Renters Insurance Coverage: An Expert Guide (2024)

Renters insurance provides different coverage than home insurance coverage. It provides tenants with coverage and protection from loss or damage of personal belongings due to fire, theft, water damage, and other perils. It also covers liability for injury to others or their property.

When shopping for good renters insurance coverage, look for companies that offer comprehensive coverage, competitive prices, and excellent customer service. In addition, make sure your chosen company is reliable, provides good customer service, and is financially stable. 

Continue reading to find out the best and cheapest renters insurance companies and how to choose the best insurance for renters.

What does renters insurance cover?

Renters insurance typically provides four types of coverage:

• Personal property: This covers the cost of replacing your personal items if they are lost, stolen, or damaged.
• Liability: This provides coverage for legal action taken against you due to injury or damage to someone else’s property caused by you.
• Additional living expenses: This covers tenants’ additional living expenses when they temporarily relocate due to covered losses.
• Medical payments: This helps cover medical expenses incurred by visitors injured in your rental unit.

Renters insurance will not cover damages to permanent fixtures, your car, or any outdoor property.

Best Renters Insurance Companies

Here are our top picks for the best rental insurance companies:

Lemonade – Best Renters Insurance Overall

Lemonade renters insurance is one of the best options for a renter. Starting at just $5 a month, it’s affordable and customizable. The policy covers damage caused by fire, vandalism, and the harm you might inadvertently cause others.

Unfortunately, it doesn’t protect against natural disasters like flooding or power outages, belongings owned by your roommates, or pest control damage. But Lemonade stands out because its mobile app gives easy access to prices, claims, and coverage options.

There are many great benefits to using Lemonade renters insurance:

• It has a simple sign-up procedure.
• Lemonade offers reasonable monthly payments.
• 30% of all claims get settled instantly.
• A portion of your premiums gets donated to charities of your choice.

Lemonade renters insurance can be an excellent option for some, but a few cons are worth considering.

• The National Association of Insurance Commissioners has reported that Lemonade receives more consumer complaints for its size.
• Lemonade is only accessible to renters in 29 states, so drivers outside those states can’t get Lemonade coverage.

Read our Lemonade Insurance review to learn more.

Progressive – Best Renters Insurance for Discounts

Progressive is a top renters insurance. Their policy plans are budget-friendly and comprehensive at less than $1 per day. In addition, you get protection for personal property damage or loss, accidental harm caused to another person or damage to their property, loss of use of your rental, and injury to another person in your rental space.

While high-value items like jewelry may not be covered under the standard policy, supplementary coverage can provide additional protection.

Progressive renters insurance offers plenty of benefits, making it an attractive choice for those seeking property coverage.

• You can unlock discounts with Progressive by requesting a quote ahead of time, paying in full, combining other insurance policies with them, or even living within a gated community.
• HomeShield products provide bonuses like enhanced coverage across your property and improved home computer coverage.
• Progressive also offers coverage for personal injury in the case of libel or slander accusations.

All this, plus the very few complaints about their service, make them a standout company. However, while Progressive renters insurance provides coverage for a variety of potential incidents, it’s important to note that:

• The quote you get may be more expensive than what other top firms might offer.
• You need to add coverage like water backup and damage separately, even though competitors include these in their policies.

So if you’re a renter looking to obtain insurance, it’s worth comparing several companies before you decide.

Nationwide – Best Insurance for Renters With Low Credit Scores

With plans starting at just $20 per month, you can be sure you’re getting a great price on your premiums. In addition, the policy covers all the essentials, including personal property damage or loss, loss of use, personal liability, medical payments to others, building additions and alterations, and even credit card coverage for illegal purchases.

However, the basic policy doesn’t include high-value items like water backup or earthquakes. Fortunately, supplemental coverage is available for those situations.

Nationwide Renters Insurance has a lot of excellent pros. 

• It covers you for damage to your belongings and things like unauthorized credit card transactions, forged checks, and counterfeit money. 
• You’ll get a premium discount if you install a fire or burglar alarm system on your rental property. 
• With low starting rates, you can get $50,000 of personal property coverage and coverage on $15,000 or $30,000 of property.

Nationwide is worth considering if you’re shopping for renters insurance that delivers value. Though, just like other companies, Nationwide has a few drawbacks. 

• They offer fewer discounts compared to other rental insurance companies.
• The minimum cost of Nationwide is slightly higher than competing insurers.

Even so, after considering all your options and researching benefits and reviews, Nationwide is still worth a look. Visit our Nationwide insurance review to learn more.

Cheapest Renters Insurance Companies

Cost is one of the most important factors to consider when shopping for good renters insurance. While price should not be your only factor, keeping your budget in mind is still important.

Here are some of the most affordable renters insurance companies:

Allstate Renters Insurance Coverage

Home renters insurance shouldn’t break the bank, which is why Allstate renters insurance stands out. 

For an average cost of $10 per month, Allstate provides all the essential coverage you need — property coverage for your possessions, guest medical coverage in case of accidents involving guests in your home, and family liability coverage to help protect your finances in case of a lawsuit. 

You can even save money by bundling insurance policies such as your renters’ insurance with auto insurance through Allstate — this discount could lower your monthly rate to as little as $4.

Read our Allstate home insurance review to learn more.

State Farm Renters Insurance Coverage

If you are looking for the cheapest renters insurance, State Farm Renters Insurance is an excellent choice. It has an average monthly cost of just $11 and offers coverage for more valuable items and possessions, such as jewelry and commercial property. 

Inflation coverage comes with many plans for those worried about their coverage levels decreasing over time, and it automatically adjusts to keep your limits current.

Average Cost of Renters Insurance Coverage by State

Where you live will have an impact on your renters insurance costs. In some states, the average cost of renters insurance is much higher than in others.

We want to point out that these averages are a general guide and that your rates may be more or less depending on other factors, such as the coverage limits you choose.

Factors That Can Affect Renters Insurance Rates

Apartment renters should consider the factors that can affect their renters insurance rates. Apartment insurance often provides a range of coverage, such as property protection and liability, so it’s crucial to consider the type of coverage you’d like and your insurer’s offerings. Here are a few things that can affect your renters’ insurance rate:

• Deductible: Your deductible is the amount you agree to pay out-of-pocket if you need to file a claim on your policy. The higher your deductible is, the lower your premium will be because the insurer assumes that they won’t have to pay as much out if there is an incident.
• Coverage limits: The amount of coverage you opt for will play a major role in the rate. The more coverage you want, the higher the premium will be. For example, if you choose a renters insurance policy with $50,000 of property coverage, your monthly premium will be higher than if you choose one with only $25,000.
• Where you live: Your location can also play a part in determining what kind of rate you will pay for renters insurance. For example, some areas may be more prone to natural disasters, like floods or earthquakes, than others, which can drive up premiums.
• Coverage type: The coverage type selected will also affect the rate offered on a renters insurance policy. For example, as mentioned earlier, most policies cover personal property and liability protection in case someone gets injured while visiting.

Still, some policies may include additional coverages, such as identity theft protection or replacement cost value, instead of actual cash value, which considers depreciation.

How to Save Money on Renters Insurance Coverage

One of the best ways to get a good deal is by combining, or bundling, your renters insurance with another type of insurance you may already have, such as car insurance. 

Shopping around is also an effective way to try and get a better rate from different companies since rates vary from insurer to insurer. 

Renters insurance perks can vary as well, such as having your rate not increase when you add additional roommates or even after a claim. As an example, see our eRenterPlan renters insurance review.

Lastly, consider increasing your deductible and lowering your coverage limits – the less coverage you have, the lower your premium may be. While this may seem counterintuitive, it can be an excellent strategy for savvier renters who understand their risks and are unwilling to take them.

What doesn’t renters insurance cover?

While renters insurance can be a great way to protect your property and assets, it’s important to remember that some items aren’t covered. These items include:

• Structural damage to the rental unit itself 
• Damages caused by normal wear and tear 
• Damages due to intentional acts
• Pest infestations
• Damage caused by floods and earthquakes
• Roommate property

Discussing the specifics of your policy with your insurance company is always a good idea to ensure you’re fully covered.

How to Choose the Best Renters Insurance Coverage

Here’s how to choose the best renters insurance plan:

• Compare different companies and their policies.
• Ensure the company has an excellent reputation and is known for providing reliable coverage.
• Take note of how much coverage they offer and any special features available, such as protection against natural disasters or identity theft.
• Consider what type of protection you need.
• Check to see if there are any deductions you may qualify for and make sure the cost fits into your budget.

Once you’ve found the best policy, purchasing it can be done through most companies’ websites in just a few simple steps. 

Read more: Renting vs. Buying: Is it Better to Rent or to Own a Home?

Renters Insurance Case Studies: Protecting Tenants and Their Belongings

Case Study 1: Apartment Fire

Emily is a tenant renting an apartment in a multi-unit building. One night, a fire breaks out in another unit, causing significant damage to the building and destroying Emily’s personal belongings. Fortunately, Emily had renters insurance that covered her personal property against fire damage.

She filed a claim with her insurance company and was able to receive reimbursement for the cost of her damaged belongings. This allowed Emily to replace her lost items and start rebuilding her life without incurring a substantial financial burden.

Case Study 2: Theft

Mark is a student living in a rented house off-campus. While he was away on a weekend trip, his house was burglarized, and several valuable items, including his laptop and gaming console, were stolen. Mark had renters insurance that covered theft, and he promptly filed a claim with his insurance company.

Thanks to his policy, Mark was able to receive compensation for the stolen items, allowing him to replace them and continue his studies without the added financial stress.

Case Study 3: Water Damage

Sarah is a renter living in a ground-floor apartment. After heavy rainfall, a pipe burst in the building, causing significant water damage to Sarah’s unit and her belongings. Sarah had renters insurance that included coverage for water damage. She quickly contacted her insurance company and filed a claim.

The insurance company covered the cost of repairing the water damage to her apartment and replaced her damaged belongings, helping Sarah recover from the incident without incurring substantial financial losses.

The Bottom Line on Finding the Best Renters Insurance Coverage

Everyone who rents a home or apartment needs renters’ insurance. It can protect against accidents, incidents, and unexpected events while living in a rental property. When selecting a renters insurance policy, there are several things to consider, such as coverage limits, where you live, the type of coverage, and the cost.

Additionally, it’s good to understand what your policy does and does not cover. You can find an insurance policy that fits your needs and budget by researching and shopping around.