The Cheapest and Best Renters Insurance in Madison
The Companies With the Cheapest Renters Insurance in Madison
On average, the top companies offering cheap renters insurance in Madison include:
- Allstate: $69 per year
- American Family: $98 per year
The prices that MoneyGeek gathered are based on policies with $20,000 in personal property coverage limits, $100,000 in liability coverage limits and a $500 deductible. The table below shows how changing personal property coverage limits can affect prices.
For renters who live elsewhere in the state, MoneyGeek also studied information on the cheapest renters insurance in Wisconsin as a whole.
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What Are the Best Renters Insurance Companies in Madison?
Tenants who want the best renters insurance need to look beyond just cost and consider quality as well as other factors. Based on MoneyGeek’s analysis, the companies offering the best renters insurance in Madison are:
- Best Overall: Allstate
- Runner-up: American Family
These rankings are based on MoneyGeek’s unique rating system that factors in affordability, customer satisfaction ratings from J.D. Power and financial stability ratings from AM Best. MoneyGeek also found that these companies offer unique coverages not often found in all renters insurance companies.
Allstate offers more than just affordable coverage. They let policyholders add identity protection to policies to monitor their digital footprint and cover any potential costs brought about by identity theft. Policyholders can also make their premiums even cheaper by waiving off-premises theft coverage. Note that stolen objects outside the home will not be covered.
Allstate is MoneyGeek’s top pick as it scores well across all categories, achieving perfect marks in affordability.Read MoneyGeek's Allstate renters Insurance Review
Ranking high in customer satisfaction, American Family offers unique coverages for their policyholders. For instance, long-time policyholders have diminishing deductibles, and travel lovers can add travel protection policies to cover the costs of any trip cancellations or add global medical insurance. Pet owners can also cover up to $1,000 in medical costs if a pet is injured in a covered event.
American Family is the runner-up as they also score well across categories, achieving a high score in customer satisfaction.Read MoneyGeek's American Family Insurance renters Insurance Review
The Average Cost of Renters Insurance in Madison for 2023
renters insurance is equal to the average.
Renters insurance prices can vary based on location, which means the average cost of renters insurance is not the same in every city or state. For instance, the average cost of renters insurance in Madison is $99 per year or $8 per month, which is $60 less than the national average.
What Factors Impact Renters Insurance Costs in Madison?
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 is the most important factor that affects the cost of a policy. Having a high personal property coverage amount can cover losses and damages that are caused by inclement weather events. These can include thunderstorms or blizzards, which are common in the state of Wisconsin.
- Location within a city – The neighborhood a renter lives in has a minor impact on the cost of renters insurance, but it’s worth keeping it in mind nevertheless.
- Deductible – A deductible is a fee a policyholder must pay before an insurer will cover a claim. The higher the deductible, the lower the premiums and vice versa.
- ACV vs. RCV – The actual cash value (ACV) policy is when an insurer pays for lost or damaged items at a depreciated value, while a replacement cost value (RCV) policy is where an insurer pays for items at replacement cost. The latter is more expensive than the former.
- Liability coverage amount – Adding liability coverage has a minor impact on the cost of renters insurance. Policyholders can add thousands of dollars of extra coverage with only a few more dollars per year.
Calculate How Much Renters Insurance You Need
Does My Madison Neighborhood Impact Cost of Renters Insurance?
One of the factors often considered in renters insurance is the location a policyholder lives in. However, MoneyGeek’s study found that the neighborhood a Madison-based renter lives in only affects the cost of renters insurance by a few dollars a month.
Understanding Renters Insurance in Madison
Across the country, renters insurance is not required by law unless a landlord requires it. Despite this, MoneyGeek recommends that renters from Madison purchase rental insurance as it is an affordable way to protect themselves against the results of unforeseen circumstances.
What Does Renters Insurance Cover in Madison?
While renters insurance covers a couple of situations, it’s important to get the right coverage that meets the needs of a Madison-based apartment or home. For instance, protecting against the risks of theft is crucial, as the area has a property crime rate of 2,265 per 1000,000 per year. This rate is 20% higher than the national average.
Water and fire damage are also situations that renters need to consider, as they can happen at any time.
Renters insurance covers the following:
- Personal property coverage – This protects policyholders who have lost or damaged any personal belongings while filing a claim. It can help replace appliances, electronics and even clothing.
- Additional living expenses – If a renter finds that their rented home or apartment is uninhabitable, this coverage can help pay for temporary living expenses.
- Liability insurance – In the event that a third party experiences an accident or injury on the property, this coverage helps pay for any legal expenses should someone sue the renter.
- Medical payments coverage – If an individual gets injured due to an accident that happened on the rental property, the insurer can cover any medical bills for the injured party up to the value of the selected limit.
What Is Not Covered by Renters Insurance in Madison?
Renters insurance covers a number of scenarios, but it doesn’t cover every situation. For example, the structure of a property is not covered by renters insurance. Instead, it is the landlord or owners’ responsibility to insure.
Any damages that occur as a result of flooding are also not covered, although most policies cover certain types of water damage. Incremental insurance to cover flooding damage is available through the National Flood Insurance Program (NFIP).
Renters insurance also does not cover possessions that don’t belong to you (for example, a roommate’s items), damages that occur as a result of natural calamities, damages to a policyholder’s car and items of significant value that go beyond the policy limits.
Renters who plan to get renters insurance in Madison should read the policy carefully as no two policies are alike.
Frequently Asked Questions About Renters Insurance in Madison
Renters insurance can be a confusing topic for some. MoneyGeek has rounded up a few of the most commonly asked questions for those who want quick, straightforward answers.
Renters Insurance in Madison Analysis: Methodology
MoneyGeek analyzed hundreds of renters insurance quotes in Madison 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.