What renters insurance covers
Personal property
- Furniture, electronics, clothes
- Covered for fire, theft, smoke, certain water damage and more
- Often covered away from home too
Personal liability
- Injuries to guests in your home
- Damage you accidentally cause to others' property
- Legal defense costs
Loss of use
- Hotel and extra living costs
- When a covered loss makes your home unlivable
What it usually doesn't cover
- Floods (rising water) — that needs separate flood insurance, which is worth considering in flood-prone areas.
- Earthquakes — a separate endorsement or policy.
- Pest damage such as bed bugs or rodents.
- Your roommate's belongings unless they're named on the policy.
- High-value items above sub-limits — jewelry, watches and collectibles often have a theft limit around $1,500 unless scheduled.
How much coverage do you need?
Add up what it would cost to replace everything you own — most renters underestimate by thousands. The calculator below helps you estimate it room by room. A few rules of thumb:
- Personal property: $20,000–$30,000 is common for a 1–2 bedroom apartment.
- Liability: $100,000 is the typical minimum; $300,000 is inexpensive peace of mind if you have a dog, host often or have savings to protect.
- Replacement cost vs. actual cash value: replacement cost pays to buy new; actual cash value subtracts depreciation. Replacement cost costs a little more and is usually worth it.
What renters insurance costs
National averages typically run around $15–$25 per month, depending on your location, coverage amount, deductible, claims history and (in many states) credit-based insurance score. Bundling with auto insurance often brings a discount.
When your landlord requires it
Many leases require proof of renters insurance with a minimum liability amount (often $100,000) and the property listed as an "interested party" so they're notified if the policy lapses. Some properties offer a built-in plan — compare its price and coverage with buying your own.
How to make a claim go smoothly
- Keep a home inventory: a video walkthrough of every room and closet, saved to the cloud.
- Save receipts for big purchases (email receipts count).
- After a loss, document damage before cleaning up and file a police report for theft.
- Contact your insurer promptly and keep a log of every conversation.
Free tool: Renters Insurance Calculator
Adjust the value of your belongings by category to see a suggested coverage amount, liability limit and estimated monthly premium.
Frequently asked questions
Is renters insurance required by law?
No state requires it by law, but landlords can require it in the lease — and many do.
Does renters insurance cover my roommate?
Not automatically. Some insurers let you add a roommate to the policy; otherwise each roommate should carry their own.
Does renters insurance cover my car?
It doesn't cover the car itself, but it often covers personal belongings stolen from your car.
Does renters insurance cover water damage?
It usually covers sudden and accidental water damage, such as a burst pipe or an overflowing upstairs washer, but not flooding from rising water or damage from long-term leaks.
