Best Renters Insurance of September 2021

Charles Baisden

Renters insurance protects your personal property, and it gives you peace of mind you’ll be covered should disaster strike at the place you rent. We’ve evaluated insurance companies based on price, customers satisfaction, financial strength, and overall quality.

Is renters insurance worth it?

It’s common for renters to disregard renters insurance altogether. Many renters may not feel the need to purchase renters insurance as they don’t own the property itself and see rentals as temporary residency.

However, renters insurance is a great investment regardless of how long you plan to stay in your rental property. Renters insurance protects your personal property in the event of situations you cannot prepare for: including break-ins, fires, unexpected injuries on your rental property, and more.

For a monthly premium fee, you can be covered for these unplanned events to prevent you from paying a ton of money in reparations later on. It’s an extra layer of protection to help you prepare for yourself for the worst-case scenario.

How does renters insurance work?

Renters insurance covers your personal belongings within the rental property and other extraneous living expenses in the event of an emergency. As a tenant, you are responsible for the costs associated with insuring and protecting your personal property. Your landlord or property owner is responsible for insuring the property itself by getting landlord insurance for a rental unit and taking care of costs associated with that coverage,

Renters insurance often includes three types of coverage:

  • Personal property: This covers your personal belongings in the event of damage or theft, including electronics, furniture and other valuables.
  • Liability: Should someone be injured at your property and you are found to be responsible, renters insurance helps cover the costs.
  • Additional living expenses: Should you be displaced as a result of damage to your property, renters insurance can help cover hotel bills and temporary residence costs.

What does renters insurance cover?

Depending on your unique renter’s insurance plan, you may be covered for a range of events. However, in general, you can be expected to have coverage for:

  • Theft: Should you experience a break-in at your rental property, renters insurance will often cover the cost of your stolen or damaged property.
  • Fires: If your rental property has fire that causes damage or destroys your personal items, you can expect coverage from your renters insurance plan.
  • Medical bills: If a guest is injured or dies on your rental property, renters insurance can help you cover the costs.

Separate from your landlord’s insurance, renters insurance covers your own personal property, but not the rental itself. It is up to your landlord to insure the property and take care of the costs associated with that form of insurance.

Most renters insurance plans do not cover weather-related damages, including damage to your items from flooding. Each renters insurance provider varies in what exactly is covered under their policy. It’s important to review your coverage policy thoroughly to understand what events are covered.

Before you can be eligible for coverage, you need to meet your yearly deductible amount. Additionally, most insurance policies have maximum coverage, which indicates the amount of money they will payout for a claim.

How are renters insurance costs determined?

Renters insurance costs vary depending on the details of your specific policy plan, as well as your provider. Some things that factor into your overall coverage amount include:

  • Location: Depending on where your rental is located, you may need to pay more on average for your renters insurance coverage. States with more expensive properties and higher property tax tend to have higher premiums.
  • Personal risk: If you’ve submitted a renters insurance claim in the past, you may be required to pay a higher overall monthly premium.
  • Plan details: If your renters insurance plan covers various types of damage, you can expect to pay a bit more on average for coverage.

Additionally, your deductible and overall coverage cap will affect your monthly premium amount. Should you opt for a lower deductible amount, you can expect to pay more monthly as part of your premium. For a higher coverage amount, you will also be expected to pay more per month.

How to choose the best renters insurance?

There are many great renters insurance policies available to help you cover expenses in the case of an emergency. Here are some things to keep in mind as you are choosing the best plan for you:

  • Rental agreement: Some rental agreements require you to have a certain level of renters insurance. Consult your contract to see what amount of coverage you may need to ensure you look into options that meet these requirements.
  • Budget: Renters insurance policies differ from plan to plan in how much they cost for certain types of coverage. Determine a budget you can work with as you start to look into the options available.
  • Assets: If you have more expensive property in your rental home, you will want to ensure your coverage will be able to cover your personal property in the event of theft or a fire.
  • Location: Some areas are more expensive to insure than others. Consider where you are located to determine which policies are available to you, as well as what the average amount for renters insurance is in your area. This will help you pick out a good plan for you that makes sense for your rental property.