The Cheapest and Best Renters Insurance in Denver
The Companies With the Cheapest Renters Insurance in Denver
Most renters insurers offer the same coverage, making price a primary factor when choosing a policy. It’s always a good idea to compare several companies, so MoneyGeek has ranked several insurance providers to find out which offers the best cheap renters insurance in Denver. The two most affordable renters insurance companies in the city are:
- Allstate: $107 per year
- Travelers: $125 per year
The standard for all policies is $20,000 in personal property coverage limits, $100,000 in liability coverage limits, and a deductible of $500. Depending on the amount of your personal property coverage limits, a policy’s premium may change, as seen in the table below.
Renters who live outside Denver but still within the state can check renters insurance in Colorado here.
Average Annual Rates for Personal Property Insurance
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What Are the Best Renters Insurance Companies in Denver?
MoneyGeek’s research shows that the best renters insurance companies in Denver are:
- Best Overall: Allstate
- Runner-up: USAA (only available to present and former members of the military)
The best renters insurance companies are determined based on MoneyGeek’s internal rating system that considers factors such as customer satisfaction ratings from J.D. Power and financial stability ratings from A.M. Best. They also have unique coverages that aren’t in the policies of other renters insurance providers.
Rated as the top renters insurance carrier in 15 out of 41 cities, Allstate gives you the option to add identity protection to your coverage, which keeps track of your digital footprint and provides protection against identity theft. Despite its already high score in affordability, you can even make your premium even lower by waiving your off-premises theft coverage. Keep in mind that this may save you a few dollars per month, but any belongings stolen outside of your home are no longer covered.
Allstate received high scores for all areas used to compare various renters insurance companies, even getting a perfect affordability score. Though most standard renters insurance does not cover damage caused by flood, you can purchase a policy covering flood damage through an Allstate agent.Read MoneyGeek's Allstate renters Insurance Review
USAA is considered the best option for renters insurance in 29 out of 41 cities surveyed. USAA’s policies cover damage from floods and earthquakes, which other insurers don’t. The company also reimburses you at replacement cost, allowing you to get items of similar quality. USAA’s policy extends its coverage even if you are deployed — or if you decide to move — outside of the United States.
USAA is consistently considered one of the top options for renters insurance in the country. It scored perfectly in customer satisfaction ratings as well as financial stability. However, the company’s policies are only available to present or former military members and their families.Read MoneyGeek's USAA renters Insurance Review
The Average Cost of Renters Insurance in Denver for 2023
renters insurance is equal to the average.
Renters in Denver pay $130 annually for insurance or about $11 per month. It comes out lower than the average cost of renters insurance in the United States. That’s a difference of $29 from the national average, which is $159 per year.
What Factors Impact Renters Insurance Costs in Denver?
While several factors impact your renters insurance cost, the following are the most impactful to the amount you will spend:
- Personal property coverage amount – One of the most important factors determining a policy's cost is the amount of personal possessions you want to cover. Renters often underestimate the personal property value to be covered. You have to honestly assess the value of your belongings and what they would cost to replace them to get a more accurate idea of how much coverage you need.
- Location within a city – Your neighborhood plays a factor in how much your policy will cost. Areas with higher crime rates often result in more expensive policies. On the other hand, renters who live in secure neighborhoods are charged lower premiums.
- Deductible – This refers to the amount charged by the insurance carrier to process claims and replace goods. Policies with a lower deductible have higher premiums because the insurance carrier pays more to reimburse your claim. If you want a policy with a lower premium, choose one that has a higher deductible.
- ACV vs. RCV – When paying out a claim, insurers either use actual cash value (ACV) or replacement cost value (RCV). Policies with ACV plans have lower premiums because they consider how much an item has depreciated — they pay less for older products. RCV packages, on the other hand, reimburse for a new item of the same type and quality. Since policies with RCV packages pay more for claims, they have higher premiums.
- Liability coverage amount – Standard policies include $100,000 of liability coverage, which is the part of your insurance that protects you from a claim someone files against you for injury or loss of physical property. The extent of the coverage has a minor effect on the cost of your policy. For only a few additional dollars per year, you can add several thousands of dollars to your coverage limit.
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Does My Denver Neighborhood Impact Cost of Renters Insurance?
A study conducted by MoneyGeek found that unlike other types of insurance, your neighborhood's location in Denver has a small effect on the cost of your policy. At most, it only changes the price of your policy by a few dollars per month.
Understanding Renters Insurance in Denver
Although renters insurance is not mandatory in Denver, MoneyGeek strongly recommends you purchase a policy, as it offers you security at an affordable rate. Renters insurance covers your personal belongings, regardless of where they are — in your house, in your car, or even when you’re on vacation. In some instances, landlords may require you to purchase renters insurance. The landlord’s insurance covers the structure itself as well as the grounds, but not your belongings. After unforeseen disasters or other natural calamities, renter’s insurance can help you protect your possessions.
What Does Renters Insurance Cover in Denver?
As someone looking to rent, you should compare renter’s insurance quotes for the best renters insurance in Denver to make sure that you get a policy that fits your needs. It’s always best to be fully aware of the range of coverage provided by a policy before deciding which one to purchase.
Having the right coverage allows you protection against expenses from damages caused by unexpected disasters. It may even give you protection against theft. According to the FBI, Denver has a property crime rate of 2,880 per 100,000 people in 2017. It is 36% above the national average.
Renters in Denver may also consider purchasing coverage against risks that can happen anywhere, such as losses caused by fire and water damage.
Insurance providers in Denver usually offer renters insurance policies that include the following:
- Personal property coverage – The part of your policy that reimburses you for items that are lost or destroyed in a covered peril. In Denver, personal property coverage includes coverage for the cost of damages from wildfires, tornadoes, or other extreme weather events.
- Additional living expenses – This coverage provides reimbursement for costs when your home becomes uninhabitable. Sometimes, when covered peril occurs, the damage caused to your rented unit is so severe that a temporary residence is needed.
- Liability insurance – This protects you if an accident occurs on your property and someone gets injured or if their property is damaged. Liability coverage also covers the cost of legal defenses if that person files a lawsuit against you.
- Medical payments coverage – This reimburses you when a person suffers bodily injury while on your property, and you have to pay for their medical expenses.
What Is Not Covered by Renters Insurance in Denver?
Renters insurance in Denver covers your property but not the structure of your rental dwelling. The owner’s insurance policy should cover that.
Most standard insurance policies in Denver do not cover damage resulting from a flood. Renters who want to increase their coverage to include this have the option to buy incremental insurance through the National Flood Insurance Program (NFIP).
Damage or loss of personal property is covered but does not extend to possessions owned by roommates. Damage from earthquakes and damages to your car are also not covered. Exclusions include jewelry and other items with a higher value than your policy limits. Always compare different renters insurance companies and read through their policies, as different policies may have different coverages. This practice increases your chances of purchasing a policy that best fits your needs.
Frequently Asked Questions About Renters Insurance in Denver
If you’re shopping for renters insurance, look for an insurance provider that can give you the best mix of quality and affordability. Here are the most frequently asked questions regarding renters insurance in Denver:
Renters Insurance in Denver Analysis: Methodology
Moneygeek analyzed hundreds of renters insurance quotes in Denver to help you find cheap renters insurance. The best renters insurance rankings were determined using data from J.D. Power, AM Best and MoneyGeek’s affordability metrics derived from a comprehensive analysis of quotes provided by Quadrant.
About Mark Fitzpatrick
- Miller Public Adjusters. "Replacement Cost Value (RCV) VS. Actual Cash Value (ACV)." Accessed April 8, 2021.
- Coverhound. "What Factors Determine Your Renters Insurance Premium?." Accessed April 8, 2021.
- Nationwide. "Renters Insurance Coverage." Accessed April 8, 2021.
- United States Department of Justice. "Crime in the United States, 2019." Accessed April 13, 2021.