10 Best Cheap Renters Insurance Companies For 2023

The quote by Winston Churchill, “ Let our advance worrying become advanced thinking and planning.” gives us basic insight into how necessary it is to plan in case of future unforeseen circumstances.

The possibility of you needing renters insurance is quite high with most landlords and property owners requiring insurance proof before accepting new tenants. The increasing request by landlords for the renter’s insurance coverage is to prevent potential liability cases from tenants in case of damages.

The best cheap renter’s insurance companies will offer you the possibility of insuring your belongings In case of disasters at an affordable rate. Your properties are not insured under the landlord’s property insurance hence the saying that “A tenant without renter’s insurance is just unprepared in the scenario of a disaster”.

Are you interested in understanding what a renter’s insurance is or you’re trying to find cheap renter’s insurance, this article will focus on everything relating to the renter’s insurance to help as a guide in planning ahead.

What Is Renters Insurance?

The renter’s insurance policy is also known as tenant’s insurance. A renter’s insurance basically covers your personal property Incase of theft or damage which you can’t control.

The renter’s insurance is a type of property insurance that issues coverage to a tenant in Liability cases, belongings, and living expenses in case of a disastrous event.

People eligible for obtaining a renter’s insurance are those that are renting or leasing an apartment, condominium, duplex, family house, or office space.

The renter’s insurance will protect the renter’s personal belongings in the rented or leased property.

The rented insurance planning policy offers three types of financial protection to its clients, they include;

SEE ALSO: Home Warranty vs Home Insurance 2023: What’s the difference?

1. Personal belonging coverage

Renters insurance will cover your personal belonging from theft, vandalism, flood, fire, and other unforeseen disastrous events. Most renter’s insurance policies would exclude the disastrous scenario of earthquakes and floods.

The property owner or landlord has insured the building or space being leased out but has no responsibility pertaining to the personal belongings of the tenant.

Under the personal belonging coverage policy of the renter’s insurance policy, you can select from Actual cash value or replacement cost value.

The actual cash value policy works by reimbursing the exact amount the lost or damaged property is worth at the time of damage.

The replacement cost value policy costs more when compared to the actual cash value policy because the replacement cash policy reimburses you the amount that is sufficient for replacing the lost item with a brand new one.

Read Also: How to Get Cheap Car Insurance in 2023

2. Liabilities protection coverage

Liability is usually something a person or company owes. The renter’s insurance is useful in providing liability protection to you in case of property damage caused by the landowner or his household.

Tenant insurance liability protection will cover the expenses of a legal defense. The liabilities protection works by reimbursement of the medical bills of someone on the rented property when you are responsible for the injury. The liabilities protection policy like other coverage has a limit to which your policy pays for after a certain degree of loss.

Before opting for a particular renter insurance company it is necessary you study their liabilities protection coverage to be sure it tallies with your personal needs.

You may want to see the 10 Best Cheap Auto (Car) Insurance In Michigan 2023

3. The additional living expenses coverage

The additional living expenses coverage of the renter’s insurance policy is also known as the ALE coverage and it designs financial insurance against a prior insured disaster that will require you to live elsewhere for some duration.

The ALE policy will pay for any extra cost because you are unable to live in the rented or leased property.

The expenses covered by the ALE will include hotel bills, rentals, and feeding expenses during the period the property is being repaired.

Generally, the ALE policy reimburses you the full experience between the additional living expenses and normal living expenses.

What Are The Benefits Of Renters Insurance?

The benefits of having a cheap renters insurance policy can not be over-emphasized. Renters insurance is put in place to help in reducing the effect of disasters when they occur by offering reimbursement in covered policies. Knowing that the insurance of your landlord won’t cover your belongings in case of disasters is key to understanding the benefits of the renter’s insurance.

1. It covers damages to personal belongings

A renters insurance policy will serve as a safe guide for all your personal belonging ranging from your jewelry to your clothing. On undertaking a careful inventory of all your shoes, clothes, jewelry, electronics, and accessories you’ll be shocked with how much you will have to spend in replacing them in the scenario of a disaster, this further proves the point of the benefits of opting for a renters insurance.

The renter’s insurance policy will not offer coverage for damages caused intentionally or due to carelessness. The renter’s insurance policy covers a wide range of disasters ranging from simple vandalism to volcanic eruptions.

SEE ALSO: Hazard Insurance Vs Home Insurance: Are They The Same?

2. It provides liability protection

The renter’s insurance policy will cover any legal fee attained when someone is injured in your home. Liability protection is covered in general renters insurance policy.

READ ALSO: What Is Liability Insurance? Overview And Coverage

3. It is not expensive

Getting a cheap renters insurance policy does not cost much. Depending on the state you reside in, the average annual renter’s insurance policy ranges from 12$ -37$ in a month and $139-$442 per year.

The total cost of your renter’s insurance policy will be affected by your state of residence and the type of coverage plan you opt for.

What Are The 10 Best Cheap Renters Insurance Companies?

Are you looking for a cheap renters insurance company? This section details the 10 best renters insurance companies with attractive discounts and coverage plans.

1. Toggle

Toggle renters insurance company offers an online service to its clients. The renter’s insurance company is available in over 25 states in the United States including Texas and Wisconsin. Toggle is one of the cheapest renter insurance coverage out there with an average monthly cost of $8 and an annual average cost of $96. The toggle renters insurance company enables you to customize an insurance coverage that is unique to you.

2. State Farm

State Farm renters insurance company has an average annual cost of $125. The State Farm company is suitable for tenants searching for a cheap and effective renters insurance policy. They provide you with additional coverage options in case of identity theft, loss of high-value personal property, and business property coverage.

SEE ALSO: Allstate vs State Farm Insurance: Everything You Need To Know

3. Auto-owners

The auto owners renters insurance company provides a wide range of renters insurance coverage that is affordable and tailored to fit your specific need. The Auto-Owners’ insurance company has an average annual premium cost of $126 making it one of the cheapest renters insurance companies.


The renter’s insurance company “USAA” is one of the top dogs in the renter’s insurance sector. A standard USAA renters policy includes coverage in case of flooding. The USAA also has the perks of allowing you not to pay additional costs for earthquake coverage. It has an annual average cost of $140.

Related Post: USAA Auto Insurance Reviews 2023

5. American family

The American family renter’s insurance system offers you various ways to save and customize your coverage. American family renters insurance company offers its clients five different discounts to select from. The amount of coverage policy on the American family renters insurance company depends on resident location and the selected coverage. It has an average annual cost of $149.

6. Nationwide

You can’t possibly compile a list of the cheap renter’s insurance companies without adding Nationwide to the list.

The nationwide renter’s insurance company has an average annual cost of $151 with an overall average of $14 per month. Nations renters insurance offers affordable coverage for its clients ranging from theft extensions to earthquake coverage.

Nationwide also offers insurance coverage for pets. Check it out.

6. Lemonade

With an average annual cost of $154 the Lemonade renters insurance company is undoubtedly one of the cheapest renters insurance companies out there. They offer a very impressive insurance model by blending innovation into their insurance model. They are well known for speedy payment of claims and giving back leftover money to non-profits.

7. Allstate

An Allstate renters insurance policy has an average monthly premium cost of $16. The Allstate offers you everything from affordability to savings and extra coverage. They are also known for offering discounts to retirees and for using additional Allstate policies.

Check this out: Allstate vs State Farm: Which Should You Use?

8. Chubb

This insurance company has an average annual renters insurance cost of $166. Chubb offers its clients various discounts which are

  • Fire resistive discount
  • Gated community patrol service discount
  • Suburban rating discount
  • Burglar alarm discount

This cheap renters insurance company allows you to report insurance claims 24/7. Claims can be directed via fax, local Chubb agent, or via phone.

9. Erie

Erie renters insurance company offers its policy at an average rate of $182. This renters insurance company provides increased coverage for your belongings and every expense relating to ID theft. The Erie renters policy comes with general coverage for refrigerators’ content loss from power outages or any mechanical issue.

10. Farmers

The farmers renters insurance policy offers the best rates compared to other top competitors.

They offer smoking incentive discounts to houses that have been smoke-free for a minimum of two consecutive years. The farmer’s identity shield also provides its clients with the coverage of expenses pertaining to identity theft and all resolutions concerned.

The farmer’s renters insurance company is a little high but still lies below the $200 benchmark. It costs $191 with $20,000 worth of coverage for belongings.


Renter’s insurance coverage is like a security blanket. The average cost of renters insurance varies from state to state with western states having the lowest annual premium cost. The main goal of renters insurance policies is to make sure that renters or tenants are fully reimbursed with their personal property after a disastrous event.

Frequently Asked Questions

Do landlords require renters insurance from tenants?

Yes, some landlords do require renters insurance from tenants to prevent liability claims in case of damages.

Are there cheap renters insurance companies?

There are various cheap renters insurance companies that also have very attractive discounts and deals, examples include Toggle and State Farm.

Do cheap renters insurance companies have automated quotes?

Most cheap renters insurance companies have an automated quote on their various websites or you can ask help from an insurance agent for further details.

Are there states with more expensive renters insurance annual premium costs?

Yes, most states have more expensive renters insurance annual premium costs when compared to others, an example is Mississippi and Oklahoma.

Are renters insurance important?

Yes, Nobody can predict which disaster is lurking behind the scenes just biding its time. Renters insurance helps make sure our personal belongings come through unscathed.


We Also Recommend

Leave a Reply
You May Also Like