)
Also known as HO-4 insurance, renters insurance protects tenants and their personal belongings in case of covered events, like a fire. If you rent a house or apartment, your landlord or property manager may require you to buy renters insurance.
Generally, renters insurance policies provide personal property coverage, personal liability coverage, medical payments coverage, and loss of use coverage.1 Renters insurance is a relatively low-cost way to protect your belongings and financial well-being.
Here’s what you should know about renters insurance, how it works, and how to find cheap renters policies.
The cheapest renters insurance companies
Premiums for renters insurance can vary based on multiple rating factors, including by company. You can find some of the cheapest coverage through insurers such as Erie, American Family, and Travelers.
But as you look for a renters policy and explore your options, be sure to look beyond the cost. While affordable rates are important, so are other qualities, such as financial strength ratings, customer service, and available discounts.
The table below shows the cheapest renters insurance policies for $30,000 in property insurance and $100,000 in liability coverage.
Erie: Best for lowest rates
$14 per month
A regional insurer, Erie offers the cheapest renters insurance coverage, according to Insurify data. In addition to cheap premiums, the company has a few add-ons, like earthquake and home-sharing insurance. Plus, it advertises several discounts, such as a safety discount, an advanced quote discount, and a multi-policy discount. But Erie operates only in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and Washington, D.C.
State Farm: Best for local service
$18 per month
The largest U.S. property insurer by market share, State Farm employs local agents who can help you find the right renters policy for your unique needs, and it operates in most states. It also offers two optional add-ons, identity restoration protection and earthquake damage coverage. As long as you know basic information about your rental unit, you can get a quote online.
American Family: Best for optional coverage
$15 per month
American Family, another regional insurer, has a long list of renters policy add-ons, including equipment breakdown coverage, sewer protection, pet insurance, credit-monitoring coverage, travel protection, and more. You can also save money on a policy through its advertised discounts, such as the multi-policy discount, loyalty discount, paperless discount, and auto-pay discount.
Auto-Owners: Best for discounts
$18 per month
Auto-Owners advertises more discounts than other renters insurance companies. You can choose from a multi-policy discount, safety feature discount, student discount, green discount, and several others. In addition, you may work with a local insurance agent to learn more about your coverage options and get a renters insurance quote.
USAA: Best for military members
$18 per month
USAA provides renters insurance and other products to the military community. If you’re active-duty military, a veteran, or a qualifying family member, you can lock in affordable coverage. USAA offers a Technology Coverage Endorsement, which protects your electronics from common accidents. You can also score a discount if you live in military housing.
What does renters insurance cover and not cover?
Standard renters insurance usually provides coverage for the following:2
Even though renters coverage is fairly comprehensive, it doesn’t cover everything. It typically won’t pay for damage from:
Before you take out a renters policy, make sure you understand what it includes and what it doesn’t. This can help ensure you have quality coverage and reduce the risk of unwanted financial surprises down the road.
Average cost of renters insurance
The average cost of renters insurance in the U.S. is $19 per month for $30,000 in personal property coverage and $100,000 in liability coverage. It’s important to note that premiums vary by state. Factors like your location, the age and construction of the property, its proximity to fire protection, and the deductible you choose all affect the cost of your renters insurance policy.
Here’s a closer look at the monthly average cost of a renters policy by state. These rates are for $30,000 in personal property protection and $100,000 in personal liability insurance.
How to choose the best cheap renters insurance
These tips can help you zero in on affordable renters insurance coverage for your specific needs:
Understand your insurance needs. First, determine what type of coverage you need. Are you looking for a basic policy? Or do you prefer extra coverage with multiple add-ons?
Shop around. Get renters insurance quotes from at least three different companies. Then, compare premiums, coverage options, deductibles, and reputation. Be sure to prioritize coverage quality and reputation alongside cost.
Look for discounts. Fortunately, most insurers offer discounts that may lead to more competitive rates. You may save money on renters insurance with a multi-policy discount or a safety device discount, for example.3
Read customer reviews. Check out reputable third-party review sites, like the Better Business Bureau (BBB) and Trustpilot. Find out what current and former customers have to say about various renters insurance companies.