If you are currently renting out your home, home insurance is one coverage you probably should have, especially considering how little it costs.
Insider has compiled data from different renter insurance companies based on customer service and premium prices where applicable. For sample quotes, we entered data from two people renting a two-bedroom, one-bathroom, pet-free single-family home in Philadelphia. From there, we determined the best.
Our top picks for the best tenant insurance are below:
The best tenant insurance policies of 2021
*JD Power Customer satisfaction 2020
** Because USAA is only available to military and veterans it was not included, but if it had been it would have been ranked # 1
Whether you’re renting a studio or an entire single-family home, tenant insurance picks up where your landlord’s insurance policy leaves off. If a fire destroys your rented home, your home insurance could help you replace your belongings. Likewise, if someone is injured in your rented home and sues you, this coverage could help.
The average tenant insurance policy costs between $ 15 and $ 20 per month. Renters’ insurance policies are available from various insurers, and it may be a good idea to combine them with auto insurance or other types of insurance to get the best price on both policies.
If you are looking for a new company for your renter’s insurance policy, be aware that there are many factors that can affect the price you are offered, including your credit score (in some states), the value of your belongings, and even if you have a dog.
Learn about the best tenant insurance companies of 2021
Here are more details about our winners:
Learn more about State Farm Tenant Insurance »
Find out more about Lemonade tenant insurance »
Learn more about Erie tenant insurance »
Learn more about Allstate Tenant Insurance »
5. Tenant farmers insurance
Learn more about tenant farmer insurance »
Learn more about USAA tenant insurance »
The best tenant insurance based on customer satisfaction
The number of people who like their tenant insurance providers can be factored into your decision. According to a JD Power survey, the following are the top tenant insurance companies in the United States, based on customer rankings:
Average annual premium for tenant insurance by state
Like home and auto insurance, renters insurance can vary widely from state to state. Where you live will play a big part in your quote, and each business will look at it differently.
Here is the average annual premium for renters insurance by state, according to the Insurance Information Institute.
Frequently Asked Questions
How did we choose the best insurance companies for renters?
The best insurance company for renters is the one that offers the most coverage for the least money and also has a good reputation for customer service.
Insider has compiled data from different tenant insurance companies based on customer service and premium prices where applicable. From there, we determined the top five. To find out how much policies typically cost, Insider got sample tenant insurance quotes for a two-bedroom, one-bathroom home with a
and no pets with two occupants in Philadelphia, PA.
Customer satisfaction was also seen as a factor, with almost all of the companies ranking first for customer satisfaction in JD Power’s tenant insurance satisfaction survey.
How much does tenant insurance cost?
According to data from the Insurance Information Institute, the average renters’ insurance policy cost $ 180 per year in 2017, or about $ 15 per month.
The amount you will pay for tenant insurance can vary depending on several factors: location, your credit score, the amount of coverage you are looking for, and whether you have a dog.
Renters insurance is generally quite affordable and can sometimes be combined with other policies for better rates. If you already have
, it may be worth getting a quote from your current insurer, including tenant insurance, to see if they offer a discount.
What does tenant insurance cover?
Of course, your landlord has an insurance policy on your rented home. But it probably won’t cover you or your business if something happens to your building, or if you face legal action from someone injured on your property. However, renters insurance does not cover structural damage that occurs in your home.
A tenant insurance policy has two main components: personal property coverage and liability coverage. It also offers “loss of use” coverage if your rental becomes unliveable due to damage.
Personal property coverage
If a fire ravages your rented home, for example, your landlord’s insurance policy will help you rebuild it. But, it will not help you, the renter, to replace or repair your items. This is what tenant insurance is for.
Renters insurance can help replace or pay for your personal belongings that you bring into the house if something unexpected happens to it, from fires to theft. If your items are stolen or damaged, you may be able to get assistance with replacing those items under your renters insurance policy.
Sometimes renters’ insurance will also cover property left in vehicles or other items that could be stolen. Some tenant insurance policies also include protection against identity theft.
Personal liability protection
The liability protection in your renters’ insurance policy could help protect you if someone sues you for injuries in your rental or if your pet bites someone. Depending on your coverage, this may help you cover up to a certain amount.
How to find the best inexpensive tenant insurance?
To be sure you get the best price for your tenant insurance coverage, you’ll want to shop around and get quotes from several different insurers. Compare quotes and find the most types and limits of coverage. Then look for the lowest premiums that fit your budget.
If you don’t want to visit tenant insurance sites individually, you can use a free tool like the one offered by Policygenius to compare quotes from multiple companies in one place.