Money · Insurance

Renters insurance

Your landlord's insurance covers the building, not your stuff. Renters insurance covers your belongings, your liability if someone gets hurt or you damage their property, and often extra living costs if you have to move out after a covered disaster.

Easy20 min to doOften $15 to $30 a monthChecked October 2, 2026

Do it like this

Know what you're buying: personal property, liability and additional living expenses are the usual three parts. Source: NAIC
Make a quick home inventory, room by room, with rough values. It helps you pick a coverage amount and makes a claim faster. Source: Insurance Information Institute
Choose replacement cost if you can. Actual cash value subtracts for age and wear; replacement cost doesn't, and costs about 10% more. Source: Insurance Information Institute
Get at least three quotes, Source: Insurance Information Institute and ask about discounts for alarms, deadbolts or bundling with car insurance. Source: NAIC
Save the policy and your inventory somewhere you can reach if your home isn't usable.

Watch out Standard renters policies don't cover floods or earthquakes. You'd need separate coverage. Source: Insurance Information Institute

If it doesn't work

If your landlord requires a minimum liability amount, check your policy matches it before you sign.
If you're a student in on-campus housing and under 26, check whether a parent's policy already covers your things, and up to what limit. Source: NAIC
If you need to file a claim, take photos, list what was lost, and contact your insurer as soon as you can.

Good to know

What it costs

The NAIC says renters premiums average between $15 and $30 a month, depending on location, the size of the rental and what you own. Source: NAIC

Away from home too

Many policies cover your belongings outside your home, like items stolen from your car or a hotel room. Source: NAIC

Liability matters

Liability limits generally start around $100,000, and the policy pays for both your legal defense and court awards up to the limit. Source: Insurance Information Institute

Sources

Insurance Information Institute Renters insurance
National Association of Insurance Commissioners Do I need renters insurance for college?
National Association of Insurance Commissioners For rent: protecting your belongings with renters insurance

Lesson M8.4 · Last checked October 2, 2026 against the sources listed.

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