If you rent, your landlord's insurance protects the building—not your belongings. A fire, theft, or burst pipe could leave you with nothing. Renters insurance is surprisingly cheap protection against catastrophe.
What Renters Insurance Covers
Your Personal Property
Everything you own inside your rental:
- Electronics (laptop, TV, phone)
- Furniture and appliances
- Clothing and shoes
- Jewelry and collectibles
- Books, kitchen items, decor
Liability Protection
If someone gets hurt in your apartment or you accidentally damage someone else's property:
- Medical bills for injured guests
- Legal defense costs
- Damage you cause to others' property
Additional Living Expenses
If your place becomes uninhabitable:
- Hotel costs
- Temporary housing
- Extra food and transportation expenses
What It Doesn't Cover
- Your roommate's stuff (they need their own policy)
- Damage from floods or earthquakes (separate policies)
- Your car (that's auto insurance)
- Intentional damage
- High-value items beyond policy limits (jewelry, art)
Pro Tip
Make a list of expensive items. If any exceed standard limits (often $1,500 for jewelry), consider a rider for extra coverage.
How Much Does It Cost?
This is the best part: renters insurance is incredibly affordable.
| Coverage Level | Typical Monthly Cost |
|---|---|
| Basic ($20k property) | $10-15 |
| Standard ($30k property) | $15-25 |
| Enhanced ($50k property) | $25-40 |
That's less than a streaming subscription for protection against losing everything.
How Much Coverage Do You Need?
Step 1: Inventory Your Stuff
Walk through your place and estimate replacement cost for everything:
- Bedroom: bed, dresser, clothes, electronics
- Living room: TV, furniture, decor
- Kitchen: appliances, dishes, food
- Bathroom: towels, products
- Other: bikes, sports equipment, tools
Most people underestimate by 50%. The average renter owns $20,000-$35,000 in stuff.
Step 2: Choose Deductible
Higher deductible = lower premium. Common options:
- $500 deductible: Higher premium
- $1,000 deductible: Good balance
- $2,500 deductible: Lowest premium
Step 3: Set Liability Coverage
Standard is $100,000. Consider $300,000 if you:
- Have significant assets to protect
- Regularly host guests
- Have a dog
Actual Cash Value vs. Replacement Cost
Actual Cash Value (ACV): Pays what your stuff is worth today (with depreciation)
- Your 3-year-old laptop was $1,000 new
- ACV payout: maybe $400
Replacement Cost: Pays to replace with equivalent new item
- Same laptop situation
- Replacement payout: $800-1,000 for similar new model
Watch Out
Always choose replacement cost coverage. The premium difference is minimal, but the payout difference is huge.
How to Get Renters Insurance
1. Get Quotes from Multiple Companies
- Your auto insurer (bundle discounts!)
- GEICO, State Farm, Allstate, Progressive
- Online-only: Lemonade, Toggle, Jetty
2. Bundle for Savings
Many insurers offer 10-20% discounts when you bundle renters + auto insurance.
3. Ask About Discounts
- Smart home devices (smoke detectors, water sensors)
- Good credit score
- Claim-free history
- Security systems
Document Everything
Before you need to file a claim:
- Take photos/video of every room and valuable items
- Keep receipts for expensive purchases
- Store documentation in the cloud (not just in your apartment)
- Update annually as you acquire new things
This documentation makes claims much smoother.
The Bottom Line
Renters insurance costs about $15/month and protects you from potentially losing tens of thousands of dollars. It's one of the highest-value insurance products available. If you don't have it, get a quote today—it takes 10 minutes and could save you everything.