When embarking on a journey to foreign countries, one crucial consideration that often tops the checklist is how to exchange currency. Many travelers ask, “What’s the best bank or credit union for foreign currency exchange?”
Whether you’re preparing for a trip abroad or have just returned with a wallet full of foreign cash, knowing where to exchange foreign currency can save you time, money, and hassle.
Basics of Foreign Currency Exchange at Banks
Exchanging currency involves the conversion of one country’s currency into another. Banks and credit unions are common places to exchange currency, but the rates they offer can vary widely.
Currency exchange rates are determined by the interbank rate (also known as the wholesale or market rate), which financial institutions use when they trade among themselves. High currency exchange fees or unfavorable rates can significantly affect the value of your money.
Besides, foreign transaction fees may apply when using a credit or debit card overseas, and they can quickly add up. To avoid these fees, you might consider a bank that offers cards with no foreign transaction fees. Similarly, some banks charge a currency conversion fee for exchanging money, making it even more important to shop around.
Key Considerations when Selecting a Bank to Exchange Currency
When you decide to exchange currency at a bank, you should consider several factors to ensure you’re getting the best deal. These include the availability of foreign currencies, competitive exchange rates, fees and charges, speed and convenience of service, and online or mobile options.
20 Banks that Exchange Foreign Currency
1. America First Credit Union
America First members can exchange up to $5,000. They also provide an online ordering system, making it easy to order currency before a trip abroad. However, like many credit unions, they may have fewer physical branches compared to national banks.
2. Bank of America
As one of the largest financial institutions in the U.S., Bank of America offers customers the ability to order over 70 types of foreign currency online. Customers can have the currency delivered to their home or pick it up at a local bank branch. However, Bank of America does charge a delivery fee for orders under a certain amount, so it’s worth ordering a bit more to avoid the extra cost.
3. Capital One
Capital One offers currency exchange without any additional fees, which is a significant advantage for those looking to avoid currency conversion fees. This could make them an appealing option for anyone wanting to exchange foreign currency.
4. Chase
Chase Bank is another popular choice for exchanging currency. They provide a service where you can order currency and have it delivered to your home or local Chase branch. However, Chase sometimes imposes a limit on how much you can exchange.
5. Citi
Citi customers can exchange foreign currency and have the option to hold multiple currencies in a single account. This can be particularly useful for frequent travelers or those who deal with various currencies regularly. Their exchange rates are competitive, but it’s always wise to compare rates from multiple financial institutions before making a decision.
6. Citizens Bank
Citizens Bank offers a foreign exchange service that lets you order online, then pick it up at a local branch. They offer 50 major currencies.
7. First Citizens Bank
First Citizens Bank can exchange over 70 currencies for its customers. Customers have the option to order online, and then pick it up from their nearest branch.
8. First Horizon Bank
First Horizon Bank, a regional financial institution in the Southeast U.S., offers over 65 currencies. If you wish to use their service, you will have to visit a branch.
9. Huntington Bank
Huntington Bank, primarily serving the Midwest, offers foreign exchange services to its customers. However, the availability of certain foreign currencies and the exchange rate might not be as competitive as larger, nationwide banks.
10. Navy Federal Credit Union
Catering primarily to members of the armed forces, Navy Federal can exchange your currency if you’re a member. One advantage for members is the ability to avoid high currency exchange fees. However, their availability of foreign currencies may be limited compared to larger banks.
11. PNC Bank
PNC Bank offers foreign exchange services to its customers. They can provide many currencies, making it easier for travelers heading to multiple destinations. They don’t charge any transaction fees, but there is a delivery fee for smaller orders.
12. Regions Bank
Regions Bank provides foreign currency services to their customers, offering a broad range of currencies. You’ll need to visit a local branch.
13. Service Federal Credit Union
Service Federal is able to exchange currency for its members. SFCU offers over 60 types of currencies. They also have an online system that allows members to purchase currency and have it delivered to their home, adding a layer of convenience.
14. State Employees Credit Union
State Employees will exchange currency for its members. They offer a variety of currencies, though not as many as some larger financial institutions. However, they make up for it with a competitive exchange rate and lower fees.
15. TD Bank
TD Bank offers 55 different currencies. You can order the currency online and have it delivered to your home or picked up at a local branch. Additionally, if you have a TD Bank account, you may receive preferred rates.
16. Truist
Truist, formed by the merger of BB&T and SunTrust, exchanges currency for its customers. They provide a wide range of currencies, and customers can order online or at a branch. However, fees may apply, so it’s a good idea to check before making any transactions.
17. U.S. Bank
U.S. Bank customers can order foreign currency via app or online and pick it up at a local branch. It will be delivered to the branch of your choice the next business day.
18. USAA
USAA, which primarily serves military members and their families, offers a wide range of currencies, making them a good choice for those heading to multiple destinations.
19. Wells Fargo
Wells Fargo is another large bank that allows you to exchange currency. They offer a broad range of currencies, and customers can order online and have the currency delivered to their home or pick it up at a branch. Wells Fargo also offers a foreign currency savings account that can hold numerous currencies, a handy feature for frequent travelers.
20. Wings Financial Credit Union
Wings Financial offers over 90 currencies. Members can order online and have it shipped to their home, adding an extra layer of convenience. However, like many credit unions, they might have fewer currencies available compared to larger banks.
Bottom Line
The ideal financial institution for exchanging currency will depend on your specific needs, such as the currencies you require, your location, and your membership or affiliation with the bank or credit union. Additionally, while it’s crucial to find a bank that offers competitive rates, it’s equally important to be aware of the associated fees and charges to avoid any unwelcome surprises.
Frequently Asked Questions
Can I exchange currency at any bank?
Not all banks and credit unions exchange foreign currency. It’s always a good idea to check with your bank to see if they offer this service.
When should I exchange currency for my trip abroad?
It’s generally a good idea to exchange some currency before you leave, especially if you will need cash right away for transportation, tips, or meals. However, remember that exchange rates fluctuate, so you may want to monitor the rates and exchange your money when rates are favorable.
Can I use my debit card in foreign countries?
Yes, you can typically use your debit card internationally. However, you may be subject to a foreign transaction fee and ATM fees. It’s a good idea to check with your bank before you leave to understand any potential charges.
Is it a good idea to exchange money at airport kiosks?
While airport kiosks are convenient, they often have less favorable exchange rates and may charge higher fees. It’s typically best to avoid exchanging large amounts of money at these kiosks.
What should I do with unused foreign currency?
Most banks will allow you to exchange your foreign currency back to your home currency. However, not all banks will take coins, and some may only exchange certain currencies.
When you’re traveling out of the country and go to withdraw cash in the local currency, fees can hit you from every direction: from your bank, the ATM, even currency commissions.
With a bit of planning and understanding, though, you can save some cash on pesky hidden charges. Here’s how to avoid international ATM fees when you travel.
Types of foreign ATM fees
Here are the types of fees you should be aware of when using a debit card and ATM abroad.
Foreign transaction fees
Foreign transaction fees are charged by your bank for currency conversion.
If your bank charges foreign transaction fees — and many do — you’ll pay a percentage of the total withdrawal amount, usually 1% to 3%, for using your card at a foreign ATM (or anywhere else abroad).
Out-of-network ATM fees
This is the fee your bank charges for using a non-network ATM outside your home country. Often, it’s a flat fee that you’ll pay per withdrawal and is likely $2 to $5.
ATM surcharge
The ATM or its affiliated bank also charges a fee, which is likely several dollars, in exchange for its use.
Currency conversion fees
When you withdraw money from a foreign ATM, the machine will sometimes offer the choice to convert transactions into your home currency, but this can involve hidden currency conversion fees, sometimes as high as 7%.
How to avoid paying bank fees while traveling
Use your bank network’s ATMs or partner ATMs
If your bank operates ATMs around the world, like HSBC, find out where those ATMs are and whether there are any where you’re headed; if so, use those if at all possible.
If your bank doesn’t operate outside the U.S., check whether it’s part of any fee-free ATM networks that do.
Pay in local currency
If a foreign ATM offers the option to pay or withdraw in your home currency or the local currency, always choose to pay in the local currency because your bank may offer a better conversion rate.
Reduce ATM usage
While it’s not always ideal to waltz around a foreign city with loads of cash in your wallet, reducing the frequency that you withdraw money from a foreign ATM can save you more than a few dollars.
Withdraw as much cash at one time as you feel comfortable with and keep it in a safe place. This will reduce how often you have to make another withdrawal and pay another fee.
Additionally, any time you can pay with a credit card, do so. You’ll avoid additional fees as long as you use a card with no foreign transaction fees.
Choose a bank that doesn’t charge foreign ATM fees
For example:
HSBC doesn’t charge foreign transaction fees or foreign ATM fees, plus it has international ATMs.
USAA international ATM fees don’t exist, either (though a 1% foreign transaction fee still applies).
Chase international ATM fees vary depending on what type of checking account you have. The Chase Sapphire Checking account charges no fees for foreign ATM use.
Wells Fargo international ATM fees cost $5 for two of their checking accounts — Clear Access and Everyday checking — while Wells Fargo Prime and Premier account holders pay $0.
Use a bank that reimburses ATM fees
Alternatively, check whether your bank refunds out-of-network ATM fees. USAA will reimburse up to $10 in ATM surcharges, while Wells Fargo will reimburse one foreign ATM fee per month if you have a Prime account, and for its Premier checking accounts, reimbursement is unlimited.
A Chase Sapphire Checking account offers a fee refund if you are charged by non-Chase ATMs.
Check your account details or contact your bank to see whether your account features that benefit.
Use your debit card to get cash back at a store
Not every establishment allows you to request cash back when you make a purchase, but it’s worth asking about during checkout.
If a business permits it, requesting cash back when you swipe your card may help you avoid an ATM foreign transaction fee. Just make sure you use a debit card with no foreign transaction fee to avoid an additional charge.
Use a travel credit card instead
Where possible, like in big cities in developed countries, use a travel credit card that doesn’t charge foreign transaction fees. That way, you can skip ATM fees altogether.
If you’re not sure whether your card charges these fees, check the terms and conditions or contact the issuing bank to find out.
The bottom line
It’s possible to avoid international ATM fees when you travel. You just need to understand how foreign fees work, look into your bank’s fee structure and plan withdrawals wisely.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:
If you’re in the market for a conventional or Department of Veterans Affairs (VA) home loan and come from a military background, a USAA mortgage can be your best option.
This mortgage lender also offers home loans for first-time homebuyers with low down payment requirements. However, you won’t be able to get approved for a USAA mortgage if you don’t qualify for membership or want an FHA or USDA loan.
USAA overview
United Services Automobile Association (USAA) started in 1922 as an automobile insurance company for military officers. Over the decades, the organization has expanded its product offerings to include mortgages, consumer loans, banking accounts and various types of insurance.
Current members of the U.S. Armed Forces, veterans and their immediate families are eligible for USAA membership. It’s possible to apply for conventional, VA and jumbo loans to buy a house or refinance an existing mortgage.
Your mortgage options include:
Conventional: Fixed-rate purchase, low down payment purchase, rate-and-term refinance and cash-out refinance
Jumbo: Conventional purchase, VA purchase and VA jumbo IRRRL
Currently, Mr. Cooper (formerly Nationstar) services all USAA Bank mortgages, and you can mail a payment to the USAA headquarters by mail or schedule payments online or by phone.
Find the right VA loan: Best VA mortgage lenders
How to qualify for a USAA mortgage
If you’re not a USAA member yet, you’ll need to apply for membership. Membership is open to U.S. military members, veterans, their spouses and children of USAA members.
Some of the initial borrower requirements include:
Credit score of 620 or above for all loans.
Debt-to-income (DTI) ratio of 50% (lower for conventional loans). It’s variable for VA-backed loans.
Two years of tax returns.
Pay stubs for the last 30 days.
W-2 forms for the past two years.
Bank and investment account statements.
You will also need to present your Certificate of Eligibility (COE) if you’re applying for a VA-backed home loan.
The minimum loan amount is $50,000 on all products and up to $3 million with a jumbo loan.
Additional requirements may apply for a specific loan program. For example, you may need to complete a free online course for the low down payment conventional purchase loan.
How to apply for a USAA mortgage
You can apply online anytime or by calling a loan officer during the week. Depending on your circumstances, you may need to call to start the application process.
The first step is getting mortgage preapproval. USAA will do a hard pull of your credit report in order to provide a rate quote. You should also have your desired purchase price and down payment amount in mind to estimate your loan-to-value (LTV) ratio.
After comparing your loan options, you will apply to confirm your eligibility and finalize your interest rate, term and loan APR.
Many loan programs require a property appraisal to complete the application process. The VA IRRRL loans most likely won’t need an appraisal.
The average duration for the underwriting process is from 30 to 45 days on purchase and refinance loans.
Compare the average rates: Current mortgage rates
How to pay your USAA mortgage online
You can schedule one-time payments and enroll in autopay through your USAA account. You can also watch how-to videos on coordinating payments and linking your accounts at USAA’s payment support site.
Pros of a USAA mortgage
Low down payment loan options.
Positive customer service ratings.
Can apply online or by phone.
Specializes in VA home loans.
Cons of a USAA mortgage
No FHA, USDA or home equity loans.
Must contact the lender to estimate rates and fees.
Strict membership requirements.
No phone support on weekends.
USAA perks and special features
Here are some of the best aspects of getting a mortgage through USAA.
Savings and discounts
The lender doesn’t offer interest rate discounts or other incentive programs to reduce your closing costs. Like other banks, you can purchase discount points or potentially roll your lender fees into the loan which may be of benefit. Additionally, all loans have a fixed interest rate.
As many USAA members are eligible for VA loans, they can avoid common mortgage fees including private mortgage insurance (PMI). These loans also have low down payment requirements compared to a conventional loan. The lender usually won’t charge origination fees on VA purchase loans or refinances, but a one-time funding fee and origination fee (up to 1% or a maximum of $1,295) for conventional purchase and refinance loans applies.
As USAA also offers homeowners insurance and auto insurance, you might receive a 10% discount on your home insurance premium by bundling these products. However, you should compare rates and coverage from several insurance providers to find your best option.
First-time homebuyer loan
While you cannot apply for FHA loans through USAA, the lender offers first-time homebuyer loans that require a down payment of 5% or less. You’re eligible for this 30-year conventional loan when you haven’t owned a home in the past three years, but you might be required to complete an online education course to qualify.
You may also consider this loan type if you’re not eligible for a VA home purchase loan.
Easy to apply
Borrowers can apply for a mortgage online or by phone and receive hands-on help. After getting approved, you can continue to work with USAA if you start to struggle with affording your mortgage payment. You can call the mortgage assistance department (1-855-430-8489) to review your repayment options.
How USAA could improve
There are several downsides that may hinder you from getting a USAA mortgage.
Provide additional loan options
While the conventional, VA and jumbo mortgage options will suit many borrowers, not having access to FHA loans, USDA loans or adjustable-rate mortgages (ARM) can make it harder to compare your loan options.
USAA also doesn’t offer home equity loans which are a second mortgage that prevents refinancing your existing mortgage balance. To tap your equity through USAA, you must apply for a conventional or VA cash-out refinance which replaces your existing rate and term along with having higher closing costs as the loan balance is bigger.
Offer weekend phone support
While the USAA mortgage team receives consistently high marks for customer service, you can only call its loan officers on weekdays and there are no physical branches.
Other mortgage lenders might be better if you anticipate completing the application steps over the weekend. However, you can start and monitor the application process online 24/7.
Have less restrictive membership requirements
You must have military experience or be an immediate relative of a USAA member to join and apply for financing.
USAA customer service and reviews
You can speak with a USAA loan officer by phone Monday through Friday from 7 a.m. to 8 p.m. CT. Keep in mind, however, that phone support isn’t available on the weekends.
The lender has 171 mortgage-related complaints in the Consumer Financial Protection Bureau (CFPB) Consumer Complaint Database. This number is relatively low and borrowers primarily mention challenges with scheduling payments. Some also report troubles advancing through the application process without delays.
This institution has negative Better Business Bureau (BBB) and Trustpilot ratings but mainly focus on its banking and insurance products.
USAA mortgage alternatives: USAA vs. Navy Federal vs. Chase
USAA is an excellent lender for VA and conventional loans but doesn’t offer as many specialty programs. As a result, you may consider one of these two alternatives which offer more loan types with low down payment requirements or the ability to borrow from your home equity.
Navy Federal Credit Union has similar membership requirements as USAA Bank and caters to the military community. Borrowers ineligible for VA loans may consider the Homebuyers Choice or Military Choice loan programs that require no down payment or private mortgage insurance. This lender also offers home equity loans and lines of credit (HELOC).
If you don’t come from a military background or want to work with a brick-and-mortar national bank, Chase Bank is an excellent option. Its mortgage options include conventional, FHA, VA and jumbo loans. Home equity products are available too and the lender offers relationship discounts for qualified borrowers.
Frequently asked questions (FAQs)
USAA uses Mr. Cooper (formerly Nationstar) to service its mortgages although you can schedule payments through your USAA member dashboard or by contacting USAA.
No, USAA only offers conventional, VA and jumbo home purchase loans as well as mortgage refinancing.
A minimum 620 credit score is necessary for conventional and VA home loans. Other factors also apply including your DTI ratio, current income, employment history and down payment requirements.
Yes, you can get pre-approved for a USAA mortgage online or by phone after agreeing to a hard credit check and submitting the necessary initial documents such as proof of income, bank statements and recent tax returns.
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Alabama may be known for Southern hospitality, Gulf Coast beaches and some serious football fans, but it also has a few hazards to look out for. Alabama homeowners should make sure they have insurance coverage for hurricanes, tornadoes and other natural disasters that could strike their homes.
NerdWallet analyzed rates from insurers across the state to determine the best homeowners insurance in Alabama.
Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state.
Why you can trust NerdWallet
Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data and may update rates for accuracy as new information becomes available.
We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.
Our sample homeowner had good credit, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.
The best homeowners insurance in Alabama
If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the Best Homeowners Insurance Companies.
More about the best home insurance companies in Alabama
See more details about each company to help you decide which one is best for you.
Farmers
Those seeking benefits like diminishing deductibles and claims forgiveness may want to consider Farmers.
Coverage options
More than average
Average set of discounts
NAIC complaints
Fewer than expected
Farmers
Those seeking benefits like diminishing deductibles and claims forgiveness may want to consider Farmers.
Coverage options
More than average
Average set of discounts
NAIC complaints
Fewer than expected
Homeowners policies from Farmers may include two valuable types of insurance: extended dwelling and replacement cost coverage. Extended dwelling coverage gives you extra insurance for the structure of your house, while replacement cost coverage offers higher reimbursement for stolen or destroyed belongings.
Some Farmers policies also come with perks that can save you money. For example, with claim forgiveness, Farmers won’t raise your rate for a claim as long as you haven’t filed one within the past five years.
State Farm
Well-established insurer with a lengthy list of coverage options.
Coverage options
More than average
Average set of discounts
NAIC complaints
Fewer than expected
State Farm
Well-established insurer with a lengthy list of coverage options.
Coverage options
More than average
Average set of discounts
NAIC complaints
Fewer than expected
As America’s largest insurer, State Farm stands out for its long list of coverage options. Its policies generally include extra dwelling coverage in case it costs more than expected to rebuild your home after a covered disaster. You may also be able to add coverage for things like identity theft, damage from backed-up drains and personal injury liability.
State Farm offers a free Ting device as a perk for home insurance policyholders. Ting is a smart plug that monitors your home’s electrical network to help prevent fires.
Cincinnati Insurance
Sells homeowners policies through local independent agents across the U.S.
Coverage options
More than average
Average set of discounts
NAIC complaints
Far fewer than expected
Cincinnati Insurance
Sells homeowners policies through local independent agents across the U.S.
Coverage options
More than average
Average set of discounts
NAIC complaints
Far fewer than expected
Cincinnati Insurance sells homeowners policies through independent agents, with various options for standard and high-value homes. You may be able to add coverage for issues like identity theft, personal cyberattacks or certain types of water damage.
Cincinnati may offer you a discount for bundling home and auto insurance, having a newer home, installing a centrally monitored alarm system or going a certain amount of time without filing a claim.
Country Financial
Best for those who prefer to have a personal conversation with an agent when choosing coverage.
Coverage options
More than average
Great set of discounts
NAIC complaints
Far fewer than expected
Country Financial
Best for those who prefer to have a personal conversation with an agent when choosing coverage.
Coverage options
More than average
Great set of discounts
NAIC complaints
Far fewer than expected
Country Financial has three levels of homeowners coverage to help you choose the package that’s best for you. You also have the option to add extra coverage for the structure of your home, in case inflation drives up the cost of rebuilding more than you expect.
Country Financial sells homeowners insurance through local representatives. The company has drawn far fewer complaints than expected to state regulators, according to the National Association of Insurance Commissioners.
Nationwide
For shoppers seeking a broad range of coverage options, Nationwide may fit the bill.
Coverage options
More than average
Great set of discounts
NAIC complaints
Close to expected
Nationwide
For shoppers seeking a broad range of coverage options, Nationwide may fit the bill.
Coverage options
More than average
Great set of discounts
NAIC complaints
Close to expected
Nationwide’s standard homeowners policies include ordinance or law coverage, which pays to bring your home up to the latest building codes after a covered claim. They also include coverage for unauthorized credit or debit transactions. For an extra cost, you may be able to add coverage for things like water backup, identity theft and stronger materials to replace your roof.
The Nationwide website offers plenty of ways to manage your policy, including filing and tracking claims, paying bills and getting quotes.
USAA
Offers perks and affordable rates for the military community.
Coverage options
Below average
Average set of discounts
NAIC complaints
Far fewer than expected
USAA
Offers perks and affordable rates for the military community.
Coverage options
Below average
Average set of discounts
NAIC complaints
Far fewer than expected
USAA sells homeowners insurance to veterans, active-duty military members and their families. If that description fits you, you may want to consider a USAA policy. The company’s homeowners insurance has certain features that other insurers may charge extra for.
For example, USAA automatically covers your personal belongings on a “replacement cost” basis. Many companies pay out only what your items are worth at the time of the claim, which means you may not get much for older items. USAA pays enough for you to buy new replacements for your stuff.
How much does homeowners insurance cost in Alabama?
The average annual cost of home insurance in Alabama is $2,385. That’s 31% more than the national average of $1,820.
In most states, including Alabama, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.
In Alabama, those with poor credit pay an average of $4,420 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 85% more than those with good credit.
Average cost of homeowners insurance in Alabama by city
How much you pay for home insurance in Alabama will depend on your ZIP code. For example, the average cost of homeowners insurance in Birmingham is $2,270 a year, while homeowners in Mobile pay an average of $2,690 per year.
Average annual rate
Average monthly rate
Albertville
Birmingham
Enterprise
Huntsville
Montgomery
Phenix City
Prattville
Tuscaloosa
The cheapest home insurance in Alabama
Here are the insurers we found with average annual rates below the Alabama average of $2,385.
What to know about Alabama homeowners insurance
Alabama faces more than its share of risks for homeowners. When shopping for homeowners insurance, you’ll want to consider hurricanes, flooding and tornadoes.
Hurricanes and tropical storms
With its Gulf Coast location, Alabama is susceptible to hurricanes and the property damage that comes with them. For example, in 2004, Hurricane Ivan passed through Alabama, causing 117 tornadoes over three days due to the high winds. These severe weather events can cause significant damage to your home.
Review your policy to see what coverage you have. Your policy likely covers wind damage, but you may have a separate wind, hail or hurricane deductible. (A deductible is the amount subtracted from your claim payout.)
For example, your policy may have a $1,000 deductible for most claims and a 1% deductible for wind claims. So if your house has $200,000 worth of dwelling coverage, you’d be responsible for the first $2,000 of wind damage yourself.
Hurricanes can also cause flood damage, which most homeowners insurance doesn’t cover. If you live in a high-risk area, you’ll likely need a separate policy for flood insurance as well.
Flooding
Beyond the hurricanes and tropical storms mentioned above, Alabama homeowners may experience flooding due to any type of heavy rain. Because standard homeowners insurance policies don’t pay for flood damage, you’ll want to consider purchasing flood insurance if you live in a flood-prone area.
To find out whether you’re at risk, check the Federal Emergency Management Agency’s flood maps or visit RiskFactor.com, a website from the nonprofit First Street Foundation. Because flooding can happen anywhere if it rains hard enough, you may want to consider buying flood insurance even if you’re in a relatively low-risk location.
Note that while you can purchase flood coverage anytime, there’s typically a 30-day waiting period before the insurance takes effect.
Tornadoes
Parts of Alabama are likely to experience tornadoes, as the state sits in Dixie Alley, Tornado Alley’s Southeastern counterpart. The forceful winds from a twister can damage or even destroy a house.
Your homeowners insurance policy probably covers tornado damage. Still, as with the hurricane wind damage discussed above, it’s important to review your policy to determine how much coverage you have. Some policies have a separate deductible for wind damage, meaning potential extra costs for you in case of a claim.
Alabama insurance department
The Alabama Department of Insurance oversees the state’s insurance industry and provides consumer protections. On its site, you can search for licensed insurance companies and access information for homeowners. If you have a complaint about your insurance company, you can file it online with the department. You can also call the agency’s consumer services hotline with insurance questions at 800-433-3966.
Looking for more insurance in Alabama?
Frequently asked questions
Is homeowners insurance required in Alabama?
Homeowners insurance isn’t required by Alabama state law, but your mortgage lender will likely require you to have it.
How can I save money on home insurance in Alabama?
There are several ways to save money on homeowners insurance in Alabama:
Shop around for the best rate. An independent insurance agent can help.
Choose a higher deductible. In case of any claims, you’ll pay more out of pocket, but you’ll pay less in annual or monthly premiums.
Does Alabama home insurance cover flooding?
A standard home insurance policy in Alabama won’t cover flooding. That means you may want to buy separate flood insurance if your home is in a high-risk area.
The rise of cryptocurrencies has led to a significant shift in the financial landscape. As crypto gains popularity, many financial institutions are adapting to this change by offering specialized banking services to accommodate crypto transactions.
This article explores the best crypto-friendly banks, explaining why they are considered top choices in the ever-evolving crypto space.
15 Best Crypto-Friendly Banks
Here are the top crypto-friendly banks and banking services providers, each offering a unique set of services tailored to the needs of cryptocurrency enthusiasts.
1. Cash App
Among its many features, Cash App allows users to buy Bitcoin and instantly withdraw funds to personal wallets.
Partnerships with banks such as Sutton Bank and Lincoln Savings Bank enable Cash App to provide banking services. This collaboration between Cash App and crypto-friendly banks ensures that customers have a convenient and secure way to manage their crypto transactions.
Sutton Bank also issues the Fold Visa® Prepaid Card, which allows you to earn Bitcoin on every purchase.
See also: How Does Cash App Work?
2. Revolut
Revolut is a UK-based fintech company that was founded in 2020. It has quickly become a major banking player in the UK, Europe, and the US, as well as a top crypto-friendly bank. Their user-friendly mobile app lets customers easily buy cryptocurrencies like Bitcoin and manage their digital assets. The app also features automatic buy orders that activate based on certain market conditions, making the crypto investment process even smoother.
What sets Revolut apart from competitors is the variety of crypto-related services they offer. Customers can stake select crypto assets, make off-chain transactions between users, and pay bills using crypto through automatic conversion to fiat currency.
With over 50 cryptocurrencies on the platform and plans to expand, Revolut is dedicated to staying ahead in the digital currency world. Although there are transaction fees for crypto payments, users can reduce these fees with account upgrades. Revolut’s upcoming launch of its native coin, RevCoin, highlights their commitment to providing a diverse and dynamic crypto banking experience for their growing customer base.
3. Quontic
Quontic is the first online bank to offer a rewards checking account that allows you to earn Bitcoin. With its innovative Bitcoin Rewards Checking account, users can easily integrate crypto into their everyday banking experience. Quontic only supports Bitcoin. However, its unique offering makes it a top choice for those looking to capitalize on the increasing prominence of digital currencies.
The Bitcoin Rewards Checking account offered by Quontic stands out due to its 1.50% rewards on all Point of Sale (POS) transactions made with the associated debit card. These rewards are paid out in Bitcoin, allowing users to accumulate the popular cryptocurrency as they make everyday purchases. Furthermore, the account acts as a secure wallet for users to store their Bitcoin, providing a seamless banking experience for crypto enthusiasts.
This FDIC-insured bank account requires a minimum opening deposit of $500 and is not available in Hawaii and North Carolina.
4. SoFi
SoFi is an innovative financial institution that has embraced the crypto revolution. Through its SoFi Invest platform, customers can trade crypto and access educational resources to learn about digital currencies.
With just a $10 minimum investment, users can start trading Bitcoin, Ethereum, Dogecoin, Cardano, and over 20 other coins on a platform available 24/7. Users can trade cryptocurrencies alongside stocks, fractional shares, and ETFs within the SoFi app, making it an all-in-one investment platform.
SoFi takes security seriously and offers a range of tools to protect your crypto holdings from theft. These include two-factor authentication, SSL encryption, partnering with trusted exchanges like Coinbase for transactions, and not sharing personal information with trading partners or custodians. This ensures that your investments are safe and secure on the platform.
The SoFi app also provides a wealth of educational resources, such as their Crypto Guide for Beginners, Crypto Glossary, and Guide to Crypto Staking, to help you make informed investment decisions. Keep in mind that due to its volatility, crypto carries a higher degree of risk compared to traditional investments.
Crypto trading on SoFi Invest is subject to a 1.25% markup on crypto transactions, which is added to the market price from the exchange. While there are no plans to allow transfers between SoFi Invest accounts and external wallets at this time, the platform’s focus on security and convenience makes it an attractive option for those interested in trading crypto.
5. Vast Bank
Vast Bank has made history as the first full-service national bank to provide customers with the ability to buy, sell, and hold cryptocurrencies. Through an intuitive mobile banking app, users can access both a checking account with a competitive 2.65% annual percentage yield (APY) and a dedicated crypto account.
As a nationally chartered and federally regulated U.S. bank, Vast Bank ensures a high level of security and reliability for its customers. By using the Vast Crypto Banking app, users can easily deposit USD into their checking account, purchase cryptocurrencies, and safely store their crypto alongside their fiat funds.
This crypto bank currently supports a wide range of popular cryptocurrencies. Among them are Bitcoin (BTC), Ethereum (ETH), Filecoin (FIL), Cosmos (ATOM), Chainlink (LINK), Cardano (ADA), Litecoin (LTC), Aave (AAVE), Bitcoin Cash (BCH), Orchid (OXT), Tezos (XTZ), and Algorand (ALGO).
Vast Bank offers the convenience and safety of traditional banking, such as FDIC insurance for checking accounts, a debit card with access to 56,000 free ATMs worldwide, account transfers, bill pay, and mobile deposits. However, it is important to note that digital assets held in the crypto account are not insured by any government entities, including FDIC or SIPC.
6. Wirex
Wirex is a standout in the world of crypto-friendly banks, offering users a seamless banking experience that supports both fiat currencies and cryptocurrencies. Available in 130 countries and boasting over 3.5 million users worldwide, Wirex provides a multi-currency account and a Visa card for convenient fiat payments.
One of the main attractions of Wirex is its generous savings interest rates, which reach up to 6% for cryptocurrencies such as BTC, ETH, and LTC. For those who prefer to save in fiat currencies like USD, AUD, HKD, or DAI, an impressive 12% interest rate is available. Additionally, users can earn an extra 4% interest when saving in WXT, Wirex’s native token.
Built on both Ethereum and Stellar blockchains, WXT offers exceptional performance and versatility within the decentralized finance (DeFi) sector. Wirex rewards its users with up to 4% WXT cashback each time they use their card for in-store or online purchases. The multicurrency card allows for hassle-free payments when traveling abroad, automatically converting to the local currency with no exchange fees, and offering savings of up to 3% on international transactions.
Beyond being a Bitcoin-friendly bank, Wirex offers a wallet app that supports over 100 coins and includes DeFi and NFT capabilities. This combination of features makes Wirex an excellent choice for those seeking a comprehensive and crypto-friendly banking experience.
7. Ally Bank
Ally Bank is an online bank that has embraced the crypto revolution, offering an array of services to support digital assets. Some notable features from Ally’s website include:
Crypto trusts: Ally offers private trusts that invest in and track the price of specific cryptocurrencies, allowing customers to indirectly trade them as they would a stock.
Bitcoin futures: Ally provides access to exchange-traded funds (ETFs) that invest in the purchase of bitcoin futures contracts. This allows customers to gain exposure by speculating on the future price of Bitcoin without directly owning it.
Crypto stocks: Ally enables customers to invest in publicly traded companies that buy and hold cryptocurrency. Buying shares of these stocks provide indirect exposure to crypto.
Ally Bank’s crypto trading services on the Ally Invest platform, integration with popular cryptocurrency exchanges, and digital asset storage and management make it a top choice for crypto enthusiasts seeking a crypto-friendly bank.
8. BankProv
BankProv is a forward-thinking US financial institution that provides a range of services, including business banking, cash management, personal banking, and cryptocurrency offerings. Embracing modern technologies, this crypto bank utilizes API banking, the ProvXchange network, and specializes in lending.
Its support for various digital assets ensures that customers can access a diverse range of investment options, making it a strong contender among crypto banks. Customers can enjoy real-time transactions through the ProvXchange network, while the API integration allows for seamless interaction with various platforms and software solutions.
BankProv provides crypto-backed loans and credit lines for organizations secured by Bitcoin or Ether, as well as equipment and infrastructure loans for crypto mining operations. Additionally, Bitcoin ATM operators can take advantage of secure cash vault services, expedited money transfers, and other perks tailored to businesses operating within the crypto sector.
9. Juno
Established in 2019, Juno is a fintech company offering a digital banking platform with hybrid accounts for managing both cash and cryptocurrencies. Despite not being a traditional bank, Juno’s exceptional services make it a top contender for cryptocurrency investments.
Juno enables users to purchase a range of popular cryptocurrencies without fees, and provides two types of checking accounts: Basic and Metal. The Basic account is free with a $5,000 daily funding limit, while the Metal account, free with monthly qualifying deposits of $250 or more, offers a $25,000 daily limit and up to six times higher savings.
Bonus rewards are a highlight of Juno’s offerings, with users earning up to 5% on cash deposits and yearly cashback for payments with cash or crypto. The JCOIN Loyalty Program allows customers to earn tokens and redeem them for exclusive discounts and cashback boosts. New users can benefit from a welcome offer, which includes bonuses for initial deposits, trades, and referrals.
Free cash withdrawals are available at Allpoint and MoneyPass® ATMs, with additional out-of-network withdrawals for both account types. Juno’s mobile banking app is compatible with iOS and Android, supporting Apple Pay, Google Pay, Samsung Pay, and debit cards. The platform also offers the unique feature of converting paychecks into crypto through partnerships with over 500 payroll providers, allowing users to automate their investments seamlessly.
10. Monzo
Monzo is an innovative online-only bank that has gained popularity in the UK for its modern approach to banking. More recently, Monzo has expanded its services to accept applications from US customers, broadening its reach in the financial market.
With a Monzo account, customers can manage all their bank accounts, including non-Monzo accounts, on a single dashboard through the Monzo app. While the bank itself does not support crypto trading, users can still invest their Monzo account funds into cryptocurrencies through crypto exchanges like Coinbase and Crypto.com. This feature provides Monzo users with indirect exposure to cryptocurrency while still enjoying the convenience and security of a modern bank.
11. Axos Bank
Axos Bank, a crypto-friendly institution, started providing its commercial banking clients with TassatPay access in May 2022. TassatPay is a private, permissioned blockchain-based digital payments platform that enables 24/7 real-time payment capabilities and has processed over $400 billion in transactions. This platform is endorsed by a primary bank regulator.
Axos also offers exposure to various crypto-related exchange-traded funds (ETFs). These include the Bitwise 10 Crypto Index Fund (BITW), Bitwise Crypto Industry Innovation ETF (BITQ), ProShares Bitcoin Strategy ETF (BITO), and ProShares Short Bitcoin Strategy ETF (BITI), among others.
12. Standard Chartered Bank
Standard Chartered Bank has demonstrated a strong interest in cryptocurrencies and blockchain technology, regularly conducting research and sharing insights on digital currencies. Recognizing the growing demand in the market, Standard Chartered is launching a crypto exchange and brokerage service to provide its customers with access to digital assets.
The bank’s direct crypto trading and investment services are still in development. However, their commitment to staying informed about the latest trends in the digital currency market and taking steps to launch new services indicates their growing involvement in the crypto space.
13. USAA
USAA, a financial institution dedicated to serving current and former military personnel and their families, provides a range of tailored financial products and services. Among these offerings is an integration with Coinbase, a leading cryptocurrency exchange.
Through this partnership, USAA customers can conveniently link their Coinbase accounts to their USAA portal, enabling them to easily monitor their digital asset balances and track transactions. This feature streamlines the process of staying informed about one’s cryptocurrency holdings and activity, offering an added layer of convenience for USAA members.
14. Fidor
Fidor is a pioneering online bank headquartered in Munich, Germany. It offers innovative banking services designed to support digital assets. Its integration with popular cryptocurrency exchanges and crypto wallet services makes it an ideal choice for those looking for a crypto-friendly bank. Additionally, Fidor provides support for ICO and token sales, giving customers access to new and emerging cryptocurrencies.
15. PayPal
Although PayPal is not a bank, it offers various banking services and has expanded its support for cryptocurrency in recent years. PayPal enables users to buy, sell, and hold cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.
By partnering with Paxos Trust Company, a regulated provider of cryptocurrency products and services, PayPal ensures a secure and compliant experience for its customers. While it does not offer the full range of services that traditional banks do, PayPal’s support for crypto makes it an appealing choice for those who want to manage their cryptocurrencies alongside other financial transactions.
Bottom Line
The increasing popularity of cryptocurrency has led to a growing number of crypto-friendly banks, offering a range of services to accommodate the unique needs of digital asset users. These banks provide an array of services, from crypto trading and custody to debit cards and loans backed by crypto.
As the crypto industry continues to evolve, it’s crucial to stay informed and choose the best crypto-friendly bank to suit your needs. With so many crypto-friendly banks available, you can now manage your crypto alongside traditional banking services, providing a seamless and efficient way to navigate the world of cryptocurrencies.
Frequently Asked Questions
What makes a bank crypto-friendly?
A crypto-friendly bank is one that supports and facilitates cryptocurrency transactions, storage, and trading. These banks typically offer a range of services tailored to the needs of digital asset users, such as integration with popular crypto platforms, crypto-backed loans, and the ability to spend crypto using a debit card.
Can I store my cryptocurrencies in a traditional bank account?
While some banks offer crypto-friendly services, cryptocurrencies are typically stored in digital wallets rather than traditional bank accounts. However, many crypto-friendly banks provide integration with popular crypto wallets and exchanges, allowing you to manage your crypto alongside your fiat currency.
Are crypto-friendly banks safe and secure?
Many crypto-friendly banks are FDIC-insured and follow strict regulatory requirements to ensure the security of your assets. It’s essential to research each bank’s security measures, such as two-factor authentication, encryption, and secure storage of crypto before choosing a crypto-friendly bank.
How do I choose the best crypto-friendly bank for my needs?
To choose the best crypto-friendly bank for your needs, consider the range of services offered, the bank’s reputation, and any fees associated with their services. You may also want to look for banks that provide educational resources, customer support, and a user-friendly platform for managing your crypto.
Can I use a debit card to spend my cryptocurrencies?
Some crypto-friendly banks and financial service providers offer debit cards that allow you to spend your crypto just like traditional fiat currency. These cards typically convert your cryptocurrencies to the local currency at the point of sale, making it convenient to use crypto for everyday transactions.
Do crypto-friendly banks offer loans and credit products?
Some crypto-friendly banks offer crypto-backed loans and lines of credit. These products allow you to leverage your crypto without selling it, providing greater financial flexibility for crypto users.
If you rent an apartment in Los Angeles, you may think that your landlord’s insurance will cover you in the event of a fire, storm or another disaster. And you’d be partly right: it would cover the actual building, including your unit. But your landlord’s policy won’t cover your personal belongings or liability if someone is injured in your apartment. For that, you need renters insurance.
America’s top-rated renters insurance
Policies starting at just $5/month
Sign up in seconds, claims paid in minutes
Zero hassle, zero paperwork
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The good news? Renters insurance is fairly cheap. In California, the average annual cost for a renters policy is only $182. We’ve taken a hard look at the companies offering renters insurance in Los Angeles and, using our evidence-based SimpleScore methodology, have selected the best renters insurance companies in Los Angeles.
The best renters insurance in Los Angeles
Best coverage options – Allstate
A major player on the national insurance stage, Allstate’s size benefits you through expanded coverage options and maximum financial stability.
J.D. Power Rating
2/5
AM Best Rating
A+
Standard & Poor’s
AA-
SimpleScore
4.2 / 5.0
SimpleScore Allstate 4.2
Discounts 5
Coverage Options 5
Customer Satisfaction 2
Customer Satisfaction 5
Allstate is the second-largest writer of homeowners and renters policies in the U.S. and has the chops to offer a variety of coverage options that allow you to customize your policy. Coverage such as scheduled personal property — which covers your high-priced belongings beyond the limits of your personal property coverage — make it a good choice if you have expensive electronics, art or other valuables. Allstate can also cover you with additional umbrella insurance or if your apartment is in a flood zone, supplemental flood insurance.
Best customer service – Lemonade
Although Lemonade is the new kids on the block, it has quickly earned a reputation for quality service and customer satisfaction.
J.D. Power Rating
5/5
AM Best Rating
N/A
Standard & Poor’s
N/A
SimpleScore
3.6 / 5.0
SimpleScore Lemonade 3.6
Discounts 1
Coverage Options 3
Customer Satisfaction 5
Accessibility 5
Lemonade has become popular very quickly, thanks to its low rates and easy-to-manage website. Getting a quote or filing a claim takes just seconds, and the company says you may have your check almost instantly if the claim is approved. All that user-friendly management has made Lemonade the top choice in J.D. Power’s 2020 Overall Customer Satisfaction Ranking for renters, rating it above perennial favorites such as Erie Insurance and Allstate.
Best for military families – USAA
Low prices, excellent customer service and rock-solid financial stability all make USAA a top choice for military families.
J.D. Power Rating
5/5
AM Best Rating
A++
Standard & Poor’s
N/A
SimpleScore
3.8 / 5.0
SimpleScore USAA 3.8
Discounts 2
Coverage Options 5
Customer Satisfaction 5
Accessibility 4
USAA may be the best insurance company you’ve never heard of — unless you’re in the military, in which case you know the company has a reputation for quality service and coverage. USAA’s rental insurance is only available to active and retired military members and their families, but if you fit that demographic, it should be your first stop when looking for the best renters insurance in Los Angeles.
Best claims management – Stillwater
Expect friendly service and quick claims management for renters insurance claims to Stillwater.
J.D. Power Rating
N/A
AM Best Rating
A-
Standard & Poor’s
N/A
SimpleScore
4 / 5.0
SimpleScore Stillwater 4
Disconts 3
Coverage Options 5
Customer Satisfaction N/A
Accessibility 4
Stillwater offers competitive rates for renters insurance in Los Angeles, which comes with a reputation for solid claims management. The Better Business Bureau gives the company an A+ rating, with customer reviews averaging 3.8 out of 5 — reviewers note the friendliness and professionalism of their agents and claim representatives. Stillwater offers a nice range of discounts for policyholders, including one for those aged 60 and over.
Best local insurer – Mercury
Like the Roman god the company is named for, Mercury provides fast and effective service for all your rental insurance needs.
J.D. Power Rating
N/A
AM Best Rating
A
Standard & Poor’s
AA-
SimpleScore
4.3 / 5.0
SimpleScore Mercury 4.3
Disconts 3
Coverage Options 4
Customer Satisfaction N/A
Accessibility 5
Mercury has been providing insurance for California residents since 1961. The company has an A rating with both Fitch and AM Best, indicating that it is financially stable and well-managed, and it was named one of America’s most trustworthy companies by Forbes magazine. You’ll find comprehensive coverage at Mercury, with a handful of discounts to lower your rate, and optional coverages that protect you from identity theft and more.
America’s top-rated renters insurance
Policies starting at just $5/month
Sign up in seconds, claims paid in minutes
Zero hassle, zero paperwork
Average annual premium, by company
Company
Average annual premium
Allstate
$162-210
Lemonade
$202-285
USAA
$168-204
Stillwater
$189-212
Mercury
$175-218
Choosing your provider
Whether you choose a large national insurer, like Allstate, or a smaller regional carrier, Like Mercury, you want the best possible insurance. How can you be sure to get it? A little research is all it takes to give you the info you need to choose wisely. You can start by asking your neighbors and friends who they like and visit the website for any company you’re interested in to see how easy they make it to do business with them.
[ Read: What Does Renters Insurance Cover? ]
Local carrier
Pros
They have the feet-on-the-ground knowledge of your local area.
They understand state insurance laws and regulations.
Generally, smaller companies offer high customer service from friendly, local employees.
Cons
May not be able to offer the discounts or coverage options that are standard with larger companies.
Not rated by consumer agencies such as J.D. Powers or Consumer Reports.
Websites are often bare-bones, without the ability to get an online quote or file a claim.
National carrier
Pros
Easy to evaluate them with national assessors like J.D. Powers and AM Best.
Tend to have good websites with tons of functionality and easy access.
Have the ability to offer extensive discounts as well as coverage extras that allow you to customize your policy.
Cons
With tens of thousands of policyholders, you may not get the personalized attention you would with a smaller company.
[ Read: Best Renters Insurance Companies]
Los Angeles minimum insurance requirements
Unlike car insurance, renters insurance isn’t a legal requirement in California. You may find, however, that your landlord requires it. And even if they don’t, it’s a good idea to consider it seriously. Depending on where you live in the city, you may be at risk of theft, vandalism, or damage from natural sources like storms or earthquakes. Consider carefully how much money you would need if you had to start over again from scratch. That’s a good starting point when considering the amount of Los Angeles renters insurance to purchase.
Flood
Coverage for flooding isn’t included in most renters insurance policies. To find out if you’re at risk of flooding, the FEMA Flood Map Service Center lets you input your address and see if you’re in a flood zone. If you have any reason to believe your apartment might flood, ask your insurance agent about supplemental flood insurance, which can be purchased through the government’s National Flood Insurance Program.
Hurricane
Hurricanes rarely hit California’s coastal regions. In fact, a “California hurricane” is the name of a tropical cyclone that travels up the coast — and that’s happened only twice since 1900. If the remnants of a tropical storm impact your apartment, you would be covered for any damage that was caused by wind. Damage caused by the flooding that often accompanies hurricanes would not be covered by a policy unless you had supplemental flood insurance.
Earthquake
Standard renters insurance policies do not cover earthquake damage. But that doesn’t mean you need to stay unprotected. Most insurers feature an endorsement, or add-on, that will cover earthquakes. The California Earthquake Authority offers insurance for renters, and it’s easy to get an online quote at its website. Plan on spending roughly $150-250 for an earthquake policy — money that’s well spent if it buys you peace of mind.
[ Read: Best Cities to Buy Rental Property ]
How much does renters insurance cost in Los Angeles?
The rate you pay for renters insurance will be determined by a number of variables, including the amount of rent you’re paying, your deductible and the value of your belongings. The average cost of Los Angeles renters insurance is roughly $195 a year, though your rate will probably differ. This is more than the California average of $182 and considers the fact that Los Angeles real estate is on the pricey side.
Keep in mind that there are things you can do to lower your insurance rate. One major factor, for example, is your deductible. The lower your deductible, the higher your premium rate will be. If you can handle a higher deductible — say, $1,000 or even more — you will get the best rates for renters insurance in Los Angeles.
Los Angeles renters insurance FAQs
Although you are not required to have insurance by law, your landlord may want you to have a policy. Even if they don’t, it’s a good idea to ensure that your personal possessions can be replaced in the event of a fire or other disaster by having a policy in place.
Expect to pay a little more than the state average of $182 annually. Your own rate will be determined by multiple factors, including your apartment’s location, deductible, and the amount of coverage you’d like.
There’s no one best company for everyone — the company that gave your neighbor the lowest quote may not offer you the same. That said, the insurers we’ve discussed above are a good place to start. Or, if you prefer, head on over to our listing of the Best Renters Insurance Companie.
Too long, didn’t read?
If you rent an apartment in Los Angeles, you’ll want to consider renters insurance to protect you and your belongings in the event of a disaster. There are a number of national insurers who sell policies in Los Angeles, including Allstate, Lemonade and USAA. There are also some smaller, regional companies like Mercury and Stillwater that offer competitive pricing along with top-notch customer service. Any of these companies will have comprehensive coverage available that is customizable for your own needs, at a good price point.
We welcome your feedback on this article and would love to hear about your experience with the insurers we recommend. Contact us at [email protected] with comments or questions.
Although inflation may be cooling, interest rates remain high. As a result, you may find yourself opting to rent rather than own, either by choice or by extenuating circumstances. The good news is that renters insurance is significantly cheaper than home insurance at around just $174 per year on average, according to the Insurance Information Institute (Triple-I). This is because renters insurance only provides coverage for the home’s contents along with the renter’s liability, rather than including coverage for the structure of the home. To help you identify which renters insurance company best meets your needs, Bankrate reviewed the largest renters insurance companies by market share based on a variety of key metrics.
Why renters insurance is important
Renters insurance is relatively inexpensive at around $15 per month on average, but its value can significantly outweigh its monthly cost in the event of a claim.
In addition to replacing your personal belongings, renters insurance also offers coverage for incidents that affect your guests. Perhaps a guest slips at your residence, sustaining an injury. In this case, renters insurance could help pay for their medical costs. If the injury results in legal action, renters insurance could also help pay legal fees. Insurers commonly offer coverage for relocation and food if your rental becomes temporarily uninhabitable due to a covered claim.
Add-ons are generally available for your renters insurance policy as well to help provide more robust coverage. For example, if you need extra coverage for your jewelry or other high-value items, you may be able to add additional coverage on top of your standard renters insurance.
Best renters insurance companies
Bankrate has researched more than a hundred companies offering renters insurance policies to narrow down some of the best renters insurance companies of 2023. The following companies have all been selected based on positive customer satisfaction ratings by J.D. Power, a leading third-party source for industry research, and have received “Excellent” or “Superior” credit ratings from AM Best. Having a positive rating from AM Best indicates that an insurance company has historically been able to meet ongoing financial obligations like operating costs and claims. Additionally, the companies below either include additional protections or offer them as add-ons for your renters policy, such as pet insurance and flood coverage.
*Not rated by AM Best, but rated A (Exceptional) by Demotech for financial stability
**Not officially ranked by J.D. Power due to eligibility restrictions
Allstate
Best for: Discount opportunities
Allstate tied with USAA for Best Home Insurance Company Overall in the 2023 Bankrate Awards. Although the Bankrate Awards focus on homeowners insurance rather than renters, many of the same homeowners features also translate to the company’s renters insurance product. For instance, Allstate won partly thanks to its highly-rated mobile app and wide network of brick-and-mortar agencies. Additionally, Allstate offers even more savings opportunities with its multiple policy discount, 55 and retired discount and Easy Pay discount for scheduled monthly payments. However, Allstate received a slightly below-average rank in the 2022 J.D. Power Home Insurance Study for renters insurance customer satisfaction. While the score is not significantly lower than the industry average, customers seeking exceptional customer service may want to carefully weigh how the carrier stacks against other options.
PROS
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Access to other policy types for a multiple policy discount
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Easy-to-use mobile app and online web portal for policy management
CONS
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Slightly lower J.D. Power score than the other companies on this list
Learn more: Allstate Insurance review
Erie
Best for: Regional coverage with robust options
Erie Insurance has a stellar reputation built upon affordable rates and an easy-to-navigate claims service. Erie offers considerable discounts on bundles, additional living expenses if you need to find a temporary place to live and the option for extra coverage for things like identity recovery and your more expensive personal items. Unfortunately, Erie only offers renters insurance in roughly a fifth of the U.S., but could be an excellent choice if you live in one of the areas it services. States covered are Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and Wisconsin. Erie also offers coverage in Washington, D.C.
PROS
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Ability to work with a local insurance agent
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If requesting a quote seven days from policy start date, renters insurance could qualify for an additional discount
CONS
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Limited state availability compared to other national carriers
Learn more: Erie Insurance review
Liberty Mutual
Best for: Renters on a budget
Liberty Mutual could be a great choice for renters on a tight budget. The company advertises that its policies start at just $5 per month. Although the coverage options available are fairly basic, you might be able to add replacement cost coverage for your belongings, as well as jewelry coverage or earthquake coverage. However, Liberty Mutual does have a higher-than-average complaint index score with the National Association of Insurance Commissioners (NAIC). A score of 1.00 represents a baseline number of complaints. Liberty Mutual’s overall score is 2.66, indicating that the NAIC receives more than two and a half times as many complaints for the company than average.
PROS
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Option to add replacement cost, meaning personal belongings will be replaced without factoring in depreciation
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With blanket jewelry protection, renters have one set amount to cover their jewelry with no need for appraisal or deductible after a covered loss
CONS
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High NAIC score indicates Liberty Mutual receives more complaints than other similar-sized carriers
Learn more: Liberty Mutual Insurance review
Lemonade
Best for: Digital policy management
Lemonade is another 2023 Bankrate Award winner for Best Digital Home Insurance Company. Lemonade terms itself as “insurance for the 21st century.” Its mobile app, powered by Maya, its artificial intelligence bot, helps renters get a quote, manage their policy and file a claim all in one place. Renters who want an insurance company focused on global causes will appreciate that leftover premium is donated to many different causes like the Malala Fund, the Trevor Project and March for Our Lives. However, the all-digital experience means renters won’t be able to have in-person customer service. Additionally, Lemonade renters insurance is only available in 28 states and Washington, D.C.
PROS
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Simple mobile app interface for all your insurance needs
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Policies can be started in 90 seconds and claims paid out in as little as three minutes
CONS
Close X
Renters insurance is only available in 28 states and Washington, D.C.
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Lemonade car insurance is only available in a few states, making it difficult for renters to qualify for a multiple policy discount
Learn more: Lemonade Insurance review
Nationwide
Best for: Customer service experience
If you’re looking for world-class customer service, then Nationwide might be worth checking out. Out of all the renters insurance companies that J.D. Power officially ranked in 2022, Nationwide earned the top spot. Although Nationwide might be a little more expensive than average (the company states that its renters policies start at $20 a month), the added expense could be worth it to the right shopper. Additionally, Nationwide offers a Brand New Belongings endorsement, which could help you replace your items for their replacement value rather than actual cash value (which takes into consideration depreciation).
PROS
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May get a bundling discount for purchasing renters and auto
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Optional coverage-add on could help make for a robust renters policy
CONS
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May be more expensive than average
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Customer service is not 24/7
Learn more: Nationwide Insurance review
State Farm
Best for: Local offices
State Farm offers renters insurance in every state throughout the U.S., making it a great option for renters in underserved rural areas or areas. But it’s not just State Farm’s wide availability that may make it a good option. The company also has exceptional ratings from companies like J.D. Power and AM Best, which could make it a safe bet for your renters policy. Although State Farm doesn’t offer nearly as many discounts as some of the other providers we’ve chosen, you might lower your premium if you insure your car with State Farm or if you have security devices installed in your apartment.
PROS
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Excellent customer service and financial strength ratings from third-party agencies
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Knowledgeable local agents to help you with your insurance journey
CONS
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Fewer discount opportunities compared to other carriers
Learn more: State Farm Insurance review
The Hartford
Best for: Policyholder perks
To qualify for The Hartford, you must be a member of AARP — and to be a member of AARP, you must be 50 or older. However, AARP members get exclusive access to a long list of discounts and perks as well as access to The Hartford renters insurance. The Hartford policyholders could save on hotels, gas, plane tickets, cell phone plans and more. The carrier’s New for Old protection also comes standard in its renters policies, which offers replacement cost for your items if they are damaged or destroyed in a covered loss. Additionally, The Hartford may give you a discount on your renters policy simply for living in a gated community.
PROS
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Flood coverage is standard on renters insurance policy
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If moving or deployed overseas, personal belongings would be insured with overseas coverage
CONS
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Not available to the general public
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Can only do business over the phone or online, no local offices
Learn more: The Hartford Insurance review
USAA
Best for: Military-centric coverage
USAA tied for Best Home Insurance Company Overall in the 2023 Bankrate Awards, partly due to its high J.D. Power scores and nationwide availability. The company has a stellar reputation among consumers and the insurance industry, and it offers renters insurance policies particularly supportive for those in a military lifestyle. The basic policy includes coverage for personal property, personal liability, medical payments and additional living expenses. Flood coverage is also included in standard USAA renters insurance policies, which is notable considering that flood insurance typically has to be purchased separately.
However, USAA is not available for everyone, which could be considered a major drawback of the company. Only military members, veterans and immediate family members may be eligible for coverage. Unless you fit one of these categories, you will not be able to purchase a USAA policy.
PROS
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May get a bundling discount for purchasing renters and auto
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Optional coverage-add on could help make for a robust renters policy
CONS
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May be more expensive than average
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Customer service is not 24/7
How to compare renters insurance companies
With so many renters insurance companies on the market, how do you choose which provider is right for your needs? Finding the best renters insurance policy will depend largely on your particular living situation and coverage preferences. The first step to finding a provider who can best cover your unique circumstances is to take some time to consider what you may want from a company.
For example, if you run a business or keep business-related items in your home, you may find that an add-on for extended coverage or business personal property is necessary. This may cause you to look for a provider which specializes in renters insurance for business personal property.
Additionally, it may be helpful to review third-party reviews from companies like J.D. Power and AM Best. J.D. Power runs numerous studies each year, including evaluating renters insurance companies. Scores are out of 1,000 points and evaluate customer satisfaction based on a number of factors. AM Best rates the financial strength of insurance companies based on their historical ability to meet financial obligations and pay claims. This measure may be comforting when predicting how future claims are likely to be handled, especially if a company is inundated with numerous claims at once.
Once you have identified a handful of companies that could meet your needs, you can start requesting quotes. This can often be done online or by phone, or you could contact a local agency. Getting quotes from several different insurance carriers allows you to compare premiums, coverage options, discounts and policy features.
Additional considerations before choosing a renters insurance policy
Like any insurance policy, renters insurance is not one-size-fits-all. No two rental circumstances are the same, and neither will the insurance for them be. When choosing a renters insurance company and personalizing your policy, you may want to consider:
The value of your belongings. To help ensure you do not over- or under-insure your belongings, you could create a home inventory. This exercise could help you estimate the total value of your belongings so that you choose an appropriate personal property coverage amount.
If you have any high-value items. Possessions like fine jewelry, collectibles, fine art, guns or antiques often have set coverage limits included within a policy. For example, without alterations to a policy, you might only have $1,000 in coverage for jewelry, regardless of how much personal property you buy. Scheduling your high-value possessions can provide more accurate and broader coverage.
If you have a pet. You might not consider your pet when you buy renters insurance, but you should. While many pets are covered for liability, some dog breeds and exotic animals are often excluded. If you have one of these animals, you probably want to look for a company that will extend liability insurance to it. That way, if your pet injures someone, your insurance can step in to help pay for the bills.
How often friends and family visit. If you like to host events at your home, or often host large parties of people, having this in mind could help you determine the right amount of liability insurance for your needs.
What company insures your vehicle: Many car insurance companies also offer renters insurance. When you bundle your policies together, you could see significant savings. Plus, there’s the added convenience of having all your insurance policies in one place.
If you aren’t sure where to start in your search for renters insurance, sitting down with a licensed insurance agent can be helpful. An agent can listen to your needs, circumstances and concerns and help recommend companies, coverage types and policy features that fit your situation.
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The best home and auto insurance bundles Here are some of the best bundle offers from insurance companies: Best Customer Support: Progressive Best Coverage Options: State Farm Best for Discounts: Allstate Best for Military Members: USAA Note that some of these offers may not be available in every state. Some states might also have additional […]
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