Best Renters Insurance Companies and Ones To Avoid

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Looking for the best renters insurance companies? There’s no shortage of insurers selling this inexpensive — yet very important — policy. Unlike homeowners insurance, which covers the property you live in, renters insurance is coverage of your personal property within a rental space.

In this article, we’ll take a look at who does a great job satisfying customers and claims — and who you should avoid.

Best Renters Insurance: Here’s Who to Shop and Who Flops

Renters insurance coverage is a necessity, but not all renters are willing to purchase it.

“Renters insurance can cost as little as $15 per month,” money expert Clark Howard says. “But it will cover your belongings in the event of theft, fire and other disasters.”

Here’s a look at who does a good job offering the best renters insurance:

Top 10 Best Renters Insurance Companies

Each year, J.D. Power breaks out a segment on renters insurance in its annual U.S. Home Insurance Study. The study ranks carriers on five factors:

  • Customer interactions with the company
  • Renters insurance policy offerings
  • Price
  • Billing process and policy info
  • Claims satisfaction

Two insurers dominated the listings this year and had the most customer satisfaction.

Lemonade clinches the top spot at 870 on J.D. Power’s proprietary 1,000-point scale. Meanwhile, State Farm is close behind in second place with an 866.

USAA, meanwhile, scored even higher than Lemonade and State Farm with an estimated 893.

Unfortunately, the services USAA offers are typically only available to three kinds of people: People currently in the military, honorably discharged veterans or others who are affiliated through direct family ties. Therefore, the insurer was not considered rank-eligible.

If you don’t qualify for any of these insurers, we’ve compiled a list of the best renters insurance companies. Here’s the full list of top renters insurance companies:

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InsurerScore
USAA*893
Lemonade870
State Farm866
Segment Average848
American Family838
Nationwide834
Allstate833
Farmers831
Source: J.D. Power Home Insurance Study

* Not rank eligible because of limitations on membership qualifications.

Worst Renters Insurance Companies

J.D. Power’s study is based on responses from nearly 12,000 people via online interviews conducted from May through July 2021. After culling all the responses, these are the three worst-performing companies for renters insurance:

(#1 is the worst)

  1. Travelers (815)
  2. ASI Progressive (816)
  3. Liberty Mutual (823)

Final Thought

Too often, renters think the landlord is responsible for damage to their belongings. But that’s not the case — except in very limited circumstances that can be difficult to prove.

So, you’re on the hook if your personal property is stolen, damaged or destroyed in a fire. That’s where renters insurance coverage comes in handy.

Should you decide to get renters insurance, make sure to review the insurance policy thoroughly. Make sure that your chosen insurance provider operates in the state you live in, whether that’s in New Jersey, New York, Texas, or California. If you want to get a complete understanding of what the best renters insurance policies cover, see our piece on Things to Know Before You Buy Renters Insurance.

Meanwhile, when you’re ready to start shopping for this coverage, Clark recommends that you begin by getting quotes from the same carrier that writes your auto policy. You can see a list of the best auto insurance carriers here.

Never just go with the coverage that’s offered through your property management company, though, because it’s often overpriced; you’ve got to do your own shopping around first for the best renters insurance company with reasonable renters insurance rates. Do your research on some of the policies commonly offered, such as liability coverage, personal liability, personal property coverage, medical payment, and temporary living expenses, so that you can maximize your renters policy.

More Insurance Stories on Clark.com: 

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