5 Best Renters Insurance OptionsHere's what renters insurance covers and how much it costs.

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You might not own the real estate, but everything inside your rented home is yours — and without renters insurance, you could lose it all in the event of a disaster. It’s essential to get insurance for your rental property — even a cheap renters insurance policy can offer basic coverage to protect you and your property.

Take a look at the five best renters insurance companies that offer loss of use, liability coverage and more. Compare and research them to find an insurance policy that fits your budget.

5 Best Renters Insurance Options
Insurance ProviderPrice of Basic CoverageJD Power Rating
State Farm$10.83 per month4/5
USAA$12 per monthn/a
American Family$28.91 down, $13.19 per month5/5
Allstate$28 down, $16 per month3/5
Liberty Mutual$18 per month2/5

As you shop around to find an insurance policy that suits your needs, talk to an insurance agent who is in good standing with the National Association of Insurance Commissioners. Agents can help answer basic questions like, “How much is renters insurance?” and “What does renters insurance cover?” as well as help you evaluate what other coverage might be appropriate for you.

1. State Farm

Coverage:

  • Personal property
  • Losses from fire and storms
  • Losses from non-weather events like theft and vandalism

State Farm operates in all 50 states and offers discounts on renters and auto insurance to customers who bundle both policies. You can also score discounts for installing a burglar alarm, home monitoring system, and smoke and fire detectors.

State Farm advertises that for less than a dollar per day, you can insure thousands of dollars’ worth of property. Use the company’s online tool to get instant renters insurance quotes.

2. USAA

Coverage:

  • Replacement of stolen or damaged property with items similar in quality and replacement cost
  • Flood and earthquake
  • Moving and storage
  • Identity theft

USAA membership is open only to former and active military members and their families, midshipmen, and cadets. Special plans are available for active service members who live on base and have lost coverage due to recent changes in the Basic Allowance for Housing. USAA policies include several types of coverage that other top insurers charge for, including identity theft coverage.

3. American Family

Coverage:

  • Liability and medical coverage for property damage
  • First aid and medical costs
  • Court costs
  • Additional living expenses if the rental unit becomes uninhabitable

Customers can earn a discount if they bundle more than one policy and have their premiums reduced if they go five years without making any claims. Renters can also get a discount for installing at least one smart device — such as a moisture detection system or smoke and fire system — and by opting for paperless statements or signing up for autopay.

4. Allstate

Coverage:

  • Personal property
  • Reimbursed living expenses
  • Liability
  • Guest medical
  • Identity restoration

Allstate offers discounts of up to 5 percent for customers who sign up for automatic premium deductions from their checking or savings accounts. Safe home discounts of up to 15 percent apply for installing systems like fire or security alarms. Renters older than 55 who are not actively seeking employment might save as much as 25 percent. And for each year you remain claim-free, you can get a discount of up to 20 percent plus bonus savings.

5. Liberty Mutual

Coverage:

  • Theft, fire, and some types of water damage
  • Personal property in your car
  • Personal property during a move

Liberty Mutual offers savings for policyholders who bundle auto and renters insurance. It also maintains a network of more than 14,000 associate groups — if you’re a member of one, you can enjoy extra savings.

People who go five years without filing a claim can qualify for added price reductions. Policyholders can supplement their policies with blanket jewelry, home computer and smartphone coverage.

Up Next: 15 Best Money Habits to Have When Renting an Apartment

Methodology: GOBankingRates.com identified the best renters insurance by analyzing prices and JD Power ratings. All fees and rates are subject to change at the insurers’ discretion, and some bonus offers might no longer be available on the insurers’ websites, depending on how you access the web page.

GOBankingRates is a personal finance and consumer interest rate website owned by ConsumerTrack, Inc., an online marketing company serving top-tier banks, credit unions, and other financial services organizations. Some companies mentioned in this article might be clients of ConsumerTrack, Inc., which serves more than 100 national, local and online financial institutions. Rankings and roundups are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been reviewed, approved, or otherwise endorsed by the companies included in the article.

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