Personal Finance Insider writes about products, strategies and tips to help you make smart decisions with your money. We may receive a small commission from our partners, such as American Express, but our reports and recommendations are always independent and objective. If you are currently renting your home, renters insurance is probably the coverage you should have, especially considering how much it costs. Whether you are renting a studio apartment or an entire single-family home, renters insurance picks up where the landlord's insurance policy ends. If a fire destroys your rental home, your renters' insurance could help you replace your belongings. Likewise, if someone gets hurt in your rental home and sues you, this coverage could help. The average renters insurance policy costs between $ 15 and $ 20 per month, much cheaper than homeowners insurance. Insurance policies for renters are available from a variety of insurers and it may be smart to group them with auto insurance or other types of insurance to get the best price for both policies. If you are looking for a new company for your renter's insurance policy, know that many factors can change the price you listed, including your credit score in some states, the characteristics of the house you are renting and even if you have a dog.
Business Insider got sample quotes from some of the best companies that offer renters insurance for a two-bedroom, one-bathroom, single-family home in Philadelphia. Customer satisfaction data and state availability were also considered. The companies below are listed from the lowest to the highest sample estimate: * The customer satisfaction rating on 1.000State Farm took first place, offering coverage for less than $ 16 a month. Several other companies have also offered coverage for less than $ 20 a month, including Travelers and Lemonade. Here are some more details about our winners: 1. FarmPros state renter insurance: the largest renter insurance provider in the United States Lower monthly price Better customer service rating Cons: Coverage of computers and jewelry could add to the cost of the policy State Farm is the leading insurance provider for private renters in the United States, taking most of the market in 44 states. This company had some of the lowest insurance rates for renters in the Business Insider sample scenario, with a policy for a typical Philadelphia home that cost less than $ 16 a month. State Farm renters insurance is a solid starting plan, covering the basics of the items you own, your expenses if something happens to your rental home and liability. However, it may be more expensive to cover certain items, such as jewelry and computers, based on this policy. Traveler Rental InsurancePros: Low prices, even with a minimum policy of $ 30,000Cons: Minimum coverage may be higher than necessary for some renters Traveler rental insurance is a good option for anyone who wants a more coverage than the standard $ 10,000 or $ 20,000 policy. The insurance coverage limit for traveler renters is higher than the typical policy, starting at $ 30,000. While this may be more than necessary, travelers are still in second place for the price among Business Insider quotes. Lemonade Renters InsurancePros: Easy online quotation and purchaseCons: Not available in all statesNo grouping discount – Lemonade only offers home and renters insuranceLemonade offers insurance policies for renters online purchases and quotes with a very simple and easy online experience . If you want to work with an agent, this is probably not the company for you. But, for an easy and affordable insurance policy for renters, Lemonade can be a good option. This insurer is currently only available in 28 states and the District of Columbia. However, Lemonade only offers insurance for homeowners, renters, cooperatives and condominiums, so you may be able to get better rates by grouping in other companies. 4. Insurance for renters across the nation Pro: multi-policy discounts available Cons: Policies start at $ 20, which is higher than the starting costs of other companies Nationals throughout offers insurance policies for renters in addition to several other types of policies, making it a great option for anyone who wants to keep their insurance in one place. Although its insurance prices are not the cheapest on this list, bundling policies could make it much cheaper. Farmer's Renters Insurance Pros: Good Ratings for Customer Satisfaction Financing Discounts Available Although it has reached fifth place, an example quote of $ 21.83 still means there are companies that charge more. With many other types of insurance policies, including auto insurance, there are many ways to group and get a discount. Add-ons such as identity theft protection may also be useful. This company earned a good reputation for customer satisfaction from JD Power's Tenant Insurance Satisfaction Survey, earning 25 points out of 1,000 in 2019. Bonus: USAA Tenant Insurance Pros: High Customer Satisfaction Ratings Highly rated for other types of insurance, such as cars and homeownersCons: Quotes not available onlineOnly available for military members and familiesFor military families or anyone eligible, USAA might also be a good option. Although quotes are not available online, USAA consistently gets top marks for insurance coverage in other categories, including auto insurance and homeowners insurance. It also took first place for customer satisfaction in the JD Power customer satisfaction survey. If it's an option for you, a USAA quote would be a good place to start your search. Like homeowners insurance and auto insurance, renters insurance can vary widely from one state to another. The place where you live will play an important role in your quote and each company will consider it differently. With that said, there are some pretty stark trends in which insurance companies are the most popular in each state and it may be worth getting a quote to compare from the most popular company in your country. Here is the most popular insurance company by state in 2019, according to S&P Global data. State Most Popular Insurance Company Market Share AlabamaState Farm27.2% AlaskaState Farm32.1% ArizonaState Farm17.4% ArkansasState Farm26.3% CaliforniaState Farm 17.6% ColoradoState Farm19.5% ConnecticutLiberty Mutual 10.1% DelawareState Farm25% District of ColumbiaState Farm21.4% FloridaUIH Insurance10 .4% GeorgiaState Farm25.8% HawaiiState Farm30.6% IdahoState Farm14.8% IllinoisState Farm32.8% IndianaState Farm24.2% IowaState Farm25.5% KansasState Farm21% KentuckyState Farm23.7% LouisianaState Farm25 , 6% MaineState Farm12% MarylandState Farm17.6% Massachusetts Insurance Map13.1% MichiganState Farm15.9% MinnesotaState Farm25.2% MississippiState Farm26.1% MissouriState Farm25% MontanaState Farm24.1% NebraskaState Farm23.4% NevadaState Farm 19% New HampshireLiberty Mutual13.9% New JerseyNew Jersey Manufacturers Group 10.5% New MexicoState Farm19.8% New York Allstate13.9% North CarolinaState Farm16.9% North DakotaState Farm15.1% OhioState Farm20.4% OklahomaState Farm28% O regonState Farm21.6% PennsylvaniaState Farm17.3% Rhode Isl and Mutual Friend16.3% South CarolinaState Farm20% South DakotaState Farm19.4% TennesseeState Farm23.5% TexasState Farm18.3% UtahState Farm16.6% VermontVermont Mutual Group12.5% VirginiaUSAA 19.8% WashingtonState Farm16.8% West VirginiaState Farm25.4% WisconsinAmerican Family Insurance21.7% WyomingState Farm21.4% Although a company may be the vast majority most popular in your state, it is still worth shopping and compare quotes before purchasing a policy. How were the winners determined? one that offers maximum coverage for the least amount of money and also has a good reputation for customer service. For this ranking, Business Insider only included companies that allowed customers to obtain quotes and purchase policies online (except for USAA, due to its exemplary customer satisfaction ratings). To find out how much policies typically cost, Business Insider got sample quotes for renter insurance for a single-family home in Philadelphia, Pennsylvania, with two occupants. This example property had no pets and only had a local smoke detection system. The companies were then classified on the basis of the sample prize. Customer satisfaction was also seen as a factor, with nearly all companies reaching the top positions for customer satisfaction in the JD Power renters insurance satisfaction survey. In addition, only insurance companies available in more than half of the U.S. states were considered. How much does renters insurance cost? According to data from the Insurance Information Institute, the average renters insurance policy costs $ 180 per year in 2017, or about $ 15 per month. The amount you will pay for renters insurance can vary based on several factors, including the location, type and size of the house you are renting, your credit score and the amount. of the coverage you're looking for. Other things may also play a role in your renter's insurance price, including if you have a dog and how many people live with you. Insurance for renters is generally quite affordable and can sometimes be combined with other policies for better rates. If you already have auto insurance, it may be helpful to get a quote from your current insurer, including renter's insurance, to see if it offers a discount. What does renter insurance cover? Of course, the landlord has an insurance policy on your rental home. But it probably won't cover you or your belongings if something happens to your building or if you're facing a lawsuit from someone injured on your property. The renter's insurance does not cover structural damage that occurs to your home, however. There are two main parts of renter insurance policy coverage: property coverage and liability coverage. Property coverage If a fire burns your rental home, for example, the owner's insurance policy will help to rebuild it. However, the tenant will not help you replace or repair your items. That's what renters insurance is for. Renters insurance can help replace or pay for the property you bring home if something unexpected happens, from fires to theft. If your items are stolen or damaged, you may get assistance for the cost of replacing those items from the renter's insurance policy. Sometimes, renters insurance also covers properties left in vehicles or other items that could be stolen. Some insurance policies for renters also include protection from identity theft. Liability Protection Liability protection from the renter's insurance policy may help protect you if someone sues you for damage or accidents that occur on your property. Depending on the coverage, it may help you hedge up to a certain dollar amount. How to Find the Best Insurance for Cheap Renters To make sure you get the best price for renters insurance coverage, we recommend that you shop and get quotes from several insurers. Compare the quotes and look for the most types and coverage limits. So, look for the lowest premiums that fit your budget.
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