The Cheapest and Best Renters Insurance in Phoenix
The Companies With the Cheapest Renters Insurance in Phoenix
The cost of renters insurance should be an important consideration for renters in Phoenix as most insurance providers offer the same core coverage options. You can compare renters insurance quotes from different providers to find what works best for you. If you are looking for affordable renters insurance, here are the options MoneyGeek found to be the cheapest in Phoenix:
- USAA: $92 per year (only available to current and former military members and their families)
- State Farm: $114 per year
Customers with USAA policies get even better value for their money as they provide reimbursements for items at replacement cost. Additionally, all policies cover both flood and earthquake damage, which most other providers do not offer.
The prices used in this study are based on policies with $20,000 in personal property coverage, $100,000 in liability coverage and a deductible of $500. Actual costs will differ for individual customers. Please check the table below for different personal property coverage limits and see how prices change.
Renters in Arizona residing outside Phoenix can compare renters insurance rates for Arizona as a whole.
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What Are the Best Renters Insurance Companies in Phoenix?
MoneyGeek ranked the best insurers in Phoenix and found that the top renters insurance companies in the city are:
- Best Overall: State Farm
- Runner-Up: Allstate
USAA received the highest score in Phoenix 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.
To calculate the final scores, MoneyGeek used a composite rating system that considers affordability, customer satisfaction ratings from J.D. Power and financial stability ratings from AM Best. In addition, MoneyGeek found that these providers offer unique coverages that many other providers do not.
USAA is consistently one of the cheapest options in the country and also provides unique coverages. USAA policies offer reimbursements at replacement costs, so you can get items of a similar quality to the ones you lost. Unlike most other providers, USAA policies bundle coverage for earthquake and flood damage.
Perfect scores across all categories make USAA our top pick. USAA policies are only available to current and former military members and eligible family members.Read MoneyGeek's USAA renters Insurance Review
State Farm is also usually one of the most affordable options for renters insurance nationwide. With State Farm, you can buy inflation coverage to increase your personal property coverage limits over time. You can also protect yourself against possible expenses arising from identity fraud for only $25 extra per year.
State Farm is our runner-up pick due to high ratings across the board. It is the best option for customers who do not qualify for USAA policies.Read MoneyGeek's State Farm renters Insurance Review
The Average Cost of Renters Insurance in Phoenix for 2023
renters insurance is equal to the average.
Renters in Phoenix pay an average of $161 per year, or $13 per month, for renters insurance. This is only $2 more per year than the national annual average of $159.
What Factors Impact Renters Insurance Costs in Phoenix?
While several factors impact renters insurance costs, the following are the most impactful to the amount you spend on your policy.
- Personal property coverage amount - It is important to consider the amount of coverage you want to purchase when looking for the best renters insurance in Phoenix. This is one of the most influential factors determining the cost of a policy.
- Location - Where you live in Phoenix can have a minor impact on renters insurance costs. Areas with higher crime rates often have higher insurance rates too.
- Deductible - This is a fee you pay your insurance provider for processing a claim. Policies with higher deductibles tend to have lower monthly premiums as you will pay more out of pocket for each claim.
- ACV vs. RCV - According to your chosen type of insurance, you can get reimbursed based on the actual cash value (ACV) or the replacement cost value (RCV). ACV policies calculate reimbursement value taking into account depreciation over time, while RCV policies reimburse the equivalent cost for you to buy a new replacement item of similar type and quality without considering depreciation. Since RCV policies pay more, they cost more than ACV policies.
- Liability coverage amount - Your coverage level will have some impact on your renters insurance costs. Usually, a standard policy includes $100,000 in liability coverage. For just a few more dollars per year, you can add thousands more in coverage.
Calculate How Much Renters Insurance You Need
Does My Phoenix Neighborhood Impact Cost of Renters Insurance?
Unlike other types of insurance, neighborhood locations have minimal impact on renters insurance costs. MoneyGeek found that where you live in Phoenix will only affect your premiums by a few dollars a month at most.
Understanding Renters Insurance in Phoenix
Renters insurance in Phoenix is not legally mandated. However, MoneyGeek strongly recommends purchasing renters insurance as it is an affordable way to protect your assets against damages or theft. Also, some landlords might insist on it.
What Does Renters Insurance Cover in Phoenix?
As you look for renters insurance, ensure that you get adequate coverage to meet your needs as a renter in Phoenix. It is a low-cost way to protect yourself against possible expenses arising from theft and other unexpected damages. According to the FBI, the number of property crimes reported in Phoenix reached 2,896 cases per 100,000 residents in 2019, 53% higher than the national average.
Renters in Phoenix can also buy additional insurance coverage to cover risks that can happen anywhere, including water and fire damage. Insurance companies in Phoenix typically include the following in their renters insurance policy offerings:
- Personal property coverage - This safeguards the contents of your home from events like theft, vandalism, fires, electrical issues, plumbing issues and certain weather-related damages.
- Additional living expenses - After a covered event, your rental unit might become unfit to live in. This coverage will take care of your temporary living expenses.
- Liability insurance - This protects you if an accident at your rental home causes third-party damage or injuries. It can cover legal expenses and court payments.
- Medical payments coverage - If someone gets injured while on your rental property, this can cover the ensuing medical expenses irrespective of who is at fault.
What Is Not Covered by Renters Insurance in Phoenix?
Renters insurance in Phoenix covers your property but not the structure of the home. The owner of the building is responsible for insuring the structure itself. Also, certain events are usually not covered by renters insurance, for which you might consider purchasing additional coverage.
For example, while water damage of most kinds is covered, water damage resulting from a flood is usually not included in most renters insurance policies. If this is a concern for you, consider purchasing incremental insurance through the National Flood Insurance Program (NFIP).
Several other things are usually excluded from a typical renters insurance policy. These can include your roommate’s property, damage caused by earthquakes, damage to your car and jewelry and other valuables that cost more than the policy limits. Every policy has a distinct set of terms and conditions. Read your policy document carefully before purchase to ensure you have the coverage you need.
Frequently Asked Questions About Renters Insurance in Phoenix
Renters in Phoenix should look for a company that provides the best balance of affordability and quality. Here are some frequently asked questions about renters insurance in Phoenix.
Renters Insurance in Phoenix Analysis: Methodology
Moneygeek analyzed hundreds of quotes in Phoenix 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