Top renters' insurance providers in the US

The average cost of renters’ insurance premiums has been dropping steadily in recent years, hitting $179 annually, or about $15 per month, according to the latest figures from the Insurance Information Institute (III). But despite its affordability, only about two-fifths of renters in the US have this type of coverage.

Policy prices are based on several factors and can be lower or higher than the national average depending on the state, home type and size, tenant’s credit score, and coverage features. The number of residents in a rental property, and whether the tenants have a dog can also affect the cost of the premiums.

The tables below show the states with the cheapest and most expensive renters’ insurance premiums based on III’s 2018 data.

States with the cheapest renters’ insurance policies

States with the most expensive renters’ insurance policies

Top renters’ insurance providers in the US

Insurance companies offer a range of tenant protection, including personal property coverage in cases of damage and theft, liability coverage for lawsuits stemming from injury or property damage occurring in the rental property, and loss-of-use coverage for expenses incurred because tenants were unable to stay in the property.

Business Insider gathered data from various renters’ insurance providers across the country and came up with the top five based on premium prices and customer satisfaction. To compare how much policies cost, the financial news website compiled sample quotes for a two-bedroom, one-bathroom single-family home with a smoke detector and no pets in Philadelphia, Pennsylvania.

Customer satisfaction rating, meanwhile, was based on J.D. Power’s 2020 home insurance survey.

Here are the top five renters’ insurance providers in the US based on BI’s metrics:

1. State Farm

Sample quote: $15.67
Overall customer satisfaction rating: 836 (8th)

State Farm is the largest provider of renters’ insurance in the US, offering nationwide coverage, and has the lowest monthly premiums overall. Standard coverage options include personal property, liability, loss-of-use, and medical payments. Policies also include replacement cost and inflation coverage features. Waterbed liability, identity theft, sewer or drain backup, incidental business, additional insured, nurses’ professional liability, and personal injury liability coverages can be purchased as add-ons.

2. Lemonade

Sample quote: $16.84
Overall customer satisfaction rating: 866 (1st)

One of the attractive features of Lemonade’s renters’ insurance is that it gives policyholders an opportunity to give back to a charity of their choosing. From July 2019 to June 2020, the insurer has donated more than $1 million to various charities and not-for-profit organizations, according to NerdWallet. Lemonade offers renters’ insurance in 28 states through its website and mobile phone app that typically covers personal property damage, liability, and temporary living expenses. Coverage for valuable items, water backup, and landlord’s property damage can be added at a price.

3. Erie Insurance

Sample quote: N/A
Overall customer satisfaction rating: 865 (2nd)

Erie Insurance offers tenant coverage in only 12 states – namely Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin – and the District of Columbia, but ranks among the best in terms of customer satisfaction. Policies pack the standard features while coverage for sewer or drain backups, earthquakes, identity recovery, home sharing, criminal defence, cost reimbursement, incidental business expenses, and valuable possessions can be included at an additional cost.

4. Allstate

Sample quote: $23
Overall customer satisfaction rating: 841 (4th)

Allstate provides renters’ insurance coverage nationwide with the standard inclusions. Protection for valuable items and identity theft can be added. The insurer also offers a range of discounts, including multi-policy, autopay, and claim-free, as well as rate cuts for the installment of security devices and for retired policyholders. Policies, however, are more expensive than those from other insurers.

5. Farmers

Sample quote: $21.83
Overall customer satisfaction rating: 839 (6th)

Farmers’ policies contain the typical renters’ insurance features with an option to add replacement cost coverage and identity protection. The insurer provides nationwide coverage and offers bundling discounts. Premiums are typically priced higher than those from other insurance providers.