The Cheapest and Best Renters Insurance in Louisville
The Companies With the Cheapest Renters Insurance in Louisville
When evaluating renters insurance, the cost is a significant factor to consider for renters in Louisville, as plenty of companies offer similar standard coverage. This is why comparing quotes is crucial to find the cheapest renters insurance that suits one’s needs.
MoneyGeek evaluated the companies offering the best cheap renters insurance in Louisville and found that the best insurers on average include:
- USAA: $87 per year (only available for current and former military members)
- State Farm: $109 per year
USAA policyholders can get even better value for their money as all policies reimburse policyholders for items at replacement cost and all policies cover flood and earthquake damage.
MoneyGeek gathered these prices based on policies with $20,000 in personal property coverage, $100,000 in liability coverage and a deductible of $500. See how prices can change based on personal property coverage limits below.
MoneyGeek also gathered information on the cheapest renters insurance in the state of Kentucky as a whole.
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What Are the Best Renters Insurance Companies in Louisville?
Looking for the best renters insurance requires looking beyond costs. MoneyGeek’s study on companies that offer the best renters insurance in Louisville are:
- Best Overall: State Farm
- Runner-Up: Allstate
USAA received the highest score in Louisville 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 examined these companies based on a unique rating system that looks at affordability, customer satisfaction ratings from J.D. Power and financial stability ratings from AM Best. These companies also offer unique coverages not seen in all renters insurance companies.
Consistently one of the cheapest options across the country, USAA is known for their affordability and customer satisfaction. All their policies reimburse losses at replacement cost and cover earthquake and flood damage. Policyholders who are deployed abroad or have plans to move out of the country are also covered regardless of location, and current members of the military can benefit from an additional discount to their policy.
Available only for current and former military members, USAA scored well across categories, achieving perfect marks in both customer satisfaction and affordability.Read MoneyGeek's USAA renters Insurance Review
State Farm is one of the most accessible options and is consistently one of the cheapest options across the country. They offer renters inflation coverage, which increases policyholder’s personal property coverage limits over time. Additionally, renters can add identity restoration coverage to their policy for just $25 per year to protect against any potential costs resulting from identity fraud.
State Farm is the more accessible option that also scores well across categories and achieves high marks in affordability.Read MoneyGeek's State Farm renters Insurance Review
The Average Cost of Renters Insurance in Louisville for 2023
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The cost of renters insurance depends on the location. The average cost of renters insurance in Louisville is $128 per year or $11 per month, which is $31 less than the national average.
What Factors Impact Renters Insurance Costs in Louisville?
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 – By far the most important factor that determines the cost of a policy, personal property coverage can cover many damages often caused by natural disasters like tornadoes and wildfires.
- Location within a city – Certain areas come with more risks than others, such as higher crime rates or the likelihood of natural disasters. However, MoneyGeek found that crime rates tend to have a minor effect on the cost of renters insurance.
- Deductible – Deductibles are the fees a policyholder must pay before receiving payouts in a claim. The higher the deductible, the lower the premiums and vice versa.
- ACV vs. RCV – The actual cash value (ACV) is where an insurer will pay for the depreciated cost of the loss or damage of a claimed item. Replacement cost value (RCV) is where an insurer pays policyholders the full cost of an item with no depreciation, which lets them purchase items of similar value.
- Liability coverage amount – While the amount of liability coverage affects the cost of renters insurance, the impact is minimal. Policyholders can add thousands of dollars of coverage with just a few extra dollars per month.
Calculate How Much Renters Insurance You Need
Does My Louisville Neighborhood Impact Cost of Renters Insurance?
Location is definitely a factor that’s considered when it comes to renters insurance. However, MoneyGeek’s study found that the neighborhood a policyholder lives in only has a minor impact on the cost of renters insurance by a few dollars a month.
Understanding Renters Insurance in Louisville
Renters insurance is not a legal requirement unless stated by a landlord. However, MoneyGeek strongly recommends that renters get rental insurance since it’s a low-cost way to protect themselves from any damage or losses that may occur under certain circumstances.
What Does Renters Insurance Cover in Louisville?
There is no one-size-fits-all when it comes to renters insurance, which is why it’s important that all Louisville-based renters select the coverage that meets their needs.
For instance, Louisville residents should consider getting renters insurance as it can protect them from theft. According to the FBI, Louisville has a property crime rate of 3,309 per 100,000 people in a year, which is 75% above the national average.
Renters may also want to protect themselves against the risk of fire or water damage, as it can happen anywhere and any time. Here is what renters insurance typically covers:
- Personal property coverage – This covers policyholders who have experienced the loss or damage of personal items such as appliances or electronics when they make a claim.
- Additional living expenses – In the event that a rental is uninhabitable, this covers the cost of temporary living expenses.
- Liability insurance – If a third party experiences an accident or injury on the rental property, this coverage helps pay for any legal expenses if a claim is filed against the renter.
- Medical payments coverage – This covers any medical bills for injuries sustained by or accidents that occur to a third party in the rental property.
What Is Not Covered by Renters Insurance in Louisville?
While renters insurance covers quite a few things, it has its limits. For instance, it can cover the property but not the structure of the home. Landlords or property owners are responsible for insurance that covers the structure.
While water damage is covered, not all situations are covered. If it’s a result of flooding, this is not often covered in standard policies. Renters should consider buying incremental insurance to cover this through the National Flood Insurance Program (NFIP).
For renters who have a roommate, renters insurance will not cover their roommate’s possessions. Any damages that occur from natural calamities like earthquakes, damage to the policyholder’s car and items of significant value beyond the policy limits are also not covered.
Individuals who intend to get renters insurance in Louisville should read policy contracts carefully to ensure that everything needed is covered.
Frequently Asked Questions About Renters Insurance in Louisville
For tenants interested in getting renters insurance in Louisville, MoneyGeek has rounded up a few common questions below.
Renters Insurance in Louisville Analysis: Methodology
MoneyGeek analyzed hundreds of renters insurance quotes in Louisville 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 Mark Fitzpatrick
- United States Department of Justice, Federal Bureau of Investigation. "Crime in the United States, 2019." Accessed April 13, 2021.