel insurance and home-based business insurance.
Best for living expenses coverage: Travelers
Travelers Insurance Company offers some of the best living expenses coverage on the market, and it covers things like hotels, meals and even laundry. You never know when you may need to find a temporary place to live, and it’s best to be prepared in case that happens.
While the renter insurance is geared towards those that move around a lot, Travelers still carries the necessities in the policies to protect you and your property at home. Personal property coverage and personal liability are built into the policies, and Travelers offers a variety of discounts, including a loss-free discount which can lower your rate if you don’t need to file any claims.
Best for military members or families: USAA
USAA has a stellar reputation among consumers and the insurance industry, and it offers some of the better renters insurance policies out there, but you can only get coverage from USAA if you’re a current or former member of the military or their families.
USAA offers a more robust basic renters insurance policy than many of its competitors. The basic policy includes coverage for personal property, personal liability, medical payments and additional living expenses. If you can find a way to become a member of USAA, you and your renters insurance policy will be better off for it.
Frequently asked questions
What is a reasonable price for renters insurance?
Renters insurance is remarkably affordable when compared to other types of insurance. The national average for renters insurance monthly payments is around $15, according to the Insurance Information Institute. Prices will vary based on where you live and any add-ons you need.
Is it smart to get renters insurance?
Considering the price of coverage compared to the potential cost of loss if your belongings were to be damaged or stolen or if you were to be injured, renters insurance is a wise investment.
To choose the best renters insurance companies, we compared company ratings from J.D. Power, AM Best and the Better Business Bureau (BBB). After the scores were obtained, we looked at the individual policy and discount offerings of each company and renters insurance reviews to weigh the final assessment.
J.D. Power, AM Best and the Better Business Bureau are each trusted third-party organizations for evaluating companies. J.D. Power accumulates data from customer reports to rank companies based on their ability to achieve customer satisfaction in different arenas. AM Best looks into the financial strength and credit ratings of businesses. The Better Business Bureau organizes complaints, provides a platform for these issues, and ranks companies by their trustworthiness.