Renters Insurance: What You Need to Know
Renters insurance provides protection for your personal belongings if they’re damaged or destroyed by a covered event (known as a peril). It can also cover additional living expenses—such as temporary lodging and groceries—if you’re unable to live in your rental while it’s being repaired. Additionally, renters insurance includes personal liability coverage, which protects you if you’re found legally responsible for someone else’s injuries or property damage.
It’s important to note that renters insurance does not cover the structure of your rental property—that responsibility falls to your landlord.
How Does Renters Insurance Work?
If a covered loss occurs, renters insurance reimburses you for damage to your personal belongings, up to the limits of your policy and minus your deductible. To receive compensation, you’ll file a claim with your insurance provider.
Getting a quote is simple—insurers typically ask only a few questions about your rental unit and the approximate value of your possessions.
Do You Need Renters Insurance?
While renters insurance isn’t legally required, some landlords or apartment complexes may insist on it as part of your lease. Even if it’s optional, it’s a smart investment to protect your belongings.
For example, the average Progressive renters policyholder has about $24,000 worth of personal property coverage. Without renters insurance, you’d be responsible for replacing everything—from clothes and furniture to electronics—if they were stolen or destroyed in a fire.
What Does Renters Insurance Cover?
Most policies include coverage for:
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Personal property: Replacement or repair of your belongings.
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Personal liability: Protection if you’re legally responsible for injuries or property damage.
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Medical payments: Coverage for certain medical costs if a guest is injured in your home.
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Additional living expenses (loss of use): Help with costs like lodging and food if your rental is uninhabitable due to a covered event.
What Isn’t Covered?
A renters insurance policy does not cover:
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Structural damage to your rental unit (e.g., roof, walls, ceilings—covered by your landlord’s insurance).
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Damage from pests such as termites, mice, or bed bugs.
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Normal wear and tear or intentional damage.
How Is Renters Insurance Priced?
The cost of renters insurance depends on several factors, including:
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Location: Safer neighborhoods with lower crime rates often mean lower premiums.
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Coverage limits: The higher your coverage, the more you’ll pay.
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Number of units in the building: Larger apartment buildings may mean lower costs.
Many insurers also offer discounts that can help you save on your premium.
Renters Insurance FAQs
Will renters insurance cover pets?
Liability coverage may pay for injuries or damages your pet causes to others, but it generally won’t cover damage to your rental property caused by your pet.
Are pest problems covered?
No. Renters insurance doesn’t cover extermination costs or damage from pests like mice or bed bugs. In many cases, pest control is the landlord’s responsibility.
Does coverage extend to self-storage units?
Yes, but coverage for items in storage is usually limited to a smaller percentage of your total policy.
What about roommates?
Renters insurance only covers the policyholder. Your roommates’ belongings and liability won’t be protected unless they’re specifically added to your policy (depending on state and provider rules)