Best Renters Insurance Companies

  • Lemonade Renters Insurance
    4.7(2,906)
  • Homebody (Formerly Named ResidentInsure)
    4.5(48)
  • Assurant Renters Insurance
    4.6(926)
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As a renter, you might not have any say over what color the walls are painted or how updated the stove is, but you can have control over your financial security.

Renters insurance is not always mandatory, but it can ensure that your personal belongings are protected in the event of an unfortunate incident. Additionally, renters insurance protects your wallet in the event of something happening on your property — for example, if your dog gives someone more than a love bite.

This renters insurance buyers guide will help you know what coverage is right for you and what to look for in a renters insurance company.

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How does renters insurance work?

Renters insurance is very similar to homeowners insurance, except it protects the renter and the renter’s personal property. Your landlord should have their own insurance policy in place, but, for example, if there was a fire in your apartment, your landlord would collect money for the building damage while none would be passed to you for your items.

To sign up for renters insurance, you choose a policy that covers your personal belongings, like furniture, electronics and clothing. The policy can also provide liability coverage if someone is injured in your home. Some policies may even cover additional living expenses if you're unable to live in your rental due to a covered event like a fire.

You pay a premium, typically monthly, to keep your coverage active. The cost of renters insurance can vary based on factors such as the amount of coverage you choose, where you live and the type of building you live in.

Who needs renters insurance?

Considering that renters insurance is typically less than $20 per month, every renter or roommate should get a policy. Not only does a renters insurance policy protect your items inside your living space, but this coverage can extend to your vehicle too. For example, if your laptop is stolen in your locked trunk, a renters insurance company might cover this claim.

You should strongly consider renters insurance if you are renting and:

  • Live in a high-risk area. Certain locations and structures put some renters in a high-risk category. Rentals in flood zones and high-crime areas are considered high risk, as are rentals that are far away from fire stations. Renters who find themselves in these situations may need high-risk renters insurance.
  • Have a pet. Even if your dog or cat doesn’t have a history of violence, renters insurance can add peace of mind for unexpected issues.

» MORE: What does pet insurance cover?

What are the different types of renters insurance?

Most renters insurance companies offer the coverages below. You will be able to customize your coverage to include additional protection for things like pricey jewelry or earthquake damage.

Personal property

A renter's personal property is not generally covered by a landlord's policy. Renters personal property insurance can cover the actual cash value of the property, which factors in depreciation, or the full cost to replace the item.

Personal liability

Liability coverage helps protect renters should an accident or injury occur to someone else while they are in the rental unit. This can include slip and fall accidents, dog bites and other injuries.

Additional living expenses

Also known as loss of use coverage, additional living expenses will cover the cost of relocation should policyholders be forced to leave their home due to a disaster. It can also cover hotel and meal expenses during the relocation. However, not all situations are covered, and limits may apply.

» MORE: Renting vs. buying a house

How to compare renters insurance coverage

There are several renters insurance companies available, and it is important to do your research before choosing one. Don’t settle for the cheapest coverage because it may cost you more if you end up needing to make a claim.

Here are a few things to compare when shopping for renters insurance.

  • Coverage types: Ensure the policy covers personal property, liability and additional living expenses.
  • Coverage amounts: Look at how much coverage each policy offers for personal property and liability. Make sure it's enough to replace your belongings and cover potential liability costs.
  • Deductibles: The deductible is the amount you'll pay out-of-pocket before the insurance coverage kicks in. Higher deductibles usually mean lower monthly premiums, but you'll pay more if you file a claim.
  • Actual cash value vs. replacement cost: Policies that cover the actual cash value will reimburse you for the depreciated value of items, while replacement cost policies will reimburse the current market price. Replacement cost policies often have higher premiums but can provide more financial protection.
  • Exclusions: Check what each policy does not cover. You may need to purchase additional coverage for things like floods or earthquakes.
  • Discounts: Are there discounts for bundling your insurance or for using safety features like smoke detectors or alarms?

Who are the best renters insurance companies near me?

Local renters insurance companies can help you identify and customize your coverage for common hazards in your city. We compared renters insurance companies across the U.S. so you can find companies to help protect your home.

What does renters insurance cover?

Every renters insurance policy will be unique, so be sure to review its coverage areas before signing up. Generally, many companies will cover these costs:

  • Theft
  • Fire damage
  • Water damage (not by natural disasters)
  • Property damage by another person
  • Legal support for covered liabilities (e.g., dog bites)
  • Living expenses, like hotel bills, if there is property damage

What doesn’t renters insurance cover?

Most renters insurance policies will not cover the following, though some companies might allow add-on coverage to extend your protection.

  • Flood damage
  • Earthquake damage
  • Vehicle damage (items stolen from your vehicle are covered)
  • Pests
  • Your rental’s structure or building
  • Roommates

Pros and cons of renters insurance

“It's important to note that renters insurance does have coverage limitations and exclusions,” said Mark Buskuhl, the founder of Ninebird Properties, a Texas-based investment firm. “For example, it may not cover damages caused by floods or earthquakes unless you have additional coverage.”

Consider these pros and cons to discover if renters insurance is worth it in your situation.

Pros

  • Affordability: Most renters insurance costs less than $1 per day for coverage.
  • Protection of personal property: Renters insurance covers your personal belongings against theft or damage due to disasters like fire, smoke or vandalism.
  • Liability coverage: If someone gets injured on your rental property, renters insurance can cover their medical bills and your legal expenses if they decide to sue.

Cons

  • Limited coverage: “If you have expensive items such as jewelry or artwork, their coverage may be limited under a standard renters insurance policy,” said Buskuhl.
  • Deductibles: You'll need to pay a deductible before your insurance kicks in. This means you're responsible for a portion of the loss.
  • Not always necessary: If you don't have many valuable possessions, or if your belongings are already covered under a family member's policy (like a parent's), you might not need renters insurance.

FAQ

How much is renters insurance per month for an apartment?

The average cost of renters insurance is about $17 per month. The cost of renters insurance depends on factors including:

  • Where you live
  • The amount of coverage you buy
  • Whether you purchase actual cash value or replacement cost personal property coverage
  • The deductible
  • Your insurance and credit history
  • What discounts you’re eligible for
Do you need insurance for an apartment?

Some apartment managers and leasing companies require you to show proof of renters insurance before you sign a lease. Even if it isn’t required, we recommend you purchase a policy.

Can I buy renters insurance online?

Yes, most companies offer renters insurance online.

Is renters insurance worth it?

Yes, renters insurance is worth the cost. For around $17 per month, a renter can get coverage for personal possessions, liability and additional living expenses.

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