Cheapest Renters Insurance Companies of 2022

If you’re looking for affordable renters insurance, you’re in the right place. This guide will give you an overview of the five most affordable companies in our rating of the Best Renters Insurance Companies of 2022 along with tips for saving money on renters insurance. Keep in mind, the rates listed below are for illustrative purposes only. You should contact an insurance company or insurance agent directly for applicable quotes.

 

#1 Nationwide
#2 Lemonade
#3 State Farm
#4 Erie Insurance
#5 Farmers

Nationwide

 

Pros:

  • Basic policy provides coverage for stolen credit cards

  • Provides coverage for rental unit upgrades or alterations you’ve funded

Cons:

  • Must work with an agent to purchase a policy

 

As one of the largest insurance companies, Nationwide is a great fit for those who prefer working with independent agents to walk them through purchasing a renters insurance policy. The standard coverage includes the usual features plus credit card fraud coverage (up to a limit for fraudulent credit or debit card transactions and forged checks) and protection if you pay to make alterations or improvements to your rented space.

If you need additional protection, Nationwide offers optional coverages such as loss or damage of high-ticket items, and earthquake damage. Discount opportunities are also available for applicants who have more than one Nationwide policy, are claims-free for a certain amount of time, or have protective devices such as smoke and fire detectors on the premises. Filing claims is a straightforward process that policyholders can do through their online account or by calling customer service, which is available 24/7.

Lemonade

 

Pros:

  • Fast sign up and claims process

  • Portion of revenue distributed to charities of your choice

Cons:

  • Not as widely available as other companies in our rating

  • May not be a good fit if you prefer working with an agent

 

Lemonade stands out for a few reasons, one being that it offers a fast sign-up and claims process due to its use of AI technology. Depending on the nature of your renters insurance claim, Lemonade says it can approve your claim within seconds. Plus, Lemonade donates unclaimed premiums to nonprofits, and customers have a choice as to which charities.

This insurer’s basic policy includes loss of use coverage (when your home isn’t livable), personal property coverage (replaces lost or damaged items), and personal liability coverage (if you or someone else is injured on your rented property). Policyholders can opt for extra coverage for high-value items such as jewelry or electronics, and you may be able to make claims without paying a deductible.

State Farm

 

Pros:

  • One of the least expensive companies in our rating

  • Extensive network of local agents

Cons:

  • Doesn’t offer as many discounts as some of the other companies in our rating

 

Available nationwide, State Farm lets applicants request a quote online or by contacting a local agent. Like other competitors, a standard policy protects policyholders against theft or damage to personal property (up to a predetermined limit), loss of use from a covered event, and coverage if someone else was injured around your property. State Farm offers pet insurance through Trupanion for an additional cost. You can also add inflation coverage that will allow your policy’s coverage limits to keep up with inflation. Other options include protection against earthquake damage, additional liability, and identity theft.

Erie Insurance

 

Pros:

  • More than 13,000 local agents

  • Offers replacement cost coverage

Cons:

  • Limited availability compared to other companies in our rating

  • Few discounts compared to other companies in our rating

 

Founded in 1925, Erie Insurance isn’t available nationwide – it’s only available in 12 states and Washington D.C. Qualifying applicants have access to competitive rates and more than 13,000 local agents. Plus, on top of its competitive prices, applicants can receive discounts by bundling their auto and renters policies together.

Once you’re a policyholder, you can check the status of your claims online 24/7 after logging in to your account. The standard policy includes coverage for injury to other people (or damage to their property), additional living expenses if your home becomes uninhabitable, and personal belongings from a covered loss around the world. Policyholders can also choose to purchase optional coverage such as ones for earthquakes, high-ticket items, and identity theft.

Farmers Insurance

 

Pros:

  • Replacement cost coverage is available

  • Offers limited mold coverage

Cons:

  • Not as widely available as other companies in our rating

 

Farmers Insurance is available in 39 states and most applicants can receive a quote online. Basic coverage from Farmers includes reimbursement for lost, damaged, or stolen items (up to a certain limit), reimbursement for additional living expenses if you’re displaced, liability coverage, and guest medical coverage. Additional coverage options include personal property replacement cost, identity theft coverage, and even pet insurance.

A Farmers Insurance agent can help find discounts for your policy. Discounts are available for households that have been cigarette smoke-free for the past two years, have qualifying home protection systems, or are bundling policies. Reporting claims is easy as there are multiple ways to do so. Policyholders can file a claim online, by calling a Farmers representative, or via Farmers’ mobile app.

For more information, read our full Farmers review.

The sample monthly costs of the renters insurance companies we rated range from $13.43 for Nationwide to $24.29 for American Family. However, there are many variables within those sample monthly costs, and it’s unlikely that your renters insurance quotes will match these exactly. If you’re wondering how much renters insurance is for you and your household, here are some factors to take into account.

Most policies include some standard rental insurance coverages. When you’re getting quotes for renters insurance, you can increase your limits or add additional coverage for your personal property, personal liability, and extra expenses you may incur if you have to temporarily relocate due to a disaster. Common options include:

  • Higher policy limits for household possessions
  • Supplemental coverage for specific valuable possessions (which generally won’t be optional if you want those items covered)
  • Coverage for specific disasters such as floods or earthquakes
  • Coverage for small business inventories or assets stored at the rental property
  • Additional liability coverage
  • Higher limits for additional living expenses.

These policy add-ons increase your premiums, but the increase may be somewhat offset if you qualify for a discount by buying more than one type of insurance policy with the same company, often known as a multipolicy discount.

The next factor affecting a renters insurance quote is the deductible, or the amount you pay out of pocket before receiving compensation for your losses. As explained by State Farm, a lower deductible means higher premiums but also higher compensation when you file a claim. A higher deductible lowers your premiums, but it means you’ll pay more out of pocket before receiving compensation for your claim.

Finally, your location is a factor in your renters insurance costs, as illustrated by a January 2021 study by the National Associate of Insurance Commissioners that showed data for average renters insurance costs through 2018. In some states, an average renters insurance policy costs more than in other states due to state regulations and other factors. The study shows that in 2018, renters in Mississippi faced the highest average renters insurance premiums at $252 annually, and renters in North Dakota enjoyed the lowest average renters insurance premiums, at an annual average of $126.

 

When determining how much renters insurance you need, keep in mind that there are three main types of coverage: personal belongings, personal liability, and additional living expenses. You’ll likely be able to adjust your policy limits for all three types.

Figuring out the value of your personal belongings is particularly important for buying the right amount of renters insurance. The Insurance Information Institute recommends taking an inventory of your personal property. To create your inventory:

  • Write a detailed list of all your possessions, including clothing, furniture, appliances, bedding and towels, electronics, and sports and hobby equipment.
  • Add information on acquisition dates and price.
  • Make a separate list of particularly valuable items, such as jewelry, artwork, and collectibles.

Valuables will generally require extra coverage and documentation, such as receipts or appraisals, based on your policy requirements.

Ensure that your policy limit is high enough to cover the total value of all of your belongings. Decide if you want an actual cash value policy or a replacement value policy. An actual cash value policy is a little cheaper, but it considers the current value of your possessions and you’ll be compensated on that value if you file a claim. For example, computer equipment and mobile devices depreciate quickly, which means they will likely cost much more to replace than the amount you receive from the insurance company.

Most renters should consider a replacement value policy, which will compensate you to replace your old items with their new equivalents. According to the Insurance Information Institute, a replacement cost policy adds about 10% to your premiums in comparison to an actual cash policy.

You’ll also need to pay slightly more for additional coverage, known as “riders” or “floaters,” to cover those particularly valuable items called out in your inventory.

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