Renters Insurance

What does renters insurance cover?

Most policies combine these protections. Our guide to how renters insurance works explains how they fit together.

• Personal property covers belongings against named perils, meaning causes listed in your policy, such as fire, theft, vandalism, and accidental water discharge from plumbing. Many policies also cover belongings away from home. Jewelry and other valuables may have special limits.
• Personal liability helps with injuries to guests or damage you accidentally cause to someone else's property. It can also help with injuries or damage caused by pets. Legal defense and judgments are covered subject to policy limits and terms.
• Additional living expenses, also called loss of use, helps when a covered loss makes your rental uninhabitable. It pays only the difference above your normal living costs, and only up to the policy's limit.

What isn't covered, and can renters buy flood insurance?

Renters insurance doesn't repair the building or cover your car. Floods, earthquakes, and sewer backup are typically excluded. Earthquake and water or sewer backup coverage may be added. Flood insurance is generally separate, though an endorsement, meaning a policy addition, is sometimes available.

FEMA's March 2024 brochure says renters in participating communities can buy a separate National Flood Insurance Program contents-only policy. It covers up to $100,000 of belongings in rental units above the lowest elevated floor. Below that floor or in a basement, contents coverage is limited to a washer, dryer, freezer, and its food.

The brochure gives NFIP policies a 30-day waiting period after purchase. Arrange flood coverage for renters before you need it.

Actual cash value versus replacement cost

Renters policies usually pay actual cash value: what your belongings are worth after deductions for age and wear. Replacement cost coverage pays to replace them with similar new items without that deduction. It generally costs more.

Replacement cost claims may pay the depreciated value first, then the remaining covered amount after you replace the item. Check the payment process when choosing coverage.

How much renters insurance do you need?

Start with a room-by-room home inventory, including closets and storage. List your belongings and their replacement costs, total them, and compare that amount with your personal property limit. Keep the inventory current as you buy or replace things.

Check special limits for valuables rather than assuming your overall limit applies to every item. Review liability and loss of use limits separately. Our guide to choosing renters coverage amounts can help you organize those decisions.

What does renters insurance cost?

In August 2024, NAIC gave an average range of $15 to $30 per month, depending on location, rental size, and possessions. Your quote can differ. Ask about discounts for alarms, sprinklers, or deadbolts, and review our renters insurance cost guide.

A deductible is the part of a property claim you pay yourself. In the Texas Department of Insurance's 2026 example, a $1,000 claim with a $300 deductible pays $700. A higher deductible can lower your premium, but choose an amount you could manage after a loss.

Check your lease and compare coverage

Some landlords require renters insurance, so check your rental agreement. Their insurance covers the building but doesn't cover your personal property.

If you're still a dependent, a parent's home policy might cover your property away from home. Confirm that coverage before deciding whether you need your own policy.

With your inventory and lease handy, compare renters insurance quotes using matching limits, deductibles, and claim payment terms.