Cheapest & Best Renters Insurance In Memphis 2025

AAA provides the lowest-cost renters insurance in Memphis, with average rates of about $10 per month. However, many consider State Farm the top choice due to its strong reputation, additional coverage options, and excellent support from local agents. Despite its added benefits, State Farm’s rates remain affordable at around $13 per month.

Memphis, also known as Bluff City, experiences more than 53,000 property crimes each year, impacting approximately 87 out of every 1,000 residents—one of the highest crime rates in the nation. Given these statistics, renters insurance is a smart investment. It helps protect your belongings, offers financial security, and brings peace of mind.

Cheapest Renters Insurance Companies In Memphis

If you’re searching for affordable renters insurance in Memphis, AAA offers the lowest rates, with an average cost of about $10 per month. To make comparison easier, the table below lists the five most budget-friendly providers.

Best Renters Insurance Companies In Memphis

AAA is a solid choice for renters in Memphis looking for affordable insurance. However, the lowest price doesn’t always mean the best coverage. In my opinion, State Farm stands out as the top option for renters insurance in the area, offering excellent service at reasonable rates. With a large network of agents in Memphis, they can help you find the right coverage to fit your needs. State Farm also provides affordable bundle options and flood insurance, making it a competitive choice compared to other insurers in the region.

Average Cost Of Renters Insurance In Memphis

In Memphis, renters insurance typically costs around $21 per month or $252 per year. However, your actual rate may vary depending on factors like coverage limits, location, deductible, and the insurer’s pricing model. The table below highlights the average rates from five leading providers in the city.

Average Cost By Deductible

A deductible is an amount you must pay out of pocket before your renters insurance covers a claim. Opting for a higher deductible can reduce your monthly premium, while a lower deductible usually results in higher monthly costs. The table below shows how renters insurance rates in Memphis vary based on different deductible choices.

Factors That Impact Renters Insurance Costs In Memphis

Several factors influence the cost of renters insurance in Memphis:

Home Safety Features: Installing security systems, smoke detectors, or sprinkler systems can lower risks and may qualify you for discounts.

Credit Score: Many insurers consider credit scores when setting rates, with lower scores typically leading to higher premiums.

Deductible Amount: Choosing a higher deductible can reduce your monthly premium, while a lower deductible increases costs since the insurer takes on more risk.

Claim History: If you’ve filed multiple claims in the past, insurers may view you as a higher risk, resulting in higher premiums.

Coverage Limits: Policies with greater coverage, including add-ons like replacement cost coverage or identity theft protection, usually come with higher costs.

Location: Insurance rates tend to be higher in areas with higher crime or natural disaster risks, such as tornadoes and floods in Memphis.

What Does Renters Insurance Cover In Memphis?

Renters insurance provides essential financial protection by covering various risks. Here are the key coverages typically included in a policy:

Liability Coverage

Covers legal fees and medical expenses if you’re responsible for injuring someone or damaging their property.

Personal Property Protection

Protects belongings like furniture, electronics, and clothing from risks such as theft, fire, and certain types of water damage (excluding floods).

Additional Living Expenses (ALE)

Helps pay for temporary housing, food, and other necessary costs if your rental becomes uninhabitable due to a covered event.

Medical Payments to Others

Provides limited coverage, usually between $1,000 and $2,000, for medical bills if a guest is injured in your rental, regardless of fault.

What Does Renters Insurance Not Cover In Memphis?

While renters insurance provides valuable coverage, it does come with exclusions and limitations. Here are some common risks that standard policies typically don’t cover:

Car Theft or Damage

Renters insurance doesn’t cover personal vehicles. You’ll need an auto insurance policy for protection.

Earthquakes

Standard policies don’t include coverage for earthquake damage. If you want protection, you’ll need a separate earthquake insurance policy.

Flooding

Renters insurance doesn’t cover flood damage, which is a common risk in Memphis. Purchasing separate flood insurance is a smart move. Some insurers, like State Farm, offer low-cost flood coverage add-ons.

Business-Related Losses

If you run a business from your rental, your insurance won’t cover business-related equipment or liabilities unless you add specific coverage.

High-Value Belongings Over Policy Limits

Standard policies may not fully cover expensive items like jewelry, artwork, or collectibles. You may need a policy rider for additional protection.

Pest Infestations

Damage caused by bedbugs, termites, or rodents is considered a maintenance issue and isn’t covered.

Roommate Property

Your insurance only covers your belongings. Items owned by roommates or others in your household aren’t included.

Intentional Damage

Any damage caused deliberately by you or someone in your household is not covered.

How Much Should Students Pay For Renters Insurance In Memphis?

Students in Memphis can expect to pay between $16 and $30 per month for renters insurance, depending on their coverage needs. Several factors influence pricing, including location, the value of personal belongings, and optional policy add-ons.

Off-campus students often face higher premiums due to larger living spaces and increased risk exposure. On the other hand, students living in dorms typically pay less, as shared housing is generally more affordable to insure.

Before selecting a policy, students should evaluate the value of their belongings. While standard renters insurance covers most items, those with high-value electronics or expensive possessions may need additional coverage. Some insurers also offer discounts for bundling renters and auto insurance, helping students lower their overall expenses.

How Much Renters Insurance Do I Need In Memphis?

Choosing the right renters insurance in Memphis starts with assessing the value of your personal belongings. Most policies cover between $20,000 and $40,000, which is sufficient for many renters. However, if you own high-end electronics, expensive furniture, or valuable jewelry, you may need additional coverage.

Liability protection is another important consideration. Standard policies typically include $100,000 in liability coverage, which helps pay for legal or medical expenses if someone gets injured in your rental. Increasing this limit can provide added financial security.

Your deductible also plays a role in both your premium and out-of-pocket costs when filing a claim. A higher deductible reduces monthly payments but increases the amount you’ll need to pay before your coverage applies.

Finally, consider Additional Living Expenses (ALE) coverage. This helps cover temporary housing and essential costs if your rental becomes unlivable due to a covered event.

Can Landlords In Tennessee Require Renters Insurance?

Renters insurance isn’t legally required in Tennessee, but many landlords make it a lease condition. This benefits both parties—tenants get protection for their belongings, while landlords reduce their liability risks.

If your lease requires renters insurance, you may need to provide proof, such as a policy declaration page or a certificate of insurance. Some landlords also set minimum coverage limits, often requiring at least $100,000 in liability protection. Failing to meet these requirements could lead to penalties or even lease termination.

Even if it’s not mandatory, renters insurance is a smart investment—especially in Memphis, where risks like tornadoes, hurricanes, and property crime are a real concern. A policy helps safeguard your belongings and offers financial security against unexpected liability claims.

Bundle Renters With Auto Insurance

Bundling renters and auto insurance is an effective way to save money, as many insurers offer discounts for combining policies. In Memphis, bundling can typically lower renters insurance premiums by 6% to 7%, while also fostering customer loyalty. State Farm is known for offering some of the best bundle rates in the area.

This option is especially useful for renters who already have auto insurance. Keeping both policies with the same provider simplifies account management, enhances customer service, and offers perks like flexible payment plans or higher coverage limits.

However, before bundling, it’s important to compare options. While combining policies can lead to savings, make sure both policies provide the coverage you need at a competitive price.

Common Causes Of Loss In Tennessee

Renters in Tennessee often file claims for fire, theft, water damage, and tornado-related losses. Being aware of these risks can help tenants select the right coverage to protect their belongings and finances.

Fire

In multi-unit buildings, fires can spread quickly, causing major damage. Renters insurance helps cover the cost of replacing personal belongings lost in a fire.

Theft

With more than 53,000 property crimes happening each year in Memphis and over 170,000 incidents reported across the state, having renters insurance is crucial. Many policies also provide liability coverage in case someone gets hurt during a break-in. However, they usually don’t cover damages to the building or vehicles.

Water Damage

Leaks from plumbing, burst pipes, or roof issues can result in costly damage. Most renters insurance policies cover internal water damage, but flood-related losses require separate flood insurance.

Hurricanes and Tornadoes

Tennessee experiences severe storms, including hurricanes and tornadoes. Standard renters insurance generally covers storm-related damage, offering financial protection against these natural disasters.

Earthquakes

Earthquakes are a risk in Tennessee, particularly around Memphis. Since standard renters insurance doesn’t cover earthquake damage, purchasing separate earthquake coverage is recommended.

Other Covered Losses

Renters insurance may also provide protection against vandalism, accidental damage, and some natural disasters, adding another layer of financial security.

By understanding these potential threats, renters can choose a policy that offers the best protection for their specific needs.