Updated Jan 12, 2023
Updated Jan 12, 2023
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Whether you’re renting a studio apartment or an entire home, renters insurance is a leasing prerequisite expected by most landlords. On top of other initial costs like your application fee, security deposit, utilities, etc., finding an affordable renters insurance policy is often a top priority for tenants.
House Method reviewed 70+ renters policies and generated custom quotes with each carrier to pinpoint the top four cheapest renters insurance policies available nationwide.
The providers below can provide free quotes for renters insurance coverage. Contact them today to get started.
|Our Take||Quickest Claims Process||Best Customer Service||Best Personal Property Coverage||Best for Bundling|
|Monthly Premium||Starts at $5 per month||Starts at $12 per month||Starts at $12 per month||Starts at $12 per month|
|Savings vs. Average||$15||$8||$8||$6|
|House Method Star Rating||4.9||4.7||4.5||4.2|
House Method rated Lemonade’s renters insurance with 4.9 out of 5 stars, earning particularly high marks for its quick claim processes. Unlike many of its competitors, Lemonade offers a fully-digital coverage experience facilitated by its AI-operated insurance model. Using automated features to review claim submissions, Lemonade is able to dish out payments in as little as three seconds. Its turnaround times pale in comparison to the 30-45 day waiting period upheld by competing providers. And as an all-online company, there’s no paperwork or processing fees involved either.
With basic policies starting as low as $5 per month, Lemonade is among the most affordable renters insurance providers on the market. Premiums will always vary depending on the level of coverage and deductible you select at sign-up. Lemonade also offers car, pet, term life, and homeowners insurance, and they offer exclusive discounts for bundling your renters insurance coverage with another policy.
A standard renters insurance policy through Lemonade includes coverage for:
Renters can also opt to purchase additional coverage for damage caused by water back-ups, appliance breakdowns, or extra protection for valuables like jewelry, bicycles, musical instruments, cameras, etc.
We scored Geico with 4.8 out of 5 stars and named it the best renters insurance coverage option for accessible customer service representatives. Unlike Lemonade, Geico has live customer service representatives available 24 hours a day, seven days a week, to assist customers with enrollment, claim submissions, or any other questions. Geico is a great option for tenants new to renters insurance or anyone who would benefit from a basic walk-through of their coverage options. We only docked a few points from Geico’s overall score because its renter policies are underwritten by third-party insurers and not Geico itself.
According to its online pricing, Geico’s most basic renters insurance options start at around $12 a month. However, your premium is subject to change based on where you live, the coverage level you select, and any additional policy add-ons purchased at sign-up.
A renters insurance policy through Geico includes coverage for:
Unexpected circumstances that qualify for coverage through Geico include:
House Method scored State Farm with a 4.7 out of 5 stars and elected it as the most comprehensive personal property coverage option. Whereas some providers instate per-item coverage limits for losses eligible for indemnification, State Farm doesn’t have any maximums on personal property and loss of use coverages. In terms of monthly cost, State Farms’ average rates sit fairly in line with Geico’s, though its limited selection of three deductibles may make it more expensive in the long run.
Similar to Geico, State Farm’s most basic renters insurance policy starts at about $12 per month. As with any carrier, where you live, your custom coverage specifications, the size of the property is covered, and your deductible option will all influence the amount you’ll pay per month. Still, a base rate of $12 sits below the $15 industry-average monthly cost of renters insurance.
With a policy through State Farm, tenants will be covered for personal property, loss of use, liability protection, and medical/legal fees to others.
Extra coverage options offered by State Farm, available for an additional fee, include:
We scored Allstate with a 4.6 out of 5 stars but felt compelled to include it as one of the most affordable renters insurance options by virtue of its generous spread of discounts. Based on the company’s website, the average Allstate renters insurance policy costs roughly $16 per month. Though that is slightly higher than the rates of the other renters insurance policies we’ve reviewed thus far, that premium can be reduced significantly if you’re eligible for any of Allstate’s policy discounts.
Though Allstate’s premiums are slightly above the other carriers we’ve reviewed above, it offers some one-of-a-kind discounts that boost its overall affordability. Firstly, policyholders age 55 years or older are automatically eligible for 25% off their premium. Current Allstate customers who already have auto insurance through the carrier are eligible for a multi-policy discount when they bundle two or more insurance plans. Allstate also offers a small discount for policyholders who enroll in auto-pay through its Easy Pay Plan.
According to the Insurance Information Institute’s (III) 2019 analysis of average premiums for homeowners and renters insurance by state, Wyoming and Utah ranked as the most expensive regions for coverage. On the other hand, Wisconsin and South Dakota were among the cheapest. Whereas a policy in Wyoming costs an average of $252 per month, South Dakota tenants only pay around $48 per month.
To save money on your renters insurance policy, consider the following advice:
The amount you’ll pay for renters insurance will depend on the coverage and deductible options you select at enrollment. That said, the average cost of renters insurance is around $18 per month or $219 per year for most tenants across the United States.
Though bundling options will depend on your provider, most top-rated carrier offer incentives for the multi-policy bundle — renters and auto being a popular combo. By purchasing two forms of insurance under the same carrier, you’ll qualify for additional savings. It can also be a time-saver when managing your policies because all your coverage details will be accessible in one place.
Being a non-smoker can save you anywhere from 5-20% on your renters insurance policy, depending on your carrier. Negligently discarded cigarettes have been known to cause devastating wildfires, and smoking indoors is still considered one of the leading causes of house fires. By committing to a non-smoking lifestyle, tenants create lower risks for carriers.
Some carriers will save you up to 20% on your policy if you have a home security system. Naturally, cameras and other smart security devices will likely deter burglars or anyone considering a home invasion. This offers an added layer of defense for carriers who would otherwise be responsible for financial losses due to burglary or theft.
You might not think to call your renters insurance provider immediately after a fire, flood, theft, or other unprecedented events. However, it’s crucial to do so as soon as possible to start the claim process effectively. In this section, we’ll walk you through the steps of filing a claim:
Our proprietary ratings are based on a comprehensive rating system crafted specifically for our renters insurance category. All supporting data to back our carrier rankings are sourced from reputable public databases such as carrier websites, financial strength ratings by AM Best,
the National Association of Insurance Commissioners, the Insurance Information Institute (III), and more. The backbone of our rating system prioritizes the experiences of real renters with renters insurance as recorded through an anonymous public survey.
Based on our research, we found Lemonade to offer the cheapest renters insurance policy on the market. With a fully-digital insurance model, Lemonade offers some of the fastest services in the industry while leaving out standard processing fees thanks to its paperless operations. On top of already low rates, it also provides its policyholders with more opportunities to save through bundling incentives as well.
Geico, State Farm, and Allstate offered comparable monthly rates. However, no matter the provider you enroll with, your premium will always depend on the personal specifications of your policy and location.
The simplest way to lower the cost of renters insurance is by opting for the most basic yet effective coverage offered by your carrier. Some providers also offer exclusive discounts for tenants who invest in minimizing risk throughout their property. Renters with home security systems, proper smoke and carbon monoxide detectors, and non-smokers are sometimes eligible for lower premiums at sign-up. Other discounts like multi-policy bundling or enrolling in auto-pay can save you money on your renters insurance policy.
The most basic renters insurance policy will typically include three standard types of coverage: personal possessions, additional living expenses, and liability protection. Most providers have automatic limits and deductibles assigned to their most affordable policy option, which can then be adjusted based on your coverage preferences.
Renters insurance isn’t legally required in any state, but landlord reserve the right to refuse tenancy to prospective renters who refuse to invest in coverage. Most landlords typically ask that tenants have at least $100,000 in liability coverage, but those specifications will vary from lease to lease at the property owner’s discretion.
Renters insurance covers less than home insurance, which is why it’s cheaper. Renters insurance is primarily designed to cover the personal belongings and liability of the tenant, not structural issues related to the property itself. Home insurance — something that should exist under the landlord’s name — relates to the physical property itself, which can be far more expensive to indemnify in the event of a coverable loss.
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