Why you can trust Insurify
Edited by John Leach
Updated September 13, 2022
Reading time: 6 minutes
You’ve signed the papers, dropped off the moving van, and are finally settling into your brand new rented apartment, condominium, or home with a sigh of relief.
But have you remembered to purchase renters insurance?
When it comes to renters insurance, your questions may abound. What’s the difference between homeowners and renters coverage? What are deductibles, coverage limits, or premiums? And how can you discover the cheapest renters insurance quote?
Don’t waste your time visiting individual insurance agents or spending endless hours on hold. Leading quote comparison site Insurify uses cutting-edge AI tech to display the best renters insurance quotes available, personalized for you and complete with custom discounts (home, auto, and life insurance, too!)
What is renters insurance?
A renters insurance policy protects you and your personal belongings from unfortunate events like property damage, theft, liability claims, and other accidents and unexpected occurrences.
Renters pay a monthly payment known as a premium to their insurance provider. In exchange, their provider guarantees a certain amount of coverage.
Let’s give an example. Renter Bob’s prized classical guitar got soaked and destroyed as a result of a freak windstorm. Bob files a claim with his insurance agent. As policyholder, Bob then pays a deductible ––a predetermined amount of money paid out-of-pocket for each claim––and the insurer takes care of the rest, promising to cover damage to Bob’s guitar.
The damage to Bob’s guitar is called a covered loss because Bob’s insurance provider has committed to covering it. Losses that cost more than the insurance company has agreed to pay are over your policy’s coverage limit.
Renters insurance covers three broad types: personal property coverage, personal liability coverage, and additional living expenses coverage. Let’s learn a bit more below:
|Coverage Type||What a Policy Covers (Usually!)||Exclusions: What a Policy Type Often Doesn’t Cover|
|Liability||Medical expenses, property damage costs, or legal fees if you accidentally damage someone else’s property, or if a guest hurts themselves in your residence||Any liability costs that exceed your coverage limit, damage to your personal property, additional living expenses|
|Personal Property||The cost to repair ( actual cash value ) or replace ( replacement cost coverage) your personal belongings should they be damaged or stolen||Damage to personal property over your coverage limit, liability damages, additional living expenses, medical bills.|
|Additional Living Expenses||Hotel bills or other living expenses if your current residence is damaged or otherwise not habitable.||Repair costs from damage to your rented residence (your landlord’s insurance policy should cover that). Personal liability coverage or personal property damage. Medical payments.|
These three categories are far from the only renters insurance types: most insurance providers offer additional coverage types, often known as add-ons or riders, for specific instances not covered by a typical plan.
For example, some add-ons cover instances of water damage due to sewer backup; others cover identity theft.
According to the Insurance Information Institute , the typical cost per month of renters insurance in the U.S. is around $15. That means that an average U.S. renter pays around $180 yearly for insurance, though the precise cost of renters insurance will vary by neighborhood, renter, and state. A quote for a suburban mom in New York will be different than for a college kid in Texas.
Average Cost of Renters Insurance
Do I need renters insurance?
The choice of whether to buy renters insurance is up to you. That said, renters insurance offers you peace of mind at a relatively affordable monthly price.
Let’s take a look at some of the pros and cons of buying renters insurance below.
|Low insurance cost. Especially If you’re bundling renters insurance with an existing policy, you might pay just a few dollars a month for renters insurance.||Not many discounts. While renters insurance is fairly affordable, many insurance companies don’t offer as many discounts for this type of insurance as they do for homeowners or auto policies.|
|Peace of mind. Your personal belongings are important to you. With renters insurance, you don’t have to worry about damaging or losing these items, because you’ll be reimbursed||Standard policies cover just the basics. If you’re in an area with extreme weather or you own high-value specialized items like expensive jewelry or fine art, you might want to look into coverage riders or add-ons.|
|Liability protection. You never know what could happen on your rental property. With renters insurance, you’re covered in the event the worst occurs and a guest gets injured in your home.||Exclusions. Some renters insurance policies exclude certain dog breeds from their coverage, and other insurers list other exclusions. Make sure to read the fine print before signing off.|
How to Lower The Cost of Your Renters Insurance
1. Always Compare Quotes:
The easiest and most important way to quickly and easily lower the cost of your renters insurance is to compare quotes from a wide array of companies. Often the lowest quote will come from a company you’d never expect. Insurify lets you compare renters insurance quotes for free.
2. Consider Bundling
Some of the biggest discounts available to renters come from multi-policy discounts, also known as bundling. If you purchase more than one insurance policy from the same provider (pairing renters and auto coverage is one of the more popular combos) insurers like GEICO and State Farm will reward you with cheaper premiums.
3. Adjust Your Deductible
If you’re comfortable paying a higher out-of-pocket expense if you do have to file a claim, increasing your deductible is one of the quickest ways to save on your monthly premium.
4. Invest in Safety and Security
Many companies offering renters insurance coverage offer discounts to policyholders who install home security or safety devices.
Security devices like burglar alarms make theft and vandalism less likely, and safety devices like sprinklers mean accidents like grease fires are much less likely to spread out of hand. That’s a win for your insurer –– and for you.
5. Pay Digitally or in Advance
If you have enough cash liquid, paying premiums in advance can be an easy way to save.
Renters insurance providers often offer deals for renters who pay their entire yearly premium in advance, or in quarterly (rather than monthly) installments.
Similarly, renters insurance companies often discount policies for customers who opt for paperless billing, meaning that what’s good for the environment can be good for your credit card, too.
Best Companies For Renters Insurance
Lowest Overall Price: Lemonade
As a pioneering startup breaking into the competitive renters insurance market, Lemonade uses cutting-edge algorithms to offer bare-bones renters policies––some as low as $5 per month!
A.M. Best Rating: N/A
J.D. Power Ranking: 866/1000
BBB (Better Business Bureau) Rating: B+
Best for Discounts: Allstate
Ranked 3rd on J.D. Power’s ranking of national renters insurance providers, Allstate is an established, reliable insurance provider with a long-held reputation for strong customer service and many opportunities to score discounts or bundle quotes. Allstate advertises an average monthly premium of $15, but the cost of your personal policy may vary.
A.M. Best Rating: A+
J.D. Power Ranking: 841/1000
BBB (Better Business Bureau) Rating: A+
Best Customer Service: State Farm
As the single largest insurance provider in the U.S., it won’t surprise you to learn that State Farm has received kudos from policyholders for stellar customer service and quick handling of claims.
For a two-bedroom, one-bathroom apartment in Queens, NYC, with $100,000 liability, $25,000 personal property, $1,000 medical payment, and a $1,000 deductible, State Farm provides renters insurance at the reasonable price of $10.42 a month.
A.M. Best Rating: A++
J.D. Power Ranking: 836/1000
BBB (Better Business Bureau) Rating: A+
Best for Veterans and Military Families: USAA
USAA is renowned for its customer service and reasonable cost––and its renters insurance product is no exception. That said, USAA isn’t for everyone––the insurer only provides coverage to U.S. military members and their immediate family.
For a two-bedroom, one-bathroom apartment in Queens, NYC, with $100,000 liability, $25,000 personal property, $1,000 medical payment, and a $1,000 deductible, a renters quote from USAA is available at the affordable rate of $10 a month. USAA also offers several bundling discounts and other deals for renters.
A.M. Best Rating: A++
J.D. Power Ranking: “Among the Best”
BBB (Better Business Bureau) Rating: A-
Keep in mind, however, that each renter––and each rented home––is different. Your mileage will vary when it comes to the price of your individual quote, which is why comparison shopping is so important.
How to Get a Renters Insurance Quote
There are a few ways to compare renters insurance quotes. You can call the insurance provider’s quote lines over the phone, or visit a comparison website to see all your quote options in one place. The benefit of an in-person approach is the superior customer service you ’ll receive, but the COVID-19 pandemic and the 9-5 hours of many insurance offices means you may be better served comparing quotes online. No time to go see an agent? No problem, Insurify lets you compare from the comfort of your home in less than 2 minutes.
If you like using the phone, most insurance companies offer quote hotlines you can call to receive a free quote. The quickest and easiest way, though, is often over the web. Quote comparison sites like Insurify can deliver you dozens of personalized quotes in just minutes and for free, on your own time and hours. And Insurify still connects customers to real agents they can speak to or chat with for questions or clarifications if they choose.
If you’re comparing quotes online, be wary of lead-generation sites. These sites promise a fair, objective insurance comparison experience, but instead sell your personal data to advertisers and internet fraudsters.
Renters Insurance Quotes: FAQ
Renters insurance is a type of property insurance that applies to properties you rent like apartments and condos. In exchange for a monthly premium, your renters insurer will covers your personal property, protect you from liability claims, and pay for additional living expenses should an accident force you to temporarily move out of your rented home.
According to the Insurance Information Institute, the average cost of renters insurance in the U.S. is $180 per year, or $15 per month. However, some renters insurance providers, like Lemonade, offer policies for as low as $5 per month.
The process of canceling your renters insurance policy is different for each provider. Most providers will allow you to cancel your policy through an online portal or over the phone, but some may require you to mail a written letter. If you cancel before the expiration of your policy, you may also have to pay a cancellation fee.
Don’t waste time entering your information at dozens of websites. Insurify can quickly and easily compare insurance quotes across up to 20 insurance companies. Just need to enter your info once, and an AI virtual agent will provide you with a side-by-side comparison of the cheapest rates. Insurify makes it easy to select the lowest premium for the coverage you need, so your policy fits your family and your budget.
Conclusion: How to Get the Best and Cheapest Renters Insurance
Buying renters insurance is a no-brainer, since a policy costing just dollars per month can protect your belongings and provide you with peace of mind. With a little elbow grease and our simple tips, you can quickly find a plan that meets your needs and your budget.
Whether you’re looking to get free renters insurance quotes or to save on home and auto insurance, Insurify is ready to serve as your go-to choice for comparing quotes. Insurify ****can provide you with free car, home, and life insurance quotes in just minutes: no spam guaranteed!
Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.