Renters Insurance for Apartments: What You Need to Know in 2025

When you rent an apartment, your landlord’s insurance covers only the building itself — not your belongings or liability if someone gets hurt in your unit. That’s where apartment renters insurance comes in.

A renters policy protects your possessions from covered perils like theft and fire, covers your liability if you accidentally cause property damage or injuries, and pays for additional living expenses if your apartment becomes uninhabitable.^[1]

But renters insurance doesn’t cover everything. For example, coverage for floods and earthquakes requires separate policies. Here’s what you need to know about protecting your apartment and belongings.

What Apartment Renters Insurance Covers

Understanding what your renters policy covers helps you know whether you have enough protection for your apartment. Most renters insurance policies include four main types of coverage that work together to protect you financially.

Personal property coverage

Personal property coverage reimburses you if your belongings are damaged or stolen. This includes furniture, electronics, clothes, and other possessions. If someone breaks into your unit or a fire damages your furniture, this coverage pays to replace your belongings up to your coverage limits.

Most policies extend coverage to items in your car or things you take with you while traveling. High-value items like jewelry may have sublimits, requiring additional coverage.

Liability coverage

Liability protection covers you if someone gets injured in your apartment or you accidentally cause property damage. If a guest slips and breaks their arm, liability coverage pays medical bills and legal fees if they sue you. It also covers damage to other units from incidents like water damage from your overflowing bathtub. Coverage usually starts at $100,000.

Loss of use (additional living expenses)

If your apartment becomes uninhabitable due to a covered event, like a fire, loss of use coverage pays temporary living expenses during repairs. This includes hotel bills, restaurant meals, and other costs above normal spending. If a fire forces you to stay in a hotel, your policy covers the difference between hotel costs and your normal rent.

Medical payments to others

Medical payments coverage pays for minor injuries sustained by guests, regardless of fault. If your friend trips and sprains their ankle, this handles medical bills without a lawsuit. This coverage typically ranges from $1,000 to $5,000 per person.

What Renters Insurance Doesn’t Cover for Apartments

While renters insurance protects against many risks, it has important exclusions. Here are common situations that standard policies don’t cover:

• Flood damage: Renters policies cover water damage from burst pipes, but flooding from outside sources requires a separate flood insurance policy.

• Earthquake damage: You’ll need earthquake insurance as a separate policy or endorsement.

• Perils not listed: Renters policies cover only specific named perils, so check your policy details.^[3]

• Roommate’s belongings: Each roommate needs their own renters policy unless you’re all listed on one policy.

• Pest infestations: Damage from rodents, insects, or other pests doesn’t have coverage.

• Wear and tear: Normal aging and maintenance issues are your responsibility.

• Intentional damage: A renters policy won’t cover any damage you cause on purpose.

• Business property: If you run a business from your apartment, you may need separate coverage.

Do You Need Renters Insurance for Your Apartment?

Renters insurance isn’t legally required by any state government, but many landlords will include it as a requirement in lease agreements.^[4]

Even if your landlord doesn’t require coverage, renters insurance is often worth buying. The average renters policy costs less than a dollar per day but can save you thousands if disaster strikes. Before you move in, check your lease agreement to see whether your landlord requires proof of coverage and what minimum coverage limits they specify.

How Renters Insurance for Apartments Works

Knowing how your renters policy operates helps you make smart coverage decisions and navigate the claims process smoothly.

Policy limits, sublimits, and deductibles

Your insurance has a main coverage limit for personal belongings, which can range from $10,000 to $250,000, depending on the policy. This is the maximum your insurance company will pay for covered losses. Within that limit, sublimits restrict payouts for specific categories like jewelry, electronics, collectibles, and other valuables.

Your deductible is what you pay out of pocket before your coverage kicks in. For example, if you have a $500 deductible and $2,000 worth of stolen items, you’ll receive $1,500 from your insurer. Higher deductibles lower your monthly premium but mean more up-front costs when you file a claim.

Replacement cost vs. actual cash value (RCV vs. ACV)

Replacement cost coverage pays to buy new items at today’s prices, while actual cash value coverage deducts depreciation from your payout.

For instance, if someone steals your 5-year-old laptop, replacement cost coverage buys you a new equivalent laptop, but actual cash value reimburses only what your used laptop was worth. Replacement cost policies are roughly 10% more expensive but provide better protection for your possessions.

Filing a claim

If you need to file a renters insurance claim, follow these steps:

1. Report any theft or vandalism to the police and obtain a copy of the police report.

2. Contact your insurance company immediately to begin the claims process.

3. Document all damage with photos and create a detailed inventory of lost or stolen items.

4. Keep all receipts for temporary housing and any additional living expenses if you’re displaced.

5. Complete and return all claim forms that your insurance company provides you with.

6. Follow up regularly with the adjuster until your claim is fully resolved and you’ve received your claim payout.

How to Choose the Right Renters Coverage for Your Apartment

Before buying renters insurance, assess your needs to make sure you’re getting appropriate coverage. Here’s how to determine the right amount:

• Create a home inventory: List all your belongings and estimate their total value to ensure your coverage limits are sufficient.

• Consider replacement cost coverage: Opt for a replacement cost policy rather than actual cash value if your budget allows.

• Evaluate liability needs: Some experts recommend having at least $300,000 in liability protection, but more is better if you have assets to protect.

• Check special item limits: If you own expensive jewelry, electronics, or collectibles, ask about scheduled personal property endorsements.

• Review your lease agreement: Make sure your policy meets any minimum requirements your landlord has set.

• Think about your location: Apartments in high-crime areas or regions prone to natural disasters may need more coverage.

How to Buy Apartment Renters Insurance in 5 Simple Steps

Getting apartment insurance is a relatively straightforward process. Follow these steps to get coverage:

1. Create an inventory of your possessions: Walk through your apartment and list items with their estimated values to determine how much personal property coverage you need.

2. Get renters insurance quotes from multiple insurers: Compare rates from at least three renters insurance companies to find the best price and coverage.

3. Review policy details carefully: Check coverage limits, deductibles, exclusions, and whether the policy offers replacement cost or actual cash value coverage.

4. Ask about discounts: Ask about bundling insurance with your auto policy, security system discounts, and other ways to save.

5. Purchase your policy and provide proof to your landlord: Once you’ve selected a renters policy, buy it and send proof of coverage to your landlord if required.

How to Get Cheap Renters Insurance

Renters insurance is already affordable, but you can save even more with these strategies:

• Bundle with auto insurance: Most insurance companies offer discounts when you bundle renters and auto policies together.

• Increase your deductible: Raising your deductible can significantly lower your monthly premium. Just make sure you can afford to pay the higher deductible amount if you need to file a claim.

• Install safety features: Security systems, smoke detectors, and deadbolt locks may qualify you for discounts.

• Stay claims-free: Many insurers reward customers who don’t file claims by lowering their rates over time.

• Pay annually: Paying your full premium up front instead of monthly often saves you money.

Apartment Renters Insurance FAQs