Key to a home
House key (Photo by Tierra Mallorca on Unsplash)

Best Renters Insurance: Top 5 Companies Most Recommended By Experts

June 4, 2023Add a comment
by Anna Landry

Your home should be a place of comfort, peace, and security. Of course, there are plenty of things that go into making a house feel like a safe and comfortable home. From finding the right furniture to setting up your home security system, creating your ideal environment is part of the process of establishing a home. For homeowners, getting proper home insurance is a vital step in the moving process. But what you might not know is some of the best renters insurance makes for great coverage options for renters that will protect your living security and your belongings in case of an emergency.

Renting an apartment or home is a reality for many Americans, with research finding that 36 percent of households are renter-occupied. And while homeowners’ insurance is typically treated as a no-brainer, renter’s insurance is more often skipped by tenants. In fact, a 2020 survey found that 93 percent of homeowners have some kind of home insurance, compared to the meager 57 percent of renters with a renter’s insurance policy.

There are certainly advantages of renting over owning a home. And renters agree, with a recent survey listing reasons such as not worrying about property taxes (69%), having the flexibility to live anywhere (66%), and not worrying about repair bills (59%) as several of the bonuses that come with rental living. That being said, while landlords bear the responsibility for routine maintenance and repairs required for a property, what happens when the unpredictable strikes and a tenant’s personal property is damaged? Renters insurance provides an added sense of security for tenants caught in worst-case-scenarios like fire, water damage, and theft. And landlords concur, with a recent survey finding that 45% consider renters insurance to be a huge plus when considering a tenant.

So, where do renters go to find the best coverage, rates, and service? If you’ve got a move coming up or are just ready to add extra protection for your family and belongings in case of an emergency, it may feel difficult to know where to start. To help guide your search, StudyFinds has compiled a list of the very best renters insurance companies in the industry according to expert reviews. This list includes the most frequently recommended companies, but as always, be sure to let us know if you have a favorite we didn’t mention in the comments below! 

Wooden houses
Wooden houses (Photo by Tierra Mallorca on Unsplash)

The List: Best Renters Insurance, According to Experts

 

1. Nationwide

If you love DIY projects and have put a bit of elbow grease into your rental, you may have a vested interest in protecting your hard work. That’s where Nationwide renters insurance comes in with the unique option to cover the changes you’ve made to your home during your time as a tenant. “If you’ve made updates to your rental home, those would be covered by a standard renters policy from Nationwide. This would cover updates like installing new flooring, but wouldn’t necessarily apply to the structure of the building such as the outside walls,” explains US News. “For most renters insurance policies, the building itself isn’t covered. Among the optional coverages available are replacement cost valuation, water backup, and extra coverage for your valuables.”

“In addition to the basics, such as liability and personal property coverage, Nationwide’s standard renters insurance policies include credit card coverage and building addition/alteration coverage for no extra cost,” adds NerdWallet. “That means you’re covered for unauthorized charges on your credit and debit cards (up to your policy limit). Nationwide offers a basic slate of discounts for people who are claim-free, buy multiple policies or have smoke detectors and other protective devices installed in their homes.”

You can get creative with your insurance coverage at Nationwide. If you have specific items that you want to protect against potential damage, you can easily customize your policy for peace of mind. As MarketWatch explains, “in addition to comprehensive coverage options that protect you and your property, Nationwide excels at providing specialized protection for a wide variety of items. For example, you could guard against food spoilage during a power outage or the theft of watches, jewelry or furs. Other coverage categories include watercraft, money, credit cards, trailers and more.”

2. State Farm

Whether you know State Farm for its popular commercials or its insurance offerings, chances are that you’ve encountered the company many times before. The company has many popular insurance products, with quality and affordable renters insurance among them. “As the nation’s largest auto and homeowners insurer by market share, State Farm offers policyholders the peace of mind that comes from knowing they are doing business with a financially stable and reliable company,” notes Money. “This is especially true for anyone who has experienced the inconvenience of having their policy sold to another insurer after their company went bankrupt.”

“If you’re buying renters insurance to satisfy your landlord’s requirement or are simply shopping on a budget, State Farm might be for you. According to our cost data, it consistently offers cheaper premiums than many competitors. It also offers a wide range of deductible options, further allowing you to customize costs and insurance coverage,” notes MarketWatch. “However, State Farm’s low cost doesn’t signal low quality. The company offers comprehensive coverage for belongings, personal liability protection and medical payments, plus four endorsements to strengthen your policy if needed. Its expansive network of local insurance agents also provides a personal touch to your insurance dealings.”

As an added bonus, you can rest assured that your State Farm policy won’t ever break the bank. “State Farm is the least expensive insurer in our rating with a monthly premium of $13.04. This makes it more than $17 cheaper per month than the most expensive company in our rating,” explains US News. “Renters insurance policies with State Farm are also available with inflation coverage. This will automatically adjust your coverage limits to match inflation so that your level of coverage doesn’t effectively decrease over time.”

3. Lemonade

If you’d rather skip the hassle commonly associated with getting ahold of most insurance companies, Lemonade has the policy for you. This online company is full of easy-to-use features, including an AI chat bot to handle questions and assist with your account. As US News puts it, “Lemonade is an online insurance company. Interactions with the company will primarily take place through its app and website, including obtaining quotes and purchasing a policy. For those who want a streamlined application process they can complete from home, this can be a major plus.”

“If you’d prefer to buy and manage renters insurance with a few taps of a screen, Lemonade might be a good fit for you. The Lemonade experience revolves around its mobile app, where you can get quotes, file claims and update coverage options,” says NerdWallet. “Beyond the slick digital experience, Lemonade’s coverage is solid, with replacement cost coverage included for your belongings. You can add extra insurance for jewelry, musical instruments or other valuable items.”

Better yet, policy rates are incredibly low at Lemonade, making protection more accessible for renters of all budgets. “Users can sign up for a policy in just minutes — 90 seconds, according to Lemonade’s website — and get paid for a claim in just three minutes,” adds CNBC. “You can use the platform to get homeowners, car, pet and term life insurance, but as far as renter’s insurance goes, the platform offers affordable coverage starting at just $5 per month. Your monthly cost will depend on how much coverage you need.”

4. Erie

While Erie Insurance is only available in 12 states and Washington D.C., those who are lucky enough to have a policy know that they’re in good hands. Erie is well-regarded for its wide-reaching policies that protect against all kinds of emergencies. As Money explains, “Erie Insurance offers a comprehensive base renters insurance policy and several different ways to save through bundled policy, multiple policies, safety equipment, advanced quote and age-based discounts. Its base policy, the ErieSecure Tenant, includes worldwide personal property coverage and extended liability protection against claims of slander, discrimination and cyberbullying. This is in addition to the standard medical payments and living expenses coverages.”

If you happen to live within the coverage area, customer reviews tend to report positive experiences with Erie Insurance. As NerdWallet notes, “Pennsylvania-based Erie operates in 12 states and Washington, D.C., and it draws fewer consumer complaints than expected for a company of its size. You can save on your policy if you bundle multiple insurance types with Erie, or if you get a quote at least seven days before you want coverage to begin.”

“While Erie Insurance doesn’t offer as much in geographic range (available in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and Washington, D.C.), it does offer excellent customer service if you need to file a claim or have questions about your policy,” adds Investopedia. “Erie wins as the best for customer service because of the high amount of agents available to help answer questions and the company’s strong customer satisfaction score from J.D. Power for renters insurance.”

5. American Family

It’s always nice to hear a friendly voice on the other end of the phone, especially in stressful situations. And as it turns out, that is exactly the kind of customer service that sets American Family apart from its competition. “American Family is known for its outstanding customer service, providing policyholders 24/7 access to its support team. The company has very few complaints filed against it, suggesting current customers are satisfied with the level of support it offers,” boasts MarketWatch. “The company can connect renters with a local agent to handle concerns, and you can submit claims online through the customer portal for a simple, stress-free experience after a loss.”

 

For families looking to save a few dollars on their insurance policy, American Family has more options than you can typically expect. With plenty of bundle options, you may even be able to cut your insurance costs across the board. As NerdWallet explains, “the company offers a range of ways to save on your policy. These include both common options (a discount for having car and renters insurance with American Family) and unique ones (a generational discount for renters ages 18 to 30 whose parents are also insured with American Family).”

“American Family Insurance has a diminishing deductible that goes down for every year the renter renews their policy, making it an excellent choice for long-term renters,” adds Bob Vila. “American Family Insurance offers discounts up to 15 percent for bundling, making renters insurance more affordable for eligible policyholders. Tenants may also save on their out-of-pocket expenses by taking advantage of AmFam’s diminishing deductible. For every year a renter renews their policy, the deductible will go down, and policyholders can reduce their deductible by as much as $500 with this program.”

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Note: This article was not paid for nor sponsored. StudyFinds is not connected to nor partnered with any of the brands mentioned and receives no compensation for its recommendations. This article may contain affiliate links.

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