The Cheapest and Best Renters Insurance in Chicago
The Companies With the Cheapest Renters Insurance in Chicago
How much renters insurance costs in Chicago is an important factor for renters when choosing a policy since many companies offer similar coverage. Ask for renters insurance quotes from multiple insurance carriers to find the best policy for you. If you are looking for cheap renters insurance, MoneyGeek found that the most affordable options in the city are:
- Lemonade: $60 per year
- State Farm: $89 per year
These prices are based on renters insurance policies in Chicago with $20,000 in personal property coverage limits, $100,000 in liability coverage limits and a deductible of $500. Your actual cost of renters insurance in Chicago will vary. You can see in the table below how prices change depending on the personal property coverage limits.
If you live in a different city in the state, you can compare renters insurance for Illinois as a whole.
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What Are the Best Renters Insurance Companies in Chicago?
MoneyGeek ranked the insurers in Chicago and found that the best renters insurance companies in the city are:
- Best Overall: State Farm
- Runner-up: Lemonade
USAA received the highest score in Chicago by MoneyGeek's rating system. However, because USAA is only available to military members, veterans and their families, it is not listed as best overall.
MoneyGeek calculated the final scores of renters insurers in Chicago based on a unique rating system that incorporates affordability, customer satisfaction ratings from J.D. Power and financial stability ratings from AM Best. MoneyGeek also found that these insurance companies often offer unique coverages that other renters insurance carriers do not have.
USAA is consistently one of the companies with the cheapest renters insurance policies nationwide. Additionally, its policies have unique features. For example, USAA renters insurance policies include flood and earthquake coverage. The company also reimburses you at replacement cost, meaning you can get new items of similar quality to those you lost from covered perils.
USAA is MoneyGeek’s top pick as it scores well across all categories, including a perfect rating for customer satisfaction. Only current and former military members and their families can purchase USAA policies.Read MoneyGeek's USAA renters Insurance Review
State Farm is also almost always one of the cheapest insurers across the country. The company allows policyholders to easily increase limits for valuable items, such as jewelry and business personal property, while getting a quote. If you want, you can also purchase inflation coverage to increase your personal property coverage limits over time automatically.
State Farm comes in second place based on high ratings across several categories. It is the best option for Chicago renters who do not qualify for USAA policies.Read MoneyGeek's State Farm renters Insurance Review
The Average Cost of Renters Insurance in Chicago for 2023
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On average, the cost of renters insurance in Chicago is $124 per year or $10 monthly. The national average renters insurance cost is $159 annually, which means Chicago renters typically pay $35 less per year.
What Factors Impact Renters Insurance Costs in Chicago?
While there are several factors that impact your renters insurance cost, the following are the most impactful to the amount you will spend.
- Personal property coverage amount – This coverage is the most important factor affecting the cost of renters insurance in Chicago. Consider how much property you want to be covered when looking for the most suitable policy.
- Location within a city – Crime rates in the neighborhood can change the cost of your renters insurance, but it tends to only have a minor impact.
- Deductible – If you choose to have a higher deductible, which is the fee you will pay the company to cover a legitimate claim, you will get cheaper renters insurance in Chicago. That is because you will be paying more out of pocket when making a claim.
- ACV vs. RCV – If you choose an actual cash value (ACV) policy, your insurance carrier will reimburse you based on the depreciated value of your belongings. On the other hand, a replacement cost value (RCV) policy will reimburse the cost to purchase a new item of similar type and quality. Because of this, RCV policies tend to cost more than ACV.
- Liability coverage amount – A standard renters insurance policy has $100,000 in liability coverage. Adding thousands of dollars to that will only cost you only a few more dollars annually.
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Does My Chicago Neighborhood Impact Cost of Renters Insurance?
The cost of renters insurance in Chicago can change depending on which neighborhood you live in. However, MoneyGeek’s study suggested that it will only have a small effect on the cost of your renters insurance. You will only have to add a couple of dollars more per month.
Understanding Renters Insurance in Chicago
Renters in Chicago are not legally required to purchase renters insurance, but your landlord may require it. MoneyGeek also strongly recommends a renters insurance policy as it provides asset protection at an affordable price.
What Does Renters Insurance Cover in Chicago?
When looking for the best renters insurance in Chicago, you have to make sure that you get enough renters coverage. It is a low-cost way to protect your personal property against damages from covered perils or theft. The FBI reported 2,809 property crimes per 100,000 residents in Chicago in 2018, 42% more than the national average.
Apartment and rental home residents in Chicago can buy additional insurance coverages for other risks, such as fires and water damage. Insurance companies in the city typically include the following in their renters insurance policies:
- Personal property coverage – This refers to the contents of your rented home. It protects against expenses caused by damages from certain perils like fire, electrical malfunctions, plumbing issues, theft, vandalism and some weather-related damages.
- Additional living expenses – If the home you are renting ends up being uninhabitable due to a covered peril, this coverage will cover the expenses for your temporary housing.
- Liability insurance – If an accident in your rented home causes damages or injuries to another person, liability insurance coverage will help with the legal expenses and court judgment payments.
- Medical payments coverage – If an accident in your rented property causes injuries to someone else, this will take care of the medical expenses related to said injury regardless of who is at fault.
What Is Not Covered by Renters Insurance in Chicago?
Renters insurance in Chicago protects your personal property, but the owner is responsible for insuring the building’s structure. Certain perils are also not covered.
A standard renters insurance policy covers some specific water damage, but it typically excludes water damage from flooding. You will have to buy incremental insurance through the National Flood Insurance Program (NFIP).
Most renters insurance policies also do not cover the possessions of the policyholder’s roommates, earthquake damage, damages to your car, jewelry or similar valuables that cost more than the policy limits. Make sure you read the policy carefully, as not all policies are the same.
Frequently Asked Questions About Renters Insurance in Chicago
When shopping for the best renters insurance in Chicago, look for an insurance carrier that provides the best combination of affordability and quality. Here are some frequently asked questions to help you find the best renters insurance in the city.
Renters Insurance in Chicago Analysis: Methodology
Moneygeek analyzed hundreds of renters insurance quotes in Chicago to help you find cheap renters insurance. The best renters insurance rankings were determined using data from J.D. Power, AM Best and our affordability metrics derived from a comprehensive analysis of quotes provided by Quadrant.
About Mark Fitzpatrick
- United States Department of Justice, Federal Bureau of Investigation. "Crime in the United States, 2019." Accessed April 13, 2021.