Do You Need Renters Insurance? What It Covers and Costs
Yes, most renters should have it. Renters insurance covers your belongings against fire, theft and many other risks, pays for temporary housing if your apartment becomes unlivable, and includes liability coverage if you injure someone or damage their property. Typical policies cost around $15–$25 a month.
On this page
Many renters assume the landlord's insurance protects them. It doesn't: the landlord's policy covers the building, not your furniture, laptop or clothes — and not your legal liability.
What renters insurance covers
| Coverage | Example |
|---|---|
| Personal property | A fire destroys your furniture; your bike is stolen from the building's storage room |
| Loss of use | Hotel and meal costs after a fire makes your apartment unlivable |
| Personal liability | Your bathtub overflows and damages the apartment below |
| Medical payments to others | A guest trips in your apartment and needs treatment |
Coverage for belongings often applies away from home too, for example if your laptop is stolen from your car or a hotel room.
What it usually does not cover
- Floods and earthquakes (separate policies)
- Your roommate's belongings, unless they are named on the policy
- High-value jewelry, art or collectibles above small limits — schedule them separately
- Damage from pests or lack of maintenance
How much coverage do you need?
Walk through your home and estimate what it would cost to replace everything: furniture, electronics, clothes, kitchen items. Many renters are surprised that the total is $20,000–$40,000. Choose replacement cost coverage instead of actual cash value so you can buy new items, not depreciated ones. For liability, $100,000 is a common minimum; $300,000 costs little more.
How to save
- Bundle with your auto insurance for a multi-policy discount.
- Choose a $500 or $1,000 deductible if you have savings.
- Ask about discounts for smoke detectors, sprinklers or security systems.
Insurance is a fixed monthly cost. See how it fits your overall budget:
How Much Rent Can I Afford?Your maximum monthly rent by the 30% ruleTry the calculator →Frequently asked questions
Can my landlord require renters insurance?
In most states, yes. Many leases require a minimum amount of liability coverage.
Does renters insurance cover my car?
No. Damage to your car is covered by auto insurance, although belongings stolen from the car are often covered by renters insurance.