Most renters skip renters insurance because they assume their landlord's policy protects them. It does not — the landlord's policy covers the building, not your belongings or your liability.
What renters insurance covers
- Personal property — furniture, electronics, clothing
- Liability if someone is injured in your unit
- Additional living expenses if your unit becomes uninhabitable
- Theft, even outside your home in some cases
What it does NOT cover
Like homeowners policies, renters insurance excludes flood and earthquake damage. It also caps high-value items, so expensive jewelry or equipment may need a rider.
Why the landlord's policy isn't enough
Your landlord's insurance covers the structure. If a fire destroys the building, the landlord rebuilds — but everything you own inside is your responsibility unless you have your own policy.
| Loss | Landlord's policy | Renters policy |
|---|---|---|
| Building structure | Covered | Not your concern |
| Your furniture | Not covered | Covered |
| Your liability | Not covered | Covered |
| Temporary housing | Not covered | Covered |
How much coverage do you need?
Add up the replacement cost of everything you own — most people underestimate this badly. A typical one-bedroom apartment holds $20,000 to $30,000 of belongings once you count furniture, electronics, and clothing.
At $15-20 a month, renters insurance is one of the best value policies available. For most renters, it is absolutely worth it.
How to save
- Bundle with your auto policy for a discount
- Raise your deductible to lower the premium
- Install smoke detectors and security systems
While our calculators focus on homeowners coverage, the same principle applies: estimate the replacement cost of your belongings before choosing a coverage limit.