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Renters insurance costs $15 to $30/month and protects everything you own. Here is what it covers, what it does not, and how to get the right policy.
If you rent an apartment or house, your landlord’s insurance covers the building. It does not cover a single thing inside it. Your furniture, electronics, clothes, kitchen appliances, and everything you own? Unprotected. A fire, theft, or burst pipe could destroy thousands of dollars worth of your belongings, and your landlord’s policy will not pay you a cent.
Renters insurance fixes this for roughly $15 to $30/month ($180 to $360/year). According to the Insurance Information Institute, only about 55% of renters have a policy. The other 45% are one disaster away from losing everything with no financial safety net.
What renters insurance covers
Personal property coverage
This is the core of the policy. It covers the cost to repair or replace your belongings if they are damaged or destroyed by covered events (“perils”):
- Fire and smoke damage
- Theft and vandalism
- Water damage from burst pipes or appliance leaks (not floods)
- Windstorms, hail, lightning
- Explosions
- Damage from vehicles or aircraft striking your building
What counts as personal property: Furniture, electronics (laptop, phone, TV, gaming console), clothing, kitchen appliances, books, sports equipment, jewelry (up to a sub-limit, typically $1,000 to $2,500), and essentially everything you own.
Most people underestimate their belongings’ value. Walk through each room:
| Room | Estimated replacement cost |
|---|---|
| Bedroom (bed, dresser, clothes, shoes) | $3,000 to $8,000 |
| Living room (couch, TV, furniture) | $2,000 to $5,000 |
| Kitchen (appliances, dishes, cookware) | $1,000 to $3,000 |
| Electronics (laptop, phone, tablet, headphones) | $2,000 to $5,000 |
| Bathroom, closets, miscellaneous | $1,000 to $3,000 |
| Total | $10,000 to $25,000+ |
A studio apartment with basic furnishings often holds $10,000 to $15,000 in belongings. A furnished one-bedroom can easily reach $20,000+.
Use the estimator below to find your exact coverage need:Belongings Value Estimator
Enter the replacement cost of your belongings by category to find the right personal property coverage amount.
Liability coverage
If someone is injured in your apartment (a guest trips, your dog bites someone, your bathtub overflows into the unit below), liability coverage pays for their medical bills and legal fees. Standard coverage is $100,000, upgradeable for a few dollars more per month.
Additional living expenses (ALE)
If your apartment becomes uninhabitable due to a covered event, ALE pays for temporary housing, meals, and other necessary expenses while repairs are made. Coverage is typically 20 to 40% of your personal property limit.
Medical payments to others
Covers minor medical expenses (typically $1,000 to $5,000) for guests injured in your home, regardless of fault. Prevents small injuries from becoming expensive lawsuits.
What renters insurance does NOT cover
Flood damage. Standard renters insurance excludes flood damage. If you live in a flood-prone area, you need a separate flood policy through the National Flood Insurance Program (NFIP) or a private flood insurer.
Earthquake damage. Also excluded from standard policies. Separate earthquake coverage is available in earthquake-prone areas.
Roommate's belongings. Your policy covers your belongings, not your roommate's. Each person needs their own policy.
Pest damage. Damage from insects, rodents, or bed bugs is generally not covered (considered a maintenance issue).
Your car. Your vehicle is covered by auto insurance, not renters insurance. However, personal property stolen from your car (a laptop from your backseat) may be covered by your renters policy.
High-value items above sub-limits. Jewelry, watches, fine art, and collectibles have sub-limits (typically $1,000 to $2,500). If you own a $5,000 engagement ring, you need a scheduled personal property endorsement (rider) to cover the full value.
Replacement cost vs. actual cash value
This is the most important policy decision:
Actual Cash Value (ACV): Pays the depreciated value of your belongings. Your 3-year-old $1,500 laptop might be valued at $500 after depreciation. You receive $500 minus your deductible.
Replacement Cost Value (RCV): Pays the cost to buy a new equivalent item. Your 3-year-old laptop is replaced with a comparable new laptop at current prices. You receive $1,500 minus your deductible.
Always choose replacement cost. The premium difference is typically $20 to $50/year. A fire that destroys $20,000 in belongings might pay $8,000 under ACV but $20,000 under RCV. The $50/year premium difference is one of the best insurance values available.
How much does renters insurance cost?
The NAIC reports the average renters insurance premium is roughly $180 to $360/year. Your cost depends on location, coverage amount, deductible, credit score, claims history, and whether you bundle with auto insurance.
Approximate premiums:
- $15,000 coverage, $500 deductible: $12 to $20/month
- $30,000 coverage, $500 deductible: $18 to $28/month
- $50,000 coverage, $1,000 deductible: $22 to $35/month
For context: $20/month is less than most streaming subscriptions. It protects everything you own.
How to get renters insurance
Step 1: Estimate your belongings' value. Use the estimator above to find your personal property coverage need.
Step 2: Choose coverage amounts. Personal property to match your inventory total (round up). Liability at $100,000 minimum ($300,000 if you have pets or entertain frequently).
Step 3: Get quotes. Compare quotes from 3 to 5 insurers:
| Insurer | Starting price | Best for | Standout feature |
|---|---|---|---|
| Lemonade | ~$5/month | Fast online experience | AI-powered claims, some paid in seconds |
| State Farm | ~$15/month | Bundling with auto | Strong local agent network |
| Allstate | ~$15/month | Customizable coverage | Multiple add-on options |
| USAA | ~$10/month | Military and veterans only | Consistently top-rated for claims |
| Progressive | ~$14/month | Bundling with auto | Large multi-policy discounts |
| Geico | ~$12/month | Budget shoppers | Partners with multiple insurers |
Prices are approximate national averages. Always get a personalized quote.
Step 4: Bundle if possible. Check with your current auto insurer for a renters bundle discount (5 to 15% savings on both policies).
Step 5: Document your belongings. Take photos or video of every room and valuable item. Store the documentation in cloud storage (Google Drive, iCloud). Without documentation, proving what you owned and its value is difficult.
Frequently asked questions
My landlord requires renters insurance. What do I need?
Most landlords require $100,000 in liability coverage and may ask to be listed as an "interested party." Check your lease for exact requirements.
Does renters insurance cover my laptop at a coffee shop?
Yes. Personal property coverage typically applies worldwide, not just in your apartment. Your belongings are covered if stolen from your car, damaged at a friend's house, or lost while traveling (subject to policy terms and deductible).
I have a dog. Do I need more coverage?
Potentially. Dog bites are one of the most common liability claims. Some breeds are excluded by certain insurers. Disclose your pet when getting quotes. Consider increasing liability coverage to $300,000.
How do I file a claim?
Contact your insurer immediately (phone or app). File a police report if theft is involved. Provide your inventory documentation (photos, receipts). Payouts for straightforward claims typically arrive within 1 to 4 weeks.
Is renters insurance worth it for a small apartment?
Yes. Even a studio apartment contains $10,000+ in belongings. A $15/month policy with a $500 deductible protects $15,000+ in property. The math overwhelmingly favors having the policy.
The bottom line
Renters insurance is one of the best financial deals available: $15 to $30/month to protect everything you own, cover liability if someone is hurt in your home, and pay for temporary housing if disaster strikes. Choose replacement cost coverage, document your belongings, and bundle with auto insurance for the lowest rate.
If you do not have renters insurance, get a quote today. It takes 5 minutes and costs less than a streaming subscription. One apartment fire, one break-in, one burst pipe, and it pays for itself hundreds of times over.
Ready to get covered?
- Fastest quote (5 minutes): Lemonade offers instant online quotes and same-day policy issuance. Starting at $5/month in some states.
- Best for bundling with auto: Check with your current auto insurer first. Bundling renters and auto typically saves 5 to 15% on both policies.
- Compare multiple quotes: Policygenius lets you compare rates from multiple insurers in one place.
Renters insurance sorted? Make sure your emergency fund is also in place -- renters insurance covers property, but a 3-month cash cushion covers everything else.
