Renters Insurance: What It Covers, What It Costs, and Why You Need It

If you rent your apartment or house, there's a good chance your landlord's insurance policy covers absolutely nothing that belongs to you. Your furniture, electronics, clothing, and personal belongings are completely unprotected unless you carry renters insurance.

What Does Renters Insurance Cover?

A standard renters insurance policy covers three main areas. First, it protects your personal property against theft, fire, water damage from burst pipes, and other covered events. Second, it provides liability coverage if someone gets injured in your apartment. Third, it covers additional living expenses if your rental becomes uninhabitable and you need temporary housing.

How Much Does Renters Insurance Cost?

This is where most people are surprised. A solid renters insurance policy typically costs between $15 and $30 per month, depending on your location, the amount of coverage, and your deductible. For less than the price of a single dinner out, you can protect tens of thousands of dollars worth of belongings.

How Much Coverage Do You Need?

Take a quick mental inventory of everything you own. Your bed, dresser, couch, TV, laptop, phone, clothes, kitchen items, and everything else. Most people underestimate the total replacement cost. We typically recommend $30,000 to $50,000 in personal property coverage as a starting point, but your number may be higher.

Why Every Renter Needs It

Without renters insurance, a single event like a kitchen fire, a burst pipe, or a break-in could cost you thousands of dollars out of pocket. Many landlords now require it as part of the lease, and for good reason. It protects both of you.