Finding and moving into an apartment is an exciting time, but it comes with a lot of new responsibility — one of those responsibilities being renters insurance. You may be thinking, “Doesn’t my landlord have insurance that covers me?” It’s a common misconception when renting. While you aren’t legally required to buy renters insurance (some landlords may require you to), your belongings aren’t covered by your landlord’s insurance. Without renters insurance, any of your belongings that are stolen or damaged in a fire, wouldn’t be covered and you’d be left replacing them all out of pocket.
So who should you purchase renters insurance from? It’s important to do your research before making a purchase, but we’ve gathered a few companies that take a modern approach to the renters insurance experience. These new-age companies use the latest technology to make the experience more seamless, from obtaining insurance to making a claim. Companies like Lemonade, Jetty, and Toggle appeal to millennials because they better tailor to the needs of a renter in today’s world.
Though Lemonade was founded just four years ago, it’s already a hit among consumers. Based on 60 Lemonade insurance reviews on Clearsurance, Lemonade has a 4.71 rating out of 5 stars — tied for the highest among any renters insurance company in the country. So what makes this insurer so appealing?\
Lemonade uses artificial intelligence to process claims, which makes its claims process much faster than traditional companies. Lemonade policyholders are able to go onto the company’s app or website and make a claim, which will then either be processed and paid out by its claims bot, often within minutes, or a Lemonade employee will call you to further assist. About 25 percent of Lemonade’s claims are paid out in 3 seconds, according to its website. Lemonade works to stay up to date both on policies and coverage, and technology that keeps its claims process fair and easy.
Plus, Lemonade takes a different approach than a typical insurance company in the way it structures its finances. Lemonade takes a fixed fee out of your monthly payment for their own expenses, and then uses the rest of that money to pay claims. If there’s money left over it didn’t need to pay out claims, that money is given to a charitable cause selected by the policyholders through Lemonade’s “Giveback” program.
You can see if Lemonade is available in your state here.
Similar to Lemonade, Jetty Insurance was founded in 2015, making it a new entrant to the market. Jetty Insurance works to ensure its coverage is modern, and it covers the items and electronic devices that today’s renters own, without any unnecessary and dated coverage that may be found in traditional renters insurance policies. Jetty also created Jetty Passport in an effort to make sure its policyholders are able to afford the apartment they want.
Jetty Passport is made up of two parts: Jetty Deposit and Jetty Lease Guaranty. Jetty Deposit allows you to pay a small portion of your security deposit (17.5 percent), instead of the whole one month’s rent worth, if Jetty partners with the real estate company that owns your building. Keep in mind the one-time fee is non-refundable, and you’re still on the hook for any damages you cause, but this way you aren’t responsible for coming up with the full security deposit before moving in. Jetty Lease Guaranty acts as a co-signer for you if you don’t meet the lease salary requirements and don’t have someone to co-sign for you, for a small fee. Jetty calls itself a “referee” between its policyholders and their landlords; you’re still responsible for any damages and for paying rent, but Jetty is able to help lower the overall cost of renting.
Unlike Lemonade or Toggle, Jetty is available nearly nationwide.
Toggle Insurance says on its website that it’s a renters insurance company that has “hit the refresh button on renters insurance.” Toggle is still growing, and is currently only available in Wisconsin and Illinois, but it’s rapidly expanding.
Toggle allows its policyholders to make changes instantly to their coverage online, whether they’re moving into a new apartment, or need to add a particularly expensive item they just bought. Toggle is member of the Farmers Insurance family, a company with over 90 years experience in the insurance field. Toggle has a variety of policies, which they call “subscriptions” to choose from — anything from Pet Parent coverage for your animals, to Side Hustle coverage for any side business you may run.
Renters insurance is typically affordable, and Toggle is no exception. Its basic policy costs about the price of one latte per month while it compares its standard option to the monthly cost of a streaming service. Its premium policy costs around $25 a month.
Why these companies appeal to millennials
The things renters need covered today differs a lot from the items renters in the past would need covered, yet most renters insurance policies have stayed the same. Technology like laptops, cameras, and televisions are easily damaged in the event of a burst-pipe or fire, and likely to be stolen in the event of a break-in.
These companies also all utilize the latest technology and stay up to date when new developments are available to them. The ability to have a flexible renters insurance policy that betters serves their needs is something millennials want and need. The use of technology like mobile apps or artificial intelligence to get a policy or make claims creates a simple platform for busy millennials.