Renters insurance is a good idea for anyone who rents a home. That’s because your landlord’s insurance policy covers the building, but not anything you personally own.
Imagine coming home to find all of your belongings destroyed in a fire or other catastrophe. That’s where renters insurance saves the day: It pays to help you replace your belongings. If you don’t have renters insurance, consider how much it would cost to buy new furniture, clothing, kitchen items and everything else.
Renters insurance is also relatively cheap. The average renters insurance policy costs $187 a year, or about $16 a month. The cost varies by state but is a bargain no matter where you live: The highest average renters insurance rates are in Mississippi and Louisiana (about $20 a month), and the cheapest rates can be found in North and South Dakota (less than $10 a month).
You can usually reduce your costs even more by buying your car insurance from the same insurance company in order to get a “bundling” discount.
Renters insurance typically caps the amount it will pay out for certain items, such as a $1,500 limit for jewelry. But policy add-ons called riders can provide the coverage you need. Renters insurance includes additional benefits that you might not know about:
- It will pay for you to live somewhere else if your home is not inhabitable due to an event covered by insurance, such as a fire or tornado.
- It includes liability insurance in case someone sues you for something that happened in your rental, such as injuries due to a fall.
USAA: Best for military members
USAA offers many options to customers who buy renters insurance. This includes item replacement and protection from flood damage, earthquake damage and identity theft. Customer satisfaction with USAA’s renters insurance is near the top of the industry. If you qualify for USAA as a member of a military family, USAA should be one of your first choices when selecting a renters insurance company.
State Farm: Best rated
When it comes to renters insurance, State Farm is among the best in the business, offering benefits such as coverage from theft, weather damage, cost of additional living expenses and medical liability from injuries sustained on the property. Rates are among the lowest you’ll find, and customers give State Farm high marks for claims service and customer service.
Geico: Best for low premiums
Geico offers a variety of insurance options for renters, including coverage for personal property such as furniture, clothing and jewelry. Policies are provided by other insurance companies, which may lead to uneven customer service. Customers have reported an above-average complaint ratio concerning the company’s claim service. Many complaints center on an excessive amount of time for claims processing. Renters insurance through Geico is cheaper on average, but it might not be worth the hassle.
Allstate: Best for customer satisfaction
Overall, Allstate is average when it comes to renters insurance. It offers standard policy benefits such as reimbursement for your damaged or stolen property and reimbursement for living expenses if your home becomes uninhabitable. Customers have reported helpful and friendly customer service most of the time and affordable rates for coverage.
Esurance: Best coverage variety
Esurance is owned by Allstate and offers renters insurance policies with the standard coverage you’d expect, including property damage and liability. Esurance renters insurance is average among the group of options available. Customers have reported some delays with claims processing, but employees remained helpful and friendly.
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