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Whether you’re renting a studio apartment or an entire single-family home, renters insurance covers what your landlord’s policy does not. If a fire destroys your rented home, renters insurance could cover your personal belongings and valuables. If someone sues you for injuries on your property, renters insurance will make sure you’re covered.
The average renter’s insurance policy costs between $15 and $20 per month. You could get additional savings by bundling your renters insurance policy with car insurance or other types of insurance. Insider gathered data from several renters insurance companies based on customer service and premium prices where available. We base our sample quotes on data for two people renting a two-bedroom, one-bath, single-family with no pets in Philadelphia.
Best Renters Insurance Companies of 2023
Compare The Best Renters Insurance Companies
Our Methodology: How We Chose The Best Renters Insurance Companies
Customer satisfaction: We use
Financial stability ratings: We use AM Best to determine a provider’s financial strength. AM Best is a credit rating agency that assesses an insurance company’s ability to pay claims to its policyholders. A company that receives an A++ to B+ is stable in financial strength, while anything lower than a B means that a company is unstable or unable to meet its financial obligations.
Market share: The higher a company’s market share, the more popular it is among policyholders nationwide. We gathered data on market shares from the S&P Global Market Intelligence.
Average premiums: While lower home and renters insurance premiums do not mean quality insurance, we do our best to balance a policy’s cost with the value an insurer provides. A good premium is on par with or below the average cost of renters insurance which is $174 annually, according to the most recent data from the Insurance Information Institute.
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Renters Insurance Frequently Asked Questions:
What Does Renters Insurance Cover?
Your landlord might have an insurance policy on your rented home, but it probably won’t cover everything. For instance, your landlord’s policy won’t cover you or your things if anything happens to your building, or if you’re facing a lawsuit from someone hurt on your property. However, it does cover personal property, personal liability for renters. Some renters insurance companies even include things like your rental deposit.
How Much Is Renters Insurance?
Renters insurance is generally pretty affordable, and can sometimes be bundled with other policies for better rates. The average cost of renters insurance in the US is about $15 per month or $174 a year, according to 2019 data from the Insurance Information Institute. Premiums may vary based on zip code, any history of claims, and more.
How Can I Find The Best Cheap Renters Insurance?
Get the best price on your renters insurance policy by doing your research. You can do so by collecting quotes from at least three insurers. Then, look for quotes with the lowest monthly premium and the highest coverage limit. Also, consider your deductible or the amount you’ll be responsible for paying before your insurance coverage kicks in. The insurance policy with the most coverage, the smallest premiums, and the lowest deductible is probably the best for you.
Best for Cheap Renters Insurance
State Farm
The average annual premiums for renters insurance cost are $174, according to the Insurance Institute. However, costs may be lower with bundling discounts (if you bundle it with your auto or other insurance). Some apartment buildings also partner with specialty renters insurance companies, which offer more coverage and exclusive perks as long as you live in a certain building.
Read our State Farm insurance review here.
Best Overall
Lemonade
The average renters insurance, according to some reports, costs $174 annually or $14.50 per month. According to Insurify, Lemonade starts at $5 a month which is significantly more affordable than the national average. However, your renters insurance will be based on a number of factors like where you live.
Read our Lemonade insurance review here.
Best for Discounts
Erie
Erie’s renters insurance starts at $15 a month, slightly below the national average. However, your renters insurance will be based on several factors, like where you live.
Read our Erie Insurance review here.
Best for Seniors
Allstate
Insurify finds Allstate monthly premiums start at $15 monthly, which is on par with the national average. Allstate is known for its bundling and other discounts. So if you’re already a loyal Allstate company, you’ll probably find your most competitive rates here. Allstate’s personalized service with captive agents may also appeal to seniors.
Read our Allstate insurance review here.
Best for Business Professionals
Farmers
Read our Farmers Insurance review here.
Best for Military Members
USAA
If you’re in the military or a veteran,
Insurify states USAA is priced at $10 a month, significantly more affordable than the national average. However, as you may already know, USAA insurance coverage is limited to US military members, veterans, and their immediate families. Civilian renters are not eligible for its rock bottom pricing.
Read our USAA insurance review here.
Average Annual Premium for Renters Insurance by State
Like homeowners insurance and car insurance, the cost of renters insurance will vary by state. Where you live will play a significant role in the amount you pay in premiums.
Here’s the average annual premium for renters insurance by state, according to the Insurance Information Institute.
| State | Average annual premium |
| Alabama | $222 |
| Alaska | $175 |
| Arizona | $175 |
| Arkansas | $211 |
| California | $178 |
| Colorado | $164 |
| Connecticut | $188 |
| Delaware | $157 |
| District of Columbia | $157 |
| Florida | $185 |
| Georgia | $214 |
| Hawaii | $181 |
| Idaho | $152 |
| Illinois | $166 |
| Indiana | $172 |
| Iowa | $144 |
| Kansas | $172 |
| Kentucky | $166 |
| Louisiana | $234 |
| Maine | $149 |
| Maryland | $161 |
| Massachusetts | $191 |
| Michigan | $185 |
| Minnesota | $140 |
| Mississippi | $252 |
| Missouri | $179 |
| Montana | $147 |
| Nebraska | $149 |
| Nevada | $182 |
| New Hampshire | $148 |
| New Jersey | $160 |
| New Mexico | $186 |
| New York | $189 |
| North Carolina | $158 |
| North Dakota | $126 |
| Ohio | $169 |
| Oklahoma | $236 |
| Oregon | $161 |
| Pennsylvania | $157 |
| Rhode Island | $185 |
| South Carolina | $184 |
| South Dakota | $127 |
| Tennessee | $195 |
| Texas | $225 |
| Utah | $155 |
| Vermont | $153 |
| Virginia | $152 |
| Washington | $160 |
| West Virginia | $189 |
| Wisconsin | $143 |
| Wyoming | $146 |