After reviewing more than 20 providers operating throughout the city, the MarketWatch Guides team named Lemonade, Toggle and State Farm as the best renters insurance providers in Chicago.
With an average price of $16.45 per month, renters insurance in Chicago is more expensive than in similarly large metropolitan areas such as Phoenix and San Francisco. Read on to learn more about renters coverage, how to save on costs and what endorsements you might need based on risk factors in the city.
Top 6 Renters Insurance Providers in Chicago, Ill.
We named the following six companies as the best renters insurance choices in Chicago.
If you’re a tech-forward renter looking for competitive pricing and an easy enrollment process, we recommend you get a quote from Lemonade. An entirely online service provider, Lemonade leverages artificial intelligence (AI) to get you covered in just a few minutes. Plans are highly customizable, with the ability to choose your coverage limits across five categories.
Lemonade scored well in areas of customer experience and cost and earned extra points for its simple application process based on our review methodology. However, the company excludes animal-induced injuries from its liability coverage, which you may want to review if you have a pet living with you.
Has a simple online application process that’s ideal for last-minute applications
Uses AI to accelerate applications and claims decisions
Received an above-average score in J.D. Power’s 2023 customer satisfaction study
Excludes animal injuries from its liability protection, a potential drawback for pet owners
Provides only a few discounts
Lemonade offers only a few discount opportunities compared to its competitors.
- Fire alarm
- Multi-policy bundling
- Security system
- Smart water valve
You can add the following endorsements:
- Bicycle
- Camera
- Earthquake coverage
- Equipment breakdown
- Fine art rider
- Interested party or landlord coverage (free)
- Jewelry rider
- Musical instrument rider
- Significant other coverage
- Spousal coverage (free)
- Tenant pet damage
- Tenant water damage
- Water backup coverage
To learn more about the renters insurance shopping and coverage experience, our team surveyed 1,000 policyholders nationwide in February 2024. Based on the results, 100% of Illinois-based Lemonade customers said they were satisfied with their coverage.
Lemonade has mostly positive reviews on the third-party review site Trustpilot, with an average rating of 4.3 out of 5 stars. Users often praise the application process, noting convenience and ease of use. However, the company has a lower rating of 2.3 out of 5 stars on the Better Business Bureau (BBB), where common complaints include the claims filing processes and rejected coverage claims.
Our team reached out to Lemonade for comment on its negative reviews but the company did not provide a response.
We named Toggle our pick for customizable pricing. You can choose from one of three pre-built plans or create a fully customized policy that gives you more control over how much you pay per month. Toggle is made for renters who want to balance affordability and coverage. Toggle allows new policyholders to adjust specific personal policy limitations on up to six categories, including collectibles, sporting equipment and jewelry. You can also decline coverage for any of these categories to save money on your premiums.
Although Toggle is not the most historied insurance company, it provides an easier and more intuitive way to buy personalized personal property coverage than some of its long-standing competitors.
Allows policyholders control over coverage options, ideal for Chicago renters on a budget
Provides $1,000 in blanket property coverage
Offers pet damage add-ons for those who own pets in the city
Doesn’t include loss-of-use coverage in its standard plan, which covers living expenses after a peril
Has limited customer reviews on third-party sites
Toggle does not currently offer any discounts, based on our research. However, Toggle offers the following endorsements on Chicago renters insurance plans:
- Additional living expenses
- Identity theft benefits
- Pet damage and veterinary cost reimbursements
- Replacement cost coverage
- Side hustle coverage
- Spousal protection
In our survey, 75% of policyholders who shopped with Toggle would recommend the company to friends and families. Respondents expressed satisfaction with the sign-up process and affordable rates.
However, Toggle is not accredited by the BBB and lacks reviews on Trustpilot and Google Reviews.
Renters seeking help from a local agent might consider State Farm, which is our pick for localized support. The company maintains a network of local agents who can get you set up with a renters insurance plan. State Farm also maintains a 90% satisfaction rating among Illinois renters, according to our survey. And while State Farm may not offer as many discounts as some competitors, it has one of the lowest average renters insurance rates we’ve seen.
Has an average premium that’s about 40% lower than Chicago’s average, based on our research
Has a 90% satisfaction rating from Illinois survey respondents
Lets you purchase coverage online or with an agent
Offers few discounts and endorsements
Doesn’t offer a flood damage endorsement, which renters in low-lying areas may need in Chicago
State Farm offers only one discount to Chicago renters: a claims history discount. If you have not had any type of insurance claim in the last five years, you can receive a discount on your premiums.
It also offers the following endorsements on renters insurance plans:
- Earthquake coverage
- Identity theft and cybercrime coverage
Ninety percent of Illinois-based respondents to our survey were satisfied with their State Farm renters policies. However, State Farm has received poor customer reviews on third-party sites, with 1.6 out of 5 stars on Trustpilot and 1.2 out of 5 stars on the BBB. These ratings reflect common complaints relating to service quality and claims handling.
We reached out to State Farm for comment on its BBB rating and negative reviews and received the following response from company spokesperson Roszell Gadson:
“We are pleased to see that your survey indicates almost 100% of our customers are satisfied with State Farm. When it comes to customer service, as an organization, we take pride in our customer service and are committed to paying what we owe, promptly, courteously and efficiently.”
We named Farmers best for responsive agents because the company has an expansive network of in-person insurance representatives located throughout Chicago. Working with a local agent can benefit new renters, especially those who need help choosing the right coverage. The company also has nearly 100 years of experience in the insurance industry.
Maintains a large network of local agents that can provide direct, responsive service
Provides various discounts, including one for non-smokers
Has nearly 100 years of industry experience
Requires working with an agent to get renters insurance coverage, a drawback for those who prefer digital communications
Average premium exceeds the city average
Farmers offers the following discount opportunities in Chicago:
- Bundling
- Non-smokers
- Safety device installation
- Claims-free
It also offers a few endorsement options:
- Valuables (worth more than $500)
- Earthquake coverage
- Flood coverage
Our team did not collect information about Farmers in our renters insurance survey. However, Farmers has an A+ rating with the BBB and an average customer review score of 1.1 out of 5 stars. This sentiment is mirrored on Trustpilot, where customer ratings average 1.4 out of 5 stars. The most common complaint is denied claims.
Our team reached out to Farmers for comment on its lower customer review ratings but did not receive a response.
Best for In-Person Experience
Auto-Owners
Customers who prefer an in-person experience when shopping for insurance may prefer Auto-Owners, which does not offer plans online. Auto-Owners is a smaller insurance provider that sells plans in a few states in the midwest and east coast. It offers a selection of discounts and plenty of bundling opportunities. As the name suggests, its primary product is car insurance, but it also offers renters, home, life and business insurance.
Added discount options can help customers manage Chicago’s higher insurance premiums
Allows you to meet in person with an insurance agent to discuss coverage options or questions
Maintains an “excellent” financial strength rating from the independent agency AM Best
One of the most expensive renters insurance companies of those we reviewed
Provides no option to buy a plan online
One of the biggest benefits of working with Auto-Owners is its lengthy list of discounts:
- Annual premium payment
- Bundling
- Claims-free
- Hurricane and wind mitigation
- On-time payment
- Paperless billing
- Purchasing a new policy before your current one ends
It also offers the following additional coverage endorsements to renters in Chicago:
- Extended rental protections
- Replacement cost coverage upgrade for personal property
In our survey of renters insurance customers, 68% of Auto-Owners’s policyholders said they were satisfied with coverage. Online reviews of Auto-Owners are mixed. The company has an average customer rating of 1.4 out of 5 stars on the BBB and 2.6 out of 5 stars on Trustpilot. However, the company holds an A+ rating and accreditation with the BBB.
We reached out to Auto-Owners for comment on its negative customer reviews but did not receive a response.
USAA is our pick as the best option for military families — only military members and their families can qualify for coverage. The company offers exceptionally inclusive policies for less than the average premium in Chicago, which includes tailored protections such as military uniform coverage. Policies also cover hazards often classified as exclusions by competitors, such as flooding. The company also includes earthquake and replacement cost coverage as standard — all of which cost extra if insured by most other renters insurance companies.
Offers an inclusive standard plan, with coverage for flooding at no extra cost
Has a lower-than-average monthly cost in Chicago
Provides discounts for those living on military bases or studying at a military academy
Only available to USAA members
No coverage for pet damage available
USAA offers a variety of discount options aimed at military members and students:
- Bundling
- Claims-free
- Living on base
- Military service academy student
- Safety device
- Senior military college
It also offers the following endorsement options:
- Collectibles
- Personal cyber insurance
- Umbrella coverage
- Valuable personal property
A total of 94% of USAA customers in our survey said they were satisfied with their insurance. USAA ranks high in customer satisfaction, earning 894 out of 1,000 points in J.D. Power’s most recent study.
USAA maintains an A+ rating with the BBB, however, average customer review scores are lower with 1.2 out of 5 stars. The company has 1.3 out of 5 stars on Trustpilot. Common complaints from policyholders include denied claims and insufficient communication from adjusters, which delayed the reimbursement process.
Our team contacted USAA for comment about its star ratings on the BBB and Trustpilot but did not receive a response.
Average Cost of Renters Insurance in Chicago
The average price of renters insurance in Chicago is $16.45 per month or $197 per year, according to data from Quadrant Information Services. This is higher than other densely populated areas with similar populations. For example, the average price of renters insurance in San Francisco is $13.13 per month.
Your location within Chicago can also play a role in the price you pay for renters insurance. If you live in a neighborhood with higher rates of property crime — such as West Fillmore Street — you could pay more for insurance.
Cheapest Renters Insurance in Chicago
Based on our research, the cheapest renters insurance coverage in Chicago is State Farm, with an average monthly premium of $11.17.
How To Save on Renters Insurance
Renters insurance can cost more in Chicago compared to other cities, but there are some ways to reduce what you pay.
- Install home security devices: Chicago has high rates of burglary, theft and other property crimes. As a Chicago resident, you are about twice as likely to become the victim of some type of property crime as you would living in another part of Illinois, according to data from NeighborhoodScout. Many insurance companies offer discounts for installing home security or camera monitoring systems. Consider investing in a temporary home security system, which you can install yourself and take with you if you move.
- Choose coverage carefully: Make sure you only buy the coverage you need — or you could end up overpaying for a policy. Carefully consider how much it would cost to replace all of your personal property when buying a rental policy.
- Watch for pet damage: According to our survey of Illinois renters, the most common cause of renters insurance claims wasn’t water damage or vandalism — it was pets. Nearly 67% of Illinois renters in our survey who needed to file a claim did so due to pet damage or issues. Staying mindful of your pet and potential damage it can cause can help reduce your likelihood of a claim.
- Research local resources: If you are at risk of becoming homeless and cannot afford rental insurance, consider reaching out to the Rental Assistance Program (RAP). Although RAP usually assists with security deposits and rental payments, you might find additional resources to assist with paying your renters insurance premiums.
What Factors Affect Renters Insurance Rates in Chicago?
Understanding the factors that impact renters insurance rates can help you save. Some of the most significant factors affecting Chicago renters insurance premiums include:
- Proximity to emergency services: Both fires and property crime are major concerns for Chicago insurance providers. Your proximity to local emergency responders affects your coverage rate, with renters likely paying more if their home is located farther from fire or police stations.
- Closeness to Lake Michigan: Many of Chicago’s most coveted neighborhoods are situated along Lake Michigan. With beautiful views comes a higher risk of water-related damage, leading to higher renters insurance premiums.
- Building age: Some Chicago renters may live in historic buildings, presenting a potentially higher risk of electrical fires. This can increase your premiums.
- Personal factors: Additional factors that might affect what you’ll pay for renters insurance coverage include your age and chosen policy. For example, the coverage limits you select for personal belongings and liability coverage, your deductible, and any endorsements and discounts.
Common Causes of Renters Insurance Claims in Chicago
Theft, water damage and fire damage are some of the most common reasons for renters insurance claims in Chicago, based on our research and survey data.
Theft and Vandalism
Property crime is more common in Chicago than in other parts of Illinois. As a Chicago resident, you have a one-in-31 chance of becoming a victim of property crime, while the Illinois state average chance is one-in-59, per data analyzed by NeighborhoodScout. Renters insurance providers operating in Chicago may manage this increased risk by charging higher premiums. Some providers reward theft-prevention features, such as having a home security system or a security guard in your lobby, with discounts.
Water Damage
Water damage is another common cause of insurance claims in Chicago. Three-quarters of our Chicago-based survey respondents who have filed a renters insurance claim said it was due to water damage. If you live along Lake Michigan specifically, consider adding flood insurance, as most standard plans don’t cover damage to your belongings from water that enters your home’s structure.
Fire Damage
According to a report from Elevate Energy, much of Chicago’s multifamily housing was built before 1942, predating modern building and electrical codes. In addition to lacking energy-efficient features, these older properties are at increased risk of a fire. Of the Illinois-based survey respondents who have filed a claim in the past, 44% said the reason was a fire.
Recommended Renters Insurance Coverage in Chicago
Renters insurance plans, also known as HO-4 policies, include multiple types of coverage.
- Personal property coverage helps pay to repair or replace your possessions, such as electronics, furniture and clothing, that get damaged or lost due to a covered peril. For example, personal property coverage may help pay to replace your living room furniture if destroyed in a fire.
- Personal liability coverage provides payment for legal fees if you’re sued after someone is injured in your rental unit. If your dog bites your neighbor, liability coverage may cover legal fees and related medical bills. Many policies place lower limits on medical payment coverage compared to the overall liability coverage amount.
- If your home is severely damaged, you may need to move temporarily. While your landlord’s insurance will usually cover the cost of your housing, your renters insurance loss-of-use coverage can help pay for daily living expenses, such as laundry and takeout food, for a specified period.
We recommend creating a complete home inventory before deciding on personal property coverage limits. This ensures you can choose coverage levels that provide sufficient coverage and meet your budget. You may also want to consider adding these endorsements as a Chicago renter based on local risk factors.
- Flood endorsement: If you live near Lake Michigan on the ground floor, consider flood insurance. Most renters policies don’t cover damage resulting from water that enters your home via the ground. Flood coverage adds this protection.
- Extended personal property coverage: Theft and vandalism are common in Chicago. Make sure your personal property coverage limit is sufficient to cover your personal belongings.
Frequently Asked Questions About Chicago Renters Insurance
We found that Lemonade, Toggle and State Farm offer the best policies for Chicago renters. However, the best renters insurance for you will depend on your coverage needs and budget. If your focus is affordability, for example, State Farm may offer the best choice.
No. Renters insurance only provides coverage for the personal belongings kept inside of a rental property. Your landlord should have homeowners insurance that covers your home’s structure in the event of a disaster.
The core difference between homeowners and renters insurance is what is being protected. Homeowners insurance protects a property owner’s investment by covering repairs to the home’s structure in the event of a covered peril, Home insurance also covers damage to the owner’s personal belongings and extends liability coverage. Renters insurance, on the other hand, only covers damage to the policyholder’s personal belongings inside the unit. Typically, a landlord, not the tenant, will have a homeowners insurance policy on the overall building.
There is no Illinois state law that requires renters to have insurance. However, landlords may require it as a condition of your lease. Even if it isn’t required, renters insurance can provide peace of mind for less than $20 a month — so you may still want to request a few quotes from the top renters insurance companies in Illinois.
Methodology: Our System for Ranking the Best Renters Insurance Companies
How We Gather Cost Data
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.