Renters Insurance
Affordable coverage for your personal property and liability as a renter.
Typical cost: $150 – $350 per year
What Is Renters Insurance?
Renters insurance protects tenants by covering personal property, liability, and additional living expenses. Your landlord's insurance covers the building itself, but none of your belongings inside it. A renters policy bridges that gap affordably—often for less than the price of a streaming subscription.
Why Renters Insurance Matters
Many renters assume their belongings aren't worth insuring, but the average renter owns $20,000–$30,000 worth of personal property. A single theft, kitchen fire, or burst pipe could wipe out electronics, furniture, clothing, and valuables in minutes. Without coverage, you would bear the full replacement cost yourself.
What Does Renters Insurance Cover?
A standard HO-4 renters policy includes three core coverages: personal property protection against named perils like fire, theft, and vandalism; personal liability coverage if you accidentally injure someone or damage their property; and additional living expenses if your rental becomes uninhabitable due to a covered event. Some policies also include medical payments to others for minor injuries on your premises.
Replacement Cost vs. Actual Cash Value
When choosing a policy, you'll decide between actual cash value (ACV) and replacement cost coverage. ACV reimburses the depreciated value of your items, while replacement cost pays what it takes to buy new equivalents. Replacement cost policies cost slightly more but prevent you from receiving a fraction of what your belongings are actually worth.
What's covered
Personal Property
Covers belongings like electronics, furniture, and clothing against theft, fire, vandalism, and other named perils.
Personal Liability
Protects you if someone sues for injuries sustained in your rental or damage you accidentally cause to others.
Additional Living Expenses
Pays for hotel stays, restaurant meals, and other costs if your rental becomes unlivable after a covered event.
Medical Payments to Others
Covers minor medical bills for guests injured at your rental regardless of who is at fault.
Off-Premises Coverage
Protects belongings stolen or damaged outside your home, such as a laptop taken from your car.
Credit Card & Forgery Protection
Reimburses unauthorized charges or forged checks up to a specified limit.
Pros and cons
Advantages
- Extremely affordable—often $15–$30 per month
- Covers belongings both inside and outside your rental
- Provides liability protection up to $100,000 or more
- Pays for temporary housing if you're displaced
- Many landlords now require proof of renters insurance
- Easy to bundle with auto insurance for extra savings
- Simple online application with instant coverage
Considerations
- Does not cover the building structure itself
- Flood and earthquake damage excluded without separate coverage
- High-value items like jewelry may need scheduled riders
- Actual cash value policies pay depreciated amounts
- Roommate belongings may not be covered unless named on the policy
Frequently asked questions
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