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 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
- Policy offerings
- Billing process and policy info
- Claims satisfaction
Two insurers dominated the listings this year.
American Family clinches the top spot, jumping from an 829 to an 853 on J.D. Power’s propriety 1,000-point scale — a 24-point improvement since 2018.
Meanwhile, State Farm is close behind in second place with an 850. That’s a 10-point gain in just one year.
USAA, meanwhile, scored even higher than either American Family or State Farm with an estimated 895.
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.
Similarly, Amica Mutual was included in the study but did not rank because of sample size.
As far as everyone else, here’s the rest of the best:
J.D. Power: Best Renter’s Insurance Companies for 2019
|Auto Club of Southern California Insurance Group||846|
|CSAA Insurance Group||826|
* Not rank eligible because of limitations on membership qualifications.
Worst Renters Insurance Companies
J.D. Power’s study is based on responses from more than 13,000 people via online interviews conducted in June-July 2019. After culling all the responses, these are the three worst-performing companies for renters insurance:
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.
If you want to get a complete understanding of what the best renters insurance policies cover, see our piece on 4 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.