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Most people understand the importance of homeowners insurance. Not only can it protect you from huge out-of-pocket costs, but it is also required to get a mortgage. However, many people choose to rent a house or apartment and do not think they need any extra insurance. That can be a very costly mistake.
A renters insurance policy is not required in all states, but it is highly recommended that you cover your property regardless of the state requirements. Much like homeowners insurance, renters insurance can protect you from costs due to fire, theft, or liabilities such as someone getting hurt on your property.
The annual premiums are relatively low and can often be added to your lease. It is a good idea to shop around for the best deals on renters insurance before buying. What follows are some of the best renters insurance offerings around.
Keep in mind that rates and insurance premiums can vary from state to state and prices can be based on your credit score, so you will want to do some research before making your choice. Insurance companies will look up your credit score to create your policy, however, it will not impact your score. Also, some policies may have coverage limits when it comes to high price properties, pets, and certain natural disasters; these usually will require additional coverage.
Related: The Complete Guide to Auto Insurance
State Farm
State Farm is one of the most trusted insurers in the country. The availability of agents across the United States means that it is easy to find coverage no matter where you live. State Farm has gained awards and praise from the industry in their coverage and ability to pay out on claims.
The company offers multi-policy discounts for customers (such as having car insurance with them as well as homeowner insurance). Installing a security system can also give you a discount on your rates. With insurance rates as low as $8/month, State Farm is an excellent company with affordable rates.
Liberty Mutual
Liberty Mutual is another excellent value insurance company, with coverage options as low as $5/month. Like other insurance companies, discounts are available by bundling policies and being claim-free for five years. Standard policies cover personal belongings, liability, medical payments, and additional living expenses. Plus, you can add additional coverage to your policy.
One feature that Liberty Mutual offers is their ease of making a claim via their website or app. They have a step-by-step process where customers can provide details and photos for their claims and how to see what Liberty Mutual renters insurance covers. Their 24/7 customer service allows clients to process a claim in about 10 minutes. Most claims are processed and completed in a matter of days, so their speedy customer service is a great benefit.
MetLife
MetLife coverage protects properties from damage against fire, hail, theft, tornados, and vandalism. They also offer policies with $100,000 in liability coverage with flexible payment plans and the ability to purchase additional coverage for personal items such as electronics. MetLife also has the added benefit of identity theft protection with every policy and live customer support 24 hours a day, seven days a week with usually high customer satisfaction. To get a quote, you will need to call an agent instead of getting a quote online. Some employers and organizations also offer discounts with MetLife coverage.
Nationwide
Nationwide offers some of the more expensive policies on our list of insurers at around $20/month, however, they provide ample coverage for the price. The policy covers loss of use, personal property coverage, personal liability, medical costs to others, as well as building additions and alterations. Nationwide also offers credit card protection to shield against unauthorized transactions. Policyholders can add coverage for natural disasters, water damage, and property stored in personal vehicles.
As previously stated, Nationwide is more expensive than some of the other insurances on this list; however, they do have several ways for customers to save on their coverage. For instance, bundling with car insurance or life insurance can garner you a discount or installing a security system and having a claim-free policy can save you some money. Another benefit of Nationwide is the On Your Side Review, which ensures you have the best coverage.
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Lemonade
Lemonade is one of the newer companies available. While only available in 26 states and Washington, D.C., they are expanding into other areas. A great selling point for Lemonade is their mobile app for customers, which allows them to offer an online quote and have coverage within a few minutes. They can do this by using the AI bot Maya as opposed to using traditional agents.
Lemonade offers some of the cheapest coverage paired with typically low deductibles, and they allow their customers to adjust their coverage month to month as their needs change. The company also prides itself on speedy claim processing. They claim that 25% of customer claims are processed and paid in a matter of seconds.
American Family Insurance
American Family, or AmFam, is one of the more trusted insurance agencies in the country. Renters insurance coverage averages $15/month for liability, personal property coverage, medical bills, and hotel stay if you cannot remain in your rental due to a covered event. Additional coverage (or optional coverage) that can be add-on includes pet medical insurance, jewelry protection up to $1,500, and coverage for home offices and workspaces. AmFam also offers replacement cost coverage, allowing you to replace damaged items with brand new replacements.
AmFam also provides ways for customers to save through bundling with multiple policies and autopay discounts. Bundling with auto insurance can save customers 15% on their renters’ insurance.
USAA
For current and former members of the military, USAA is the best insurance option. Along with bundling discounts, USAA offers unique coverage for military personnel, such as lost uniforms. USAA also covers protection against usually excluded events such as floods, windstorms, earthquakes and lightning.
USAA also has many different types of coverage for military members. Homeowner and vehicle insurance offers many discounts and exclusive coverage for service members. One drawback is that policies are only available to either past or present service members and their direct family members (parent or spouse).
Many great companies offer renters insurance with the financial strength to prove their worth, but this list is some of the most reputable companies around with some of the best ratings and overall value in regards to their basic policy coverage. Hopefully you won’t need to use your insurance and you can stay claim-free, but accidents happen and sometimes property damage cannot be helped.
To find what will work best for you, compare the average cost of renters insurance with the prices and coverage offered in your area to find the insurance that best fits your needs. You may also want to check with your property manager and ask about your landlord’s insurance policy and if it is included in your lease or if you can get any discounts for signing with a specific renters insurance provider.
If you have additional questions or concerns regarding renters insurance, check out the Insurance Information Institute.
You might also like: Is Pet Insurance Worth it? [How to Protect your Fur Babies]
The 7 Best Renters Insurance Companies:
Brady Smith
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Brady is a writer, voice artist, podcaster and website designer. He holds a Bachelor’s Degree in Communication and specializes in crafting effective messaging designed to get results. Brady makes his home on the edge of society - close enough for good WiFi, but far enough out to not have to worry about traffic.
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