Taking Benzinga ratings into account, as well as customer reviews we have narrowed the field down to 3 companies that ranked for the best renter’s insurance companies. We will go over each one and provide you with the information on what their basic renter’s policy covers, the premium you would expect to pay, and what and if there are additional coverages you could add-on to your policy to help you gain a greater level of coverage.
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Renters Insurance Coverage Explained
Most renters insurance policies include 3 types of coverage:
- Personal property: Personal property coverage pays to repair or replace your personal belongings after a covered peril up to your coverage limit. Clothing, furniture, electronics and other types of personal items are included in this coverage. Personal property coverage doesn’t include coverage for vehicles you own — you’ll need comprehensive car insurance for that.
- Personal liability: Personal liability coverage pays for legal representation and court-ordered judgments if someone is injured on your property up to your policy limit. Your personal liability insurance may also cover you if you accidentally break or damage someone else’s property in your home.
- Additional living expenses: Let’s say your home gets damaged and it’s deemed unlivable. Additional living expenses cover the costs of finding a new place to stay while your space is being repaired. Hotel bills, transportation expenses and bills for meals normally cooked at home are the most common expenses covered by this type of protection.
Be Detailed With Your Renters Insurance
Just like home insurance policies are stingy about providing coverage for damage following a flood, renters insurance policies can have limitations on the events in which they will provide coverage. Many renters policies exclude pets and vehicles from their coverage, and some policies will exclude certain types of preventable damage like bed bug infestations.
Exclusions and coverage limitations are two of the reasons why it’s so important to thoroughly read every clause in your insurance policy before you sign so you can be sure that everything you think is protected is actually covered. There’s nothing worse than finding out that your policy doesn’t have enough coverage after a fire has decimated your apartment’s furniture or a thief has made off with your electronics.
The Best Rental Property Insurance Companies
Based on the criteria above, we picked the best and most affordable renters insurance companies.
Renters insurance policies from Progressive offer you comprehensive protection.
Under a Progressive policy, you get personal property coverage, liability coverage and also reimbursement for living expenses if your home or apartment is severely damaged.
Policies from Progressive are easy to understand and its website makes it clear what is and isn’t included with your coverage.
Additional policy options include water damage and personal injury protection. The average cost of renters insurance from Progressive is between $13 and $35 per month, which makes it an exceptionally affordable choice.
Progressive offers a great selection of policies available throughout the United States suitable for most renters’ budgets and needs. The insurance powerhouse also offers a wide range of discounts. Because Progressive offers over 30 insurance types, you’ll probably find some way to take advantage of its bundling discount.
You can also get a discount when you pay your policy in full, opt to receive documents via email or get a quote at least 3 days before you need it to go into effect. Progressive is our top choice for renters who don’t want to sacrifice quality for cost.
Lemonade is an innovative and engaging new insurance provider that offers some of the most affordable policies on the market. The company uses a new peer-to-peer insurance model.
It works like this: At the beginning of the month, everyone signed onto Lemonade pays a premium. Over the course of the month, Lemonade takes money out of the “pot” to cover insurance claims and administrative costs.
Lemonade also takes a small percentage of money out every month to hold in reserve in case the next month’s claims override the amount of money brought in by premiums.
At the end of the month, anything leftover is donated to charity. It’s a unique model that does away with the incentive most insurance companies have to pay out as little as possible in claims to maximize profits.
Renters can get insurance for as little as $5 a month, making Lemonade by far one of the cheapest ways for renters to protect themselves. Lemonade earned a Financial Stability Rating of A-Exceptional from Demotech Inc. Though Lemonade is currently only available in 19 states, the company’s model is rapidly expanding.
Lemonade’s sign up and
Digital, socially responsible and exceptionally affordable, Lemonade is a top
Allstate provides a standard bundling discount and discounts for adding a burglar alarm, signing up for automatic bill pay, staying claims-free and reaching retirement age.
If you already have an auto insurance policy from Allstate, you can get coverage for as little as $4 a month, which makes its auto bundling discount the best choice for renters. You can also adjust your deductible to pay even less per month.
Allstate’s policies are affordable and include many types of coverage that some competitors consider add-ons. For example, Allstate renters insurance plans include reimbursement for living expenses and guest medical insurance as standard coverage.
Add-ons from Allstate include flood protection, personal umbrella policies that boost your coverage in the event of a lawsuit and even identity theft protection.
It’s difficult to say exactly what you can expect to pay for renters insurance because each individual coverage provider uses its own unique formula to determine your premium.
For example, some insurers like State Farm do not ask about the breed of your dog when calculating your premium, some insurers only forbid coverage if you have a certain breed of dog and other insurers will refuse to insure you altogether if you own one of their restricted breeds.
Other factors like credit score, where you live and your claims history also each play a unique factor in each company’s premium formula. Before you commit to an insurance provider, get as many quotes as possible to make sure you’re not overpaying for coverage.