If you don't own your home, renters insurance can reimburse you for the cost of your furniture, electronics and other belongings if they're damaged or stolen. It can also pay legal fees or medical bills if you're held liable for someone else's injuries or property damage and reimburse you if you need to move out while your place is being repaired.
CNBC Select has chosen the best cheap renters insurance in various categories. (See our methodology for more information on how we made this list.)
Best for price: State Farm
State Farm Renters Insurance
Availability
State Farm offers renters insurance in all states except California, Massachusetts and Rhode Island
Coverage limits
Personal property: $110,000, personal liability: $1 million, medical payments: $10,000, loss of use: no limit
Deductible
$500-$2,000 (higher deductibles available with agent)
Add-ons
Personal injury, identity theft, earthquake damage, workers' compensation, sewer or drain backup, high-end items
Pros
- Replacement cost coverage is standard
- No maximum for temporary living expenses
- Highly ranked for customer satisfaction on J.D. Power survey
Cons
- New policies not available in California, Massachusetts or Rhode Island
Who's this for? If cost is your priority, State Farm has the lowest renters insurance premiums of any company we reviewed.
Standout benefits: State Farm's optional identity restoration benefit reimburses up to $15,000 after a cyber attack and up to $50,000 for losses from fraud.
Best for pet owners: Lemonade
Lemonade Renter's Insurance
Availability
Lemonade renters insurance is available in 30 states and Washington, D.C.
Coverage limits
Personal property coverage: $250,000, personal liability: $500,000, medical payments: $500,000, loss of use: $200,000
Deductible
$250 to $2,500
Add-ons
Extra coverage for jewelry and other valuables, no-deductible claims, coverage for accidental damage and mysterious loss
Terms apply.
Pros
- Speedy claims processing
- Reimburses based on replacement cost value
Cons
- High volume of complaints filed with NAIC
Who's this for? If you're worried your fur baby will eat up your security deposit, Lemonade has an optional pet damage rider that covers up to $500 a year.
Standout benefits: Lemonade policies automatically include replacement-cost coverage, not the depreciated actual cost value.
Best for young renters: American Family Insurance
American Family Renters Insurance
Availability
American Family renters insurance is available in Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington and Wisconsin
Coverage limits
Personal property coverage: $50,000, personal liability coverage: $500,000, medical expenses: $1,000, loss of use: $20,000
Deductible
$1,000
Add-ons
Diminishing deductible, personal injury, equipment breakdown, water and sewer backup, high-value items.
Pros
- Above-average customer satisfaction ratings from J.D. Power
- Discounts for bundling, going paperless and more
- Diminishing deductible benefit available
Cons
- Not available in all states
Who's this for? If you're just leaving the nest, American Family Insurance offers a discount to renters under 30 whose parents are existing AFI customers.
Standout benefits: If you remain claims-free, AFI's diminishing deductible can lower your deductible by up to $500.
Best for seniors: Allstate
Allstate Renters Insurance
Availability
Allstate renters insurance is available in all 50 states and Washington, D.C.
Coverage limits
Personal property coverage: up to $150,000, personal liability: up to $1 million, loss of use: no maximum
Deductible
$250, $500 or $1,000
Add-ons
Replacement cost coverage, identity theft, high-value items, flood damage, earthquake damage
Pros
- Can get rate quote and apply online
- Available in all 50 states
- Discount for retirees 55 and older
Cons
- Ranked below average for customer satisfaction in J.D. Power survey
- Replacement cost coverage not standard
Who's this for: Renters 55 and older can get up to 25% off their Allstate rental insurance premiums, making it the obvious choice for seniors.
Standout benefits: Bundling renters insurance with an Allstate auto policy can lower your premiums to as little as $4 per month.
Best for Airbnb rentals: Erie
Erie Renters Insurance
Availability
Erie renters insurance is available in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin and Washington, D.C.
Coverage limits
Not disclosed
Policy highlights
Policies include coverage for personal property, personal liability, loss of use, and medical expenses for guests. Replacement cost coverage is standard.
Add-ons
Identity theft, home-sharing, sewer and drain backup, high-end items
Pros
- Replacement cost coverage comes standard
- Home-share add-on available for people who list their homes on Airbnb or Vrbo
- Top-rated for customer satisfaction on J.D. Power survey
Cons
- Not available in all states
- Online quotes and claims filing not available.
Who's this for? If you rent out your apartment, Erie has an affordable home-share add-on that covers property damage, theft and liability.
Standout benefits: Erie offers discounts for bundling, owning security devices and getting a price quote at least a week before you want your policy to begin.
Best for replacement cost coverage: Nationwide
Nationwide Renters Insurance
Availability
Nationwide offers renters insurance in all states except Alaska, Florida, Hawaii, Louisiana, Massachusetts, New Jersey, New Mexico and Oklahoma.
Coverage limits
Not available
Deductible
Not available
Add-ons
Replacement cost coverage, personal injury, water backup, earthquakes, identity theft, high-value items, theft of items stored in vehicle
Pros
- Policies cover unauthorized credit card transactions
- Discount for bundling, smoke detectors, living in gated community
Cons
- Not available in every state
- Online quotes not available in every state
Who's this for? Nationwide's Brand New Belongings benefit reimburses you for the depreciated value of a damaged, lost or stolen item. After you replace or repair it, though, you'll get the difference.
Standout benefits: All renter policies include coverage for unauthorized credit card charges and damages caused by updates or alterations to the building.
Best for discounts: Liberty Mutual
Liberty Mutual Renters Insurance
Availability
Liberty Mutual renters insurance is available in every state except Alaska, California, North Dakota, South Dakota and Wyoming.
Coverage limits
Personal property coverage: $5,000 and up, personal liability: $1 million, medical payments: $5,000, loss of use: $5,000
Deductible
$100 to $5,000
Add-ons
Replacement cost coverage, blanket jewelry coverage, earthquake damage, identity theft
Pros
- Discounts for bundling, remaining claims-free, autopay and more
- Earthquake coverage and blanket jewelry coverage available
Cons
- Not available in all states
- Replacement cost coverage is not standard
Who's this for: Liberty Mutual has numerous discounts renters can take advantage of, including 10% off just for getting an online quote. You can also lower your rate by bundling, setting up autopay, remaining claims-free for five years and getting a quote before your current policy expires.
Standout benefits: Liberty Mutual offers blanket jewelry coverage that lets you protect multiple pieces without needing appraisals.
What is renters insurance?
Unlike a homeowners policy, renters insurance only covers your belongings, not the physical structure of the building you live in.
As with most insurance, policyholders pay a monthly or annual premium and file claims when they experience a covered loss. After you meet your deductible, you're reimbursed for losses up to your coverage limit.
If you have a $500 deductible and $2,000 worth of electronics is stolen, for example, you would be reimbursed for $1,500.
What does renters insurance cover?
Renters insurance typically covers personal property, liability and additional living expenses. Here's what that means in more detail.
| Coverage | What is does it do? |
|---|---|
| Personal property | Reimburses the cost to repair or replace clothes, furniture, electronics and other possessions that have been damaged or stolen. |
| Liability | Pays for medical expenses or repairs if you are held responsible for damages or injuries to someone else. |
| Additional living expenses | Pays for accomodations, meals and other expenses if you are forced to temporarily relocate. Also known as "loss of use" coverage. |
Renters insurance doesn't protect against everything, however. Most standard policies don't cover:
- Normal wear and tear
- Damage to the building itself
- Bedbugs, mold and other pests
- Items of high value or for business use
- Property owned by your roommates or landlord
- Floods, earthquakes and other natural disasters
- Negligence or intentional acts
How much does renters insurance cost?
According to the Insurance Information Institute, a renters insurance policy averages $14 per month or $170 per year.
That's a national average, however, and rates vary greatly depending on where you live: In New York state, for example, renters insurance averages $25 per month for $50,000 worth of personal property protection, according to the New York State Department of Financial Services.
Factors that impact the cost of renters insurance
There are various factors that can impact the cost of your renters insurance, like where you live and how much coverage you need.
- Where you live: Premiums vary widely by state and tend to be higher in areas at risk of crime or severe weather.
- Your claims history: Insurers can look at your claims history for up to seven years. If you've filed one or more claims, your rates may be higher.
- Your credit history: In most states, insurance companies are allowed to consider your credit history when making approval decisions. According to NerdWallet, you could pay as much as 66% more a year for a policy with poor credit.
- Your coverage limits, deductibles and add-ons: The higher the coverage cap you select, the higher your premiums. If you pick a high deductible, however, your rates will likely be lower. Optional benefits, such as replacement-cost coverage, identity theft protection and coverage for high-value items, will also result in higher rates.
How to save on renters insurance
Renters insurance is generally affordable to begin with, but there are always ways to pay less.
Ask about discounts
Getting renters insurance from the same provider you have auto insurance or another policy can earn you a discount. Many insurers also offer rate reductions for renters who pay their premiums in whole up front, who haven't filed a claim in a certain timeframe or for installing safety and security devices.
Raise your deductible
A higher deductible usually means lower monthly premiums. Just be sure you can afford the additional out-of-pocket cost if you have to file a claim.
Choose actual cash value over replacement cost
A policy that offers replacement cost will pay out more, but it will also cost more. If you live modestly, ACV may be enough to replace lost items.
Improve your credit score
Insurers in most states are allowed to consider your credit history when deciding on approvals and rates. Paying your bills on time and in full can significantly boost your credit score. And be sure to check your credit reports for errors or fraud.
Shop for the best rate
Every insurance company considers applicants differently, so get rate quotes from at least three providers available in your area. Make sure they offer the same amount of coverage so you can accurately compare prices.
Cheap renters insurance FAQs
How much is renters insurance?
According to the Insurance Information Institute, a renters insurance policy averages about $14 a month. Rates vary from state to state, however, and also depend on your neighborhood, claims history, credit score and coverage needs.
Is renters insurance required?
Renters insurance is not mandated by law in any state, but it may be required by your landlord. Even if you aren't obligated to get a policy, it's still useful to have one.
Does renters insurance cover floods?
A standard renters policy will cover water damage from a burst pipe or leaky shower. Damages caused by flooding from heavy rains or other natural causes are usually excluded, although renters can get flood insurance.
Is my roommate covered by my renters insurance policy?
Most insurance companies require roommates to have individual renters policies rather than be listed together. If the roommates are related, however, they may be allowed to have a joint policy.
Is renters insurance worth it?
If there's a disaster or robbery, a renters insurance policy can save you a great deal of money. Your landlord's insurance policy only covers the building itself, not your belongings or the cost of a hotel room if you're displaced. Replacing just a few possessions after a fire could be more expensive than your annual premiums.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. To research the best insurance companies, we compiled over 100 data points on more than a dozen insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
We looked at top U.S. insurance companies that offer renters insurance policies, focusing on average premiums, coverage options, availability, discounts and whether providers offered replacement cost coverage or actual cost value.
We considered customer satisfaction data from J.D Power's U.S. Home Insurance Study, the Better Business Bureau and the National Association of Insurance Commissioners (NAIC).
We also considered CNBC Select audience data, when available, including general demographics and engagement with our content and tools.
Our sample renter was a 26-year-old male with one pet cat living in a 700-square-foot one-bedroom apartment with a fire alarm in New York City ZIP code 10017.
The sample policy included the following coverage limits and deductibles:
- $30,000 of personal property coverage
- $9,000 loss of use coverage
- $100,000 of liability coverage
- $1,000 deductible
Our recommendations were organized by the best provider for price, for pet owners, for young renters, for seniors, for homeshare listings, for replacement cost coverage and for discounts.
Premiums and policy structures listed for renters insurance can change with company policy.
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