8 Best Renters Insurance of 2023

Renters insurance is a type of property and casualty insurance policy that protects the value of a renter’s personal belongings and provides liability protection if the renter is held responsible for damages or injuries to a third party.

The best renters insurance companies offer the protections mentioned above and plenty of add-ons to help you customize your policy, all for an affordable premium. Read on to see which carriers are our top picks for the best renters insurance of the year.

Our Top Picks for Best Renters Insurance

• Lemonade – Best for Customized Coverage
• Erie Insurance – Best for Comprehensive Coverage
• Nationwide – Best for Optional Add-Ons
• Amica Mutual – Best for Multiple Discounts
• Allstate – Best for Retirees
• Auto-Owners – Best for Worldwide Coverage
• State Farm – Best for Reliable Coverage
• Young Alfred – Best Online Insurance Agency

Best Renters Insurance Reviews

Lemonade is an online insurance company with a unique business model. It takes a fixed percentage of all renter’s insurance premiums to cover its operational costs and then uses the remaining money to pay out covered claims. Whatever funds are leftover at the end of the year are donated to a charity chosen by policyholders.

Lemonade renters insurance is an excellent choice if you are looking for basic renters coverage for less. Its standard policy includes personal property, personal liability and loss of use.

You can customize your limits and deductibles to maximize savings and add scheduled personal property coverage for high-value items. Renters can also get a policy discount by installing protective devices such as fire and burglar alarms.

A downside to Lemonade's insurance is that they don't have brick-and-mortar locations. However, if you're looking for a digital-first company where you can do everything online, then Lemonade is the right choice for you.

ERIE Insurance offers a comprehensive base renters insurance policy and several different ways to save through bundled policy, multiple policies, safety equipment, advanced quote and age-based discounts.

Its base policy, the ErieSecure Tenant, includes worldwide personal property coverage and extended liability protection against claims of slander, discrimination and cyberbullying. This is in addition to the standard medical payments and living expenses coverages.

ERIE's base policy can be customized through several different bundles, including:

• Advantage: increases coverage limits above base levels and includes identity theft coverage.

• Plus: waives the deductible if your loss exceeds $50,000 and increases coverage limits, adding coverage for trailers, watercraft, pets and business personal property.

• Select: includes everything mentioned above but offers higher limits, coverage for a larger watercraft and reimbursement of criminal defense costs up to $25,000 if you successfully fight a criminal indictment against you or your family.

Besides these, ERIE also sells extra coverage options like sewer and drain backup coverage, home-sharing coverage for those who rent out their apartments, earthquake coverage and flood insurance.

While you can get a renters insurance quote on ERIE's website, you will have to go through a local insurance agent to purchase a policy.

Nationwide stands out for its comprehensive basic renters insurance policy, which covers building additions, improvements or installations in your home and credit card protection against unauthorized transactions for up to the selected coverage amount. This policy also offers standard protection such as additional living expenses and medical payments to others.

You can customize Nationwide's basic policy with optional add-ons such as:

• Brand New Belongings: replace damaged or stolen items.

• Better Roof Replacement: covers roof replacement with better quality materials.

• Valuables Plus: additional coverage for high-value items like jewelry and fine art.

• Water Backup: protects your property against damage caused by backed-up sewers or drains.

• Theft Extension: extended coverage for belongings stolen from any motor vehicle, trailer or watercraft.

• Earthquake coverage: covers losses caused by earthquakes and volcanoes up to the selected limit.

Besides these, Nationwide offers related policies you can bundle with renters insurance for additional savings and protection, including auto and flood. Nationwide offers another good way to save with their claims-free discount, where customers qualify for better rates if they don't file any claims for a certain amount of time.

Amica Mutual earns top marks for having one of the most affordable renters insurance policies as well as multiple discounts. You can also file a claim with a live agent 24/7 by calling the company’s claims processing line.

Apart from these benefits, Amica’s basic renters policy is relatively standard. Its Basic coverage includes personal property, liability and loss of use. This policy can be coupled with add-ons such as extended protection for smart devices and computers, identity fraud coverage and personal property replacement-cost coverage.

Amica’s renters insurance features Renters Essentials®, a package designed for first-time renters. This package includes identity theft, liability, and coverage for your furniture, TV, computer, smartphone, jewelry, and clothes. Renters Essentials® allows you to earn credits — $100 a year for up to five years — to apply towards an Amica’s homeowners insurance policy if you buy a house in the future.

Allstate currently handles the US’s fourth-largest policy market share, and it’s one of the leading auto insurance providers in the US. As a reputable insurance company, Allstate offers reliable renters insurance coverage for personal property, liability, medical bills & expenses, and loss of use.

For policyholders over 55, the company offers discounts of up to 25% off the regular premiums. However, to be eligible, policyholders must not be actively seeking full-time employment.

Users can get quotes online and customize their plans based on coverage level, insurer payout limit, and deductible amount. You can customize your coverage and see how your cost would change with the different options. Additionally, Allstate offers a Home Inventory Guide and Digital Locker feature to help speed up any claims through the Allstate mobile app.

For added savings, Allstate offers a multi-policy discount when customers bundle their policies with auto insurance, and an Easy Pay Plan that lets customers save by scheduling their payments ahead of time.

Auto-Owners’ basic coverage is best for those living or who plan to live abroad, as it provides property and liability coverage anywhere in the world. Medical payments to others are also included, covering anyone injured in your house, as well as additional living expenses.

With Auto-Owners, policy owners can lower their premium by:

• Bundling renters insurance with auto insurance or life insurance
• Enrolling in paperless billing
• Paying the annual premium upfront in full.
• Installing safety devices, like smoke detectors and fire extinguishers
• Paying on time for 36 consecutive months or having a favorable loss history

Auto-Owners also sells optional supplements to its standard renters insurance policy, including Personal Property Replacement Cost and Renters Plus, which covers the loss of refrigerated products or damages due to water backup.

As the nation's largest auto and homeowners insurer by market share, State Farm offers policyholders the peace of mind that comes from knowing they are doing business with a financially stable and reliable company. This is especially true for anyone who has experienced the inconvenience of having their policy sold to another insurer after their company went bankrupt.

State Farm offers standard renters insurance policies that cover personal liability, property damage and medical payments to others. Those concerned about the ever-increasing costs of living may also add inflation protection to their policy for an added cost.

To receive a quote, prospective customers can use State Farm’s renters insurance quote checklist and contents calculator to properly assess their living arrangements and personal belongings. With this information, the company can offer you a premium based on your insurance needs.

Renters insurance add-ons include:

• Additional liability protection coverage
• Additional business property coverage
• Identity theft restoration
• Earthquake damage
• Incidental business liability

Young Alfred isn’t an insurance company, but an insurance agency and comparison site. After a few short questions, Young Alfred checks your risk level against a billion or more data points to give you customized online quotes from several top-rated renters insurance companies.

While this service is nothing new — there are dozens, if not hundreds, of insurance comparison sites on the internet — Young Alfred stands out in three important ways:

• It only partners with companies rated A- or higher by financial rating firms A.M. Best and Demotech, a financial rating firm focusing on smaller regional insurers.

• It doesn’t sell your personal information to other companies.

Young Alfred offers a free risk assessment that details the risk of common perils in the location you want to insure, so you can decide what optional policies are right for you.

Other renters insurance companies we considered

When selecting the best renter’s insurance, our methodology included customer satisfaction ratings, availability, and financial stability. The following companies fell short of fulfilling some of these requirements but still offer discounts and a policy that might fit your specific needs.

Farmers

Farmers’ base renters insurance policy includes coverage for personal property, general liability and additional living expenses. Policyholders qualify for discounts if they bundle renters insurance with other policies, install a security system or fire alarm, and live in a smoke-free household.

Why Farmers didn’t make the cut: Farmers Insurance is not part of our main selection because it holds an A (Excellent) rating from AM Best. This rating is by no means negative, but there’s a lot of competition in the insurance market and all our top picks earned a rating of A+ (Superior) or higher.

Toggle

Toggle — backed by industry veteran Farmers — is a relatively new brand of renters insurance. Users can pick their preferred reimbursement maximum for each covered item, such as jewelry, electronic equipment, furniture and appliances. For more coverage, policyholders can add riders for travel, pet insurance, identity theft, home-based businesses, high value items and replacement cost coverage.

Why Toggle didn’t make the cut: Toggle is not part of our main selection due to its limited availability and because it doesn’t hold an A+ (Superior) AM Best rating.

American Family

American Family’s renters insurance starts with a standard offering of property protection, personal liability and loss of use coverage. You can further enhance your policy by adding identity theft protection, travel protection, pet insurance and home-based business insurance.

Why American Family didn’t make the cut: We excluded American Family from our top picks because its financial strength rating did not meet our cutoff rating of A+ (Superior). The insurer currently holds an A (Excellent) with AM Best.

USAA

USAA’s standard renters insurance policy includes impressive benefits such as earthquake and flood coverage at no extra cost. This is unique to USAA, as other insurance providers generally sell this coverage as separate policies or add-ons.

Why USAA didn’t make the cut: USAA’s insurance products are exclusive to eligible members of the military community. That said, the insurer is an excellent alternative for those who meet its qualification requirements.

Geico

In addition to coverage for personal property, liability and additional living expenses, Geico sells supplemental policies for valuable jewelry that exceed the limits of personal property coverage. To lower the monthly premium rate, policyholders can bundle renters insurance with Geico’s auto policy or install an eligible home security system, sprinkler or smoke alarm.

Why Geico didn’t make the cut: Geico didn’t make it into our main list because it doesn’t underwrite its renter’s policy and is only available through agents.

Liberty Mutual

Liberty Mutual sells a basic and affordable renters insurance that might work for renters with a very restricted budget. However, it's best to go with another provider if comprehensive coverage is a priority. The company’s supplemental benefits include coverage for earthquake damage, replacement cost and blanked jewelry coverage (no deductible or appraisal needed).

Why Liberty Mutual didn’t make the cut: Liberty Mutual’s A rating by AM Best is a notch lower than the financial strength rating we required for our top picks: A+ or higher. The insurer also earned low customer satisfaction marks in the most recent J.D. Power Survey.

The Hartford

To purchase renters insurance with The Hartford, you need an AARP membership (available to anyone over 18 years of age for an annual fee of $16). In addition to basic renters coverage, the policy offers standout benefits such as replacement cost protection and coverage for built-in improvements you’ve made to your rental.

Why didn’t The Hartford make the cut: We excluded The Hartford from our top picks because it has limited availability and only AARP members are eligible for most of its discounts.

Renters Insurance Guide

Below we explain what rent insurance is, how it works and what benefits to expect with standard coverage. We also list important exclusions to remember and walk you through each step of the purchase process.

What is renters insurance?

Renters insurance — also known as an HO-4 policy — is a type of property and casualty insurance policy that covers the tenant's belongings and protects them from legal and medical liabilities. It will also cover some living expenses if the renter cannot live in the home due to a covered claim.

How does renters insurance work?

Just like with any other property and casualty insurance product, policyholders pay a monthly, quarterly or annual premium in exchange for financial protection against events that could result in significant material and monetary losses. In addition to premiums, policyholders must pay a deductible each time they file a claim; only then does insurance coverage kick in.

Renters insurance deductibles typically range from $500 to $1,000. After meeting the deductible, the policy will reimburse eligible claims up to a maximum dollar amount. The most common reimbursement options for personal property claims are:

• Cash value: your personal belongings depreciate or lose value over time from the moment you purchase them. Actual cash value policies will reimburse you for the item's current value minus depreciation.

• Replacement value: the policy covers the total cost of the item’s replacement without accounting for depreciation.

According to the Insurance Information Institute, reimbursement limits for personal liability coverage typically start at $100,000. If you need a higher coverage amount, you can buy an umbrella or extended liability policy to expand the scope of coverage and increase the limit to $1 million.

What does renters insurance cover?

Renters insurance typically covers the following:

• Personal property coverage. This benefit reimburses the value of items you own, whether stored inside your home, in a storage unit or a hotel room or car while traveling. This coverage may extend to other people’s belongings while they’re in your home.

• Personal liability or medical payments to others. Personal liability coverage protects your assets if someone sues you for property damage or injuries sustained in your home.

• Loss of use or additional living expenses (ALE). ALE coverage sponsors the cost of staying somewhere else while damage to your residence is repaired or until you find a permanent place to live

• Identity theft protection. According to the Insurance Information Institute, some renters insurance policies may afford limited protection for lost credit cards and cash. Some insurers may offer supplemental identity theft protection policies that you can pair with renters insurance.

If you're interested in identity theft protection but your renters insurance company doesn’t cover it, check out our guide to the best identity theft protection services to read about the best providers of the year. Alternatively, if you've been the victim of identity theft and are looking to repair your credit without having to do the legwork, consider any of the best credit repair companies on our list.

What renters insurance doesn’t cover

Renters insurance coverage is extensive, but there are still several exclusions to be aware of:

• Pet injury or death. If your dog is injured or dies, you cannot file a claim with renters insurance because dogs are not considered personal property. To insure your loyal companion, look into a pet insurance policy.

• Flooding or earthquakes. Renters insurance covers damage caused by certain natural disasters, but if an earthquake or a flood damages your rental house, renters insurance will not cover the losses. If you rent in a flood-prone area, you may want to look into flood insurance policies.

• Home-based businesses. In most cases, personal items used for business purposes are excluded from renters insurance coverage. Liability coverage won’t protect you if customers are injured on the premises, either. To be fully protected, it’s best to look into additional small business insurance policies.

• Uninsured roommates. If you have roommates, your policy will not cover their personal property unless it has been explicitly added to the policy.

• The dwelling or primary structure. The landlord's insurance will cover the actual dwelling or primary structure and other structures like tool sheds and garages. The policy also protects personal property stored on the premises if used to service the rental, like any maintenance equipment (lawnmowers, leaf blowers).

In case of water damage due to a storm or a hurricane, it’s important to note that:

• Water damage may be covered due to a window breaking or the roof blowing off, causing water to enter the residence.

• Water damage is excluded from coverage if the water is in contact with the ground before reaching your home, as is the case with floods or storm surges.

• If the flooding triggers a fire or explosion or your home is looted after you evacuate, you may be covered for your losses, but the damage caused by floodwater is not included as a covered peril.

How much is renters insurance?

Owning a home requires ensuring the dwelling itself, and since this isn’t the renters’ responsibility, renters insurance is far less expensive than homeowners. According to the NAIC, the national average cost of renters insurance is $173 annually, which comes down to a little over $14 a month.

Renters insurance rates will vary depending on:

• The value of the items you’re looking to insure
• The level of coverage you want and the deductible amount
• Where you live
• The crime rate in your area
• The frequency of inclement weather, like windstorms and fires

The five states where renters insurance is most expensive are Mississippi, Oklahoma, Alabama, Louisiana and Texas. With that said, the highest average renters insurance premium is only $21.33 per month.

Source: National Association of Insurance Commissioners, “Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/ Cooperative Unit Owner’s Insurance Report: Data for 2020”

How to choose the best renters insurance policy

Before getting renters insurance, calculate the value of your belongings, including furniture, electronics and jewelry.

Make an inventory of personal items you want covered

This includes furniture, appliances, electronics, jewelry, sports equipment, musical instruments, clothing and kitchenware. Take note of the make and model of each item as well as the purchase date and price.

You can fill out the inventory by hand with a home inventory checklist or create a digital catalog with NAIC’s home inventory app (available for iOS and Android devices). The app allows you to group each item by room and category, upload pictures of your belongings and even scan barcodes to ensure accurate price and model information.

Calculate how much insurance you need

Add up the value of each item in your inventory to see how much coverage you’d need to replace everything if it’s damaged or stolen. Also, think about your lifestyle and what aspects of it could lead to liability claims, for example, owning pets or frequently hosting events where a guest might get injured (parties or sporting activities).

Shop around and request online quotes

Premiums can vary considerably by company. Look into renters insurance policies with companies with which you already hold insurance policies of other types, such as car insurance. This could save you time and money through bundling or multiple policy discounts.

If you don’t know where to start, speak with an independent insurance agent or broker that sells policies from multiple companies. You can also ask friends and relatives who they’re insured with and about their satisfaction with the company, including any claims experiences they might have had.

Check the company’s financial strength rating and satisfaction scores

A high AM Best rating for financial stability indicates that the company is less likely to go bankrupt. Policyholders don’t have to worry about payout delays due to bankruptcy proceedings or a company buyout.

To review customer satisfaction, research the NAIC’s Consumer Complaint Database and J.D. Power’s consumer satisfaction rankings. These tools shed light on the company’s practices and treatment of customers.

Note that two J.D. Power surveys review renters insurance carriers: the U.S. Property Claims Satisfaction Study and the U.S. Home Insurance Study. The latter includes one survey for homeowners insurance and a separate one for renters insurance.

Choose an insurance company and a policy

Once you’ve completed the previous steps, compare policies from several different insurance companies. Our reviews of the best renters insurance companies is a good place to start. If you have high-value items, consider purchasing additional coverage through riders or floaters.

Opt for a deductible you're comfortable with, keeping in mind that higher deductibles mean lower premiums and vice versa. And don’t forget to take advantage of discounts. Many insurance companies offer discounts if you meet the requirements, for example:

• Premium discount if you install safety devices around your home

• Reduced premium when you don’t file a claim for a specified timeframe

• Rate reductions for signing up for automatic payments or paying your policy annually instead of monthly

Insurance carriers may also offer a discount when you “bundle” two or more types of policies, such as renters insurance with auto insurance. Bundling your insurance also allows you to pay both bills at once and consolidate your claims under one account.

One final cost-saving tip: See if you can negotiate with your landlord for a reduction on your rent payments in exchange for having a renters insurance policy. Renters insurance is beneficial to your landlord, as it reduces their liability risk.

How to file a claim

1. File a police or fire department report in case of fire, flood or theft. Keep a copy of the report for your records.
2. Phone your insurance company, explain the situation and inform them that you will be filing a claim. The company can also provide situation-specific information on any necessary documentation, reports, photographs and statements.
3. Inform your landlord of the situation and any damages or losses.
4. Make any necessary repairs to avoid further damage (in case of flood, for example). The insurance should cover these costs. Further damage arising from your delayed response will not be covered.
5. Document the damage and keep receipts for repairs and other living expenses.
6. Consult your policy agreement to make sure what is covered by your insurer and what your responsibilities are.
7. Initiate a claim with the insurance company. You can contact your insurer via email, phone or mobile app.

Latest News on Renters Insurance

Rent prices have been continuously rising for months, but they are finally slowing down — at least a little bit. Although rent rates remain historically high in most cities, there are currently 10 metropolitan areas where rent is under $1,300.

If you’re unsure about getting a mortgage or signing another lease, our article Is It Better to Rent or Buy a House? can offer guidance. We list the main advantages and disadvantages of renting vs owning a home, taking into account the current volatility of the real estate market.

How We Chose the Best Renters Insurance Companies

When looking for the best renters insurance companies in the country, we took into account the following:

Customer satisfaction scores according to two J.D. Power studies:

• The 2023 U.S. Property Claims Satisfaction Study and the 2022 Home Insurance Study. The Property Claims Satisfaction Study looks at customer-reported data on each company's estimate, claims and repairs processes.

• The Home Insurance Study examines overall satisfaction with home and renters insurance based on five factors: interaction with customers, policy offerings, billing process and policy information, and lastly, claims. overall customer satisfaction with homeowners and renters insurance providers

Financial strength ratings as reported by insurance rating agency A.M. Best. A high financial stability rating means the company is less likely to declare bankruptcy in the near future, delaying claims payouts in the process.

Complaint index data for property insurance policies, as compiled by the National Association of Insurance Commissioners (NAIC). A low number of complaints, rated with an index below 1, may indicate higher customer satisfaction. In the case of marketplaces and fintech insurers, which are not registered with the NAIC or have financial strength or customer service ratings, we considered the overall value offered.

Summary of Money’s Best Renters Insurance Companies of 2023

• Lemonade – Best for Customized Coverage
• Erie Insurance – Best for Comprehensive Coverage
• Nationwide – Best for Optional Add-Ons
• Amica Mutual – Best for Multiple Discounts
• Allstate – Best for Retirees
• Auto-Owners – Best for Worldwide Coverage
• State Farm – Best for Reliable Coverage
• Young Alfred – Best Online Insurance Agency