Looking for the best renters insurance companies? There’s no shortage of insurers selling this inexpensive, yet very important, policy.
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
More than one in three of us now rent a home instead of owning, according to the National Multifamily Housing Council. That makes renters insurance a necessity, though 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 in the renters insurance field:
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
- Policy offerings
- Billing process and policy info
- Claims satisfaction
Two insurers dominated the listings this year, but they both serve a limited audience.
Auto Club of Southern California Insurance Group took top honors. Unfortunately, their renters insurance policies are only available to a select group of the population geographically.
USAA, meanwhile, scored even higher than Auto Club of Southern California. But the services USAA offers are only available to those in the military or affiliated through direct family ties. Therefore, it is not considered rank eligible because it doesn’t meet the study award criteria.
So for everyone else, here’s the rest of the best. You’ll also see each carrier’s score on J.D. Power’s propriety 1,000-point scale next to their name:
- USAA – 885 (not rank eligible)
- Auto Club of Southern California Insurance Group – 845
- Erie Insurance – 842
- State Farm – 840
- Renters industry average – 839
- Allstate – 832
- The Hartford – 831
- American Family – 829
- Farmers – 825
- Travelers – 820
- CSAA Insurance Group – 819
- Nationwide – 816
Worst renters insurance companies
J.D. Power’s study is based on responses from more than 14,000 people via online interviews conducted in June-July 2018. After culling all the responses, these are the three worst-performing companies for renters insurance:
- Liberty Mutual – 811
- MetLife – 800
- Safeco – 800
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 belongings are stolen, damaged or destroyed in a fire. That’s where renters insurance comes in handy.
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.
Never just go with the coverage that’s offered through your insurance company, though, because it’s often overpriced; you’ve got to do your own shopping around first. You can see a list of the best auto insurance carriers here.
Meanwhile, for a deeper dive on what renters insurance covers and who needs it, be sure to check out our article 4 things to know before you buy renters insurance.