Although many homeowners have insurance on their property, insurance for those who rent is less well-known. Although it’s not required by law, a renters insurance policy offers significant benefits to those who lease their space—whether it’s a whole house or an apartment. It’s important to note that your landlord’s insurance will not cover damage to your personal belongings, so you will need a renters policy to be protected in the event of a covered disaster. Bankrate’s insurance editorial team took a close look at the California insurance market to help renters make the best choices for their policy. We found five companies—American Family, Lemonade, Mercury, Nationwide and USAA—we believe are worth looking into during your search for renters insurance policies in CA.
Best renters insurance companies in California
To help you find the best renters insurance companies in California, we analyzed customers’ satisfaction with their renters insurance companies using the most recent J.D. Power U.S. Home Insurance Study, coverage offerings and available discounts. We also compared each company’s financial strength rating, which shows its history of paying claims. Lastly, we reviewed how many discounts each company lists on its website, which may help California renters save on coverage. It is important to note that discounts may vary by state, and each company may not provide a complete discount list on its website. Talking with a licensed agent or getting a quote is the best way to understand what discounts are available.
If you are searching for the best renters insurance in California, these are the top companies, based on our research:
Company J.D. Power AM Best Number of discounts available* American Family 856 / 1,000 A 7 Lemonade 854 / 1,000 N/A 2 Mercury Not rated A 5 Nationwide 852 / 1,000 A 3 USAA** 894 / 1,000 A++ 6
*This is an estimate based on information available on the carrier’s website. Check with a licensed agent for exact discount availability.**Not officially ranked by J.D. Power due to eligibility restrictions.
American Family
Best for optional coverages
American Family came in second place in the J.D. Power Home Insurance study, indicating that it takes its relationships with its policyholders seriously. Besides the standard coverage types, AmFam has optional coverage for pets hurt in a covered loss, home-based businesses, travel protection and identity theft coverage. It also offers a diminishing deductible, which may drop your deductible each renewal after remaining claim-free for the previous policy period.
Pros
- Large number of potential discounts
- Valuable optional coverages
Cons
- Overall complaint index from National Association of Insurance Commissioners (NAIC) is higher than average
- No military discount
Learn more: American Family Insurance review
Lemonade
Best for fast claims process
Earning a high score in the J.D. Power study, Lemonade is another option for renters in California. It offers a separate earthquake policy for Californians and a Giveback program, which donates unused premiums to a charity of your choice at the end of each year. Lemonade also features AI-supported claims, which allows claims to be paid in seconds. For those wanting a fast and easy claims process completely online or on their phone, Lemonade might be one of the best renters insurance companies in California.
Pros
- Fast and easy claims process
- Offers separate earthquake policy
Cons
- No AM Best rating
- Minimal discounts listed
Learn more: Lemonade Insurance review
Mercury
Best for high-value item owners
Mercury is another option for California renters. This carrier has several discounts that could help keep renters insurance premiums low. Mercury also allows renters to customize their policy with coverage options like workers’ compensation coverage for part-time personal employees, service line, home systems, home cyber and identity theft protection. If you have high-value items, you can also schedule them on your Mercury renters insurance policy so they are covered for what they’re worth.
Pros
- Large number of potential discounts
- Multiple ways to customize policy
Cons
- Not ranked by J.D. Power for renters insurance
- No online option to file claims
Learn more: Mercury Insurance review
Nationwide
Best for customer satisfaction
Nationwide scores above average for customer satisfaction with J.D. Power. Although it only lists a few discounts on its website, it offers the option to purchase replacement costs on personal property and add credit card or water backup coverage. For those who can make changes to their rental, like upgrading fixtures or adding improvements or making alterations, Nationwide also offers building additions and alterations coverage.
Pros
- Above average ranking with J.D. Power
- Long list of optional coverage types
Cons
- Few discounts listed
- Cannot file claims online
Learn more: Nationwide Insurance review
USAA
Best for military-focused coverage
USAA has a reputation for offering affordable insurance for active-duty military, veterans and qualifying relatives, including its renters insurance policies. You may be eligible for several discounts to lower your premiums even more. One major benefit is that policyholders get flood and earthquake coverage included as standard, whereas most insurance providers only offer these as separate protections for an additional fee. And if you move abroad or get deployed, overseas renters insurance is available to protect your belongings.
Pros
- Includes flood and earthquake coverage
- Exceptional J.D. Power rating
Cons
- Limited availability
- Pet damage coverage not available
Learn more: USAA Insurance review
Average renters insurance cost in California
The average California renters insurance policy costs $171 per year, according to Triple-I. Your premium is determined by several factors, including your deductible and coverage limits.
Your credit-based insurance score, however, is not a rating factor in California. California’s average cost for renters insurance is just $2 below the national average, which may be because of the number of claims filed in the state and the average payout per claim.
Renters in California pay about the same for renters insurance compared to the surrounding states:
California Nevada Oregon Arizona Average premium $171 $179 $154 $164
Source: (Triple-I)
Renters insurance coverage options in California
Renters insurance policies typically provide a few basic coverage types, including:
- Personal liability: This type of insurance protects you from the financial implications of lawsuits if someone is injured while on your property and you are found to be negligent. Liability may also pay for medical costs incurred after an accident in your living space. Many insurers offer liability coverage starting at $100,000.
- Personal property: This coverage is central to your policy. It protects your personal belongings from damage or destruction following a covered disaster. Common causes of damage that are included are fire, windstorm, theft, vandalism and the weight of ice, snow or sleet. If you have expensive personal items, such as electronics, artwork or jewelry, you may need an optional rider called a scheduled personal property endorsement to be adequately covered.
- Additional living expenses: If you are unable to live in your home because it has been damaged or destroyed in a covered disaster, this portion of your policy will help pay for your living expenses up to certain limits. This may include hotel costs, meals, pet boarding or moving costs.
Before purchasing a policy, you may want to understand what is covered under your policy. For example, luxury or high-value items like fine jewelry, art and expensive electronics may have predetermined limits. Unless you add additional coverage, you could be underinsured for those items.
Also, keep in mind that most renters insurance policies do not cover your belongings if they get damaged in an earthquake or flood. For example, if a bookshelf falls on your laptop during an earthquake, you would likely be responsible for paying to repair the laptop. To avoid that, California residents may be able to purchase separate earthquake insurance.
Frequently asked questions
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Is renters insurance required in California?
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Are natural disasters covered by renters insurance?
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What is the cheapest renters insurance in California?
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How do I get renters insurance in California?
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How can I save money on my renters insurance?
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