What is renters insurance?
Renters insurance is a policy that protects the items you keep in your apartment or home. In the event your belongings are damaged or lost due to theft, fire, water damage or other disasters, renters insurance will pay to replace them. In the event your apartment becomes uninhabitable, renters insurance will also cover the cost of temporary housing while your rental gets repaired. A renters policy can help protect people renting apartments, houses, condos, or other residential rental units.
How much does renters insurance cost?
First, the good news! Renters insurance costs far less than most expect. Dollar-for-dollar it’s one of the cheapest forms of financial coverage you can buy. Renters insurance rates vary by state and city. Generally, the cost of renters insurance will be determined primarily by these factors:
Your location
Your coverage amount
Your deductible
The more stuff you have to protect, the more your premiums will cost. Monthly payments on a $20,000 policy will be cheaper than a $50,000 policy. Many renters can find affordable renters insurance for less than $20 per month, depending on their coverage limits and deductible choices.
→Read more about how much renters insurance costs
What does renters insurance cover?
Renters insurance covers all the furniture, electronics, clothes, jewelry, etc in your apartment—everything that’s not bolted down. In fact, it even covers your goods while they’re not physically in your house—meaning if your laptop gets stolen on vacation or damaged falling out of a backpack, renters insurance will pay to replace it.
Most renters insurance will also cover “loss of use,” or the costs you’ll incur living elsewhere while your apartment or house gets repaired after a disaster. Finally, renters insurance covers liability, or legal costs, in the event you get sued if a visitor gets hurt at your apartment. Common renters insurance coverage areas include:
Personal property coverage
Loss of use coverage
Personal liability coverage
What doesn't renters insurance cover?
While renters insurance protects against most types of theft, accident and damage, there are several things it won’t cover. Renters insurance won’t protect against:
Flood
Earthquake
Accidental loss by owner
Damage by owner’s pet
Rare or extra-valuable items such as art (You’ll need a rider for these, detailed below)
Damage to the building itself (The owner’s insurance covers that)
→Read more about what renters insurance covers
How to buy renters insurance
You can buy renters insurance instantly online. It doesn’t require a lengthy approval process like some other forms of insurance. But before you start getting quotes, the first step to buying renters insurance is determining what it would cost to replace everything you own. Here’s what buying renters insurance should involve:
Get rental insurance quotes from top renters insurance companies in your area
Request riders for any extra coverage needed, like high-value jewelry, art, collectibles, or electronics
Compare rates. Not all renters insurance is created equal
Buy your policy. In most cases you can do this online.
Once your policy is in effect, there are a couple things you should do to keep your stuff protected:
Keep a copy of your policy outside your home, whether it’s in email or another location
Keep records of the new things you buy. They’ll be covered in your policy, but you should have an up-to-date inventory of all your stuff, just in case.
Document belongings with an inventory, photos, receipts, or records
If the time ever comes to file a claim, a detailed inventory and a copy of your renters insurance policy will be your best friends. Keep them someplace where you can always reach them.
→ Learn more about buying renters insurance
Is renters insurance worth it?
According to more recent surveys, about 55% of renters have renters insurance, while 37% of people say they couldn’t afford a $400 emergency expense. That can leave many renters financially vulnerable if theft, fire, or another covered loss damages their belongings.
Renters insurance costs less than a single meal out or buying a pair of sneakers. For many renters, the peace of mind that comes with protecting their belongings, liability, and temporary housing costs makes renters insurance worth considering.
Frequently asked questions
What does renters insurance cover?
Renters insurance protects most of your belongings from damage or theft, whether they're in your home or not. So, whether your laptop is damaged by a burst pipe in your apartment or stolen on vacation, it's covered either way. It's possible to add additional coverage options for an accidental loss.
What doesn't renters insurance cover?
Renters insurance does not cover damage caused by earthquakes or floods. Though, it does cover other types of water damage. You'll need to buy a separate policy to cover earthquake or flood damage.
How much does renters insurance cost?
That all depends on how much stuff you have to protect, but many people can buy affordable renters insurance for under $20 per month.
Why should I buy through Policygenius?
We'll help easily figure out the exact coverage you need, so you don't overpay for it. Plus, using the Policygenius marketplace is free.
How much renters insurance do you need?
To determine how much renters insurance coverage you need, estimate the total cost to replace your belongings, not just your most expensive items. It can help to create a room-by-room inventory and include items like:
Furniture
Electronics
Clothing
Kitchenware
Jewelry
Sports or hobby equipment
Work-from-home equipment
You should also review your personal liability coverage and loss of use coverage limits. High-value belongings may require additional riders or scheduled coverage.
Renters insurance vs. landlord insurance
Landlord insurance typically protects the building owner’s financial interest in the property itself. Renters insurance is designed to help protect the renter’s belongings, personal liability, and temporary living costs.
For example, if a fire damages the building and destroys a renter’s belongings, the landlord’s insurance may help cover repairs to the building, while the renters insurance policy may help replace the renter’s covered belongings.
Is renters insurance required?
Renters insurance usually isn’t required by law, but many landlords require a renter to carry a policy as part of the lease agreement. Even when it’s optional, renters insurance can help protect belongings, liability, and temporary housing costs after a covered event.
Does renters insurance cover roommates?
Renters insurance usually covers the policyholder and, in some cases, relatives living in the household. Roommates generally need their own renters policy unless they are specifically listed on the policy. Review your policy terms carefully to understand coverage limits and eligibility.
