Live in a rental home or apartment? You might be leaving yourself financially liable for replacing the things you own if you suffer a break-in, fire renter’s or another disaster if you don’t have affordable or cheap renters insurance.
Luckily, it’s never been easier to protect your home with an affordable renters insurance policy. Use our tips and tricks to research options near you and consider a quote from one of our favorite cheap renter’s insurance providers.
Explore Renters Insurance
Tip: compare 2-3 quotes
Best Cheap Renters Insurance:
- Best Overall Renters Insurance: Progressive
- Cheapest Renters Insurance: Lemonade
- Best for Bundling: Allstate
What Renters Insurance Covers
Renters insurance covers the cost of replacing or repairing things that you own inside an apartment, home or condo that you rent. As a general rule, renter’s insurance only offers coverage for your personal property — things like clothing, musical instruments, furniture, etc.
Anything else you don’t own (like fixed-in-place furniture and major appliances) is covered under homeowners or landlord insurance. Your policy will list a set of named “perils” you’re protected under.
Most renters policies also include liability coverage. Liability coverage protects you in the event that someone injures themselves inside of your home and sues you. In most cases, liability insurance will cover you for both legal representation and court-awarded medical bills.
6 Tips for Choosing a Renters Insurance Policy
Here are a few tips for choosing a renters insurance policy.
Tip 1: Read all Covered Perils
Every renters insurance policy will include a list of covered perils. When you shop for affordable insurance, you might come across policies that cut perils in favor of lowering your premium’s price tag. Don’t choose any policy until you read and understand what is and isn’t covered. 1
Tip 2: Get Several Quotes
Just like with auto and homeowners insurance companies, every renters insurance company uses its own formula to determine how much you’ll pay for renters insurance. It’s possible to get the exact same policy from 10 different companies at 10 totally different price points. Don’t be afraid to shop around when you compare renters insurance policies — you might be able to save hundreds of dollars a year just by getting another quote.
Tip 3: Get a Rider
(You might have an expensive item in your home that needs a little extra protection — think your spouse’s engagement ring or your signed guitar.) However, most insurance policies include a limitation on how much money you can get back for a single item that’s lost or damaged. For example, your policy may include $10,000 worth of coverage, but it may also have a clause that says you can only use up to $1,000 on jewelry coverage.
A rider is a renters insurance add-on that extends your line of coverage to totally cover more valuable items. It’s a good idea to get a rider on anything you own that’s very expensive or difficult to replace.
Tip 4: Save More With a Higher Deductible
Your deductible is the amount you have to pay after damages before your insurance “kicks in” and starts providing coverage. You’ll pay more for your monthly premium if you have a plan with a low deductible. If you choose a plan with a higher deductible, you take on more of the charges if you need to file a claim, so your monthly premium will be lower.
Consider choosing one with a higher deductible if you’re looking to get a renter’s insurance policy on a budget.
Tip 5: Bundle Your Renters Insurance
Already have auto insurance, life insurance or business insurance? There are policies out there to cover almost everything. Chances are, your renters insurance policy isn’t the only type of insurance you have in your household. Most insurance companies offer multiple types of insurance and offer bundling discounts to encourage repeat customers to stick around.
If you already have some kind of insurance, contact your insurer and request a quote. Be sure to remind the agent that you have a current policy and that you’d like to bundle them together. Compare this quote with other low-cost renters insurance picks.
Tip 6: Choose a Good Company
Choosing a reliable and well-reviewed renters insurance company will give you better protection than springing for a cheaper but more questionable company. If you’re not sure where to start your search, consider one of our favorite cheap renters insurance policy providers listed below.
What to Look for in a Company
Unfortunately, not every renters insurance provider is of equal quality. Look for these essential features while you shop.
Lots of discount opportunities. Consider choosing a policy provider that offers multiple discount opportunities. From investing in a home security system to opting for email statements to enabling automatic bill pay, the best insurance companies offer plenty of ways to lower your bill.
Clear policy inclusions and exclusions. The best renters insurance policy providers aren’t shy about telling you exactly what is and isn’t covered under your policy. Look for a provider who makes it easy to understand the multiple types of coverage and perils.
Coverage for temporary living expenses. If your home is deemed unlivable, where will you stay? The best renters insurance policies go beyond just replacing your things — they also provide coverage for the costs of everyday life while you recover from your loss and have your home repaired.
The Best Cheap Renters Insurance Companies
Based on the criteria above, we picked the best 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.
Don’t Leave Yourself Vulnerable
Many renters skip renters insurance because they think that they don’t need it or they can’t afford it. But the average renter only pays about $15 for renters insurance per month, according to data from the National Association of Insurance Commissioners. Compare that to the cost of a lawsuit if someone is injured inside of your apartment or the cost of replacing all of your stuff after a fire.
It doesn’t hurt to make a few calls and collect some quotes — you never know how little you might be able to pay for thousands of dollars’ worth of coverage.
Frequently Asked Questions
1) Q: How long will it take for my homeowners insurance claim to be processed?
It depends on the company, but you can expect an initial response between 24 and 48 hours.
2) Q: What can I do to ensure that my home is properly covered?
The most important thing you can do is have a conversation with your agent or carrier to be sure you have the right amount of coverage. Avoid putting just the minimum coverage on your home: Remember, if your home is destroyed, you need to have enough coverage to rebuild the entire home, so you’ll want to insure it for more than just the market value. Also, notify your insurer of renovations or changes that you make to your home — and don’t forget to check to be sure you have enough liability coverage. Get the best quote today from our top providers.
3) Q: If I drop my computer, will home insurance cover the cost of replacement?
Home insurance policies usually cover personal property for a specific list of risks, called named perils. These perils might include fire, theft, burst pipes, and more, but dropping your laptop or TV or spilling soda on your new game console isn’t covered. See the best home insurance providers for a custom quote.