The average cost of renters insurance in Los Angeles, California stands at $277 per year or $23 per month, which is $10 more than the national average. Comparing renters insurance quotes can save renters around $69, as Lemonade offers the cheapest renters insurance at $8 per month on average, while the most expensive is Nationwide at $77. For tenants looking at cost and quality, MoneyGeek also identified the best renters insurance in Los Angeles.
The Best and Cheapest Renters Insurance in Los Angeles, CA for 2021: Rankings, Reviews and Rates
The Cheapest and Best Renters Insurance in Los Angeles
The Companies With the Cheapest Renters Insurance in Los Angeles
Cost is an important factor for Los Angeles renters to consider, as many companies offer similar coverage at varying prices. This is why comparing insurance quotes is crucial.
For those looking for cheap renters insurance in Los Angeles, MoneyGeek has found that the most affordable options on average include:
- Lemonade: $98 per year
- State Farm: $130 per year
These prices are based on policies with a $20,000 personal property coverage limit, $100,000 liability coverage and a deductible of $500. See how prices can change based on personal property coverage limits in the table below.
If you live somewhere else in the state, MoneyGeek has also examined and compared renters insurance in California as a whole.
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What Are the Best Renters Insurance Companies in Los Angeles?
The best renters insurance balances both cost and quality and offers the best service for their policyholders. MoneyGeek’s analysis found that the companies offering the best renters insurance in Los Angeles are:
- Best Overall: State Farm
- Runner-Up: Allstate
USAA received the highest score in Los Angeles 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 scored these companies based on a unique rating system that looked at affordability, customer satisfaction ratings from J.D. Power and financial stability ratings from AM Best. These two companies also offer unique coverages that aren’t offered by other insurance companies.
USAA is not only consistently ranked as one of the cheapest options across the country, but their policies also offer unique coverages. For instance, all their policies cover flood and earthquake damage, along with the reimbursement of damaged or lost items at replacement cost. Abroad-based policyholders still get covered by USAA, and currently-serving military members get additional discounts on their policy.
USAA scores well across categories, achieving perfect marks in customer service. However, USAA only serves current and former military members and their families.
State Farm offers policyholders the opportunity to increase limits for items of value, such as jewelry or business personal property, while getting a quote. They also offer inflation coverage, letting personal property coverage limits automatically increase over time. Additionally, State Farm offers earthquake coverage, which Los Angeles tenants should consider since the area is more prone to earthquakes.
Also scoring well across categories, State Farm is the most accessible option that achieves high marks in affordability.
The Average Cost of Renters Insurance in Los Angeles for 2021
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The average cost of renters insurance can depend on where you live. The average cost of renters insurance in Los Angeles is $277. This is $118 more than the national average of $159.
What Factors Impact Renters Insurance Costs in Los Angeles?
While there are several factors that impact the cost of renters insurance, the following are the most impactful to the amount you will spend.
- Personal property coverage amount – Personal property coverage is something anyone looking for renters insurance in Los Angeles should keep in mind because it is the most important factor in the cost of a policy. This should depend on what you own and how valuable your possessions are.
- Location within a city – Where a policyholder lives can affect the cost of renters insurance. For instance, crime rates in a neighborhood can impact the cost. Additionally, areas more prone to wildfire damage and adverse weather conditions typically have higher rates.
- Deductible – This is how much a policyholder will pay upfront before making a claim. A higher deductible means lower premiums, while a lower deductible means higher premiums.
- ACV vs. RCV – An actual cash value (ACV) policy considers the depreciation of an item, so it will pay less for older possessions. Replacement cost value (RCV) will reimburse the full cost of an item. ACV policies are typically cheaper, but RCV packages mean that policyholders will get a higher payout for any claims.
- Liability coverage amount – This has a minor effect on the cost but is a factor nevertheless. Note that policyholders can add thousands of dollars of coverage with just a few dollars per year.
Calculate How Much Renters Insurance You Need
Does My Los Angeles Neighborhood Impact Cost of Renters Insurance?
Location is a factor often considered in renters insurance, but a MoneyGeek study found that the neighborhood a tenant is in has a limited impact on the cost of renters insurance in Los Angeles by only a couple of dollars a month.
Understanding Renters Insurance in Los Angeles
Renters insurance, while not legally required unless specified by a landlord, is important to protect the possessions of any renter. It’s an affordable way to ensure that should anything go wrong, a policyholder of renters insurance in Los Angeles can file a claim and protect themselves. As a result, MoneyGeek recommends purchasing a renters insurance policy.
What Does Renters Insurance Cover in Los Angeles?
The cheapest option is not always the best one, as every tenant has unique needs that they should consider before purchasing renters insurance.
For instance, theft rates are an important thing to think about. The FBI notes that Los Angeles has a property crime rate of 1,194 per 100,000 in a year. This is 5% above the national average.
Los Angeles also has a staggering number of fires. The Los Angeles Fire Department recorded 8,283 fires of all types within city limits in 2020. This is a 45% increase compared to the 5,695 recorded in 2019. Renters may also want to consider obtaining renters insurance to protect against the event that fire or even water damage occurs in the rental.
Los Angeles renters who get rental insurance can enjoy the following coverages:
- Personal property coverage – This protects against the event that a policyholder experiences a loss or damage of personal items such as appliances, electronics, furniture or even clothing.
- Additional living expenses – This covers renters in the event that their rental is uninhabitable due to a covered claim and pays for temporary living expenses.
- Liability insurance – If an accident or injury occurs on the rental property, this coverage pays for any legal expenses in relation to the injured party.
- Medical payments coverage – If someone gets injured or has an accident on the rental property, this coverage will help pay for any medical bills for the one who was injured.
What Is Not Covered by Renters Insurance in Los Angeles?
There is a limit to what renters insurance covers. For instance, it can cover the property but not the structure of the home. This is the responsibility of the landlord, who should have insurance that protects the structure.
Certain forms of water damage are covered, but water damage as a result of flooding is not typically covered in most standard policies. Fortunately, renters have the option to buy incremental insurance through the National Flood Insurance Program (NFIP).
Renters insurance also does not cover any possessions owned by roommates, damage from natural calamities such as earthquakes, damage to the policyholder’s car and items of significant value beyond the policy limits.
Those looking to get renters insurance in Los Angeles should read the policy carefully, as no two policies are alike.
Frequently Asked Questions About Renters Insurance in Los Angeles
Finding the best renters insurance in Los Angeles depends on the needs of a renter. Below are some commonly asked questions about renters insurance.
Renters Insurance in Los Angeles Analysis: Methodology
MoneyGeek analyzed hundreds of renters insurance quotes in Los Angeles 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 that are derived from a comprehensive analysis of quotes provided by Quadrant.
About the Author
- Eric Leonard. "LAFD Reports a Staggering Rise in the Number of Fires, Outpacing Any Year in Recent Memory." Accessed April 9, 2020.
- United States Department of Justice, Federal Bureau of Investigation. "Crime in the United States, 2019." Accessed April 13, 2021.