What is Renters Insurance?
Renters insurance protects your personal belongings if they are stolen, damaged by fire, or destroyed by a covered event. It also provides liability coverage if someone is injured in your apartment and covers additional living expenses if your rental becomes uninhabitable. Average cost: $15-$30 per month.
What Renters Insurance Covers
- Personal property — Furniture, electronics, clothing, appliances. If a fire destroys your apartment, your landlord insurance covers the building, not your stuff. Average renter has $20,000-$30,000 in belongings
- Liability — If someone slips in your apartment and sues, liability coverage pays legal costs and damages. Typically $100,000 in coverage. Also covers damage you accidentally cause to others property
- Additional living expenses (ALE) — If your rental is uninhabitable due to a covered event, ALE covers hotel, meals, and temporary housing costs
- Off-premises coverage — Your belongings are covered even outside your home. Laptop stolen from your car? Covered. Phone stolen while traveling? Covered
What It Does NOT Cover
- Floods and earthquakes — Require separate policies. If you are in a flood zone, get flood insurance through NFIP
- Your roommate belongings — Each person needs their own policy unless specifically listed
- High-value items above limits — Jewelry, art, and collectibles often have sub-limits ($1,500-$2,500). Get a rider/floater for expensive items
- Your car — That is covered by auto insurance
Pro tip: Choose replacement cost coverage, not actual cash value. ACV deducts depreciation — your 3-year-old laptop is valued at $200. Replacement cost gives you enough to buy a comparable new one.