Renters guide
Do I need renters insurance? What it actually covers
Your landlord has insurance, but it almost certainly doesn't cover your stuff. Here's what renters insurance does, what it costs, and how much you need.
When I sold insurance, one of the most common things I heard from renters was "my landlord has insurance, so I'm fine." Then a pipe would burst or someone would break in, and they'd find out the landlord's policy covers the building and not one thing inside their apartment.
So, do you need renters insurance? For most people, yes. Here's what it actually covers, in plain English.
1. What your landlord's policy covers
Your landlord's insurance generally covers the building itself: the walls, roof, floors and the stuff that came with the unit. It does not cover your belongings, and it doesn't cover you if you accidentally cause damage or someone gets hurt because of you.
If a fire starts in the unit next door and your couch, clothes and laptop are ruined, the landlord's policy fixes the building. Your stuff is on you, unless you have your own policy.
2. The three parts of renters insurance
Most renters policies have three main pieces:
- Personal property. Your belongings: furniture, clothes, electronics, kitchen stuff, bikes. It pays when they're damaged or stolen by a covered cause, like fire, smoke, theft, or water from a burst pipe.
- Liability. If someone gets hurt in your apartment, or you accidentally damage someone else's property (say you leave the bath running and it floods the unit below), liability coverage can help pay for it, including legal costs.
- Loss of use. Also called additional living expenses. If your place becomes unlivable because of a covered loss, this helps pay the extra cost of a hotel or temporary rental and things like higher food costs while you're out.
Your belongings are usually covered away from home too. A laptop stolen from your car, a bike taken from the gym, or luggage swiped on a trip can often be claimed on your renters policy, sometimes with a lower limit.
3. What it costs
It's cheaper than most people think. According to the National Association of Insurance Commissioners, the average renters insurance premium in 2022 was $171 a year. The NAIC also says typical policies run about $15 to $30 a month.
Your price depends on where you live, how much coverage you pick, your deductible, and your claims history. Bundling with your car insurance and having things like smoke alarms and deadbolts can bring it down.
4. What it usually doesn't cover
- Flood. Rising water from outside generally isn't covered. You'd need a separate flood policy, and renters can buy flood coverage for their belongings.
- Earthquake. Usually excluded. It can sometimes be added or bought separately.
- Slow leaks and maintenance problems. If you want the details on water, see my guide on what to do after water damage.
- Pests, like bed bugs or rodents. Usually not covered.
- Expensive valuables beyond special limits. Jewelry, watches, cash and firearms often have lower caps for theft. You can usually add more coverage with a rider.
- Your car. That's your auto policy. But stuff stolen out of your car usually falls under renters. More on that in what to do after a break in.
Read the list of covered perils and exclusions in your policy. That's where the real answers are.
5. Roommates and landlord requirements
Roommates usually need their own policy. Some insurers let you add a roommate, but it can get messy: shared limits, shared claims, and both names on any payout. Most of the time it's cleaner for each person to have their own. Ask your agent how your insurer handles it.
Your landlord may require it. A lot of leases now require renters insurance with a minimum amount of liability coverage, and some ask to be listed as an interested party so they're notified if you cancel. Check your lease.
6. How much coverage you need
This is where people guess, and they almost always guess low. Most renters think their stuff is worth a few thousand dollars. Then they add up the clothes, the kitchen, the electronics and the furniture and it's way more.
Two things to decide:
- Your personal property limit. Add up what it would cost to replace everything today. I walk through the math in how much personal property coverage do I need.
- Replacement cost or actual cash value. Actual cash value pays what your stuff was worth after depreciation, so your five year old couch might be worth very little. Replacement cost pays what it costs to buy new, usually after you replace the item. It costs a bit more and is usually worth it. Here's the full breakdown on actual cash value vs replacement cost.
The easiest way to land on a real number is to do a quick home inventory. Our room by room home inventory checklist walks you through it, and it'll save you a ton of stress if you ever have to file. If you already had a loss and nothing's written down, here's how to prove what you owned without receipts.
Figure out what your stuff is worth
I built AfterProof because making a contents list by hand is brutal. Walk through your apartment and snap photos, the AI identifies each item and finds what it costs to replace today, and you get a total you can use to pick your coverage plus a PDF ready for an adjuster if you ever need it. For a big list, the web app makes it easy from a computer.
Quick answers
Does my landlord's insurance cover my belongings?
Usually not. A landlord's policy generally covers the building. Your furniture, clothes and electronics need to be covered by your own renters policy.
How much does renters insurance cost?
The NAIC reports the average renters premium was $171 a year in 2022, and says typical policies run about $15 to $30 a month. Your price depends on location, coverage and deductible.
What does renters insurance cover?
Most policies cover your personal property, your personal liability, and loss of use, which helps with temporary housing if your place becomes unlivable after a covered loss.
Does renters insurance cover flood damage?
Generally no. Flood and earthquake are usually excluded. Renters can buy separate flood coverage for their belongings.
Do roommates need separate renters insurance?
Usually it's best for each roommate to have their own policy. Some insurers allow roommates on one policy, but limits and claims are shared. Ask your agent.
This is general information, not insurance or legal advice. Every policy is different, so check yours or ask your agent.
Sources: NAIC, homeowners and renters insurance, Insurance Information Institute, renters insurance facts and statistics, Colorado Division of Insurance, flood insurance.
