What Renters Insurance Covers (and What It Doesn’t)

Renters insurance is an inexpensive way to protect your belongings and finances if something unexpected happens, like a fire, theft, or a guest getting hurt on your property. It helps cover your stuff and provides peace of mind for life’s unpredictable what-ifs.

Even if your landlord has insurance, it only covers the building, not your personal property or your liability. This guide breaks down the cost of renters insurance, what it does and doesn’t cover, how it works, and how to find the right policy for your specific needs.

What Renters Insurance Covers

A standard renters insurance policy typically includes three key types of coverage: personal property, liability, and additional living expenses (ALE). Together, these cover your personal belongings, protect you financially if someone gets hurt or sues you, and help pay for temporary living costs if your rental becomes uninhabitable.

Here’s how each works.

Personal property coverage

Personal property coverage protects your belongings — including electronics, furniture, and clothing — against damage or theft resulting from covered events, such as fire, theft, or vandalism. It may also provide off-premises coverage for items in a storage unit or while you’re traveling.

Coverage often includes sublimits for specific categories, such as jewelry, collectibles, sports equipment, or musical instruments. For example, many policies limit coverage for jewelry and other expensive items to around $1,500 per loss. If you have high-value items, ask about adding a floater or endorsement to increase the coverage amount.^[1]

You’ll choose a coverage limit (the maximum your insurer will pay) and a deductible (what you pay out of pocket before coverage applies). Policies reimburse you based on replacement cost value (RCV), which pays to replace items at today’s prices, or actual cash value (ACV), which pays based on the depreciated value of your items.

RCV pays the cost of replacing your item with a similar one, while ACV pays only what it’s worth today.

This type of coverage comes into effect if, for example, a kitchen fire damages your appliances and TV, or someone steals your laptop.

Liability coverage

Personal liability coverage protects you if you accidentally cause injury or property damage to someone else and they sue you, like a guest slipping in your kitchen or your child breaking a neighbor’s window. Most policies offer limits ranging from $100,000 to $500,000.

If you own a dog, you should check with your insurer to see if the coverage also includes dog bite liability. Some companies insure only certain breeds or don’t insure dogs at all. In that case, you may need a separate dog bite liability policy.^[2]

A related coverage, medical payments to others, helps pay for minor injuries that happen on your property, regardless of fault. Coverage typically ranges from $1,000 to $5,000 and differs from liability coverage because it doesn’t cover legal fees or require a lawsuit to apply.

Additional living expenses

ALE (or loss of use coverage) pays the extra costs if your rental becomes uninhabitable after a covered loss, such as a fire or a burst pipe. It can help cover the costs of temporary housing, meals, and even laundry while the mechanic completes your repairs. But it doesn’t cover everyday expenses, such as your rent or utilities.

For instance, if smoke damage forces you out for a few weeks, ALE ensures you’ll have a place to stay.

What Renters Insurance Doesn’t Cover

Renters insurance doesn’t cover every situation. Knowing what your policy excludes can help you avoid surprises and decide whether you need additional coverage. Always review your policy details and ask your insurer about endorsements if you want more protection.

Here are some common policy exclusions:

• Wear and tear: Renters insurance typically doesn’t cover damage resulting from normal use or aging. Routine maintenance and repairs are typically the responsibility of either you or your landlord, depending on the terms of your lease.

• Pests: Policies don’t cover damage caused by pest infestations. Ask your landlord about regular pest control, as some may include it in their lease agreements.

• Floods: Renters insurance doesn’t cover flood damage. You’ll need a separate flood insurance policy through the National Flood Insurance Program or a private insurer.

• Earthquakes: Your policy doesn’t cover ground movement and earthquake damage, but you may be able to add an endorsement or buy a separate earthquake insurance policy.

• Roommates: Your policy only protects your belongings and liability. Unrelated roommates need their own renters insurance policies.

How Renters Insurance Works

Renters insurance coverage helps protect your belongings and finances if something unexpected happens in your rental apartment, home, or condo. It covers your stuff if a fire, theft, or windstorm damages it. Your policy also provides liability protection if someone gets hurt in your unit or if you, your spouse, kids, or pets accidentally damage someone’s property.

That means your landlord’s insurance won’t pay for your personal belongings, or if you’re liable for injuries or property damage to others.

For example, let’s say a fire damages your kitchen, there’s smoke damage throughout your living room, and you have to live elsewhere until repairs are complete. Your policy would pay to replace your items and help cover temporary housing costs. You’d file a claim with your insurance company, pay your deductible, and the insurer will reimburse you for the approved expenses.

Now that you know what renters insurance covers, let’s dig a little deeper into the coverage details.

Understanding Renters Insurance Coverage Details

To make the most of your renters insurance, it’s important to know how coverage limits, deductibles, and claims payouts actually work. These details affect your reimbursement amount and how much you pay out of pocket, so knowing the difference can help you choose the right policy for your needs.

Policy limits and deductibles

A coverage limit is the maximum amount your insurer will pay out for a covered loss. The deductible is the amount you pay out of pocket before your insurance kicks in.

Choosing a higher deductible usually lowers your monthly premium, but you’ll pay more out of pocket if you file a claim. But if you increase your deductible from $500 to $1,000, for example, you could save up to 25% on your premium, according to The Insurance Information Institute.

Actual cash value vs. replacement cost

You usually have two options for reimbursement: ACV and RCV. ACV pays the depreciated value of your belongings, meaning items lose value over time. RCV pays the full cost to replace older items with new ones.

While RCV typically costs more than ACV, it usually provides better protection, especially for valuable or quickly depreciating items like appliances, electronics, and furniture.

How to File a Renters Insurance Claim

Filing a renters insurance claim is usually straightforward. Knowing the steps ahead of time can help ensure that you receive reimbursement quickly and accurately for your losses.

1. Call the police for theft or vandalism. File a police report if you are the victim of burglary, theft, or vandalism.

2. Document the damage or loss. Take photos or videos of damaged items, property, or injuries, and make a detailed list of what happened.

3. Contact your insurance company. Notify your insurer as soon as possible. Most allow claims submissions online, through a mobile app, or over the phone.

4. Submit your claim forms. Complete any forms your insurer provides and attach your documentation, receipts, or proof of ownership.

5. Work with your claims adjuster. Your insurer will assign an adjuster, who will inspect the damage, verify the claim, and may ask for more details or documentation.

6. Receive reimbursement. Once your adjuster approves the claim, you’ll receive payment based on your policy terms and coverage limits, minus your deductible.

How Much Does Renters Insurance Cost?

The national average renters insurance cost for $30,000 in personal property coverage is $22 per month, according to our data. Rates vary based on factors like location, coverage limits, deductible amount, and your claims history.

The table below shows monthly rates by state for $30,000 in personal property coverage, according to Compare.com data.

State	Average Monthly Premium for $30,000 in PPI
Alabama	$31
Alaska	$23
Arizona	$26
Arkansas	$35
California	$23
Colorado	$23
Connecticut	$24
Delaware	$15
Florida	$27
Georgia	$32
Hawaii	$25
Idaho	$20
Illinois	$24
Indiana	$26
Iowa	$17
Kansas	$22
Kentucky	$34
Louisiana	$36
Maine	$19
Maryland	$27
Massachusetts	$21
Michigan	$39
Minnesota	$24
Mississippi	$39
Missouri	$28
Montana	$22
Nebraska	$18
Nevada	$20
New Hampshire	$22
New Jersey	$22
New Mexico	$23
New York	$18
North Carolina	$20
North Dakota	$20
Ohio	$24
Oklahoma	$29
Oregon	$21
Pennsylvania	$23
Rhode Island	$22
South Carolina	$27
South Dakota	$16
Tennessee	$29
Texas	$28
Utah	$21
Vermont	$20
Virginia	$19
Washington	$18
Washington, D.C.	$21
West Virginia	$24
Wisconsin	$19
Wyoming	$19

We sourced this data by analyzing real quotes from Compare.com's 100-plus partner insurance companies alongside rate filings collected and distributed by Quadrant Information Services. Actual quotes may vary. Data updated on {{lastUpdated}}.

How to Choose and Get Renters Insurance

Choosing the right renters insurance policy means finding the right balance between coverage for your belongings, liability protection, and affordable premiums. Understanding your needs helps ensure you’re protected without overpaying. Here are some tips to help you decide what coverage works best:

• Assess your belongings. Make a home inventory to estimate replacement costs and a list of your valuables to determine your personal property coverage limit.

• Consider liability protection. Choose a liability limit that protects your net worth in case someone sues you for injuries or damage you or your family causes.

• Decide on deductibles. Higher deductibles lower monthly premiums but increase out-of-pocket costs for claims. Pick an amount you can comfortably afford.

• Evaluate additional coverage needs. Consider endorsements or separate policies for items like jewelry or electronics, and flood coverage if needed.

Once you know your coverage needs, here’s how to get renters insurance:

1. Shop around. Compare quotes from multiple companies online, through an insurance agent, or using a comparison site.

2. Choose a policy. Select coverage limits, deductibles, and optional endorsements that fit your needs.

3. Provide personal info. Give your address, household details, and information about your belongings.

4. Set up payment. Schedule monthly or annual payments to activate your coverage.

5. Review and sign. Double-check policy details, then buy the policy and keep a copy for your records and your landlord.

Tips to Save on Renters Insurance

Renters insurance can be surprisingly affordable if you know how to find the best deals. Here are some strategies to lower your premiums while still getting solid coverage:

• Bundle policies. Combine renters and auto insurance with the same company to unlock significant discounts.

• Compare quotes. Shop multiple insurers to find the best rate for your coverage needs.

• Ask about discounts. Many insurers offer discounts for safety features, security and sprinkler systems, or a claims-free history.

• Limit coverage for low-value items. Insure only high-value belongings or items that are costly to replace.

• Avoid filing small claims. You could lose your claims-free discount and an increase in your renewal premium if you file too many claims.

• Maintain good credit. Some insurers factor credit into rates. A strong credit history can help reduce premiums.

Renters Insurance FAQs