Guides / Renters, home & pet

Renters Insurance: What It Covers, What It Doesn't, and What It Costs

By Save2Insure · Published 2026-10-11

Your landlord's insurance covers the building. It does not cover your furniture, your laptop or your liability if a guest gets hurt. That gap is what renters insurance is for. Here is how a typical policy is laid out and what people usually pay.

The four main parts of a renters policy

Personal property. Pays to repair or replace your belongings if they are stolen or damaged by a covered event such as fire, theft or a windstorm.
Loss of use (additional living expenses). If a covered loss makes your unit unlivable, this helps with costs like a hotel and extra food while you are out.
Personal liability. If you cause injury to someone else or damage their property, this helps with legal costs and damages, up to your limit.
Medical payments to others. Small medical bills for a guest hurt at your place, regardless of fault.

What renters insurance usually does not cover

Flood and earthquake. These are generally excluded and need separate coverage.
Your roommate's belongings. Unless they are named on your policy, their things are generally not covered. Each roommate usually needs their own policy.
Intentional damage.
The building itself. That is the landlord's policy.

Some items, like jewelry, collectibles and expensive electronics, can have sub-limits. If you own high-value items, ask the insurer whether you can add extra coverage for them.

Replacement cost vs actual cash value

This setting changes what you get paid after a loss. Actual cash value pays what your item was worth after depreciation, so a five-year-old TV pays out as a five-year-old TV. Replacement cost pays what it costs to buy a new equivalent. Consumer guides report the monthly price difference is often only a few dollars, but check the actual quote for your policy.

What does renters insurance cost?

Published averages vary by source and method, so treat these as ballparks:

Source	Reported typical cost
MoneyGeek (2026 average)	About $15 a month, $182 a year, for $20,000 of property coverage and $100,000 of liability
Insurify	About $17 to $28 a month depending on coverage chosen
Acorn Quotes	About $148 a year (around $12 a month)

Price depends on where you live, how much property coverage you pick, your deductible, claims history and, in many states, credit-based factors. MoneyGeek's data shows how much the property limit drives price: $20,000 of coverage averaged $182 a year, while $250,000 averaged $1,084.

How much coverage do people pick?

A common exercise is to walk through each room and add up what it would cost to replace everything. Several consumer guides note that renters tend to underestimate what they own. Typical policies land around $15,000 to $30,000 of personal property and at least $100,000 of liability, per Acorn Quotes, but your own inventory is a better starting point than an average.

Frequently asked questions

Is renters insurance required by law?

Generally no. It is optional by law in most places, but many landlords require tenants to carry a policy as a lease condition, according to Insurify. Check your lease.

Does my landlord's insurance cover my belongings?

No. A landlord's policy typically covers the building and the landlord's liability, not a tenant's personal property.

Does renters insurance cover things stolen outside my home?

It depends on the policy. Coverage for belongings away from home, and the limits that apply, differ by insurer. Ask the insurer or read the policy before you assume.

Can I get renters insurance with a roommate?

Some insurers let roommates share one policy if they are all listed. Others expect separate policies. Ask the insurer how it handles roommates before you buy.

Sources

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