You’ve found the apartment of your dreams, but your job isn’t over yet! Now you have to find a renters insurance company to protect your personal items in your apartment. While it seems like a daunting task, Clearsurance, the leading online publisher of consumer insurance data, named the best renters insurance companies for 2018 to help guide your search.
What is Renters Insurance?
You need renters insurance to cover your personal belongings so you can repair or replace them if they’re damaged. If a disaster strikes your apartment, such as a fire or hurricane, your landlord’s insurance will cover any damages to the structure of the building, but they aren’t responsible for replacing your personal items. The general rule of thumb is that if you can’t afford to replace all of the items in your apartment, you should purchase renters insurance.
According to the Insurance Information Institute, standard renters insurance coverages include protection for personal possessions, liability and additional living expenses if your apartment is badly damaged and you cannot stay there. Damages covered by a typical policy include damage from fire, smoke, lightning, vandalism, theft, explosion, windstorm and water. Policies typically don’t cover flooding from severe weather or earthquake damage. Protection for those perils require supplemental coverage.
Many renters don’t know that renters insurance is generally very affordable, though the price depends on your coverage and where you live. The average cost of renters insurance in the U.S. remains below $200. That equals around $16 per month on average and less than $1 per day. To put that in perspective, the monthly cost is about the same as a pizza and the daily cost is less than a cup of coffee.
Top 5 Renters Insurance Companies
Based on thousands of consumer reviews and ratings, Clearsurance published a list of the top five renters insurance companies with the best customer scores. It only included companies with at least 100 reviews over the past year.
USAA came out on top, ranking as the No. 1 renters insurance company for 2018 with a score of 4.73 out of 5. While USAA tops the charts, not everyone is eligible to purchase renters insurance through the company. USAA only serves former and active U.S. military members and their families. If you’re eligible, you can read USAA insurance reviews to see why consumers trust this company for their renters insurance.
A unique feature of USAA renters insurance is that flood and earthquake coverage come standard with a policy. These coverage are often omitted from standard policies and policyholders need to purchase supplemental coverage to get protection against them.
Consumers consider State Farm the second-best renters insurance company with an average renters insurance score of 4.39 out of 5. State Farm is a reputable insurance company that had the most direct premiums written of any personal lines insurance companies in 2017.
Geico comes in at No. 3, but it isn’t far behind State Farm by earning a score of 4.38 out of 5. Geico isn’t like the previous companies on the list because it sells renters insurance through other licensed insurance companies rather than writing its own renters insurance policies. Geico is a great option for renters who already have their car insurance through Geico and are looking to bundle policies.
Progressive holds the No. 4 spot with a score of 4.38 out of 5. Like Geico, Progressive renters insurance is provided through third-party insurers and you can earn a discount by bundling your renters and car insurance together.
Allstate ranks as the fifth-best renters insurance company with a score of 4.16 out of 5. Allstate has many resources available to help you get renters insurance. You can get a quote on Allstate’s website or also by talking to an agent.
Lemonade – a renters insurance company with a modern approach
Though it didn’t qualify for Clearsurance’s list, Lemonade Insurance is currently ranked No. 1 by consumers. Lemonade didn’t have enough reviews to qualify, but the startup insurance company is quickly growing and expanding to offer renters insurance coverage in more states.
Lemonade is a startup renters and homeowners insurance company with a unique business model. Lemonade utilizes technology to offer renters insurance services through a mobile app and website all while giving back to the community.
Lemonade charges you a renters insurance premium and takes a flat fee for service and sets the rest of your premium aside for paying claims. Each year, the company uses money leftover that was dedicated to claims to make donations to the charity of your choice. You can read more about this company and the Lemonade Giveback program on Lemonade’s website.
What to Look for When Shopping for Renters Insurance
Anyone who is renting an apartment, condo, college dorm or house should consider renters insurance. Before you begin looking for policies and getting quotes, you should know what your belongings are worth. Do you have any precious jewelry or other items that may need additional coverage? Liberty Mutual’s renters insurance coverage calculator might be able to help you find out how much your items are worth.
It’s important for you to find the renters insurance company that is right for you. A company may claim to be the best but does it actually have responsive customer service? Does it pay out claims quickly and effectively? You can learn valuable information and learn from the experience of others by reading consumer reviews. To see the most up to date listing of the best companies and to filter by insurers selling in your state, check Clearsurance’s renters insurance rankings.
When you find your apartment, in whichever city you call home, make sure to check out your options for renters insurance.