Your landlord insures the building, not your belongings. Renters insurance fills that gap, often for less than people expect.
Key points
- Renters insurance covers your belongings, your personal liability and extra living costs if your home becomes unlivable.
- Your landlord’s insurance covers the building, not your possessions.
- Replacement cost coverage pays to buy new items; actual cash value deducts depreciation.
- Floods and earthquakes are usually excluded and need separate coverage.
- A home inventory makes claims faster and easier.
Fires, burst pipes and break-ins happen to renters too. Renters insurance helps you replace your things, covers you if you’re responsible for an accident and pays for somewhere to stay if your home can’t be lived in.
What it covers
- Personal property: furniture, clothing, electronics and other belongings, against covered events such as fire, theft and some water damage.
- Personal liability: if you’re found responsible for injuring someone or damaging their property.
- Additional living expenses: extra costs such as a hotel and meals if a covered loss forces you to move out temporarily.
- Medical payments to others: small medical bills if a guest is injured, regardless of fault.
What it usually doesn’t cover
- Floods, which need separate flood insurance.
- Earthquakes, which usually need an add-on or separate policy.
- Your roommate’s belongings, unless they’re named on your policy.
- Wear and tear, pests and damage you cause on purpose.
Helpful tip
Walk through your home with your phone and record a short video of your belongings, including serial numbers for electronics. Store it online so it survives a fire or theft.
Replacement cost or actual cash value
Replacement cost coverage pays what it costs to buy a similar new item. Actual cash value pays the item’s depreciated value, which can be much less for older furniture and electronics. Replacement cost usually costs a little more but pays out more.
Choosing limits
- Belongings: add up what it would cost to replace everything you own; it’s often more than people think.
- Liability: many policies start at $100,000; consider more if you have significant savings to protect, or an umbrella policy.
- Deductible: a higher deductible lowers your premium but means paying more yourself.
Related guides
Pets can bring their own costs; see our guide to pet insurance.
Frequently asked questions
Is renters insurance required?
There’s no federal requirement, but many landlords require it in the lease, often with a minimum liability limit.
Does it cover my belongings outside the home?
Often, yes. Many policies cover personal property away from home, such as items stolen from your car, sometimes with lower limits.
Are my roommate’s belongings covered?
Usually not, unless they’re named on your policy. Each roommate typically needs their own policy.
Are expensive items fully covered?
Policies often have lower limits for jewelry, collectibles and some electronics. You can add coverage for valuable items.
This guide is general information, not insurance, tax or legal advice. Rules, limits and deadlines change each year, so check HealthCare.gov, Medicare.gov or your insurer for your situation.