Renters Insurance: What It Covers and Why It's Worth It

If you rent, your landlord’s insurance protects the building, but not your furniture, clothes, electronics or your liability if someone gets hurt in your home.

What renters insurance covers

• Personal property: Your belongings, from theft, fire, smoke, certain water damage and other covered events, at home and often while traveling.
• Liability: If someone is injured in your apartment or you accidentally damage someone else’s property.
• Medical payments to others: Small medical bills for guests injured in your home, regardless of fault.
• Additional living expenses: Hotel and meal costs if your rental becomes unlivable after a covered loss.

What it usually doesn’t cover

• Floods and earthquakes (separate policies)
• Your roommate’s belongings unless they’re on the policy
• Pest damage
• High-value items beyond certain limits, like jewelry, unless you add coverage

How much does it cost?

Renters insurance is one of the cheapest types of insurance, often costing less than $20 a month, depending on your location, coverage amount and deductible. Bundling with car insurance can lower the price further.

How much coverage do you need?

1. Make a home inventory. Walk through each room and estimate what it would cost to replace everything. Take photos or a video.
2. Choose replacement cost coverage, which pays what it costs to buy new items, rather than actual cash value, which subtracts depreciation.
3. Pick a liability limit. $100,000 is common; consider more if you have savings to protect.

Tips to save

• Choose a higher deductible if you have an emergency fund.
• Ask about discounts for security systems, smoke detectors or being claims-free.
• Bundle with car insurance.