Cheap Renters Insurance (2024)
Key takeaways
- State Farm is the cheapest renters insurance company nationally.
- While not required by state law, landlords often require tenants to carry renters insurance.
- It’s usually better for roommates to have their own separate renters insurance policies.
Cheapest renters insurance companies
Lemonade is the next-cheapest option, at $140 a year, or $12 a month.
Cheapest renters insurance by rate
| Company | Monthly rate | Annual rate |
|---|---|---|
| State Farm | $11 | $133 |
| Lemonade | $12 | $140 |
| Allstate | $17 | $203 |
| Amica | $17 | $204 |
| Progressive | $19 | $234 |
| Assurant | $22 | $267 |
| Farmers | $23 | $274 |
| American Family | $27 | $328 |
Keep in mind these are average rates. Your renters insurance rate is based on factors like your:
- ZIP code
- Insurance claim history
- Chosen coverage limit and deductible amount
- Credit history (in many states)
Cheapest renters insurance by state
To compare, the national average renters insurance rate is $216 a year, or $18 a month.
Renters insurance rates by state
| State | Average monthly rate | Average annual rate |
|---|---|---|
| Alabama | $25 | $304 |
| Alaska | $19 | $223 |
| Arizona | $21 | $257 |
| Arkansas | $26 | $317 |
| California | $16 | $191 |
| Colorado | $17 | $206 |
| Connecticut | $14 | $171 |
| Delaware | $16 | $190 |
| Florida | $20 | $242 |
| Georgia | $25 | $305 |
| Hawaii | $19 | $227 |
| Idaho | $16 | $197 |
| Illinois | $18 | $210 |
| Indiana | $19 | $225 |
| Iowa | $16 | $191 |
| Kansas | $19 | $226 |
| Kentucky | $20 | $241 |
| Louisiana | $29 | $349 |
| Maine | $13 | $159 |
| Maryland | $19 | $224 |
| Massachusetts | $15 | $179 |
| Michigan | $24 | $282 |
| Minnesota | $16 | $192 |
| Mississippi | $29 | $344 |
| Missouri | $21 | $254 |
| Montana | $13 | $158 |
| Nebraska | $17 | $209 |
| Nevada | $18 | $211 |
| New Hampshire | $14 | $171 |
| New Jersey | $15 | $176 |
| New Mexico | $17 | $202 |
| New York | $15 | $177 |
| North Carolina | $13 | $156 |
| North Dakota | $13 | $155 |
| Ohio | $22 | $260 |
| Oklahoma | $24 | $289 |
| Oregon | $16 | $197 |
| Pennsylvania | $17 | $203 |
| Rhode Island | $16 | $187 |
| South Carolina | $17 | $207 |
| South Dakota | $16 | $195 |
| Tennessee | $19 | $232 |
| Texas | $20 | $242 |
| Utah | $19 | $228 |
| Vermont | $14 | $164 |
| Virginia | $16 | $194 |
| Washington | $14 | $167 |
| West Virginia | $16 | $191 |
| Wisconsin | $15 | $182 |
| Wyoming | $14 | $163 |
What does renters insurance cover?
Renters insurance usually covers damage or destruction caused by several kinds of events or perils, including:
- Fire
- Lightning
- Hail
- Wind
- Falling objects
- Ice, snow or sleet
- Freezing
- Burst pipes
- Smoke
- Theft
- Vandalism
Renters insurance policies typically pay out claims at actual cash value, of ACV. This means they compensate you based on the current value of the damaged item after depreciation.
Some renters insurance companies offer claim payout at replacement cost. This means the damaged item is replaced with a new one at whatever the current cost is, up to your policy limit.
Renters insurance protects you from these events with several types of coverage, such as personal property, liability and loss of use.
Personal property
The personal property portion of your renters insurance policy covers the belongings in your rental home, including items you have in your car and in storage. Some of the possessions it covers:
- Clothing
- Furniture
- Electronics
Renters insurance usually covers expensive personal property like jewelry or art, but only up to an amount that’s lower than your overall coverage limit. Many renters insurance companies offer endorsement coverage for valuables that covers them at a higher limit.
Liability
Liability covers medical bills, property damage and legal expenses that are tied to injuries or damage you cause to others.
Guest medical payments
Medical payments coverage helps pay costs that arise from injuries occurring in your rental home, regardless of who’s at fault. These can include:
- Emergency room visits
- Hospital stays
- Surgeries
- Treatments and physical therapy
- Lost wages
Loss of use (LOU)
Also known as “additional living expenses,” LOU covers costs beyond your usual standard of living that arise from having to relocate while your rental home is repaired. Covered costs can include:
- Meals
- Rent
- Furniture rental
- Laundry
- Extra commute costs
- Pet boarding
Keep in mind that LOU only pays out for claim-related costs beyond your usual living expenses. For example, if your rent is normally $1,700 a month and where you relocate to is $1,950 a month, LOU will pay out the extra $250.
What doesn’t renters insurance cover?
Earthquake and flood
No renters insurance policy covers damage due to earthquake or flood. However, some renters insurance companies offer earthquake or flood insurance as add-on endorsements.
Pests and vermin
Renters insurance also won’t cover damage due to bed bugs, termites, rats and other pests.
Car theft
Car theft isn’t covered by renters insurance. You need comprehensive car insurance to have this covered. However, your renters insurance will cover personal property stolen from your car.
Roommate possessions
Your roommate’s personal property is not covered by renters insurance, unless they are on your policy. We don’t recommend putting a roommate on your policy, though, because you would have to share the policy limit. This makes it more likely you won’t have enough personal property coverage to replace all your belongings in the event of a total loss.
Do I need renters insurance?
But even if your landlord doesn’t require you to carry renters insurance, it’s often a great investment. The average cost of renters insurance is $18 a month. This is cheap compared to the thousands of dollars it could cost to replace your belongings after a total loss.
How do I get a cheap renters insurance policy?
1. Make a home inventory
To make sure you have the most accurate estimate for personal property coverage, make a home inventory list of the items you want covered. Include descriptions, serial numbers and cost when possible. This may take a bit of time, but can then be quickly updated as needed.
2. Gather info
Start by gathering this information about yourself and your policy:
- Your personal info and address where you need coverage
- Desired coverage start date
- Renters insurance limits you need
3. Get quotes
Get renters insurance quotes from three to four companies once all of the above is in order. Use the same limits for each quote so you’ll be able to make the most accurate comparison later.
4. Compare
Look at the quotes you get side by side and consider which one offers the best combo of cost, coverage and customer satisfaction history for your needs. Consider the discounts each company offers, too, along with any unique coverage offerings or add-ons.
Once you have your winner, either go to the company’s website or call them to set up the policy. It should only take a few minutes either way. You can set your coverage start date to be immediately or sometime in the future.