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Best Renters Insurance of 2022

After reviewing 12 insurance providers, here are the best in price, customer satisfaction and ease of use.

Written by Hilary Collins / July 6, 2022
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Products featured in this article are independently selected by our team of writers. If you make a purchase using links on this page, SoundDollar will earn an affiliate commission.

Quick Bites

  • The best renters insurance companies offer a painless quote process, competitive rates for full coverage, valuable discounts and top-rated customer satisfaction.
  • After reviewing 12 insurance companies, State Farm is our best overall renters insurance company, with low premiums and excellent customer service.
  • Lemonade and USAA also get top marks for high customer satisfaction, affordable premiums and unique benefits.

According to the Pew Research Center, renters make up roughly 36% of the 122.8 million households in the U.S.[1] As recently as 2014, only 37% of renters held renters insurance, but in the years since those numbers have risen. As of 2020, 57% of renters have renters insurance.[2]

If you’re one of the remaining 43% of renters just now looking into renters insurance, Sound Dollar has got your back. We reviewed 10 of the largest renters insurance companies as well as popular online players Lemonade and Toggle.[3] Each of the 12 competitors was scored on such factors as price, coverage, customer satisfaction, number of complaints, ease of the online quote process and nationwide availability.

Inside this article

  1. Best renters insurance companies
  2. Best overall: State Farm
  3. Editor's choice
  4. Best for military
  5. Best loss of use coverage
  6. Compare the companies
  7. Coverage amounts
  8. Shopping for renters insurance
  9. FAQs
  10. Methodology

Best renters insurance companies

Company
State Farm renters insurance logoVisit
Best for
Best for
Overall
Key benefits
Key benefits
Lowest cost, personalized service, excellent customer satisfaction ratings, high-value coverage included
Visit
Best for
Best for
Editor’s choice
Key benefits
Key benefits
Competitive pricing, seamless digital quote and claims processes, high customer satisfaction
Best for
Best for
Military families
Key benefits
Key benefits
Low cost, discounts and coverage options tailored to military renters
Best for
Best for
Loss of use coverage
Key benefits
Key benefits
Competitive pricing, good customer service, excellent loss of use coverage

For inclusion in our review, renters insurance companies had to:

  • Score an A or higher with AM Best or Demotech for financial stability—a good way to determine if a company will have the available resources to pay out claims [4,5]

  • Score above an 800 in the J.D. Power 2021 U.S. Renters Insurance rankings for overall customer satisfaction [6]

  • Offer a competitive monthly rate based on a simulated quote—companies with quotes above the median price of $14 for the 12 providers were cut

  • Have a complaint index below 1 with the the National Association of Insurance Commissioners (NAIC) averaged among all subsidiaries[7]

We also compared the available options for the deductible, personal property coverage, liability coverage, guest medical coverage, and loss of use coverage.

What Is Loss of Use Coverage?

What Is Loss of Use Coverage?

Loss of use coverage is a standard part of most homeowners and renters insurance policies. Here’s what to know and how to use it.

Find out more

After reviewing these factors for all the companies, some didn’t make the cut.

  • Farmers, Progressive, American Family, Nationwide, and Liberty Mutual all came in with quotes above the median price. Liberty Mutual’s quote was initially the cheapest, but after a closer look at their policy, we noticed it doesn’t cover water damage. Once water damage was added, the cost put them above the median price.

  • Toggle was cut for having the highest complaint index with the NAIC. The numbers show they have more than three times the average number of complaints for their market size.

  • Chubb was cut because of the difficulty we had in obtaining a quote—there’s no online quote process and local agents were hard to reach.

Travelers did make the cut into the final five, but while it had a low number of customer complaints, a solid customer satisfaction ranking with J.D. Power and had a high rating for financial stability with AM Best, it didn’t stand out for any one thing and was on the high end of the price cutoff.

Best overall: State Farm

State Farm car insurance
Monthly premium:

$10.33

Nationwide coverage:

48 states

AM Best score:

A++

J.D. Power Score:

866

Visit

State Farm had the lowest monthly premium and that price includes some extra coverage for jewelry and furs, silver or goldware, credit card and bank card forgery, and business property. State Farm also has excellent customer satisfaction ratings with J.D. Power, a low complaint index with the NAIC, and a high financial stability rating with AM Best.

Because of State Farm’s agent-centric model, you likely won’t be able to get a quote online. Instead, you’ll be directed to an agent. In our experience, a local agent responded quickly with a competitive quote. State Farm is our best overall and would be great for renters who appreciate the personal touch.

Pros:

  • Low cost
  • High customer satisfaction
  • Personal customer service

Cons:

  • No online quote process

Editor's choice: Lemonade

Lemonade Logo
Monthly premium:

$11.17

Nationwide coverage:

29 states

Demotech score:

A

J.D. Power Score:

870

Visit

Perhaps you don’t want to have to go through an agent to get a quote or file a claim. Lemonade offers a highly customizable online quote process that manages to be pretty straightforward. The company tops the J.D. Power U.S. Renters Insurance rankings for 2021 (the last year available) and online reviews point to speedy payouts and streamlined online processes. Lemonade is not ranked by AM Best, but Demotech, another financial stability rating company, gave it an A for exceptional financial stability.[8]

Lemonade has bundling options for auto, pet, and term life insurance that can lower your rate, as well as additional riders you can add for high-value items if needed. Lemonade also has a Giveback feature, where when you get a Lemonade policy you can select a nonprofit where unclaimed funds will be sent.[9]

Pros:

  • Low cost
  • Seamless online process for quotes and claims
  • Highly customizable

Cons:

  • Not for those who prefer the personal touch

Best for military: USAA

USAA renters insurance
Monthly premium:

$14—but military families will likely get significant discounts

Nationwide coverage:

Yes, as well as international

AM Best score:

A++

J.D. Power Score:

893

Visit

USAA offers a competitive price for excellent coverage—monthly premiums are as low as $10—and the company has exceptionally high customer satisfaction scores. Standard USAA renters policies include flood and earthquake coverage at no extra cost. However, USAA products and services are only available to members of the military and their families.

While the quote we received came in at a somewhat higher price than competitors, USAA offers valuable discounts, including an On Base discount, a Claims-Free discount and a bundling discount for adding auto insurance that could cut that cost significantly. They also offer a personalized barracks package, worldwide coverage, and no deductible for military equipment or uniforms damaged in a covered event.

Pros:

  • Competitive pricing—especially with discounts
  • Excellent coverage
  • Options and features tailored for military personnel

Cons:

  • Military and military families only

Best loss of use coverage: Allstate

Allstate renters insurance logo
Monthly premium:

$12

Nationwide coverage:

Yes

AM Best score:

A+

J.D. Power Score:

833

Visit

Allstate offers competitive pricing, good customer service and a simple online quote process for renters insurance. While the online quote process is straightforward and easy to understand, it can be difficult to customize without help from an agent. Allstate also has higher personal property and family liability coverage available as well as bundling and automated payments discounts.

But where Allstate stands out is their loss of use coverage, which might help you rest easy if your apartment is inaccessible due to damage from a covered event. While most competitors offer a dollar amount, Allstate will cover loss of use for up to 12 months.

Pros:

  • Excellent loss of use coverage
  • Good customer service
  • High financial stability ratings

Cons:

  • Somewhat limited online quote process

Compare the best renters insurance companies

To compare premiums, we got sample quotes for a mid-30s woman living in Chicago, sharing an apartment with a spouse and no pets. When asked, we said the apartment had a fire alarm but no burglar alarm, that she wasn’t required by her landlord to hold renters insurance and that she hadn’t filed a claim in the past three years. Here’s how the companies compared on pricing, as well as on customer service and ability to fulfill claims.

Company
Monthly premium*
Monthly premium*
$10.33
J.D. Power claims satisfaction score (out of 1,000)
J.D. Power claims satisfaction score (out of 1,000)
866
AM Best or Demotech rating (for an insurer’s ability to pay claims)
AM Best or Demotech rating (for an insurer’s ability to pay claims)
A++
Monthly premium*
Monthly premium*
$11.17
J.D. Power claims satisfaction score (out of 1,000)
J.D. Power claims satisfaction score (out of 1,000)
870
AM Best or Demotech rating (for an insurer’s ability to pay claims)
AM Best or Demotech rating (for an insurer’s ability to pay claims)
A
Monthly premium*
Monthly premium*
$14.00**
J.D. Power claims satisfaction score (out of 1,000)
J.D. Power claims satisfaction score (out of 1,000)
893
AM Best or Demotech rating (for an insurer’s ability to pay claims)
AM Best or Demotech rating (for an insurer’s ability to pay claims)
A++
Monthly premium*
Monthly premium*
$12
J.D. Power claims satisfaction score (out of 1,000)
J.D. Power claims satisfaction score (out of 1,000)
833
AM Best or Demotech rating (for an insurer’s ability to pay claims)
AM Best or Demotech rating (for an insurer’s ability to pay claims)
A+

*Quoted as of June 26, 2022.

**USAA offers valuable discounts that are likely to significantly lower this rate for military families.

Coverage amounts

Company
Deductible
Deductible
$500
Personal property coverage
Personal property coverage
$20,000
Liability coverage
Liability coverage
$100,000
Guest medical coverage
Guest medical coverage
$1,000
Loss of use coverage
Loss of use coverage
$18,000
Deductible
Deductible
$500
Personal property coverage
Personal property coverage
$30,000
Liability coverage
Liability coverage
$100,000
Guest medical coverage
Guest medical coverage
$1,000
Loss of use coverage
Loss of use coverage
$9,000
Deductible
Deductible
$500
Personal property coverage
Personal property coverage
$10,000
Liability coverage
Liability coverage
$100,000
Guest medical coverage
Guest medical coverage
$5,000
Loss of use coverage
Loss of use coverage
Covered for covered losses
Deductible
Deductible
$500 per occurence
Personal property coverage
Personal property coverage
$25,000
Liability coverage
Liability coverage
$100,000 per occurrence
Guest medical coverage
Guest medical coverage
$1,000
Loss of use coverage
Loss of use coverage
Covered for 12 months

How to shop for renters insurance

  • Determine how much coverage you need. If you have expensive belongings, you might need more personal property coverage. If you’re a minimalist with just a few things, you might need less. Inventory your personal property to determine how much it would cost to replace everything you own.

  • Think about whether you want the actual cash value for your possessions or the replacement cost. Actual cash value means that your insurer will pay the price of the item at the time. For instance, if you own a designer gown that’s damaged in a fire, your insurance company won’t give you what you paid for it—instead, they would give you the cash value of what it would be worth if you sold it after it had been used. Replacement cost policies will usually be more expensive, but they will pay out the cost to purchase a brand-new replacement.

  • Consider your deductible. This is the amount of money you’ll have to pay out of pocket before your renters insurance kicks in. Make sure it’s an amount you can afford and try to keep that amount in a savings account in case of a catastrophe.

    What Is a Deductible for Insurance?

    What Is a Deductible for Insurance?

    Your deductible is how much you’ll pay out of pocket before your insurance kicks in, but it works differently depending on the type of insurance.

    Find out more
  • Get quotes and compare. Compare a range of providers—get quotes from traditional and online-only insurance companies. See what discounts are available to you, what kind of a process you prefer (fully digital or with a dedicated agent, for instance), and compare both the overall cost and the value of what you’re getting for that premium.

  • Select a policy. After all your homework, choose a winner and enjoy the peace of mind that if something terrible happens, you’re covered!

FAQs

What is renters insurance?

Renters insurance offers personal property coverage so you can repair or replace your possessions if they’re damaged or stolen; as well as liability insurance in case a guest is hurt or their property is damaged at your place. Renters insurance also helps cover the extra cost of hotels and restaurants if you lose access to your place due to damage.

What does renters insurance cover?

Renters insurance will cover your personal property, liability in case you’re sued for an incident that happened on your rental property, medical expenses for a guest injured on your rental property, and loss of use coverage in case your rental home becomes unlivable and you have to find temporary lodging. Renters insurance usually doesn’t cover flood damage, earthquakes, acts of terrorism, mold, bedbugs, or the rental property itself.

What is loss of use coverage?

If damage from a storm or another unfortunate event makes it impossible for you to stay in your home while repairs are being done, loss of use coverage kicks in. Loss of use will help cover the costs of a rental home or hotel, meals out, and other expenses such as pet sitting or storage units while you’re unable to access your home.

Methodology

To score the 12 renters insurance companies we selected, we compared key data on national availability, monthly premiums, deductibles, coverage options, valuable discounts, customer service, the ease of quote and claims processes, as well as their complaint index with the NAIC, their J.D. Power customer satisfaction score, and their AM Best or Demotech financial stability ratings.

Simulated quotes were based on the cost for a mid-30s woman in Chicago, sharing a place with a spouse and no pets. When asked, we said the apartment had a fire alarm but no burglar alarm, that she wasn’t required by her landlord to hold renters insurance, and that she hadn’t filed a claim in the past three years. For more on how we rate renters insurance companies, see our full methodology.

Article Sources
  1. “As national eviction ban expires, a look at who rents and who owns in the U.S.,” Aug. 2, 2021, Pew Research Center https://www.pewresearch.org/fact-tank/2021/08/02/as-national-eviction-ban-expires-a-look-at-who-rents-and-who-owns-in-the-u-s/
  2. “2020 Triple-I Consumer Poll,” September 2020, Insurance Information Institute. https://www.iii.org/sites/default/files/docs/pdf/2020_triple-i_consumer_poll_091620.pdf
  3. “Facts + Statistics: Insurance company rankings,” 2021, Insurance Information Institute. https://www.iii.org/fact-statistic/facts-statistics-insurance-company-rankings
  4. “Rating Services,” AM Best. https://web.ambest.com/home
  5. “Financial Stability Ratings,” Demotech. https://www.demotech.com/financial-stability-ratings/
  6. “Home Insurers Struggle with Customer Loyalty as Boomers Flock to Rental Market, J.D. Power Finds, Sept. 21, 2021, J.D. Power. https://www.jdpower.com/business/press-releases/2021-us-home-insurance-study
  7. “Consumer Insurance Search Results,” National Association of Insurance Commissioners. https://content.naic.org/cis_consumer_information.htm
  8. “Lemonade Insurance Company,” May 26, 2022, Demotech. https://www.demotech.com/company/16023/
  9. “The Lemonade Giveback,” Lemonade. https://www.lemonade.com/giveback

About the Author

Hilary Collins

Hilary Collins

Hilary is an experienced finance writer with a passion for turning complicated topics into readable stories with real-world takeaways.

Full bio

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