The best renters insurance of 2020

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The best renters insurance companies of 2020

If you're currently renting your home, renters insurance is coverage you should probably have — especially considering how little it costs. 

Business Insider compiled data from different renters insurance companies based on customer service and premium prices where available. From there, we determined the best. For sample quotes we entered data for two people renting a two-bedroom, one-bath, single-family with no pets in Philadelphia. 

Our top picks for the best renters insurance are below:

 Sample quoteCustomer rating*Available in all 50 states? 
1. State Farm renters insurance$15.678Yes
2. Lemonade renters insurance$16.841No, available in 28 states
3. Erie renters insuranceN/A2 
4. Allstate renters insurance$23.004Yes
5. Farmers renters insurance$21.836Yes
Best for military: USAA renters insuranceN/AN/AYes, only to military members and family

*J.D. Power Customer satisfaction 2020

Whether you're renting a studio apartment or an entire single-family home, renters insurance picks up where your landlord's insurance policy leaves off. If a fire destroys your rented home, your renters insurance could help to replace your belongings. Similarly, if someone hurts themselves in your rented home and sues you, this coverage could help. 

The average renters insurance policy costs between $15 and $20 per month, much cheaper than homeowners insurance. Renters insurance policies are available from a variety of insurers, and it might be smart to bundle it with car insurance or other types of insurance to get the best price on both policies. 

If you're searching for a new company for your renter's insurance policy, know that many factors can change the price you're quoted, including your credit score in some states, characteristics of the home you're renting, and even whether you have a dog. 

More on the best renters insurance companies of 2020

Here's some more detail on our winners:

1. State Farm renters insurance

Pros:

  • The biggest provider of renters insurance in the US
  • Nationwide coverage
  • Lowest monthly rate 
  • Ranked in top 10 for customer service

State Farm is the biggest provider of private renters insurance in the US. This company had some of the lowest renters insurance rates in Business Insider's sample scenario, with a policy for a typical home in Philadelphia costing less than $16 per month. 

State Farm's renters insurance is a solid starting plan, covering the basics of the items you own, your expenses if something happens to your rented home, and liability. 

Learn more about State Farm renters insurance »

2. Lemonade renters insurance

Pros: 

  • Easy online quoting and purchasing
  • Ranked #1 in customer satisfaction
  • B-corp status with corporate focus on giving back to charities chosen by customers

Cons:

  • Only available in 28 states
  • No bundling discounts — Lemonade only offers home and renters insurance

Lemonade offers renters insurance policy purchasing and quotes online with a very smooth and easy online experience. If you want to work with an agent, this probably isn't the company for you. But, for an easy and affordable renters insurance policy, Lemonade may be a good option. 

Learn more about Lemonade renters insurance »

3. Erie Insurance

Pros: 

  • Ranked No. 2 in customer satisfaction
  • Low-cost

Cons:

  • Only available in the Mid-Atlantic, North Central, and Southeast regions of the US
  • Online process includes speaking with an agent

If you want quick online quotes, this probably isn't the company for you. But it might be worth a phone call — if you live in one of the states it covers, Erie could offer competitive premiums and great customer service. 

Learn more about Erie renters insurance »

4. Allstate

Pros: 

  • Nationwide provider
  • Ranked in top 10 for customer service
  • Multi-policy discounts available

Cons:

  • Policies start at $20, which is higher than other companies' starting costs

Allstate has been around and offers coverage nationwide. In addition to renters insurance, it offers auto, life, homeowners, and business insurance. You may be eligible for discounts if you have other coverage with them.

Learn more about Allstate renters insurance »

5. Farmers renters insurance

Pros:

  • Good marks for customer satisfaction
  • Bundling discounts available

Cons:

  • Not the cheapest renters insurance

Farmers offers relatively affordable renters insurance policies. Though it took the fifth spot, a sample quote of $21.83 still means there are companies that charge more. 

With many other types of insurance policies, including car insurance, there are plenty of ways to bundle and get a discount. Policy add-ons like identity theft protection could also be helpful. 

Learn more about Farmers renters insurance »

Best for military: USAA renters insurance 

Pros:

  • High marks for customer satisfaction
  • Rated highly for other types of insurance, like car and homeowners

Cons:

  • Quotes not available online
  • Only available to military members and family

For military families or anyone eligible, USAA could be a good option as well. While quotes aren't available online, USAA consistently earns top marks for insurance coverage in other categories, including car insurance and homeowners insurance. If it's an option for you, a quote from USAA would be a good place to start your search. 

Learn more about USAA renters insurance »

The best renters insurance based on customer satisfaction

How much people like their renters insurance providers may factor into your decision. According to a J.D. Power survey, these are the top renters insurance companies in the US, based on customer rankings:

  1. Lemonade
  2. Erie
  3. Segment Average
  4. Allstate
  5. American Family
  6. Farmers
  7. Auto Club of Southern California
  8. State Farm
  9. ASI Progressive
  10. Nationwide
  11.  Liberty Mutual
  12. The Hartford
  13. Travelers
  14. CSAA

Average annual premium for renters insurance by state

Like homeowners insurance and car insurance, renters insurance can vary a lot by state. Where you live will play a big role in your quote, and each company will consider that differently. 

Here's the average annual premium for renters insurance by state, according to the Insurance Information Institute.

State Average annual premium
Alabama$235
Alaska$166
Arizona$178
Arkansas$212
California$182
Colorado$159
Connecticut$192
Delaware$159
District of Columbia$158
Florida$188
Georgia$219
Hawaii$185
Idaho$153
Illinois$167
Indiana$174
Iowa$144
Kansas$172
Kentucky$168
Louisiana$235
Maine$149
Maryland$161
Massachusetts$194
Michigan$182
Minnesota$140
Mississippi$258
Missouri$173
Montana$146
Nebraska$143
Nevada$178
New Hampshire$149
New Jersey$165
New Mexico$187
New York$194
North Carolina$157
North Dakota$120
Ohio$175
Oklahoma$236
Oregon$163
Pennsylvania$158
Rhode Island$182
South Carolina$188
South Dakota$123
Tennessee$199
Texas$232
Utah$151
Vermont$155
Virginia$152
Washington$163
West Virginia$188
Wisconsin$134
Wyoming$147

Frequently asked questions

How were the winners determined?

The best renters insurance company is one that offers the most coverage for the least amount of money, and also has a good reputation for customer service. 

Business Insider compiled data from different renters insurance companies based on customer service and premium prices where available. From there, we determined the top five. To find out how much policies typically cost, Business Insider obtained sample quotes for renters insurance for a two-bedroom, one-bath home with a smoke detector and no pets with two occupants in Philadelphia, Pennsylvania. 

Customer satisfaction was also considered as a factor, with almost all of the companies taking top spots for customer satisfaction in JD Power's renters insurance satisfaction survey. 

How much is renters insurance?

According to data from the Insurance Information Institute, the average renters insurance policy cost $180 per year in 2017, or about $15 per month. 

The amount you'll pay for renters insurance can vary based on several factors, including the location, type, and size of home you're renting, your credit score, and the amount of coverage you're looking for. Other things may also play a role in the price of your renters insurance, including whether you have a dog, and how many people live with you. 

Renters insurance is generally pretty affordable, and can sometimes be bundled with other policies for better rates. If you already have car insurance, it might pay to get a quote from your current insurer including renters insurance to see if it offers a discount. 

What does renters insurance cover?

Sure, your landlord has an insurance policy on your rented home. But, it probably 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. Renters insurance doesn't cover any structural damage that happens to your home, however. 

There are two main parts of coverage to a renters insurance policy: property coverage, and liability coverage. 

Property coverage

If a fire burns down your rented home, for example, your landlord's insurance policy will help to rebuild it. But, it won't help you, the tenant, replace or repair your items. That's what renters insurance is for. 

Renters insurance can help to replace or pay for property that you bring into the home if something unexpected happens to it, from fires to theft. If your items are stolen or damaged, you could get help with the cost of replacing those items from your renters insurance policy. 

Sometimes, renters insurance will also cover property left in vehicles, or other items that could be stolen. Some renters insurance policies also include identity theft protection. 

Liability protection

Liability protection from your renters insurance policy could help protect you if someone sues you over damage or an accident that happens on your property. Depending on your coverage, it could help cover you up to a certain dollar amount. 

How to find the best cheap renters insurance

To be sure that you're getting the best price for your renters insurance coverage, you'll want to shop around and get quotes from several different insurers. Compare the quotes, and look for the most coverage types and limits. Then, look for the lowest premiums that fit your budget. 

If you don't want to visit renters insurance sites individually, you can use a free tool like the one offered by Policygenius to compare quotes from multiple companies in one place. 

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