How to Compare Renters Insurance Quotes

To compare renters insurance quotes fairly, ask each insurer to price the same coverage: the same personal property limit, deductible, liability limit, and claim settlement (replacement cost or actual cash value). Then compare the terms that can still differ between policies with matching limits, such as dollar caps on jewelry and cash. Confirm the company is licensed in your state and check how many complaints it draws for its size. If an insurer offers a renters-and-auto bundle, check its total against the best separate quotes before you accept.

Request the same terms in every quote

The National Association of Insurance Commissioners (NAIC) advises getting at least three quotes, asking each company for the same coverages and limits, giving each the same information, and getting the quotes and key details in writing. Decide these terms before you start:

Replacement cost vs. actual cash value shows how far apart those two payouts can be, and liability coverage explained covers how much liability to carry.

Give every insurer the same answers about your address, past claims, dogs and their breeds, and any business you run from home. Insurers ask about each of these, and a quote built on different answers is not comparable.

Compare what each policy caps or leaves out

Matching limits do not make two policies the same. Check these items on each quote or sample policy:

• Special limits. Almost all policies cap what they pay for certain valuables, such as jewelry, art, silverware, antiques, computers, and firearms. The Texas Department of Insurance lists common caps of $100 for cash, $2,500 for items used for business, and $500 for jewelry and watches. If you own more than a cap allows, price a scheduled personal property endorsement, which covers itemized valuables above the normal limits; insuring jewelry and other valuables explains how.
• Water backup. The NAIC notes that most home policies offer limited or no coverage for sewer or drain backups and sump pump overflow, though you may be able to add it by endorsement.
• Flood and earthquake. Most standard policies do not cover either, and each requires separate coverage.
• What is already included. Note which endorsements, such as replacement cost or water backup, are built into each quote and which would cost extra.
• Discounts and their conditions. Check each discount listed on the quote and what it depends on. A multi-policy discount, for example, depends on keeping the other policy with that company.

Check the insurer's license and complaint record

1. Use the exact company name. One insurance group can have subsidiaries with different names, so look up the company printed on the quote, not the group's brand.
2. Confirm the license. Your state insurance department can confirm that the company and the agent are licensed in your state. Selling insurance without a license is illegal, and an unlicensed company might not pay your claims or refund your premium if you cancel.
3. Look up complaints. The NAIC's Consumer Insurance Search shows each company's number of justified complaints along with licensing and financial reports. Many state insurance departments also post a complaint index, which measures complaints relative to the company's size; Texas, for example, publishes confirmed complaints and policies in force for each company. Compare the index or complaint rate rather than the raw count, since a large insurer draws more complaints simply by having more customers.
4. Check financial strength. Ratings from agencies such as A.M. Best, Standard & Poor's, and Moody's measure a company's financial health.

Test whether a renters and auto bundle saves money

Some insurers give a multi-policy discount when you buy renters and auto insurance from the same company. The discount saves money only if the bundled total beats what you would pay buying each policy from the insurer that charges least for it. To test it:

1. Ask the bundling insurer for the renters and auto premiums with the discount applied, listed separately.
2. Get standalone renters quotes and standalone auto quotes from other insurers, using the same limits and deductibles as the bundle.
3. Convert every premium, including both bundle premiums, to the same period before adding them. For an annual estimate, multiply a six-month premium by two; the renewal price can change. Then add the cheapest standalone renters and auto premiums, and compare that total with the bundle.
4. Ask the bundling insurer what each premium would be if you later dropped the other policy.

Example using annual premiums: Company A quotes $150 for renters and $1,500 for auto with its bundle discount, a total of $1,650. Company B quotes renters alone for $120, and Company C quotes auto alone for $1,450, a total of $1,570. Buying separately saves $80 a year, even though Company A's prices include a discount.

A bundle does mean dealing with one insurer instead of several. Repeat the comparison at least every three years; the Texas Department of Insurance recommends shopping that often and says the best rates often go to people willing to switch companies. In Maryland, an insurer cannot deny, cancel, or refuse to renew your renters policy solely because you do not buy its auto insurance, though it can still offer a bundle discount.

Before you compare, check what a standard policy includes in what renters insurance covers, and use average renters insurance costs by state to see whether a quote is near your state's typical price.