If you’re renting your home — whether it’s an apartment, a condo, or a house — you might be asking yourself:
“Do I really need renters insurance?”
It’s a fair question. After all, your landlord has insurance, right? Why should you have to pay for another policy?
The short answer: Yes, you probably do need renters insurance — and here’s why. This blog breaks down what renters insurance covers, what it costs, and why skipping it could be one of the most expensive mistakes you make as a renter.
What Is Renters Insurance?
Renters insurance is a type of policy designed to protect you — not your landlord — when you’re renting a property. It covers three main things:
- Your personal belongings
- Liability protection
- Additional living expenses (ALE) if you’re forced to leave your home temporarily
Let’s break these down.
1. It Covers Your Personal Belongings
Your landlord’s insurance only covers the building — not your stuff. If there’s a fire, flood, theft, or other covered event, your landlord’s policy won’t pay to replace your:
- Laptop
- Furniture
- Clothing
- Appliances
- Jewelry
- TV, gaming consoles, and other electronics
Even if you don’t think you own much, it adds up quickly. The average renter owns $20,000–$30,000 worth of personal property — and replacing it all out of pocket would be a huge financial burden.
✅ Covered Events Usually Include:
- Fire and smoke damage
- Theft and vandalism
- Water damage from burst pipes (not floods)
- Windstorms
- Damage from falling objects
2. It Offers Liability Protection
Let’s say your dog bites a neighbor. Or a guest trips in your apartment and breaks their arm. Or you accidentally start a kitchen fire that damages another unit.
Without renters insurance, you could be on the hook legally and financially. Liability coverage protects you if you’re found responsible for injuries or property damage — and it often covers legal fees, too.
Typical liability coverage starts at $100,000, which can go a long way in preventing financial disaster.
3. It Pays for Temporary Living Expenses
Imagine this: There’s a fire in your apartment, and the building is uninhabitable for a few weeks. Where would you go? Who would pay for the hotel, food, or short-term rental?
That’s where Additional Living Expenses (ALE) coverage kicks in. Renters insurance can pay for things like:
- Hotel bills
- Temporary rentals
- Meals if your kitchen is unusable
- Laundry and transportation
This is one of the most underappreciated parts of renters insurance — and one of the most valuable when disaster strikes.
What Does Renters Insurance Not Cover?
Like all insurance, there are exclusions. Here’s what renters insurance usually doesn’t cover:
- Flood damage (you’ll need a separate policy for that)
- Earthquake damage (requires separate coverage)
- Damage from pests (like bedbugs or rodents)
- Your roommate’s belongings (they need their own policy)
- Your car (auto insurance covers that)
How Much Does Renters Insurance Cost?
You might be surprised: renters insurance is one of the most affordable types of coverage.
- National average: $12–$25 per month
- Annual total: $150–$300
- Bundle discounts: Many insurers offer discounts if you combine it with auto or other policies
That’s less than a couple of coffees a week — to protect thousands of dollars’ worth of belongings and your financial future.
Do You Need It If Your Landlord Doesn’t Require It?
Yes, and here’s why:
- Landlord insurance only protects the building, not your belongings
- Without renters insurance, you’re 100% liable for replacing everything you own
- Many landlords now do require proof of renters insurance — but even if they don’t, it’s still in your best interest
Think of it like a safety net. You hope you never need it — but if you do, it can save you thousands of dollars and tons of stress.
How to Choose the Right Renters Insurance Policy
Here’s what to look for:
- Coverage amount: Add up the value of your belongings to make sure you’re fully protected
- Replacement cost vs. actual cash value: Choose replacement cost if possible — it pays the full price to replace items, not their depreciated value
- Deductible: This is what you pay out of pocket before insurance kicks in. A higher deductible = lower premium, but more upfront cost in a claim
- Liability coverage: Most policies offer $100,000, but you can increase it depending on your risk
- Loss of use (ALE) coverage: Make sure it’s included or available as an add-on
Final Verdict: Yes, You Really Do Need Renters Insurance
Renters insurance isn’t just a “nice-to-have” — it’s a smart, affordable way to protect your belongings, your finances, and your peace of mind.
For less than the cost of Netflix, you can avoid a massive bill if something unexpected happens.
So the next time you think, “I don’t own that much,” or “It’ll never happen to me,” remember:
Accidents, theft, and disasters don’t ask whether you’re prepared — they just show up.