Renters Insurance: A U.S. News Guide

Renters insurance is a type of insurance policy for people who rent an apartment, condo, or some other type of home and want to protect their personal property from accidental damage, break-ins, or other covered losses; be covered for personal liability coverage if something happens to a guest in their rental property; and be reimbursed for extra living expenses if they have to temporarily relocate after a catastrophic event. Although renters insurance isn't complicated, if you've never purchased it before, you might want some help. Below, we'll explain what renters insurance is, what it costs, and how to buy it. We'll also link to other guides with more detailed information on various key topics.

Best Renters Insurance Companies

We've listed the top 10 renters insurance companies below. Follow the links in the companies' names to read our full reviews. You can also read more about Best Renters Insurance Companies here.

Cheapest Renters Insurance Companies

Below are the five cheapest renters insurance companies in our ratings. Follow the links in the companies' names to read our full reviews. You can read more about Cheapest Renters Insurance Companies here.

What is Renters Insurance and How Does it Work?

Renters insurance covers a renter's personal property stored in or on a rental property, such as furniture, clothing, sports equipment, and small appliances like microwaves that aren't built into the unit. In addition, renters insurance covers personal injuries and related legal expenses if someone other than a family member is injured in or on the rental property. Finally, if you have to move out of your unit due to a hurricane, fire, or some other covered event, renters insurance will reimburse you for extra living expenses like a hotel room and meals out. It doesn't matter what type of rental property you have; whether it's a condo, townhouse, apartment, or some other type of dwelling, renters insurance will cover you.

As for whether you need renters insurance, some landlords may require it. Even if yours doesn't, the Insurance Information Institute recommends that all renters buy it. Your landlord's insurance policy only covers the building, and it won't protect you or your belongings if something happens. Plus, renters insurance is relatively affordable.

For more information, see How Does Renters Insurance Work? and How to File a Renters Insurance Claim.

How Do I Buy Renters Insurance?

Because renters insurance is fairly inexpensive, it's probably best to select an insurance company that you're comfortable with and sells an insurance policy that meets your needs, rather than simply going with the cheapest policy you can find. If you already have life insurance, auto insurance, or some other type of policy, start with that company. United Policyholders notes that to attract and retain customers, many insurance companies offer insurance bundling if you buy more than one type of policy, otherwise known as a multi-policy discount.

However, it's also important to ask around. See what renters insurance companies your family and friends use, and talk to a real estate agent if you know one. Online renters insurance quotes are available on many insurance companies’ websites which helps with comparison shopping. Remember to get renters insurance quotes for the amount of renters coverage you actually need, based on the value of your possessions, the weather risks in your area, and other factors. According to the Consumer Federation of America, you also want to choose a company that has good customer service, which will help minimize hassles if you ever have to file a claim.

For more information, see How to Buy Renters Insurance and How to Bundle Renters and Auto Insurance?

How Much Renters Insurance Do I Need?

To determine how much renters coverage to buy, take a home inventory of all your possessions and note how much they're worth. Use an approximate figure if you don't have receipts. For expensive jewelry or other especially high-value items, you might have to buy a supplemental renters insurance policy or policy add-on with higher coverage limits.

In addition, you'll have to decide what type of property coverage to buy: an actual cash value policy or a replacement policy. An actual cash value policy will only reimburse you for the depreciated value of your possessions if they're damaged or destroyed. For certain items such as electronics, this means you won't get nearly enough to replace them with new ones. On the other hand, for a little more money, a replacement value policy will provide enough money for you to purchase new comparable items. For this reason, most people would be better served with a replacement value policy.

Most renters insurance policies generally cover the same type of losses, such destruction of personal property and reimbursement of temporary living expenses if you have to move out due to a covered loss. Renters insurance also provides liability coverage if a guest has an accident on your property. However, policies vary in their details, and these differences could be important for your situation. Always compare coverages carefully when shopping for a policy. Common covered losses include things like damage from fire, smoke, theft, vandalism, lightning, windstorms, explosions, and water from internal sources like plumbing leaks. Renters insurance usually doesn't cover damage from earthquakes and floods from external sources.

For more information, see What Does Renters Insurance Cover?

How U.S. News Evaluated Renters Insurance

We explain what matters most to consumers, experts, and professional reviewers when it comes to renters insurance . Then we provide an unbiased evaluation of renters insurance providers available at the time of review. Our goal is to empower consumers with the information and tools they need to make informed decisions. More information about our 360 Reviews methodology for evaluating renters insurance companies is here.

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Renters Insurance Companies