If you rent an apartment in Los Angeles, you may think that your landlord’s insurance will cover you in the event of a fire, storm or another disaster. And you’d be partly right: it would cover the actual building, including your unit. But your landlord’s policy won’t cover your personal belongings or liability if someone is injured in your apartment. For that, you need renters insurance.
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The good news? Renters insurance is fairly cheap. In California, the average annual cost for a renters policy is only $182. We’ve taken a hard look at the companies offering renters insurance in Los Angeles and, using our evidence-based SimpleScore methodology, have selected the best renters insurance companies in Los Angeles.
The best renters insurance in Los Angeles
Best coverage options – Allstate
A major player on the national insurance stage, Allstate’s size benefits you through expanded coverage options and maximum financial stability.
Allstate is the second-largest writer of homeowners and renters policies in the U.S. and has the chops to offer a variety of coverage options that allow you to customize your policy. Coverage such as scheduled personal property — which covers your high-priced belongings beyond the limits of your personal property coverage — make it a good choice if you have expensive electronics, art or other valuables. Allstate can also cover you with additional umbrella insurance or if your apartment is in a flood zone, supplemental flood insurance.
Best customer service – Lemonade
Although Lemonade is the new kids on the block, it has quickly earned a reputation for quality service and customer satisfaction.
Lemonade has become popular very quickly, thanks to its low rates and easy-to-manage website. Getting a quote or filing a claim takes just seconds, and the company says you may have your check almost instantly if the claim is approved. All that user-friendly management has made Lemonade the top choice in J.D. Power’s 2020 Overall Customer Satisfaction Ranking for renters, rating it above perennial favorites such as Erie Insurance and Allstate.
Best for military families – USAA
Low prices, excellent customer service and rock-solid financial stability all make USAA a top choice for military families.
USAA may be the best insurance company you’ve never heard of — unless you’re in the military, in which case you know the company has a reputation for quality service and coverage. USAA’s rental insurance is only available to active and retired military members and their families, but if you fit that demographic, it should be your first stop when looking for the best renters insurance in Los Angeles.
Best claims management – Stillwater
Expect friendly service and quick claims management for renters insurance claims to Stillwater.
Stillwater offers competitive rates for renters insurance in Los Angeles, which comes with a reputation for solid claims management. The Better Business Bureau gives the company an A+ rating, with customer reviews averaging 3.8 out of 5 — reviewers note the friendliness and professionalism of their agents and claim representatives. Stillwater offers a nice range of discounts for policyholders, including one for those aged 60 and over.
Best local insurer – Mercury
Like the Roman god the company is named for, Mercury provides fast and effective service for all your rental insurance needs.
Mercury has been providing insurance for California residents since 1961. The company has an A rating with both Fitch and AM Best, indicating that it is financially stable and well-managed, and it was named one of America’s most trustworthy companies by Forbes magazine. You’ll find comprehensive coverage at Mercury, with a handful of discounts to lower your rate, and optional coverages that protect you from identity theft and more.
Average annual premium, by company
| Company | Average annual premium |
|---|---|
| Allstate | $162-210 |
| Lemonade | $202-285 |
| USAA | $168-204 |
| Stillwater | $189-212 |
| Mercury | $175-218 |
Choosing your provider
Whether you choose a large national insurer, like Allstate, or a smaller regional carrier, Like Mercury, you want the best possible insurance. How can you be sure to get it? A little research is all it takes to give you the info you need to choose wisely. You can start by asking your neighbors and friends who they like and visit the website for any company you’re interested in to see how easy they make it to do business with them.
[ Read: What Does Renters Insurance Cover? ]
Local carrier
Pros
- They have the feet-on-the-ground knowledge of your local area.
- They understand state insurance laws and regulations.
- Generally, smaller companies offer high customer service from friendly, local employees.
Cons
- May not be able to offer the discounts or coverage options that are standard with larger companies.
- Not rated by consumer agencies such as J.D. Powers or Consumer Reports.
- Websites are often bare-bones, without the ability to get an online quote or file a claim.
National carrier
Pros
- Easy to evaluate them with national assessors like J.D. Powers and AM Best.
- Tend to have good websites with tons of functionality and easy access.
- Have the ability to offer extensive discounts as well as coverage extras that allow you to customize your policy.
Cons
- With tens of thousands of policyholders, you may not get the personalized attention you would with a smaller company.
[ Read: Best Renters Insurance Companies ]
Los Angeles minimum insurance requirements
Unlike car insurance, renters insurance isn’t a legal requirement in California. You may find, however, that your landlord requires it. And even if they don’t, it’s a good idea to consider it seriously. Depending on where you live in the city, you may be at risk of theft, vandalism, or damage from natural sources like storms or earthquakes. Consider carefully how much money you would need if you had to start over again from scratch. That’s a good starting point when considering the amount of Los Angeles renters insurance to purchase.
Flood
Coverage for flooding isn’t included in most renters insurance policies. To find out if you’re at risk of flooding, the FEMA Flood Map Service Center lets you input your address and see if you’re in a flood zone. If you have any reason to believe your apartment might flood, ask your insurance agent about supplemental flood insurance, which can be purchased through the government’s National Flood Insurance Program.
Hurricane
Hurricanes rarely hit California’s coastal regions. In fact, a “California hurricane” is the name of a tropical cyclone that travels up the coast — and that’s happened only twice since 1900. If the remnants of a tropical storm impact your apartment, you would be covered for any damage that was caused by wind. Damage caused by the flooding that often accompanies hurricanes would not be covered by a policy unless you had supplemental flood insurance.
Earthquake
Standard renters insurance policies do not cover earthquake damage. But that doesn’t mean you need to stay unprotected. Most insurers feature an endorsement, or add-on, that will cover earthquakes. The California Earthquake Authority offers insurance for renters, and it’s easy to get an online quote at its website. Plan on spending roughly $150-250 for an earthquake policy — money that’s well spent if it buys you peace of mind.
[ Read: Best Cities to Buy Rental Property ]
How much does renters insurance cost in Los Angeles?
The rate you pay for renters insurance will be determined by a number of variables, including the amount of rent you’re paying, your deductible and the value of your belongings. The average cost of Los Angeles renters insurance is roughly $195 a year, though your rate will probably differ. This is more than the California average of $182 and considers the fact that Los Angeles real estate is on the pricey side.
Keep in mind that there are things you can do to lower your insurance rate. One major factor, for example, is your deductible. The lower your deductible, the higher your premium rate will be. If you can handle a higher deductible — say, $1,000 or even more — you will get the best rates for renters insurance in Los Angeles.
Los Angeles renters insurance FAQs
Although you are not required to have insurance by law, your landlord may want you to have a policy. Even if they don’t, it’s a good idea to ensure that your personal possessions can be replaced in the event of a fire or other disaster by having a policy in place.
Expect to pay a little more than the state average of $182 annually. Your own rate will be determined by multiple factors, including your apartment’s location, deductible, and the amount of coverage you’d like.
There’s no one best company for everyone — the company that gave your neighbor the lowest quote may not offer you the same. That said, the insurers we’ve discussed above are a good place to start. Or, if you prefer, head on over to our listing of the Best Renters Insurance Companie.
Too long, didn’t read?
If you rent an apartment in Los Angeles, you’ll want to consider renters insurance to protect you and your belongings in the event of a disaster. There are a number of national insurers who sell policies in Los Angeles, including Allstate, Lemonade and USAA. There are also some smaller, regional companies like Mercury and Stillwater that offer competitive pricing along with top-notch customer service. Any of these companies will have comprehensive coverage available that is customizable for your own needs, at a good price point.
We welcome your feedback on this article and would love to hear about your experience with the insurers we recommend. Contact us at [email protected] with comments or questions.
Source: thesimpledollar.com