Ratings Methodology for Renters Insurance

Our comprehensive rating system evaluates renters insurers across several categories to help you find the best policy for your needs.

20 Insurers Reviewed

14 Categories Assessed

27 Data Points Evaluated

Methodology, broken down by category

We assess four weighted categories and 10 subcategories for all renters insurers. Here's how we weigh them:

5.0

Overall score

We evaluate how easy it is to interact with an insurance company, including getting quotes, accessing customer support, and filing and tracking claims. This part of our rating also includes data on complaints received by state insurance regulators. Bonus points are available for customer-friendly features such as a 24/7 claims phone line.

Coverage (20%)

We look at each company’s personal property coverage (replacement cost vs. actual cash value) and how many common policy endorsements are available. Bonus points are available for companies that include unique types of coverage, such as flood or identity theft, in their standard renters policies.

Affordability (20%)

This is based on how many potential discounts an insurance company offers its policyholders. Where data was available, we also incorporated sample rates.

Financial strength (15%)

We look at an insurer’s ability to pay future claims based on assessments from independent agencies such as AM Best and Demotech.

Data collection and review process

We collect data points for each insurer from its public-facing website, its sample policies and from company representatives, public filings, state regulator data and third-party analyses. These data points are then compared against one another and against NerdWallet's standards for good insurance companies to determine a star rating. Final star ratings are presented on a scale of one to five stars, where a one-star score represents "poor" and a five-star score represents "excellent."

Our consumer experience ratings include complaints to state regulators relative to a company’s size. Each year, we examine three years of complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, we calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. We conduct our data analysis and reach our conclusions independently and without the endorsement of the NAIC.

Our affordability ratings include sample rates from Quadrant Information Services. We calculated the median rate for 30-year-old tenants in every ZIP code across all 50 states and Washington, D.C. Sample tenants were nonsmokers with good credit and no recent claims, living in a two-bedroom apartment. They had a $500 deductible and the following coverage limits:

$30,000 in personal property coverage.
$100,000 in liability coverage.
$10,000 in additional living expenses coverage.
$1,000 in medical payments coverage.

We made minor changes to the sample policy in cases where rates for the above coverage limits or deductibles weren’t available.

We then compared the insurer's median rates to the median rates for other companies.

Data accuracy

Data is collected on a regular basis and reviewed by our editorial team for consistency and accuracy. We also update reviews throughout the year as necessary. We establish and maintain contact with insurers to ensure we have the most up-to-date information.

The review team

The writers and editors behind our renters insurance reviews are insurance specialists who have had their work appear in The Associated Press, The Washington Post, The New York Times, the Chicago-Sun Times, U.S. News & World Report and the Society for Advancing Business Editing and Writing. Each writer and editor follows NerdWallet’s strict guidelines for editorial integrity.