Many renters assume their landlord’s insurance protects them. It does not: the landlord’s policy covers the building, not your belongings or your personal liability. Here is why renters insurance is worth considering.
Five situations where renters insurance helps
- A fire in your building destroys your furniture, clothes and electronics.
- A burglary or a stolen laptop from your car or while traveling.
- A guest slips and is injured in your apartment and seeks payment for medical bills.
- Your bathtub overflows and damages the apartment below.
- Your unit becomes unlivable after a covered loss and you need a hotel.
How much does it cost?
Renters insurance is one of the most affordable types of insurance. Your price depends on your location, the amount of coverage, your deductible and your claims history. Bundling it with auto insurance often reduces the total cost of both policies.
How to choose coverage
- Estimate the value of your belongings with a quick room-by-room inventory.
- Choose replacement cost rather than actual cash value coverage when possible.
- Select liability limits that protect your savings; many policies start at $100,000.
- Add riders for valuable jewelry, bikes or collectibles.
- Consider flood or earthquake coverage if you live in a high-risk area.
Is it required?
No state law requires renters insurance, but landlords can require it in the lease, and many do.
The verdict
For most renters, the low cost of a policy is small compared with the cost of replacing everything you own or paying a liability claim yourself. Read our renters insurance guide for more details.
This article is for general information only and is not insurance, legal or financial advice. Rules and prices vary by state and insurer. Check your policy and talk to a licensed agent before making changes.