Best Renters Insurance | March 2023
If you are looking for renters insurance, you are in the right place. We did all the research to make it easy for you to compare your options. Here are our top picks for the best renter's insurance companies.
Many people don't realize how important it is to have rental insurance when renting an apartment or condo. They assume their landlord has coverage and any problems related to the rental are their responsibility. Sadly, that is not not the case. If you’re one of the 43.9 million who are currently renting - consider getting an insurance policy. Renter’s insurance doesn't only protect your belongings from theft or damages, it can also provide valuable liability coverage.
These are our top picks for the best renter’s insurance companies.
The truth about renters and landlord's insurance
The reality is that the landlord’s insurance only protects the building structure and not your personal items. For example, if the bathroom tub from the unit above leaks into your closet and all of your clothes are ruined, your landlord's insurance won't cover the damage. This is also true for stolen items. If your laptop is taken from your apartment and you become a victim of identity theft, there is nothing your landlord's insurance can do about it.
Rental insurance, on the other hand may cover the replacement or provide compensation for the loss or damages to your personal belongings. Having an identity theft endorsement on your insurance policy would also protect you in case any information was hacked from your stolen laptop. According to a study by Allstate, the average renter owns $30,000 worth of possessions. Are your personal possessions - your clothes, computer, jewelry, art, cameras and more - worth $15 a month in rental insurance coverage?
Comparing renters insurance companiesLocating the best rental insurance company to purchase a policy can be tricky. The coverage, endorsements, and prices of rental insurance policies can vary substantially from one insurance carrier to another. Prices also vary significantly depending on where you live. Climate, crime levels, and security measures all affect your policy premiums. The average cost of renters insurance a year is $187 or $15.58 a month, according to the National Association of Insurance Commissioners (NAIC).
Frequently Asked Questions
What is the best renter's insurance?
It depends on who is asking. Insurance companies have different underwriting methods so the best policy for you may not be a good fit for someone else. It is important to compare multiple renter’s insurance policies to find the best one for you.
A great place to start your search is the list above. You can also use SuperMoney's renter's insurance engine to filter renter's insurance companies based on the coverage, features, and riders that matter the most to you.
What is not covered in renter's insurance?
Renter’s insurance will typically not cover your belongings in the following events:
- Natural disasters, such as floods, earthquakes, and sinkholes.
- Terrorists attacks or nuclear war. Terrorism used to be a covered event until 9/11.
- Damage caused by pests, such as bugs and rats.
- Expensive items, such as family heirlooms, high-end jewelry, and electronics worth more than $2,500.
However, you can usually purchase coverage for these and other perils by getting an endorsement or rider. It is also possible to protect expensive items that exceed the maximum value of a standard renter's insurance policy by purchasing additional coverage.
What is a good price for renter’s insurance?
The main factors when determining the cost of renters insurance is where you live and how much coverage you need. The average cost for renters insurance in the United States is $15 a month or $180 a year. However, it may cost more to buy insurance in your state. The price may also be higher if you need more coverage than the average policyholder.
The cost will also increase if you add riders to you policy, such as pets coverage. Compare multiple insurance companies and read the fine print before you make a decision.
Who has the cheapest rental insurance?
Rental insurance is generally inexpensive. There are two things you need to consider when comparing prices: insurance premiums and insurance deductibles. The higher your deductible, the lower your premium will be. Rental insurance companies also vary their prices depending on several factors, such as where you live and how much coverage you need.
What does renter’s insurance cover?
A comprehensive policy will cover costs to replace your personal belongings, like your furniture, electronics, computer equipment, your clothes, jewelry and appliances. Basic renter’s insurance will reimburse you for the loss of property (up to your policy’s coverage limit) if destroyed, damaged, lost or stolen. Renters insurance can also cover property when it’s not even in your home.
What is not covered by renter’s insurance?
Renters insurance doesn’t cover your belongings under every circumstance. For example, damages caused by flooding, earthquakes, pests, or sinkholes aren't covered under most renter’s insurance policies. Expensive items, such as electronics worth more thant $2,500, jewelry, and family heirlooms are typically not covered either. However, you can often purchase additional endorsements to cover specific items and additional perils.
How does renter's insurance work?
Renters insurance provides coverage for your lost, damaged, or stolen personal possessions. It also provides coverage for injuries to another person that might occur in your rented home or apartment. If you do not have renter’s insurance, you will probably have to pay for these costs out of pocket.
Is renter's insurance and landlord insurance the same?
Renters insurance covers the contents, or personal property, inside the dwelling that you rent, but not the building. Landlord insurance, on the other hand, covers the building and generally not the contents. Both renter’s insurance and landlord insurance will include liability coverage.
How do I choose the right renter's insurance?
Finding the right renter’s insurance for you will require some research. The first step is to get a good estimate of the value of your personal belongings. Then, consider whether you need to take on additional endorsements, such as pet insurance or earthquake insurance. Once you know what coverage you need, use the same specifications to compare the cost and features of at least three insurance companies.
The list of renters insurance companies listed above is a great place to start. You can also use SuperMoney's renter's insurance engine to compare renter's insurance companies.