Ratings Methodology for Renters Insurance
Renters insurance
- Financial strength.
- Consumer complaints.
- Coverage options.
- Claims process.
- Available discounts.
- Website functionality.
The best renters insurers make it easy to understand and purchase a policy. They offer a wide range of discounts and coverage options to help tailor their offerings. They're financially strong and able to keep their customers happy throughout the relationship.
Data collection and review process
Data is collected on a regular basis and reviewed by our editorial team for consistency and accuracy. 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."
The reviews team
In addition to renters insurance, the team covers homeowners insurance, auto insurance, pet insurance and life insurance.
Rating specifics
- Financial strength (25%).
- Consumer complaints (25%).
- Coverage available (15%).
- Consumer experience (20%).
- Affordability (15%).
Financial strength ratings, which indicate an insurer’s ability to pay future claims, are based on assessments from independent agencies such as AM Best, Moody’s and Fitch.
Consumer complaint ratings are based on complaints to state regulators relative to a company’s size. NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. 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, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
Coverage availability ratings evaluate the range of coverage options that consumers can add to their policy.
Affordability ratings are based on how many potential discounts an insurance company offers its policyholders.
Consumer experience ratings evaluate how easy it is to interact with an insurance company, including getting quotes, learning about coverage options and filing and tracking claims.
Bonus points may be awarded to insurers that include certain types of coverage for which other companies charge extra. Examples include coverage for flood or earthquake damage, or replacement cost coverage for personal property.
Consumer complaint ratings are based on complaints to state regulators relative to a company’s size. NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. 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, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
Coverage availability ratings evaluate the range of coverage options that consumers can add to their policy.
Affordability ratings are based on how many potential discounts an insurance company offers its policyholders.
Consumer experience ratings evaluate how easy it is to interact with an insurance company, including getting quotes, learning about coverage options and filing and tracking claims.
Bonus points may be awarded to insurers that include certain types of coverage for which other companies charge extra. Examples include coverage for flood or earthquake damage, or replacement cost coverage for personal property.
