Top Renters Insurance Coverage: What You Need to Know

If you recently moved into a rental home, you might wonder whether you should purchase a renters insurance policy. Renters insurance covers your personal belongings if they get stolen, damaged, or lost in a covered incident, and it also protects you from liability claims. Many landlords require this coverage, though the law doesn’t mandate it.

It’s worth getting renters insurance even if you don’t have to, as it will prevent you from having to pay out of pocket if your belongings get damaged.

Wondering how to choose a business insurance provider? Below, we’ll discuss some of the top renters insurance coverage options, average renters insurance rates, and what a renters insurance policy covers.

Finding the Top Renters Insurance Coverage Providers

When shopping around for the best renters insurance provider, consider coverage options, customer service, financial stability, and personalized quotes. Finding an insurer that strikes a positive balance between these factors is critical to finding the best provider for you.

Below are some of the best renters insurance providers in the United States:

State Farm Renters Insurance

State Farm is the largest insurance company in the U.S. and offers well-rounded home renters insurance policies. For renters seeking complete protection, a standard State Farm renters insurance policy covers personal property, loss of use, liability, and medical payments. However, each company has pros and cons you should consider before purchasing coverage.

Consider the following pros before buying a renters policy with State Farm:

• Low complaint index score
• Financial stability
• Affordable rates
• Various additional coverage options

State Farm renters insurance also comes with the following cons:

• Not available in all U.S. states

Call State Farm and speak to a representative to find out if coverage is available in your state.

The National Association of Insurance Commissioners (NAIC) scores insurance providers based on the number of complaints they receive. The national average is 1.00 — State Farm has a score of 0.56, showing the company has a lower-than-average number of complaints compared to other companies of the same size. A.M. Best scores companies based on their financial stability, and State Farm received a score of A or excellent.

In addition to the standard renters coverage options, there are add-on coverages available. However, some of them will increase your insurance rates, so make sure you only get the coverage you need. Other coverages you can add to your renters policy include:

• Replacement cost coverage: With State Farm’s replacement cost coverage, you’ll get a check for the current market value of your personal belongings rather than their actual cash value.
• Business property coverage: Business property coverage will pay to replace any lost, stolen, or damaged merchandise if you own a business.
• Sewer or drain backup: A standard renters insurance policy with State Farm won’t cover you if your sewer or drain backs up, you will need to purchase this add-on coverage.
• Earthquake coverage: Renters insurance won’t pay if you incur earthquake damage. So if your area is prone to earthquakes, consider adding this coverage option.

Depending on your location, the above coverages may be included in your State Farm renters insurance policy, but you should call a company representative to check. As you can see, State Farm has a lot of benefits when it comes to renters insurance.

You can also get other insurance coverage from State Farm. Learn more at our State Farm home insurance review.

Allstate Renters Insurance

Also one of the largest insurers in the nation, Allstate offers various coverage options coupled with a generous discount selection to maximize savings for renters insurance. With Allstate’s renters insurance, you have coverage for personal property, loss of use, liability, and medical payments.

However, before you call a representative and get coverage, review the following pros of Allstate renters insurance:

• Numerous discount opportunities for renters
• Available in all U.S. states and Washington, D.C.
• Lower-than-average rates
• Low NAIC complaint index score

You should also consider the drawbacks of an Allstate renters insurance policy, such as:

• Lower-than-average customer satisfaction index in J.D. Power’s 2022 home insurance study

According to the NAIC, Allstate carries a 0.66 complaint index score, indicating that it receives fewer-than-average complaints relative to companies of a similar size. The company also has an A+ score from A.M. Best. However, a recent study from J.D. Power shows Allstate’s customer satisfaction score was lower than the average.

Like State Farm, Allstate offers various add-on coverages for renters, including:

• Scheduled personal property: This coverage pays to replace expensive items like jewelry or electronics, which may not be covered in a standard policy.
• Identity theft: Allstate will cover lost wages, legal expenses, and other costs if your identity is stolen.
• Replacement cost coverage: You’ll receive a payout for the replacement value of your belongings if they’re stolen or damaged. With a standard policy, Allstate only pays you the value minus depreciation.

If you prefer an individual experience, you can work with Allstate’s network of agents to find the renters coverage you need. Speak with a company representative to get a quote and learn about coverage options.

Allstate has lots of insurance options to meet your needs. Learn about Allstate home insurance.

Erie Renters Insurance

If the company sells insurance in your area, Erie is a great choice for renters looking for extra protection against the unknown. You can get the standard renters insurance coverage options you need to satisfy your landlord’s requirements, like personal property, loss of use, liability, and medical payments.

So, what are some of the pros of a renters insurance policy with Erie? Check out the list below to see why an Erie policy may be beneficial for you:

• Several coverage options
• Good financial stability and complaint index scores
• Affordable rates

You should also consider the following cons before you buy an Erie renters insurance policy:

• Only available in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and Washington, D.C.
• No online claims filing

Erie has a very low NAIC complaint index score of 0.09, which shows the company can effectively handle its customer complaints. You won’t need to worry about whether the company can pay out its claims since it carries an A+ score from A.M. Best.

If you’re looking to increase the value of your renters insurance policy, consider the following add-on coverages with Erie:

• Sewer and drain backup: This Erie add-on covers damages resulting from a backup of water into your home.
• Scheduled personal property: Scheduled personal property coverage with Erie pays for expensive belongings like jewelry or sports equipment.
• Cyber protection: Erie’s cyber event protection helps with identity and data recovery after an attack.
• Identity theft: You can get help from Erie’s identity theft protection if your identity is stolen.
• Home-sharing: If you rent your home on services like Airbnb or Vrbo, Erie’s home-sharing add-on covers liability and belongings if a renter damages them.

Always compare renters insurance quotes and coverage options before deciding on a company, Erie included. While Erie might sound like a good option, a different company might offer better rates or add-ons for your unique needs.

Erie provides many types of insurance to customers. Learn about their home insurance option by visiting our Erie home insurance review.

Lemonade Renters Insurance

Founded in 2015, Lemonade is new to the insurance industry but offers good renters insurance coverage for personal property, loss of use, liability, and medical payments like most renters insurance providers.

With Lemonade, your renters policy will always pay out the amount you need to buy new replacements — most companies require you to purchase this coverage, making it a unique perk for Lemonade policyholders.

Consider the pros of a Lemonade renters policy below:

• Some claims get paid out instantly
• Brand-new replacement of damaged or stolen belongings

You should also look at the following cons before you buy a renters insurance policy with Lemonade:

• Higher-than-average customer complaints
• Not available in Alabama, Alaska, Delaware, Hawaii, Idaho, Kansas, Kentucky, Louisiana, Maine, Minnesota, Mississippi, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, South Carolina, South Dakota, Utah, Vermont, West Virginia, and Wyoming

While Lemonade offers the coverage renters need, customers who want an insurance provider with solid customer service and financial stability might be better off looking elsewhere. According to the NAIC, Lemonade has a complaint index score of 2.90, almost three times higher than the national average. In addition, A.M. Best doesn’t have a rating for the company.

If you want additional protection with your Lemonade renters policy, you can get water backup coverage, equipment breakdown coverage, and coverage for your valuables like jewelry, electronics, and more.

If you decide Lemonade renters insurance is right for you, visit the company’s website or speak with a representative to get a quote.

Read more: Lemonade Insurance Company Review

USAA Renters Insurance

Since 1922, USAA has offered competitive insurance rates for active duty military and veterans, and the company’s renters insurance is no exception. You can get the standard renters coverages with USAA, including personal property, loss of use, liability, and medical payments.

Though most renters policies only cover fire damage and theft, your USAA renters insurance also covers damage from flooding or earthquakes, a coverage most other insurers charge extra for.

Before you buy a USAA renters policy, consider the following pros:

• Flood and earthquake coverage included
• Few customer complaints
• Competitive rates

However, while USAA has plenty of pros, you should also consider some of the company’s cons:

• Only available to veterans, active military personnel, and their families

Alongside its typical renters coverages, you can also add extra protection on your policy, like USAA’s coverage for electronics and valuable personal property, like jewelry or guns. Learn more about USAA renters insurance coverage here.

How to Get the Cheapest Renters Insurance Rates

Some companies offer more affordable rates than others, making it vital to compare average rates by company. Also, multiple factors influence your renters insurance rates, and rental insurance companies weigh these factors differently.

Below is a list of factors affecting the cost of renters insurance:

• Property value: The higher your property’s value, the more you’ll pay for renters insurance.
• Location: You’ll pay higher rates if your rental property is in an area with high crime rates or an increased risk of natural disasters.
• Coverage choices: The type and amount of coverage you choose affects your renters insurance rates.
• Deductible amount: A deductible is what you pay before an insurance company pays out your claim. You’ll pay higher rates if you choose a lower deductible.
• Credit score: Since some insurers consider credit score when setting rates, your renters insurance may be higher if you have poor credit.
• Claims history: Insurance companies view policyholders with extensive claims filing history as high risk. So, if you’ve filed a lot of claims, expect to pay higher renters insurance rates.
• Choice of insurance provider: Since rates vary by insurer, the provider you choose affects the cost of renters insurance.

While average rates give you an idea of what you might pay, you should get a quote to know for sure since renters insurance companies consider individual factors when setting prices.

Read More:

• ePremium Renters Insurance Review
• Roost Renters Insurance Review

How to Find the Best Renters Insurance Policy

Most standard renters insurance policies include the following coverages:

• Personal property: If belongings like furniture, electronics, or clothing get damaged or stolen, this coverage pays to replace them.
• Loss of use: Loss of use covers hotel rooms, meals, and other expenses if you have to relocate while your home is repaired after a covered claim.
• Liability: With liability, you’re covered if a person is injured or their property is damaged while they’re in your home.
• Medical payments: Medical payments covers any injuries in your rental, regardless of fault.

While you can enjoy the above coverages with most renters insurance policies, there are many incidents your policy generally won’t cover, like the following:

• Intentional damage
• Earthquakes
• Floods
• Damage from other natural disasters

On the other hand, if you’re dealing with issues like a pest infestation or lack of repairs, you should speak with your landlord. Otherwise, you might be wondering how to get your landlord in trouble for failing to maintain their rental property.

Before you purchase coverage, you should always speak with a company representative to know what’s covered and what isn’t.

The Bottom Line on Top Renters Insurance Coverage

You should consider getting a policy with one of the top renters insurance providers if you live in a rental home requiring coverage or if you simply want extra protection.

Either way, compare quotes, coverage options, and company ratings with various providers to find the best rental insurance for your needs. If you choose the first company you see, you may end up overpaying for your renters insurance.