Best Renters Insurance Companies in 2024 | Bankrate (2024)

PROS

• Flood coverage is standard on renters insurance policy

• If moving or deployed overseas, personal belongings would be insured with overseas coverage

  CONS

  • Not available to the general public

  • Can only do business over the phone or online, no local offices

Best for military-centric coverage

USAA Insurance review

USAA tied for Best Home Insurance Company Overall in the 2024 Bankrate Awards, partly due to its high J.D. Power scores and nationwide availability. The company has a stellar reputation among consumers and the insurance industry, and it offers renters insurance policies geared toward military families. The basic policy includes coverage for personal property, personal liability, medical payments and additional living expenses. Flood coverage is also included in standard USAA renters insurance policies, which is notable considering that flood insurance typically has to be purchased separately.

However, USAA is not available for everyone, which could be considered a major drawback of the company. Only military members, veterans and qualifying family members may be eligible for coverage. Unless you fit one of these categories, you will not be able to purchase a USAA policy.

How to compare renters insurance companies

With so many renters insurance companies on the market, how do you choose which provider is right for your needs? Finding the best renters insurance policy will depend largely on your particular living situation and coverage preferences. Before searching for a provider, you’ll likely want to evaluate your circ*mstances and consider what your main priorities are when it comes to a rental insurance company.

For example, if you run a business or keep business-related items in your home, you may find that an add-on for extended coverage or business personal property is necessary. This may cause you to look for a provider that specializes in renters insurance for business personal property.

Additionally, it may be helpful to review third-party reviews from companies like J.D. Power and AM Best. J.D. Power runs numerous studies each year, including evaluating renters insurance companies. Scores are out of 1,000 points and evaluate customer satisfaction based on a number of factors. AM Best rates the financial strength of insurance companies based on their historical ability to meet financial obligations and pay claims. This measure may be comforting when predicting how future claims are likely to be handled, especially if a company is inundated with numerous claims at once.

Once you have identified a handful of companies that could meet your needs, you can start requesting quotes. This can often be done online or by phone, or you could contact a local agency. Getting quotes from several different insurance carriers allows you to compare premiums, coverage options, discounts and policy features.

Additional renters insurance comparison considerations

Like any insurance policy, renters insurance is not one-size-fits-all. No two rental circ*mstances are the same, and neither will the insurance for them be. When choosing a renters insurance company and personalizing your policy, you may want to consider:

• The value of your belongings: To help ensure you do not over- or under-insure your belongings, you could create a home inventory. This exercise could help you estimate the total value of your belongings so that you choose an appropriate personal property coverage amount.
• If you have any high-value items: Possessions like fine jewelry, collectibles, fine art, guns or antiques often have set coverage limits included within a policy. For example, without alterations to a policy, you might only have $1,000 in coverage for jewelry, regardless of how much personal property you buy. Scheduling your high-value possessions can provide more accurate and broader coverage.
• If you have a pet: You might not consider your pet when you buy renters insurance, but you should. While many pets are covered for liability, some dog breeds and exotic animals are often excluded. If you have one of these animals, you probably want to look for a company that will extend liability insurance to it. That way, if your pet injures someone, your insurance can step in to help pay for the bills.
• How often friends and family visit: If you like to host events at your home, or often host large parties of people, having this in mind could help you determine the right amount of liability insurance for your needs.
• What company insures your vehicle: Many car insurance companies also offer renters insurance. When you bundle your policies together, you could see significant savings. Plus, there’s the added convenience of having all your insurance policies in one place.

If you aren’t sure where to start in your search for renters insurance, sitting down with a licensed insurance agent can be helpful. An agent can listen to your needs, circ*mstances and concerns and help recommend companies, coverage types and policy features that fit your situation.

What does renters insurance cover?

Renters insurance typically covers damage to your personal items, additional living expenses and situations where a guest is injured. These things are generally not covered by your landlord’s insurance policy. Similar to homeowners insurance policies, covered perils generally include fire, theft, falling objects, items stored outside of your rental and medical coverage for guests.

• Personal property: Coverage for your personal property is not included in your landlord’s insurance for rentals. Purchasing renters insurance allows you to protect items like your laptop, clothing and furniture. Even if your personal property is stored away from your rental, coverage generally extends up to a certain limit to anywhere your personal property is kept.
• Living expenses: If your rental becomes uninhabitable due to a covered loss like a fire, renters insurance helps cover the resulting costs from having to stay outside your home while it is being repaired. This could include fees for hotels, food and other necessary costs.
• Medical payments and liability: If a guest gets injured within your rental property, guest medical protection is available to help pay for potential medical bills resulting from the accident, regardless of fault. If fault is placed and a guest issues a lawsuit for the injury, liability protection also serves to help with legal fees, medical expenses, payments for pain and suffering and lost wages.

Depending on the common risks where you live, you may want to consider add-ons and additional coverage options where available. You may choose to add earthquake coverage if you live in a state more prone to those damages, for example. Other factors to consider when choosing a policy are the replacement cost of your most valuable items.