Renters insurance protects tenants' personal property and provides liability coverage if someone is injured while visiting you.
Policies are generally affordable and anyone who rents should seriously consider renters insurance — in some cases, your landlord may require it. (Their property insurance won't cover your belongings.)
What is renters insurance?
A renters insurance policy protects your belongings against theft or damage. You pay the premiums and file a claim when you experience a covered loss and should be reimbursed up to your coverage limit for expenses that go above your deductible.
For example, if you have a $500 deductible and a leaky pipe damages $1,500 of furniture, you could be reimbursed for $1,000.
When shopping for renters insurance, determine how much coverage you need and what types of coverage you want, and then compare offers to find the best deal. If you focus only on price, you may end up with a less expensive but limited policy that exposes you to unnecessary risk in a worst-case scenario.
We rank Lemonade among the best companies for renters insurance because of its competitive rates, quick claim approval process and easy-to-use online interface.
Another top pick, Nationwide, is available in 44 states — and customers can save an average of $176 a year by bundling Nationwide renters and car insurance.
Lemonade Renters Insurance
Availability
Lemonade renters insurance is available in 28 states and Washington, D.C.
Coverage limits
Personal property coverage: $250,000, personal liability: $500,000, medical payments: $500,000, loss of use: $200,000
Deductible
$250 to $2,500
Add-ons
Extra coverage for jewelry and other valuables, no-deductible claims, coverage for accidental damage and mysterious loss
Terms apply.
Nationwide Renters Insurance
Availability
Nationwide offers renters insurance in all states except Alaska, Florida, Hawaii, Louisiana, Massachusetts, New Jersey, New Mexico and Oklahoma.
Coverage limits
Not available
Deductible
Not available
Add-ons
Replacement cost coverage, personal injury, water backup, earthquakes, identity theft, high-value items, theft of items stored in vehicle
How much is renters insurance?
A standard renters insurance policy averages about $15 to $20 per month, although what you pay depends on where you live and your claims history.
Your premiums will also be affected by the amount of coverage and the deductible you select, and whether you chose replacement cost value or actual cash value for your belongings.
What does renters insurance cover?
Renters insurance covers three main areas:
- Personal property: Covers the replacement cost or reimburses you for the value of things such as clothing, furniture, electronics, jewelry and other personal belongings
- Personal liability: Pays for legal fees or medical expenses when someone is hurt or their property is damaged (i.e. dog bite or accident).
- Loss of use: Pays for additional expenses (hotel, restaurants, etc.) when you can't live in the apartment because of a covered event, such as fire, vandalism or water damage from leaky pipes
Pay attention to the coverage limits, exclusions, deductibles and other important details before you buy.
You can expand what your renters policy covers with a rider — like artwork, jewelry or collectibles — or choose ones that add damae from earthquakes or floods.
What isn't covered by renters insurance?
What a renters insurance policy doesn't cover depends on the specific policy and what riders you might add. However, a typical renters policy usually won't cover:
- Earthquakes
- Floods
- Damages to the home
- Pest infestation
- Damage to a roommate's belongings
- Liability for a home business
When deciding on a renters insurance policy, pay attention to the exclusions: Your insurance may cover up to $2,000 in medical payments if your dog bites someone at your apartment. However, your provider may exclude certain breeds, like pit bulls, from coverage.
There are specific scenarios where your renters policy may cover belongings damaged or stolen when outside of your apartment — like, from your car or a storage unit.
Am I required to have renters insurance?
Renters insurance is not legally required in any state, but many landlords require tenants buy it. Your lease should spell out the type and amount of coverage you need to get.
Even if you aren't obligated to get renters coverage, having basic insurance can protect you when there's an accident and provide a bit of peace of mind if your belongings are damaged or stolen.
Renters insurance FAQs
Am I required to get renters insurance?
While there are no state or federal laws mandating renters insurance, many landlords require tenants to take out a policy and show proof of insurance before moving in.
How do you file a renters insurance claim?
The process for filing a renters insurance claim varies by company but, typically, you'll need to reach out to your provider with your policy number and photos and other documentation of the damage. If items were stolen, you may need to file a police report.
Does renters insurance cover bed bugs?
A standard renters insurance policy won't cover bed bugs or other pests because they're considered a maintenance issue and not an unexpected event. Depending on where you live, however, your landlord may be responsible for paying for an exterminator or reimbursing you for losses.
Is renters insurance worth it?
A renters policy can be a lifesaver in the event of a disaster or robbery. Your landlord's insurance policy only covers the building itself, not your belongings or the cost of a hotel room if you're displaced. Replacing just a few possessions after a fire could be more expensive than your annual premiums.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every renters insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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