What is renter's insurance and do I need it?
Quick Answer
Renter's insurance covers your personal belongings against theft, fire, and certain disasters. It also provides liability coverage if someone is injured in your home. Policies cost $15 to $30 per month. Many landlords require it.
Renter's insurance is one of the best-value insurance products available. Here is what it covers and why it matters.
What it covers: personal property protection (your belongings against theft, fire, vandalism, and certain weather events), liability coverage (if someone is injured in your apartment, typically $100,000 to $300,000), additional living expenses (hotel and food costs if your apartment becomes uninhabitable), and medical payments to guests (covers minor injuries without a lawsuit, typically $1,000-$5,000).
What it does not cover: floods (requires separate flood insurance), earthquakes (requires a separate rider or policy), your roommate's belongings (they need their own policy), pest damage, and normal wear and tear.
Cost: $15 to $30 per month for a typical policy with $30,000 in personal property coverage and $100,000 in liability. Deductibles are usually $500 to $1,000. Bundling with auto insurance can save 5-15%.
Do you need it? Many landlords require it as a lease condition. Even if yours does not, the cost-benefit is compelling. Consider: if a fire destroyed everything you own, could you afford to replace your clothing, electronics, furniture, and kitchen items out of pocket? For most people, the answer is no.
How to get it: most auto insurance companies also offer renter's insurance (State Farm, GEICO, Progressive, Lemonade). Get quotes from 2-3 providers. Application takes 10-15 minutes online.