What Does Renters Insurance Cover?
Renters insurance protects your belongings and can cover legal fees and medical costs if someone sustains an injury at your home.
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Written byAly J. Yale
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National Association of Real Estate Editors member
Bylines include Forbes, Bankrate, and CBS News
Aly is a reporter specializing in real estate, mortgages, and personal finance. You can find her work in Hearst newspapers and numerous financial publications.
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Edited byKatie Powers
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Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Updated September 17, 2024
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If you rent your home, renters insurance can help protect you and your pocketbook. These policies cover your belongings inside the property following damage from a fire, theft, or other covered event. Renters insurance can protect against liability, as well.
But, like homeowners insurance policies, renters insurance doesn’t cover everything. Policies may exclude some perils and events.[1]
Here’s what to know about renters insurance, including what it covers, how much it costs, and more.
Types of rental insurance coverage
Rental insurance is similar to home insurance in that it covers the costs to repair and replace items damaged from covered perils, including fires, windstorms, smoke, and vandalism. Renters insurance policies won’t cover damages due to flooding or earthquakes. These require separate coverage whether you rent your property or own it.
Policies for your rental unit can also cover legal costs if someone sustains an injury or has their property damaged while in your home. If your pet damages something or injures someone, renters insurance can cover it, too.
All in all, renters insurance policies typically include the following four types of coverage:
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Renters liability insurance
Liability coverage provides protection against potential lawsuits that could arise on your property. It’ll cover related legal costs (the costs of both defending you and for court awards) if someone has an injury while in your home.
Liability covers:
Other peoples’ injuries on your property
Other peoples’ property damage on your property
Legal costs
Court awards
For Example
Let’s say your dog chews up your friend’s expensive purse or shoes while they’re at your house. If the friend decides to take legal action against you, your renters policy will kick in to cover the costs.
Personal property coverage
Personal property coverage protects your belongings in the home. If a covered event — like fire, smoke, lightning, theft, vandalism, or explosion — damages something you own, the policy will cover the costs of repairing or replacing that item.
Personal property coverage could extend to the following:
Furniture
Electronics
Clothing
Appliances
Instruments
Jewelry
This coverage comes in two forms: actual cash value and replacement cost policies. Actual cost value policies only cover the costs to replace an item minus depreciation. Replacement cost coverage policies cover the cost of replacing the damaged item in full following a covered loss.
Personal property coverage might come in handy if a fire occurs in your apartment building and smoke damages your entire wardrobe. The policy would then cover the costs of replacing your clothing.
Medical expenses
Medical expenses coverage goes toward medical bills if someone has an injury while on your property. It’s similar to liability insurance in that it only covers injuries to other people (not yourself or anyone else living in the home). But instead of covering legal costs, it pays for medical bills that result from the injury.
Additional living expenses
Also called loss of use coverage, ALE coverage kicks in if you need to live elsewhere while you complete home repairs after damage from a covered event. It would reimburse you for hotel costs, food, transportation, and other expenses you incur because of the displacement.
For instance, if a hurricane damages your apartment, ALE would help you cover the costs of staying in a hotel or renting an Airbnb while you finish repairs in your unit.
What renters insurance doesn’t cover
Renters insurance won’t cover damage or injuries due to floods or earthquakes, as these require separate insurance policies. This insurance won’t cover vehicles either, even if you have them parked at your property.
Here’s a full list of the typical items excluded from rental insurance policies:
Vehicles
Floods
Earthquakes
High-value items (you generally have coverage for up to $1,500)
Injuries to yourself or someone else who lives in the home
Be sure to read the fine print of your insurance policy or ask your insurance agent if you’re not sure what your policy covers.
Average cost of renters insurance by state
The average annual cost of renters insurance nationwide is $199. Policies are most expensive in Louisiana, Mississippi, and Arkansas and cheapest in Alaska, North Carolina, and Wisconsin.
The exact cost of renters insurance will depend on your deductible, coverage limits, insurance company, location of the property, and any discounts you may be eligible for. Typically, the more coverage you have and the lower your deductibles are, the more you’ll pay for renters insurance.[2]
Below, you can compare the average monthly and yearly renters insurance costs by state.
State ▲▼ | Monthly Cost ▲▼ | Annual Cost ▲▼ |
|---|---|---|
| Alabama | $18 | $212 |
| Alaska | $5 | $65 |
| Arizona | $18 | $212 |
| Arkansas | $23 | $277 |
| California | $19 | $228 |
| Colorado | $15 | $179 |
| Connecticut | $20 | $244 |
| Delaware | $14 | $163 |
| Florida | $18 | $212 |
| Georgia | $22 | $261 |
| Hawaii | $15 | $179 |
| Idaho | $15 | $179 |
| Illinois | $20 | $244 |
| Indiana | $18 | $212 |
| Iowa | $12 | $147 |
| Kansas | $15 | $179 |
| Kentucky | $18 | $212 |
| Louisiana | $34 | $407 |
| Maine | $15 | $179 |
| Maryland | $16 | $195 |
| Massachusetts | $19 | $228 |
| Michigan | $16 | $195 |
| Minnesota | $14 | $163 |
| Mississippi | $24 | $293 |
| Missouri | $19 | $228 |
| Montana | $19 | $228 |
| Nebraska | $19 | $228 |
| Nevada | $18 | $212 |
| New Hampshire | $14 | $163 |
| New Jersey | $15 | $179 |
| New Mexico | $18 | $212 |
| New York | $15 | $179 |
| North Carolina | $10 | $114 |
| North Dakota | $12 | $147 |
| Ohio | $16 | $195 |
| Oklahoma | $18 | $212 |
| Oregon | $16 | $195 |
| Pennsylvania | $12 | $147 |
| Rhode Island | $16 | $195 |
| South Carolina | $20 | $244 |
| South Dakota | $12 | $147 |
| Tennessee | $18 | $212 |
| Texas | $20 | $244 |
| Utah | $15 | $179 |
| Vermont | $12 | $147 |
| Virginia | $16 | $195 |
| Washington | $12 | $147 |
| Washington, D.C. | $13 | $153 |
| West Virginia | $19 | $228 |
| Wisconsin | $11 | $130 |
| Wyoming | $18 | $212 |
How to save on renters insurance
The cost of renters insurance depends on several factors. Here are a few strategies that can help lower your rental insurance costs:
Choose a higher deductible
Since a higher deductible means your insurer owes less on a claim, this should reduce your premiums.
Shop around for your insurance company
Premiums can vary quite a bit between insurers, so comparing a few options can help you get the best deal.
Look for discounts
Many insurance companies offer premium discounts. You might earn one for having a security system or smoke alarm or being a student or senior, for example.
Use an agent
An independent insurance agent — one not employed by a specific insurance company — can help you compare options from several companies to ensure you get the lowest costs.
Bundle your policies
You might be able to get a discount for bundling your renters policy with one or more other insurance lines. For example, if you use State Farm for your car insurance, you may be able to get a premium reduction for using the same company for your renters policy.
Your agent may have other strategies for reducing your premium, so be sure to ask for help.
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Renters insurance coverage FAQs
Renters insurance is important to have if you rent your property, and your landlord may even require it. The following information can help answer your remaining questions about finding affordable renters insurance.
What are the four coverage parts of renters insurance?
Renters insurance covers personal property, liability, medical expenses, and additional living expenses.
Do renters legally have to buy renters insurance?
States don’t legally require renters insurance, but your landlord may require you to have it. You should check your lease documents to double-check whether you need renters insurance. You also may want to purchase a rental insurance policy for your own protection and peace of mind.[3]
Why do you need renters insurance if your landlord has insurance?
Renters insurance covers your personal property, while the landlord’s insurance doesn’t. Your landlord’s insurance protects the building and property itself but not your personal belongings within it. It also won’t protect you against liability or cover your living expenses if a natural disaster displaces you from your home.
How much is renters insurance?
The national average for a renters insurance policy with $30,000 in personal property coverage and $100,000 in personal liability coverage is $19 per month, Insurify data shows.
The price of renters insurance depends on a lot of factors, including your location, deductible, coverage limits, insurance company, and more. What discounts you’re eligible for can also affect how much you pay for rental insurance.
Is renters insurance worth it?
Renters insurance is a good idea if you don’t have the funds to comfortably cover replacing your belongings following damage from an unexpected disaster. It can also pay for legal fees or medical costs if someone incurs an injury on your property. If your home incurs damage in a covered event and you need to live elsewhere temporarily, renters insurance can cover those expenses.
Sources
- Insurance Information Institute. "Renters Insurance."
- Insurance Information Institute. "Your renters insurance guide."
- Texas Department of Insurance. "Renters insurance: What does it cover and how much does it cost?."
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Aly J. Yale
Aly J. Yale is a freelance writer and reporter covering real estate, mortgages, and personal finance. Her work has been published in Forbes, Business Insider, Money, CBS News, US News & World Report, and The Miami Herald. She has a bachelor’s degree in radio-TV-film and news-editorial journalism from the Bob Schieffer College of Communication at TCU and is a member of the National Association of Real Estate Editors.
Aly has been a contributor at Insurify since September 2023.
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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