We look at market share, J.D. Power and A.M. Best ratings to determine the best renters insurance companies around.
Gotta give it up for renters insurance: People who have a policy are generally pretty happy with it, even if they don’t fully understand their coverage. Per recent J.D. Power ratings, customer satisfaction with homeowners and renters insurance reached an all-time high in 2017. Of course, some companies are performing a bit better than others when it comes to renters insurance, which covers your possessions from damage or loss. (For more on what a standard renters policy does and doesn’t cover, check out our guide here). You can get an idea of how major renters insurers compare to one another in the chart below, which includes their 2017 J.D. Power U.S. Renters Insurance Rating, A.M. Best Rating and total homeowners insurance (which renters insurance rolls under) market share as of 2015, per the Insurance Information Institute.
|Renters insurance companies||J.D. Renters Insurance Rating||A.M. Best Rating||Market share|
|American Family||Better than most||A||2.9%|
|Auto Club of Southern California Insurance Group||About average||A+||N/A|
|CSAA Insurance Group||About average||A||N/A|
|Farmers Insurance||The rest||A||5.9%|
|Liberty Mutual||About average||A||6.7%|
|Safeco (a division of Liberty Mutual)||The rest||A||N/A|
|State Farm||About average||A++||19.6%|
|The Hartford||About average||A+||N/A*|
|USAA||Among the best*||A++||5.6%|
Some methodology notes:
A.M. Best ratings indicate an insurer’s overall financial health: A++ and A+ are considered superior, while A and A- are excellent. There are five other designations for insurers: good (B++, B+), fair (B, B-), marginal (C++, C+), weak (C, C-) and poor (D).
J.D. Power results are listed by designation: among the best; better than most; about average; and the rest. There’s also an overall winner. Overall performance is calculated on a 1,000-point scale that accounts for policy offering, price, billing, interaction and claims. The top three renters insurance companies by numerical score are:
*USAA was given a designation, but not profiled, given it didn’t meet J.D. Power’s study criteria.
The latest J.D. Power Ratings don’t include emerging renters insurtech companies, like Lemonade, which touts low prices but only offer policies in select markets. We’re mentioning this because we’re an insurtech company and, moreover, you’ll want to consider all the options in your area when shopping around. (Note: Policygenius is an insurance brokerage. We don’t sell policies directly, but we can help you get renters insurance quotes here.)
It’s worth mentioning that cheap renters insurance isn’t necessarily the best renters insurance for you. Bargain price policies are generally actual cash value renters insurance, which covers what the item is worth today, not how much it cost when you bought it. That coverage is less robust than replacement renters insurance, which covers the cost of replacing the item at the time of a claim, no depreciation considered. If you don’t have a lot of stuff and/or high-priced possessions, an actual cash value renters policy might suffice. If you do, well, it might not.
No matter what policy you opt for, you’ll want to make sure you have adequate coverage. Renters insurance typically has two types of limits: You’ll have overall coverage amounts for possessions and liability and individual limits for categories of stuff that carries a high price tag, like jewelry or electronics. You can go here to learn how to calculate how much renters insurance you need.
Disclaimer: Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.