Best Renters Insurance: A Complete Guide (2023)

Most people know about home insurance, but what is renters insurance? Renters insurance protects the belongings and finances of people who don’t own their homes. It doesn’t cover the physical structure of your home, but it does protect everything important to you.

However, good renters insurance policies cover a lot more than your personal belongings. Renters insurance also typically offers personal liability, medical payments, and additional living expenses coverage.

Since renters insurance is usually affordable, many people don’t realize they should still compare policies. Policies and prices vary by company, so shopping around for coverage is crucial.

Although it takes a bit of research, finding the best renters insurance doesn’t have to be a challenge. Read on to learn more about home renters insurance and which companies might offer the right coverage for you.

What does renters insurance cover?

When you buy renters insurance, it works similarly to a traditional homeowners policy. The major difference is that renters insurance doesn’t cover the physical structure of your home. The building you live in will be covered by your landlord’s insurance instead.

Renters insurance focuses on you — your personal belongings, potential legal fees, and living expenses. Most renters policies offer coverage for personal property damage, personal liability, medical payments, and additional living expenses. Protecting yourself and your belongings is why you need renters insurance.

What is personal property damage coverage?

One of the most important aspects of your renters insurance policy is the coverage it offers for the things you own. However, not all types of damage are covered. Your personal property damage coverage usually protects you from the following incidents:

• Falling objects, especially trees or tree branches
• Ice and snow
• Explosions
• Mold and water damage from problems in your home
• Wind and hail
• Smoke and fire
• Vandalism and theft

As you can see, your renters insurance covers many unexpected events life can throw at you. However, it doesn’t cover everything. Most renters policies don’t cover damage from earthquakes or floods. You’ll need additional coverage added to your policy to protect yourself from these dangers.

What is personal liability coverage?

If a guest is injured in your home, they can potentially sue you for damages. If you find yourself on the wrong end of a lawsuit, the personal liability portion of your insurance will protect you.

Personal liability pays for your legal fees when someone sues you. These fees include the price of your attorney and any damages you might need to pay to a plaintiff. Your insurance company will likely require you to use an attorney of their choice.

The average policy includes $100,000 of liability insurance, though most allow you to buy a higher limit if you feel like you need the extra protection.

What is medical payments coverage?

An injured guest comes with more than just legal fees. The medical payments portion of your renters insurance covers health care expenses for your injured guest, even if the injury wasn’t your fault.

Medical payments covers expenses for hospital stays, dental care costs, x-rays, surgeries, and other procedures deemed necessary by a doctor. The average policy includes $5,000 worth of coverage, but many companies offer higher limits if you’d like to purchase more.

One caveat to medical payments coverage is that it only covers people who do not live on your property. Health expenses for roommates and family members you live with won’t be covered by your medical payments coverage.

What is additional living expenses coverage?

The additional living expenses (ALE) portion of your renters insurance covers you if your home becomes unliveable after a covered event.

When you can’t stay in your home, your insurance will pay for alternative lodging, pet boarding fees, and restaurant bills. Some plans include other living expenses, like additional transportation expenses so you can get to work. Make sure to ask a representative to find out exactly what your policy covers.

What does renters insurance not cover?

While your renters insurance covers a lot, it doesn’t cover everything. Most home renters insurance policies don’t cover the following events:

• Earthquakes and floods
• Roommate’s property
• Bed bugs and other pests
• Car theft and damage

It’s important to understand what is and isn’t included in your policy before you need to make a claim. Understanding what your policy covers will help you get the most out of your renters insurance.

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Which companies offer the best renters insurance?

The best renters insurance company for you depends on a variety of factors. When looking for good renters insurance, you should look at a company’s financial strength, customer service ratings, coverage options, and how many discounts they offer.

Many people want to bundle their renters insurance with other policies, especially car insurance. If that interests you, you should also look for companies that have good bundling options.

There are dozens of companies selling renters insurance. Some are large national companies, while others are small local businesses. While you should always explore your options, you can check out some of the best renters insurance companies below.

State Farm Renters Insurance

Although State Farm car insurance is better known, the company is also a great home rental insurance company. It’s especially good for people looking for a lot of customization options for their policies.

State Farm might be the right choice if you want to buy all your insurance from one place. State Farm sells a variety of coverage types, including auto, motorcycle, boat, homeowners, life, and supplemental health insurance. If you need more than one type of insurance, shopping at State Farm simplifies managing multiple policies.

State Farm sells renters insurance in all 50 states. Along with the basic types of insurance, State Farm sells the following add-on options:

• Replacement cost coverage
• Business property coverage
• Identity theft protection
• Waterbed liability coverage
• Drain or sewer backup coverage
• Personal injury endorsement
• Earthquake damage coverage
• Extra coverage for valuables

One drawback with State Farm is that the company doesn’t offer very many discounts. State Farm only lists a policy bundling and home alert discount to help you save money.

Amica Renters Insurance

Amica might not be as well-known as State Farm, but that doesn’t mean it’s not one of the top renters insurance providers. It offers the same basic renters insurance as most other companies, but Amica stands out for its superb customer service reviews.

According to the National Association of Insurance Commissioners (NAIC), Amica receives fewer complaints than similarly sized companies. Many customers appreciate Amica’s easy-to-use website, which makes paying bills, filing claims, and getting quotes simple.

Amica sells renters insurance in every state except Hawaii and Alaska. Although it offers fewer add-on options than some competitors, Amica still has a few good choices. These include:

• Personal property replacement coverage
• Smart device/computer coverage
• Scheduled personal property coverage
• Identity fraud protection

Amica might not have the most add-on options, but it makes up for it with ample discount opportunities. Renters can take advantage of discounts for being claims-free, paper-free, enrolling in autopay, bundling with car insurance, and being an Amica customer for at least two years.

Read more: Amica Car Insurance Discounts

Farmers Renters Insurance

For drivers looking to maximize their savings, Farmers might provide the best insurance for renters. Farmers struggles a bit with customer service ratings, but its low prices and ample coverage options often make up for it.

As one of the country’s largest insurance companies, Farmers offers many coverage options. From Farmers car insurance to term life insurance, Farmers can cover just about anything important to you. If you sign up for multiple Famers policies, you’ll likely be eligible for a bundling discount.

There are eight states in which Farmers doesn’t sell renters insurance, so you’ll need to check before you apply for a policy. Farmers offers the following add-ons for your renters insurance policy:

• Replacement costs
• Identity theft coverage
• Refrigerated goods replacement coverage

While it doesn’t offer as many add-ons as other companies, Farmers offers a long list of discount opportunities. These include being tobacco-free for two years, having a security system installed, bundling multiple policies, being claims-free, being a loyal customer, and working in certain professions.

Country Financial Renters Insurance

Country Financial isn’t the largest insurance company out there, but it has excellent customer service ratings, high policy limits, and plentiful coverage options.

According to the NAIC, Country Financial receives fewer complaints than similar companies. Country Financial sells renters insurance in just 19 states, but you might find it has the best coverage if you live in a qualifying area. You have to apply for a policy in-person, but Country Financial representatives have a reputation for being friendly and professional.

Country Financial offers the following types of coverage:

• High-value coverage
• Premier coverage for personal property
• Replacement cost coverage
• Identity theft coverage
• Water backup coverage
• Personal injury protection

Applying for a Country Financial policy is a little less convenient than at other companies, but the amount of coverage you can add makes it worth it. You can also take advantage of discounts for bundling policies, going five years without making a claim, paying your bills on time, and being a new customer.

Check out our Country Financial insurance review to learn more.

Lemonade Renters Insurance

Lemonade is a relative newcomer to the insurance scene, but it’s making a big splash. With a more modern take on renters insurance, Lemonade is a good option for people looking for a more digital experience.

While it’s currently only available in 28 states, Lemonade only does business online. You can still speak with a representative, but you won’t find a physical office. However, Lemonade receives more complaints than similar companies, and rates tend to be a bit high.

Aside from the basic types of coverage, you can purchase the following add-ons from Lemonade:

• Extra coverage for high-value items
• Water backup coverage
• Equipment breakdown coverage

While Lemonade doesn’t boast the largest list of add-ons, it does offer a few good options. It also  provides limited choices, such Lemonade car insurance discounts, including savings for bundling policies, paying your policy in full, and installing safety features in your car.

How much does good renters insurance cost?

Renters insurance is generally affordable, with some policies costing as little as $10 a month. The average person pays only $14 a month for renters insurance in the U.S.

Like all other types of insurance, you’ll see a great deal of price variation between companies. For example, Lemonade has a low average rate of $12 a month, while Farmers costs about $23 a month.

These price variations highlight why it’s so important to compare rates. You’ll also see different rates based on a variety of factors. For example, finding affordable renters insurance for people with bad credit can be much more difficult than if your score is higher. You’ll likely overpay for your renters insurance if you don’t research your options.

How do you choose the best renters insurance policy?

Most companies offer an easy application process for people looking for renters insurance. To find the best renters insurance for you, try the following tips:

• Determine your coverage needs. Making a basic inventory of your belongings will help you determine how much coverage you need. Most renters policies start with $30,000 worth of personal belongings coverage, so you might need to buy more.
• Pick your coverage. If you live in an area without earthquake or flood risks, you’ll probably be fine with a standard policy. A representative can review your options to help you find the perfect policy.
• Compare your options. Comparing multiple companies is the best way to get the best coverage for your home. Some companies have cheaper rates, but better coverage is sometimes worth paying more for.

Once you know where you want to buy a policy from, applying for coverage is usually a simple task. Most companies offer online application options that you can complete in about 10 minutes. If you prefer not to fill out a digital application, you can also speak with a representative over the phone or in person.

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Find the Best Renters Insurance Today

With millions of Americans renting their homes, knowing where to buy a top renters insurance policy is more important than ever. Since rates are so affordable and the protection so valuable, there’s little reason to skip buying renters insurance or apartment insurance.

Even though renters insurance is affordable, you should always compare your options. From finding the right coverage to getting the best price, comparing policies between companies is the best way to get the right insurance for your home.

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