6 Best Insurance Providers for Renters

0

Gary Denham / Flickr.com

You want to protect your belongings in a rental property against theft, loss or destruction, and a tenant insurance policy is the solution. Whether you rent a house or apartment or live in a dorm on a college campus, finding affordable coverage at a reasonable price can be difficult. Renters insurance may seem like just another rental expense, but it can save you money in the long run.

This article compares six insurance companies to help you choose the right one for you.

Why take out tenant insurance?

Imagine coming home after a nice dinner to find that your apartment has been broken into. Everything is a mess, and your television, laptop, and grandmother’s silverware have been stolen.

Or what if you’re having a party and one of your guests gets hurt while visiting your house? If a lawsuit arises and you need to cover medical expenses, it is expensive without insurance coverage.

If you obtain a tenant’s insurance policy before any of these scenarios occur, you and your personal property will be covered in the event of damage, theft or injury to the property.

According to a 2018 survey by global renters insurance provider Assurant, nearly 45% of respondents said they had no renters insurance protection. This is a surprising statistic given the relative affordability of renters insurance.

The Insurance Information Institute reported that in 2018 renters paid an average of about $179 per year for comprehensive renters insurance coverage.

Understanding Renters Insurance

Renters insurance is a type of property insurance that covers the tenant’s personal property in the event of a claim. Renters insurance provides policyholders with financial protection that can replace their belongings such as clothing, furniture, and other valuables in the event of damage, fire, theft, and other liabilities.

There are generally three general types of tenant insurance that provide financial protection for your belongings if your apartment catches fire or is broken into:

Do you really need tenant insurance?

By law, as a tenant, you are not required to carry tenant insurance to protect your liability and personal belongings. However, landlords or landlords may legally require you to carry tenant insurance as a condition of your rental agreement.

Still not sure?

If you are still unsure whether or not you should take out rental insurance, ask yourself these questions:

  • What if I become legally liable for damage to the property I rent?
  • How much are my personal effects worth?
  • What would I do if someone was hurt in my apartment and took legal action against me?
  • If my belongings were destroyed in a fire, would I be financially able to replace them?

Even if you’re not required to purchase tenant’s insurance, you may not want to dismiss the idea completely. You may qualify for tenant insurance if you rent a house, apartment, or even a room in any type of domestic dwelling.

Best Renters Insurance Providers

We’ve compiled data from different renters insurance companies based on price and rating on AM Best’s Insurance Rating Scale. AM Best is one of many trusted companies that rate the financial strength of insurance companies. From the data, we evaluated, compared and chose six of the best tenant insurers.

The following table shows a quick comparison of the top six tenant insurance companies and our top picks in terms of average monthly cost and financial rating from AM Best. This rating can help you determine which renters insurance company is right for you.

Renters insurance provider Example of average cost per month AM Highest rating
Geico $12 A++
Liberty Mutual $15 A
state farm $16 A++
progressive $19 A+
At national scale $20 A+
Farmers $22 A+

Cost-value comparison

For sample monthly quotes, we entered data from two adults renting a two-bedroom, one-bathroom apartment in Baltimore. Here’s how they compare in terms of cost value and types of coverage. The coverage lists are not exhaustive, but they do indicate some items and protections commonly covered by each renters insurance company.

Geico

  • Average monthly cost: $12
  • Protection against: Fire, vandalism, theft, water damage, visitor injury, smoke damage, windstorm
  • Blanket: Medical expenses, legal expenses, accidental property damage, furniture, clothing

Geico also offers a special jewelry insurance policy for valuables such as diamonds, wedding bands and engagement rings. This jewelry insurance policy is separate from Geico’s renters insurance coverage.

Liberty Mutual logo

Liberty Mutual

  • Average monthly cost: $15
  • Protection against: Fire, tornado, earthquake damage, accidental damage, water damage, visitor injury, smoke damage, windstorm, aftershock damage
  • Blanket: Temporary living expenses, jewelry, furniture, electronics, clothing, valuables up to a certain amount

Liberty Mutual offers a variety of personalized renters insurance coverage options for as little as $5 per month. Standard coverage pays the actual cash value of your covered personal property and replaces it if lost. The coverage also helps pay for medical expenses if someone is injured in your home.

state farm

  • Average monthly cost: $16
  • Protection against: Fire, vandalism, theft, water damage, smoke damage, falling objects, vehicle impact
  • Blanket: Medical expenses, legal expenses, accidental property damage, furniture, clothing

State Farm has special coverage limits that apply to certain types of personal property, including boats, collectibles, business property, securities, furs, and firearms.

progressive

  • Average monthly cost: $19
  • Protection against: Fire, vandalism, theft, tornadoes, water damage, jewelry (requires additional coverage)
  • Blanket: Clothing, furniture, electronics, appliances, tools

When you start your renter’s insurance policy quote with Progressive, it will apply each of your eligible discounts as you go to save you time and money. You save an average of 3% on your car insurance if you combine it with a Progressive renters insurance policy.

At national scale

  • Average monthly cost: $20
  • Protection against: Theft, water damage, natural disasters, bodily injury
  • Blanket: Personal property, personal liability, medical payments and liability, loss of use of property

You can get a personalized renter’s insurance policy quote from Nationwide on their website, by calling their toll-free phone number, or by visiting a local agent in person. Nationwide is at the top of this list for the monthly cost of coverage. Factors that may affect your premium are where you live; the size, condition and age of your residence; and the value of your property.

Farmers

  • Average monthly cost: $22
  • Protection against: Fire, vandalism, theft, water damage, visitor injury, smoke damage, wind damage
  • Blanket: Injury to others in your residence, accidental property damage, furniture, repair or replacement of electronic devices, temporary living expenses

Tenant farmer insurance policies help cover the cost of temporary living expenses such as a hotel room and meals if you cannot live in your rented space due to fire, flood or other natural event. Farmers also offers renters insurance discounts if you have multiple policies, are a non-smoker, or have a security alarm or fire alarm installed.

Carry

No matter what size of home you’re renting, your landlord’s insurance policy goes no further. Your renter’s insurance will have to take over from there. If your clothes, jewelry, furniture, or important documents are destroyed due to fire or vandalism, your renter’s insurance policy could become the best purchase you’ve ever made.

What do you need to get a quote?

Now that you have an idea of ​​the types of renters insurance coverage available and at what price, here is a simple checklist of the things you will need to get a quote and find the best renters insurance policy for your needs.

To help determine your coverage, policy cost and deductible, you will need to provide:

  • Full name
  • Date of Birth
  • E-mail address
  • Number of people living in the residence full time

To get the most accurate quote, you’ll need to provide information about your home’s fire and security features, your insurance claims history, and any additional coverages you have. Some of this information may include:

  • Fire extinguishers, sprinkler systems, smoke detectors, burglar alarms, deadbolts
  • Distance to nearest fire station
  • Insurance claims for losses incurred within the last three years
  • Name of your current or most recent insurer
  • Dates of your last coverage
  • Items that may require increased coverage (jewellery, computers, etc.)

If you don’t have all the items and information in front of you when you begin your quote process, don’t worry. Renters insurance provider websites allow you to save your quote and come back to finish it later. Most of them will even send you a reminder email to do so.

Our in-house research team and on-site financial experts work together to create accurate, unbiased and up-to-date content. We check every stat, quote and fact using trusted primary resources to ensure that the information we provide is correct. You can read more about GOBankingRates processes and standards in our Editorial Policy.

About the Author

Kathy Evans is a freelance personal finance writer and entrepreneur with a background in technical writing and instructional systems design. She has a master’s degree in technical writing and information design and is currently a doctoral student in instructional technology at Towson University. Through her experience working in the federal government as well as the commercial and nonprofit industries, she has focused her freelance writing on finance, investing, and economics content with a specialization in budget coaching.

Share.

About Author

Comments are closed.