Renters Insurance

To zero in on how much renters insurance you might want, it helps to make an inventory of your personal belongings — things like electronics, furniture, appliances, jewelry, art and other valuables — and their estimated value. Also consider the value of any financial assets you’d want to protect against a lawsuit and whether you might want additional coverage for high-value items.

You’re not required by law to get renters insurance, but your landlord may require it as part of your lease.

While renters insurance may or may not be required, it’s important to understand that your landlord’s insurance policy typically does not cover your personal possessions, like furniture, electronics or clothing. A renters policy can help pay for damages or loss if, say, a fire breaks out or a pipe bursts and ruins your things. It can also help with medical bills if a visitor is hurt in your home. 

Renters insurance can cost as little as $10 a month but averages about $14 a month, according to recent figures from the National Association of Insurance Commissioners. Costs vary by state and by the amount and types of coverage you choose. Bundling your renters and car insurance policy can save you money.

Renters insurance covers your property. Your landlord’s insurance covers the building. So if there’s a fire, your policy could help you repair or replace clothing and furniture, while your landlord’s policy would pay for repairs to the walls, floors and built-in cabinets. If a guest hits their head and it’s your fault, your liability coverage could help. But if the visitor slips on icy stairs outside and it’s your landlord’s fault, a claim would go against their policy, not yours.

Some, but not all, types of water damage are covered in a renters insurance policy. If a leak is sudden and accidental, like a burst pipe, it’s generally covered. But flooding — water that comes from the bottom up, like from storm surge or an overflowing river — is not. (Separate flood insurance may be available.)

That’s up to your landlord, but many landlords do make renters insurance a condition of your lease. Even if it’s not required, think about what could happen if a fire breaks out and your furniture needs replacing. Without renters insurance, the expense of replacing your belongings would fall to you.

The answer depends on the type of damage. If your cat shreds your apartment’s wall-to-wall carpeting, renters insurance typically does not cover the damage. But if your dog bites your neighbor, liability coverage in your renters policy might pay for legal or medical costs. Pet insurance typically reimburses a percentage of the cost of vet treatments for accidents or illness, but it does not cover pet damage.

Yes. Renters insurance covers your personal property against theft. And it’s covered whether something — say, your laptop — is stolen from inside your home or from somewhere else, like your favorite café.

Renters insurance covers your belongings if they’re damaged in an event covered by your policy. It also can cover medical and legal costs if you’re at fault for someone else’s injury or damage to their property. It typically does not cover high-value items or damage caused by flooding or earthquakes. Your policy also only covers you up to the coverage amounts you choose.