Renters Insurance Rates Compared
| Company | Starting Monthly | Avg. Monthly | Personal Property | Liability | AM Best |
|---|---|---|---|---|---|
| Lemonade | $5 | $14 | $10k–$250k | $100k–$1M | A |
| Progressive | $9 | $13 | $15k–$500k | $100k–$500k | A+ |
| State Farm | $12 | $15 | $15k–$500k | $100k–$500k | A++ |
| Allstate | $10 | $16 | $15k–$500k | $100k–$500k | A+ |
| Nationwide | $14 | $18 | $15k–$500k | $100k–$500k | A+ |
How to Get the Cheapest Renters Insurance
- Bundle with auto insurance: The most reliable way to reduce renters insurance cost. Bundling with the same insurer saves 5–15% on both policies.
- Install safety devices: Smoke detectors, carbon monoxide alarms, deadbolt locks, and burglar alarms can earn discounts of 2–10% per device.
- Choose a higher deductible: Raising your deductible from $250 to $500 or $1,000 reduces your premium. Since renters insurance is already inexpensive, the premium savings may be modest, but every dollar counts.
- Pay annually: Most insurers offer a 5% discount for paying your annual premium in full rather than monthly.
- Consider Lemonade: For renters in states where Lemonade operates, its premiums are consistently the most competitive in the market, often 30–50% lower than traditional insurers.
- Review your coverage level: Don't over-insure. If your belongings are worth $15,000, there's no need to pay for $50,000 in personal property coverage.
- Maintain a good credit score: In most states, your credit score affects renters insurance premiums. Improving your credit can lower your rate.
What Coverage Do You Actually Need?
Personal Property
Walk through your apartment and mentally catalog everything you own — furniture, electronics, clothing, kitchen items, sports equipment, books, and personal accessories. Most renters are surprised to find their total replacement value is $20,000–$40,000. Choose a coverage limit that reflects the actual replacement cost of your belongings, not a round number.
Liability
The standard $100,000 liability limit is a starting point, but $300,000 is more appropriate for most renters. If you have significant assets or a higher income, consider $500,000 in liability coverage — the premium difference is typically only $2–$5 per month.
Actual Cash Value vs. Replacement Cost
Standard policies pay actual cash value — the depreciated worth of your belongings at the time of loss. A 3-year-old laptop worth $1,200 new might receive only $400 in an ACV settlement. Replacement cost coverage pays what it costs to buy a comparable new laptop today. The premium difference is typically $3–$8 per month — almost always worth it.
Frequently Asked Questions
The national average for renters insurance is approximately $15–$18 per month for $30,000 in personal property coverage and $100,000 in liability. Lemonade offers plans starting at $5/month in states where it operates. Your actual premium depends on your location, coverage amount, deductible, and selected add-ons.
Standard renters insurance does not cover flooding from external water sources — rivers, storms, or heavy rainfall. It does cover water damage from internal sources like burst pipes or an overflowing appliance. For flood protection, renters in flood-prone areas should consider a separate flood insurance policy through the NFIP or a private insurer.
Yes. Your landlord's insurance covers the building structure only — not your personal belongings, not your liability, and not your temporary housing costs if your apartment becomes uninhabitable. Renters insurance is the only coverage that protects you personally as a tenant.