Renters insurance costs just $15-30/month but protects thousands of dollars in belongings. Your landlord's insurance doesn't cover your stuff. This guide explains what you need and the best companies to use.
Renters Insurance Quick Facts
- Average cost: $15-30/month ($180-360/year)
- Coverage types: Personal property, liability, additional living expenses
- What's covered: Theft, fire, water damage, vandalism
- Many landlords: Require renters insurance
- Covers you: At home and away (e.g., laptop stolen on trip)
Best Renters Insurance Companies 2025
| Company | Avg Monthly | Best For | Rating |
|---|---|---|---|
| Lemonade | $10-25 | Easy online, fast claims | |
| State Farm | $15-35 | Agent support, bundling | |
| GEICO | $12-30 | Low rates | |
| Allstate | $15-35 | Identity protection | |
| Progressive | $12-28 | Auto bundling | |
| USAA | $10-20 | Military (members only) |
What Renters Insurance Covers
Personal Property Coverage
Covers your belongings if stolen or damaged by covered events:
- Furniture, clothing, electronics
- Fire, theft, vandalism damage
- Water damage (not floods)
- Belongings away from home (stolen laptop, luggage)
- Typical coverage: $20,000-50,000
Liability Coverage
Protects you if someone is injured in your apartment or you damage property:
- Medical bills if guest is injured
- Legal defense costs
- Damage you cause to others' property
- Dog bite liability
- Typical coverage: $100,000-300,000
Additional Living Expenses (ALE)
Pays for temporary housing if your place becomes uninhabitable:
- Hotel costs
- Restaurant meals (above normal food costs)
- Storage for belongings
- Typical coverage: 20% of personal property limit
What's NOT Covered
- Floods: Requires separate flood insurance
- Earthquakes: Requires separate policy
- Roommate's belongings: They need their own policy
- Expensive jewelry/art: May need scheduled coverage
- Bed bugs: Usually excluded
- Your car: Covered by auto insurance
How Much Coverage Do You Need?
Coverage Calculator
- Inventory your belongings: Room by room
- Estimate replacement cost: What would it cost to replace everything?
- Most people underestimate: Average renter has $20,000-35,000 in stuff
- Add buffer: Get 10-20% more than estimate
Pro tip: Take photos/videos of belongings for claims.
Replacement Cost vs. Actual Cash Value
| Type | What You Get | Cost | Best For |
|---|---|---|---|
| Replacement Cost | Full cost of new item | $$ (10-15% more) | Most renters (recommended) |
| Actual Cash Value | Depreciated value | $ | Budget-conscious, minimal stuff |
Example: 5-year-old TV stolen worth $800 new. Replacement cost pays $800. ACV might pay $300 (depreciated).
How to Lower Your Premium
- Bundle with auto: Save 10-25%
- Higher deductible: $500→$1,000 saves 10-15%
- Security features: Smoke detectors, deadbolts, alarms
- Claims-free discount: No claims for 3+ years
- Pay annually: Avoid monthly payment fees
- Good credit: Affects rates in most states
How to File a Claim
- Document damage: Take photos immediately
- File police report: Required for theft claims
- Contact insurer quickly: Most require 24-72 hours
- Provide inventory: List of damaged/stolen items with values
- Get repair estimates: If applicable
- Save receipts: For temporary living expenses
Do You Really Need Renters Insurance?
Yes, Because:
- Your landlord's insurance covers NOTHING of yours
- $15-30/month protects $20,000+ in belongings
- Liability protection prevents financial disaster
- Many landlords require it anyway
- Covers you anywhere (travel, storage, etc.)