If you rent a home, condo, or apartment, a renter’s insurance policy can help protect your personal belongings. Even when a landlord carries property insurance, that coverage typically applies to the building itself and not to the tenant’s possessions.
The cost of renter’s insurance varies based on factors such as coverage limits, deductibles, and location. Like other insurance policies, renter’s insurance involves specific terms, exclusions, and reimbursement limits.
Some policies reimburse items based on actual cash value (depreciated value), while others may reimburse based on replacement cost. The option available depends on the policy you choose.
Reasons You Should Consider Having Renter’s Insurance
Unless you’re living with very few belongings, having renter’s insurance may be worth considering. While coverage details vary, many renters find value in the added protection and peace of mind it can provide.
It’s Often Reasonably Priced
According to national averages reported in 2020, renter’s insurance has cost roughly $108 to $252 per year. Actual costs depend on coverage selections, deductible amounts, and where you live, and may be higher or lower than these averages.
It Can Help Protect Your Personal Property
Renter’s insurance is designed to help cover losses to personal belongings, such as clothing, electronics, furniture, and other household items, if a covered event occurs. Coverage amounts and eligible items depend on the policy, and limits may apply. Replacing damaged or lost items out of pocket can be costly, which is why some renters choose to carry insurance.
Liability Coverage May Be Included
Most renter’s insurance policies include some level of personal liability coverage. If someone is injured in your rental unit and you’re found responsible, liability coverage may help cover certain legal expenses or judgments, subject to policy limits and exclusions.
Many policies offer baseline liability limits (often starting around $100,000), with optional higher limits available. Medical payments coverage may also be included, though amounts vary by plan.
It May Be Required by Your Landlord
Some landlords require tenants to carry renter’s insurance as a condition of the lease. While landlords typically insure the building, tenants may be responsible for insuring their personal property.
Coverage May Extend Beyond Your Home
Some renter’s insurance policies cover personal belongings even when they’re outside the home—such as in your car or while traveling. Coverage terms vary, so it’s important to review your policy details to understand what’s included.
Additional Living Expenses May Be Covered
If your rental becomes temporarily uninhabitable due to a covered event, renter’s insurance may help pay for certain additional living expenses, such as temporary housing or increased food costs. Coverage limits, duration, and eligible expenses depend on the policy.
Peace of Mind
Renter’s insurance can be an important consideration for many tenants. While coverage is not unlimited and benefits depend on the policy terms, it may provide added protection for your belongings and certain liabilities if unexpected situations arise.
