A common myth among renters is that their landlord’s insurance covers their personal belongings — but it doesn’t. Landlord insurance only protects the building structure, not your furniture, electronics, or personal property. If a fire, theft, or water leak damages your apartment, you could lose thousands without renters insurance.
According to the Insurance Information Institute (III), the average renters insurance premium in the U.S. is about $180 per year, making it one of the most affordable types of insurance protection available. Yet, roughly 45% of tenants still remain uninsured.
In 2025, with inflation and urban living costs rising, protecting your personal property and liability is more important than ever. This article compares the top renters insurance providers in the U.S., analyzing cost, coverage, financial strength, and customer satisfaction — so you can choose the best policy for your lifestyle and budget.
Comparison Table: Top Renters Insurance Providers (2025)
| Insurer | Avg. Annual Premium | AM Best Rating | J.D. Power Score (Out of 1,000) | Key Strength |
|---|---|---|---|---|
| State Farm | $165 | A++ | 844 | Affordable rates, fast claims handling |
| Lemonade | $145 | A- | 853 | AI-driven claims, easy digital signup |
| Allstate | $180 | A+ | 833 | Bundle discounts with auto or home |
| Nationwide | $190 | A+ | 829 | Strong liability protection |
| USAA* | $130 | A++ | 885 | Best for military families |
| Progressive | $175 | A+ | 827 | Customizable coverage, multi-policy savings |
| Liberty Mutual | $185 | A | 820 | Wide coverage options |
| Travelers | $200 | A++ | 816 | Exceptional financial stability |
| Erie Insurance | $160 | A+ | 851 | Excellent customer service |
| Farmers | $195 | A | 812 | Reliable local agent support |
1. State Farm: Best Overall Renters Insurance in 2025
State Farm remains the top choice for renters across the U.S., combining affordability, strong coverage, and reliable customer service. With an average annual premium of about $165, it’s slightly below the national average while maintaining industry-leading quality.
Policyholders enjoy protection for personal property, liability, and loss of use — meaning if your rental becomes uninhabitable, State Farm pays for temporary living expenses. Add-ons include identity restoration coverage and replacement cost value (RCV) protection, which replaces damaged items at current retail prices.
Rated A++ by AM Best for financial stability and 844 by J.D. Power, State Farm’s track record for fast claims processing and 24/7 service is unmatched. Tenants who already have State Farm auto insurance can also save up to 17% through bundle discounts.
In short, it’s a perfect fit for renters seeking a dependable, low-cost policy from a financially robust company.
2. Lemonade: Best for Tech-Savvy Renters and Instant Coverage
Lemonade revolutionized renters insurance by offering AI-based claims processing and a digital-first experience. Signing up takes less than five minutes, and claims are often approved within seconds through its mobile app.
Its policies start at around $145 per year, making Lemonade one of the most affordable insurers on the market. Coverage includes personal property, liability, and additional living expenses — plus optional add-ons for valuable items like jewelry, cameras, and bicycles.
Lemonade’s A- AM Best rating and J.D. Power score of 853 reflect its growing reputation for efficiency and customer satisfaction. What truly sets Lemonade apart is its “Giveback” program, where unclaimed premiums are donated to charities chosen by policyholders.
Ideal for younger tenants and digital natives, Lemonade’s transparency, simplicity, and low cost make it one of the most appealing renters insurance choices for 2025.
3. Allstate: Best for Bundle Discounts and Family Renters
Allstate has long been known for its comprehensive protection and generous discounts. Its renters insurance averages around $180 annually and can drop significantly when bundled with auto or life coverage.
Standard policies cover personal property, liability, and guest medical protection, while optional riders include flood insurance, identity theft, and scheduled personal property. Allstate also offers the Claim RateGuard® feature, which prevents premium increases after filing a claim.
With an A+ AM Best rating and 833 J.D. Power score, Allstate combines stability with modern digital features such as the Allstate Mobile App for instant policy management. For families or tenants who want to consolidate multiple policies under one provider, Allstate remains a top-tier pick.
4. Nationwide: Best for Liability and High-Value Property Coverage
Nationwide earns its place among the best due to its strong liability and high-value coverage options. For families or renters with valuable electronics, furniture, or artwork, Nationwide offers Brand New Belongings®, which replaces items at full retail cost.
At roughly $190 per year, premiums are midrange, but policyholders benefit from robust protection. The insurer also provides water backup coverage and personal injury liability, both uncommon in basic renters policies.
Rated A+ by AM Best and scoring 829 on J.D. Power, Nationwide’s combination of coverage depth and financial reliability appeals to renters seeking extra peace of mind.
5. USAA: Best for Military Members and Their Families
USAA continues to be the gold standard for military renters. With premiums averaging $130 annually, it offers unmatched value and comprehensive protection, including coverage for military uniforms and overseas deployments.
USAA’s renters insurance automatically includes flood and earthquake protection, features most competitors charge extra for. Its A++ AM Best rating and 885 J.D. Power score place it among the highest-rated insurers in the nation.
While eligibility is limited to active-duty, retired, and family members of military personnel, those who qualify receive exceptional benefits and top-tier service.
6. Progressive: Best for Customization and Multi-Policy Savings
Progressive stands out for its highly customizable renters insurance, allowing tenants to tailor coverage limits, deductibles, and add-ons. Its online quote system is fast, transparent, and ideal for renters managing multiple policies.
At $175 per year, Progressive’s rates are competitive, especially when bundled with auto or pet insurance. It maintains an A+ AM Best rating and 827 J.D. Power score, reflecting consistent satisfaction.
Optional coverages like personal injury, water backup, and replacement cost protection make Progressive a flexible choice for renters with specific protection needs.
7. Liberty Mutual: Best for Wide Coverage Options
Liberty Mutual offers broad renters insurance coverage with flexible limits for personal property, liability, and additional living expenses. Policies average about $185 annually and can be managed entirely online or through local agents.
Key strengths include 24-hour claims support, optional earthquake coverage, and discounts for safety devices like smoke alarms and burglar systems. Liberty Mutual’s A AM Best rating and 820 J.D. Power score underscore its reliability and customer trust.
For renters who want comprehensive coverage and personalized service, Liberty Mutual remains a strong contender in 2025.
8. Travelers: Best for Financial Strength and Stability
Travelers has been in the insurance business for more than 165 years, known for exceptional financial stability and conservative pricing. Although its average premium is $200 per year, families and professionals often choose it for its reputation and dependable claim service.
Travelers holds an A++ AM Best rating and 816 J.D. Power score, demonstrating long-term solvency and customer loyalty. Policies include standard coverage with optional endorsements for valuable items, identity theft, and water backup.
For renters seeking a highly reputable and financially strong insurer, Travelers is an enduring and trustworthy option.
9. Erie Insurance: Best for Customer Satisfaction
Erie Insurance consistently ranks among the top insurers for customer satisfaction, scoring 851 on J.D. Power’s index. Its average annual premium of $160 makes it a value leader without sacrificing service quality.
Erie’s renters insurance policies include replacement cost coverage and loss-of-use benefits, ensuring you’re not left uncovered after an unexpected event. With an A+ AM Best rating, it demonstrates both financial health and reliability.
Though Erie is only available in select states across the Midwest and East Coast, those within its service area enjoy one of the most highly rated experiences in the industry.
10. Farmers: Best for Local Agent Support and Personalized Policies
Farmers Insurance offers renters personalized coverage and local agent assistance, appealing to tenants who prefer a human touch over fully digital management.
With an average premium of $195 per year, Farmers provides options like identity theft coverage, landlord damage liability, and discounts for non-smokers or security systems.
The insurer holds an A AM Best rating and 812 J.D. Power score, reinforcing its dependability. Farmers’ local presence and agent network help tenants customize policies to fit their exact needs and budgets — perfect for renters who value direct guidance.
The Bottom Line
Renters insurance isn’t just a “nice-to-have”; it’s a financial safety net that costs less than your monthly streaming subscriptions.
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State Farm offers the best all-around value.
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Lemonade is the leader in digital convenience.
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USAA provides elite protection for military families.
Regardless of your budget or lifestyle, comparing coverage limits, discounts, and claims experience ensures you find a policy that truly safeguards your belongings and your peace of mind.
FAQs
1. How much does renters insurance cost in 2025?
Most U.S. renters pay between $150 and $200 per year, depending on location, deductible, and coverage limits.
2. Does my landlord’s insurance cover my belongings?
No. Landlord insurance covers the building, not tenants’ personal property.
3. What does renters insurance typically cover?
It covers personal property, personal liability, medical payments to others, and additional living expenses if you can’t stay in your rental after a covered event.
4. Is renters insurance required by law?
Not by federal law, but many landlords require tenants to carry renters insurance before moving in.
5. How can I lower my renters insurance premium?
Bundle policies, install safety devices, raise your deductible, or choose an insurer that offers digital discounts like Lemonade or Progressive.
6. Does renters insurance cover roommates?
Typically, no. Each roommate should have their own policy unless listed under a shared contract.
7. Which insurer is best for military renters?
USAA offers unmatched renters insurance tailored for military families.
8. Can renters insurance cover accidental damage to a neighbor’s property?
Yes, personal liability coverage often pays for unintentional damage you cause to others.