The Cheapest Renters Insurance Companies of 2020

If a fire races through your apartment complex or a storm damages your rental house, your landlord’s property insurance will cover the building itself, but you’ll have to pay for your belongings out of pocket. If a guest sustains an injury in your home, the property owner’s liability coverage won’t pay your legal costs. That’s why you need renters insurance. The good news is that renters insurance isn’t expensive in most locations.

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      Finding the cheapest renters insurance is as easy as going online and requesting quotes. But renters insurance coverage varies among insurers, so it’s important to research a carrier’s policy details and strengths and weaknesses. When shopping for cheap renters insurance, look beyond price and consider the quality of coverage and customer support an insurance company can provide.

      The cheapest renters insurance companies

      Best rates – Farmers

      Farmers Insurance offers some of the best rates. Its standard renters policies include $25,000 in personal property coverage and $100,000 in personal liability coverage, along with $5,000 in loss of use coverage and $1,000 in medical payments to others coverage. At these coverage levels, we received a quote for $10 per month. Of course, you can raise your coverage levels to fit your needs.

      J.D. Power Rating
      2/5
      AM Best Rating
      A
      Standard & Poor’s
      N/A
      SimpleScore
      3.4 / 5.0
      close
      SimpleScore Farmers 3.4
      Discounts 4
      Coverage Options 3
      Customer Satisfaction 2
      Support 4
      Accessibility 4

      We also like the claims process. You can file a claim online, through an agent, over the phone through the toll-free number or with the mobile app. For simple claims, a Farmers representative will deliver your payment following an initial inspection.

      ProsCons
      PriceFew optional coverages
      Non-smoker discountNo replacement cost option
      Mobile app

      Best base coverages – Nationwide

      In its standard renters policies, Nationwide includes loss of use, medical payments, personal liability and personal property coverages, with a $500 deductible. Nationwide also includes credit card coverage to protect against fraudulent transactions and allows you to use part of your personal property coverage to pay for alterations you’ve made to the rental unit.

      J.D. Power Rating
      2/5
      AM Best Rating
      A+
      Standard & Poor’s
      AA+
      SimpleScore
      3.8 / 5.0
      close
      SimpleScore Nationwide 3.8
      Discounts 4
      Coverage Options 5
      Customer Satisfaction 2
      Support 4
      Accessibility 4

      Nationwide’s standard policies also feature generous limits, such as $2,500 for watercraft, $2,500 for theft of cameras, firearms or jewelry, plus up to $1,000 to pay a fire department service charge. Nationwide’s standard policies include the Brand New Belongings feature, which pays the depreciated value of your personal property and the cost difference to repair or replace it.

      ProsCons
      Standard coveragesBelow average J.D. Power customer satisfaction rating
      Theft extension option to cover property stored in a vehiclePrice
      Credit card coverage included

      Best customer support – State Farm

      In J.D. Power’s 2019 U.S. Renters Insurance Study, State Farm scored five out of five stars in overall satisfaction. State Farm operates local offices from coast to coast, even in many small towns. If you need to buy additional insurance or file a claim, your dedicated agent will always be there to help you.

      J.D. Power Rating
      5/5
      AM Best Rating
      A++
      Standard & Poor’s
      AA
      SimpleScore
      4.2 / 5.0
      close
      SimpleScore State Farm 4.2
      Discounts 3
      Coverage Options 5
      Customer Satisfaction 5
      Support 4
      Accessibility 4

      We also like State Farm’s rental insurance addons, which include earthquake and identity restoration coverages. You can even add business property and business liability coverage to your renters policy. State Farm covers all types of businesses, from restaurants to medical offices.

      ProsCons
      Customer serviceFew discounts for renters
      PriceBelow average rating for claims handling
      Request a quote and buy renters insurance online

      Best coverage for military members – USAA

      USAA offers the best standard renters property coverage we’ve found. While most insurers require you to purchase optional coverages to pay for earthquake or flood losses, USAA offers them in its standard renters policies. Better yet, USAA renters policies also include replacement cost coverage at no additional cost.

      J.D. Power Rating
      5/5
      AM Best Rating
      A++
      Standard & Poor’s
      N/A
      SimpleScore
      3.8 / 5.0
      close
      SimpleScore USAA 3.8
      Discounts 2
      Coverage Options 5
      Customer Satisfaction 5
      Support 3
      Accessibility 4

      In J.D. Power’s 2019 U.S. Renters Insurance Study, USAA earned five out of five stars in all ratings categories. USAA only offers insurance to members of the United States military and their families. The company also offers its members banking services, investment funds and retirement plans.

      ProsCons
      Earthquake, flood and replacement cost coverages included in standard policiesOnly available to military members and their families
      Stored personal property covered worldwideStandard policies do not include loss of use or medical payments coverages
      5-star J.D. Power ratings

      Find the Best Renters Insurance

      Save money on renters insurance with our simple comparison tool.

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      We found results in
      Click at least 2-3 companies to find the very best rate.

        Cost of renters insurance

        The price you pay for renters insurance will depend on the level of coverage you need, along with certain rating factors, including:

        • Actual cash value or replacement cost coverage: In their standard renters policies, many insurers pay actual cash value on personal property claims. If you file a claim, the insurer will pay the depreciated value of your belongings. Many insurers offer replacement cost coverage as an add-on. While replacement cost coverage might cost a few dollars more, it’s worth it because it allows you to replace your property with equivalent items at current market prices.
        • Discounts: Most insurance companies offer discounts to help you reduce your rate. For example, a carrier may offer a discount for bundling car and renters insurance.
        • Optional coverages: An insurance agent might offer you addons to your policy to increase your protection. For instance, you may choose to add identity theft coverage or additional coverage for expensive items, such as artwork or musical instruments. Optional coverages increase your premium, but they’re often worth the extra money when disaster strikes.
        • Your deductible: You can lower your insurance rate by choosing a higher deductible, around $1,000 or more.
        • Your credit score: Most states allow insurance companies to use your credit score as a factor in determining your rate. Folks with poor credit often pay more for renters insurance.
        • Your location: People who live in areas prone to flooding, earthquakes, hurricanes, tropical storms or wildfires typically pay more for renters insurance. If you live in a high-crime neighborhood, you may also pay more for coverage.

        We requested quotes from all but one of our top renters insurance companies and received a variety of rates. For each quote we selected standard coverage levels and used a profile of a married couple, both aged 40, living in Albany, New York.

        Average cost of renters insurance

         Annual rate6-month rateMonthly rateWeekly rateDaily rate
        Farmers$120$60$10$2.31$0.33
        Nationwide$198$99$16.50$3.81$0.54
        State Farm$125$62.50$10.42$2.40$0.34
        USAANot availableNot availableNot availableNot availableNot available

        Average cost of renters insurance by state

        Your price will also vary by state. This chart shows the latest aggregate data available, collected in 2017.

        StateAverage monthly costStateAverage monthly cost
        Alabama$20Montana$12
        Alaska$14Nebraska$12
        Arizona$15Nevada$15
        Arkansas$18New Hampshire$12
        California$15New Jersey$14
        Colorado$13New Mexico$16
        Connecticut$16New York$16
        Delaware$13North Carolina$13
        District of Columbia$13North Dakota$10
        Florida$16Ohio$15
        Georgia$18Oklahoma$20
        Hawaii$15Oregon$14
        Idaho$13Pennsylvania$13
        Illinois$14Rhode Island$15
        Indiana$14South Carolina$16
        Iowa$12South Dakota$10
        Kansas$14Tennessee$17
        Kentucky$14Texas$19
        Louisiana$20Utah$13
        Maine$12Vermont$13
        Maryland$13Virginia$13
        Massachusetts$16Washington$14
        Michigan$15West Virginia$16
        Minnesota$12Wisconsin$11
        Mississippi$21Wyoming$12
        Missouri$14  

        Bear in mind that our quotes and the III state averages do not represent the price you’ll pay for renters insurance. For the most accurate price, you’ll need to request a personal quote.

        Find the Best Renters Insurance

        Save money on renters insurance with our simple comparison tool.

        Matching you with providers.
        We found results in
        Click at least 2-3 companies to find the very best rate.

          Methodology

          SimpleScore

          The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.
          For every review, our editorial team:

          • Identifies five measurable aspects to compare across each brand
          • Determines the rating criteria for each aspect score
          • Averages the five aspect scores to produce a single SimpleScore™

          Here’s a breakdown of the five aspect scores and their rating criteria for our renters insurance reviews.

          Why do some brands have different SimpleScores on different pages?

          To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.

          However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare State Farm’s home insurance according to our criteria for the best home insurance, it scores a 3.8 out of 5. But when we compare State Farm according to the criteria for the best auto insurance, it scores higher, since the features the company offers can vary by the type of insurance.

          Discounts

          We awarded higher scores to insurance providers with more discounts available on their website.

          Coverage Options

          We gave providers with more renter insurance coverage options a higher score because they’re more likely to have a policy that best meets your needs.

          Support

          We awarded higher scores to renters insurance providers with the most channels for customer support.

          Customer Satisfaction

          We leveraged the J.D. Power Home Insurance Satisfaction Study℠ to see how customers rated their experience with each insurance provider. (If a provider wasn’t included in J.D. Power’s study, we skipped this aspect and averaged the four remaining aspect scores.)

          Accessibility

          We awarded higher scores to insurance providers that have more online and mobile features to easily manage your policy and claims.