Renters insurance: What does it cover and how much does it cost? (2024)

FAQs

Renters insurance: What does it cover and how much does it cost? ›

Personal possessions coverage

Renters insurance typically covers fire, windstorms, lightning, explosions, theft, and vandalism. Your personal property, personal liability, additional living expenses, and guest medical expenses are usually covered under your renters insurance.

Insurance is all about risk, so customers that live in areas with higher risks of claims usually have to pay more for coverage. Some location-based factors that impact renters insurance rates can include: The rate of crimes, especially theft, in your ZIP code.

Actual cash value (ACV) is the depreciated value of the item. Actual cash value renters insurance is renters insurance in which the insurer pays the amount you originally paid for or the amount it minus its depreciation (minus your deductible).

Renters insurance is relatively inexpensive (average monthly premiums as low as $20) and can be even more affordable if associated with car or other insurance policies where multi-policy discounts are available.

Items not covered with renters insurance include: Personal property loss that exceeds the coverage limits on your renters insurance policy. Liability situations that exceed the limits on your policy. Damages caused to the structure of the building you are renting (which is covered by your landlord's homeowners policy).

Renters insurance will not cover a broken window in your own residence, but the personal liability coverage in your policy will cover damage to someone else's window if it's determined you're the liable party.

The average cost of renters insurance is about $15 to $20 per month¹. However, what you end up paying depends on a number of factors. Take a look at the information below to find out how your home or apartment renters insurance cost is determined.

Renters insurance coverage is almost always worth it. It is much more affordable than other policies, including home or auto insurance, and provides valuable financial protection. Even if you can save enough money to cover unexpected loss, renters insurance may be worthwhile.

If you don't have renters insurance, you won't have coverage for your belongings if they are stolen or damaged by problems like vandalism and fire. That means you'll have to pay out of pocket to replace or repair your items if they are damaged or stolen.

How do I calculate my belongings value? ›

Research current market values: Determine the current market value of your personal property by researching various sources. Check online marketplaces, classified ads and price guides for similar items. Websites, like eBay or Craigslist, can provide insights into what similar items are selling for.

You'll choose your deductible when you buy a renters insurance policy. A higher deductible means your claims will cost you less money out of pocket. Typically, renters insurance deductibles are $500 or $1,000, but companies often provide a range of options.

Flooding, earthquakes and sinkholes are all examples of natural disasters that are not covered by a typical renters insurance policy. All three of these events can easily damage your personal property, so you should buy additional coverage if you think you're at risk.

Liability coverage for renters

Liability coverage is another protection typically included in a renters insurance policy. This coverage may help protect you from paying out of pocket for certain costs if you are found legally responsible for injuries to other people or damage to their property.

This will be the date you will be charged every month thereafter. For example, if you purchase renters insurance on March 20th, the first charge will happen immediately. The recurring auto-charge will be initiated on the 4th of each following month.

Unless you're moving to relocate while your rental home is repaired due to a peril covered by your renters insurance policy, the cost of your move is not covered either. Licensed moving companies usually offer coverage for damage while they have your stuff. Third-party moving insurance is also available.

Personal property coverage

A renters insurance policy will cover costs to replace your personal belongings, like your furniture, electronics, computer equipment, your clothes, jewelry and appliances, with home contents coverage.

If your cat tears up your apartment's wall-to-wall carpeting or your brand new couch, renters insurance typically does not cover the damage. But if your dog bites someone or gnaws the legs off your neighbor's lawn furniture, your renters insurance might provide coverage.

Your insurer may also pay for mold remediation in that scenario, as well as lodging if you need to live elsewhere while the mold is removed. However, if the mold resulted from your negligence, then you typically won't be covered.