Best Renters Insurance Companies

best renters insurance companies

Many renters of apartments and houses are unaware of how much financial protection they have when the unexpected happens.

If the house you live in gets broken into and your computer gets stolen, what happens next? Will your landlord help pay for the cost of replacing your computer?

The short answer is no. The landlord has their own insurance policy, which will cover costs like repairing the door that the burglar broke down in order to get into the house. As far as your personal property goes, a landlord insurance policy won’t cover it if it’s damaged or stolen.

This is where a renters insurance policy would come into play.

6 Best Renters Insurance Companies

Here are the best renters insurance companies for 2020:

  1. Lemonade: Best Online Renters Insurance
  2. Farmers: Best For Customizing
  3. Progressive: Best For Additional Coverage
  4. Jetty: Best For Affordable Pricing
  5. Mercury: Best For Protecting Your Car
  6. Liberty Mutual: Best For Discounts

Lemonade

Lemonade renters insurance logoLemonade focuses on providing home and renters insurance for tenants in urban areas. So if you’re looking to rent an apartment in the city, this could be the insurer for you.

Lemonade is very transparent about pricing and getting a quote, with a big “check our prices” button right on the homepage.

Getting a quote is as easy as entering a few pieces of information about yourself, such as your full name and address.

They offer standard renters insurance coverage options, such as liability and personal possessions, which will cover the cost of lost or damaged objects like televisions, computers, etc.

You can also add extra coverage for more expensive belongings such as jewelry, musical instruments, and antiques.

Lemonade encourages its customers to use the Lemonade app to manage their policies and get their questions answered. They also have a detailed FAQ page with helpful information about their policies and processes.

FINANCIAL STRENGTH

  • Standard & Poor’s Financial Rating: N/A
  • Moody’s Financial Rating: N/A
  • AM Best Financial Rating: N/R

REPUTATION

  • BBB: A+
  • Trustpilot: 7
  • JD Power: N/A

Compare Rates with Lemonade

Farmers

farmers insurance logoFarmers provides the three standard levels of renters insurance coverage: personal possessions, liability, and additional living expenses.

They also have additional options for coverage. “Identity shield coverage,” for example, will help cover the cost of identity-theft related issues that might occur if your credit card or other sensitive credentials are stolen from your dwelling.

If you have a dog or a cat, Farmers can include pet insurance coverage in your policy as well. This will help cover the cost of medical procedures or drug prescriptions for your pet.

You can request a quote by filling out a quick form. Their FAQ page is helpful in finding more information as well.

FINANCIAL STRENGTH

  • Standard & Poor’s Financial Rating: A
  • Moody’s Financial Rating: A2
  • AM Best Financial Rating: A+

REPUTATION

  • BBB: A+
  • Trustpilot: 4
  • JD Power: Ranks 9th in J.D. Power home insurance study for 2018, but 4th in auto insurance study.

Progressive

Progressive renters insuranceProgressive offers all kinds of insurance services and doesn’t just focus on insurance for dwellings.

A typical renters insurance policy from Progressive comes with personal property coverage, loss of use coverage (which is the same as additional living expenses), personal liability coverage, and medical payments coverage (which specifically covers medical bills associated with a guest’s injuries).

They also have additional options, such as “water back-up coverage,” which will provide you with financial protection from damages specifically related to backed-up pumps and sewers.

Like most other companies, you can get a discount by bundling your renters insurance policy with other Progressive policies you own.

They also provide discounts to customers who buy a policy within 24 hours of receiving a quote. Other discount opportunities will be available to you if you rent a house or apartment in a gated community, if you pay for the policy in full (no monthly payments), or if you choose to receive your insurance documents via email as opposed to regular mail.

FINANCIAL STRENGTH

  • Standard & Poor’s Financial Rating: AA
  • Moody’s Financial Rating: Aa2
  • AM Best Financial Rating: A

REPUTATION

  • BBB: A+
  • Trustpilot: 7
  • JD Power: N/A

Jetty

jetty renters insuranceJetty provides specialized insurance services designed specifically for renters and landlords.

Jetty offers the three main types of coverage: personal property, liability, and loss of use.

They can provide additional financial protection to your policy, which they refer to as “power-ups.” Bedbugs coverage is an example mentioned on the site, but they don’t list any others. Instead, they recommend speaking with an agent to create a customized plan.

Jetty only offers their services in specific regions, so make sure to look at their coverage map before moving forward.

FINANCIAL STRENGTH

  • Standard & Poor’s Financial Rating: N/A
  • Moody’s Financial Rating: N/A
  • AM Best Financial Rating: N/A

REPUTATION

  • BBB: C
  • Trustpilot: N/A
  • JD Power: N/A

Mercury

mercury auto insuranceA renters insurance policy from Mercury will come with the normal options for coverage: liability, personal property, and guest medical.

In addition, they’ll provide “workers comp coverage,” which will help cover the cost of medical bills resulting from a worker’s on-the-job accidents.

For example, if your nanny falls and breaks her leg on your staircase, workers comp coverage will assist with the cost of their visit to the ER or any required surgeries.

Many renters insurance policies will only cover personal belongings that are physically inside your dwelling. Mercury’s personal property coverage, on the other hand, will also apply to belongings that are stolen or damaged while in your car.

FINANCIAL STRENGTH

  • Standard & Poor’s Financial Rating: N/A
  • Moody’s Financial Rating: A2
  • AM Best Financial Rating: A

REPUTATION

  • BBB: A+
  • Trustpilot: 9
  • JD Power: N/A

Liberty Mutual

liberty mutual insurance logoLiberty Mutual can provide many levels of coverage to your renters insurance policy.

Though, their most basic policy will come with liability, personal property, additional living expenses, and medical payments.

They can also provide additional coverage options for damage caused by earthquakes, known simply as “earthquake coverage,” and the loss of expensive items like wedding rings, which is known as “blanket jewelry coverage.”

If you don’t file a claim for five years, you’ll automatically receive a discount on your Liberty Mutual renters insurance policy.

You’ll also be eligible for a discount if you’re a veteran or are currently serving in the military. Installing protective devices into your home, such as fire extinguishers and deadbolts, will help you save money as well.

FINANCIAL STRENGTH

  • Standard & Poor’s Financial Rating: A
  • Moody’s Financial Rating: A2
  • AM Best Financial Rating: A

REPUTATION

  • BBB rating: A-
  • Trustpilot: 2
  • JD Power: Ranked among the top 20 insurers nationally in 2019

Compare Rates with Liberty Mutual

What is Renters Insurance?

Renters insurance (also called tenants insurance) provides financial protection for you, your guests, and your personal belongings in a dwelling that you don’t own. When it comes to the types of coverage included, your policy will look similar to a homeowners insurance policy, though renters is typically less expensive and provides less benefits.

When you sign a lease on an apartment or house, your landlord may or may not require you to purchase a renters insurance policy.  Here are the types of coverage included with a standard policy:

  • Personal Possessions Coverage: Will help cover the cost of replacing or repairing belongings that are stolen or damaged by specific perils, such as fires, vandalism, floods, etc. It’s important to note that applicable perils will vary from policy to policy. In other words, some renters insurance policies may include personal possessions coverage only in the event of a fire or theft.
  • Liability Coverage: Protects you in case of bodily injuries or property damage caused by you or another tenant. So if you spill some water on the floor, which causes one of your guests to slip and break their arm, your liability coverage will help cover the cost of any medical or legal bills associated with the accident. This type of coverage can also apply to damages or injuries caused by your pet.
  • Additional Living Expenses Coverage: Refers to financial burdens that arise when your dwelling becomes unexpectedly uninhabitable. So if the house you live in burns down and you need to temporarily relocate to a hotel, this coverage will help pay for the cost of your hotel room.

How Much Does Renters Insurance Cost?

Renters insurance is generally cheaper than other types of insurance. In fact, according to a report by PolicyGenius, the average cost of renters insurance in 2019 is only $16 per month.

However, like all types of insurance, the cost of your specific policy will depend on a variety of factors. Here are some of the variables that insurers will look at when determining the rate of your renters insurance policy:

Location and Conditions

First, they’ll look at the location and conditions of your dwelling. If your apartment or house is located in a neighborhood with a high rate of crime, they’ll consider it riskier, therefore your monthly premiums will be higher. Additionally, if the building is old, it’ll be considered more dangerous, which will contribute to a more expensive policy.

Risk of Insurer

Then, the insurer will look at you, the policyholder, to assess how risky you are. If you have a high credit score, that’ll help keep your premiums low. However, if you have a history of filing insurance claims at other dwellings, expect to have a more expensive policy.

Overall Inventory

Finally, they’ll take a look at your inventory. How much stuff do you own? How expensive are all of your belongings? Answers to these questions will certainly play a role in determining the price of your policy. After all, the more stuff you own, the higher chance there is of you needing something replaced or repaired.

What Renters Insurance Company is Best For You?

Even if it’s not required by your landlord, you should heavily consider purchasing a renters insurance policy from one of these providers.

Depending on your financial history and the circumstances of your dwelling, you can find a policy that is extensive and cheap.

Having this type of insurance coverage will help you sleep at night, knowing that you and the contents of your dwelling are protected in case of the unexpected.

But before you decide upon a policy, make sure you’ve done your research and have compared several different policies.

This starts by reviewing renters insurance companies’ coverage options, getting quotes, asking questions, and keeping a sharp eye out for discount opportunities.

*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.