Contents Insurance for Renters: What It Covers and Why You Might Need It

Contents insurance is the personal property coverage included in a renters insurance policy. It pays to repair or replace your possessions if a covered event damages or destroys them. 

This coverage is important because your landlord’s insurance only protects the structure of the rental home, appliances, and other items the landlord provides. It doesn’t cover your belongings. For that, you need your own renters insurance policy.

Learn more about how contents insurance works, how much it costs, and how to file a claim.

How contents insurance works

Contents insurance, or personal property protection, is one of the three types of coverage you get with most renters insurance policies. Unlike your landlord’s insurance, which only covers the building and the landlord’s property, tenant insurance pays to repair or replace your belongings if a covered event, known as a peril, damages them.

The law doesn’t require tenants to have renters insurance, but many landlords require it. Even if yours doesn’t, renters insurance might be worth having. It’s helpful to keep receipts and a home inventory that documents your ownership and the value of your items. That way, when you file a claim after a covered event, your insurance can reimburse you for your items.

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What contents insurance covers

Contents insurance covers personal property, like furniture, clothing, electronics, and sports and hobby equipment. It also provides “off-premises” coverage for items in your car, hotel, or storage unit.^[1]

Renters insurance is usually a named-peril policy, which means it only covers specific perils listed in your policy documents. Common ones include:^[2]

• 

  Fire/lightning

  It covers fire, including from lightning, and other damage from lightning strikes.

• 

  Windstorm/hail

  If a wind or hail storm destroys roofing or breaks a window and damages your belongings, contents insurance covers the damage.

• 

  Smoke

  Smoke damage to furniture, clothing, and other items is reimbursable by contents coverage.

• 

  Vandalism/malicious mischief

  Contents insurance protects your personal property if vandals damage or destroy it.

• 

  Theft

  Your renters insurance covers losses from theft of your belongings.

Renters insurance has a contents limit, which you select when you buy the insurance. Policies also have sublimits for specific types of personal property, such as electronics, jewelry, and collectibles.

For example, you might have a $100,000 personal property limit but a sublimit of $2,500 for jewelry and $1,500 per piece of jewelry. This is the amount your insurer will reimburse after a covered loss.^[3]

Optional add-ons and riders

Standard renters insurance policies leave coverage gaps you can fill with optional add-ons. These are also known as endorsements, floaters, or riders.

The following are some policy options you might want to add:

• Scheduled property floater: “Scheduling” your valuables increases their sublimits and might expand the number of perils covered.

• Home-business endorsement: This increases policy limits for home-business equipment.

• Replacement cost coverage: Some policies only reimburse your belongings’ actual cash value, which is the original value minus depreciation. Replacement cost coverage pays to replace the item regardless of depreciation, so you’ll get a higher payout.

• Identity theft: This optional coverage reimburses you for damages and expenses if someone steals your identity.

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What contents insurance doesn’t cover

Contents coverage doesn’t necessarily protect every personal belonging in your home or every peril. For example, it doesn’t cover your roommate’s personal property. Renters insurance only protects against emergencies listed in the policy.

These are some common policy exclusions:

• Flooding: Renters insurance doesn’t cover floods, but you can buy separate insurance from the Federal Emergency Management Agency (FEMA) if you’re in a flood-prone area.

• Earthquakes: Earthquakes are excluded from coverage. Separate earthquake coverage is available.

• Wear and tear: Contents insurance protects against sudden, unexpected emergencies, not wear and tear.

• Mold damage: Insurers consider mold to be a maintenance issue that develops over time, so they won’t cover an issue like mildewed coats that you stored in a closet.

• Pest damage: Pest damage also results from deferred maintenance, so renters insurance doesn’t cover food you have to throw away because of ants or clothing destroyed by mice.

Contents insurance cost

Renters insurance is typically affordable, with premiums averaging $22 per month for $30,000 in contents insurance, according to Insurify data. Monthly premiums for $50,000 and $100,000 in coverage average $28 and $43, respectively. Those premiums include liability insurance.

Your renters insurance cost might be higher or lower based on factors like where you live, your coverage options and limits, your deductible amount, and your claims history.

How much contents insurance do you need?

To calculate how much contents insurance you need, create a home inventory of each item and its value. Next, use a replacement-cost calculator to figure out how much the items would cost to replace.

Ideally, your contents insurance will cover the full replacement value. But you can customize coverage based on your risk level. Situations that might warrant higher coverage include:

• Urban theft risk: Living in an urban area with high rates of property crime warrants higher coverage.

• Frequent travel: Travel could make you more likely to lose belongings or for someone to steal them.

• Valuable electronics: The high cost of replacing pricey electronics might warrant a floater that increases the overall limit for electronics and the sublimit for individual devices.

How to save on contents insurance

You can save money on contents insurance by taking advantage of common discounts like the following:

• 

  Safety equipment

  Smoke detectors, fire sprinklers, dead bolts, and security systems all earn you discounts by reducing your risk of filing a claim.

• 

  Loyalty

  Sticking with your insurance company can earn you loyalty discounts.

• 

  Insurance bundles

  Bundling insurance policies, like renters and auto, for example, can earn you a discount on either or both policies.

• 

  Good credit

  Your credit history may affect your rates, so maintaining good credit helps you pay less.

You can also save money by comparing quotes from several insurers to find the best deal.

Other parts of a renters insurance policy

Contents insurance is probably the type of coverage you associate with renters insurance, but it’s not the only type you get with your policy.

Two additional coverage types help round out the protection:

• Liability coverage: Liability insurance offers financial protection if you, a family member, or your pet injures someone or damages their property. In addition to covering medical expenses for the injured party, liability insurance covers your legal expenses, up to liability limits, if the person sues. Liability coverage excludes pet damage to your home, by your pet, and the cost of treating your or your family members’ injuries.

• Additional living expenses coverage: Also called loss of use coverage, additional living expenses coverage pays for living expenses if you have to move out of your rental temporarily after a covered peril damages or destroys your home.

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How to file a contents insurance claim

If your belongings are lost or damaged in a covered event, you’ll file a claim to get reimbursed for your loss. For theft, vandalism, and dangerous emergencies, call the proper authorities and your landlord first. Then follow these steps to file a claim with your insurance company:

1. Call your insurance company or start your claim online as soon as possible. Insurers typically have 24/7 claims processing.

2. Gather information about the event that caused the loss or damage.

3. Make a list of the lost/damaged items, then photograph them.

4. Gather your home inventory and receipts to document your losses.

5. Submit any forms requested by the representative or the claims-processing app.

6. Watch for requests for additional information and documentation.

You’ll receive your reimbursement after the insurance company evaluates and processes your claim. How long that takes varies, but having a detailed inventory with receipts and photos can speed up the process.

Contents insurance for renters FAQs