Renters Insurance: What It Covers and Why Your Lease Requires It
Renters insurance protects your stuff and your liability — not the building. Here’s what it covers, what it doesn’t, and why it’s usually a few dollars a month.
What it covers
A renters policy covers three main things: your personal property (furniture, electronics, clothes) against covered events like theft and fire; your personal liability if you accidentally injure someone or damage their property; and loss of use, which pays for somewhere to stay if a covered loss makes your unit unlivable. Most policies also include a small amount of medical payments for a guest hurt in your home.
What it does not cover
It doesn’t cover the building itself — that’s your landlord’s policy. It generally excludes flood (which needs its own policy) and routine wear and tear. High-value items like jewelry or collectibles may exceed standard sub-limits and can be scheduled separately.
Why your lease requires it
Landlords increasingly require renters insurance so that a tenant’s own belongings and liability aren’t their problem — and so there’s coverage if, say, a kitchen fire or overflowing tub causes damage. Leases typically ask for a set liability limit, which a standard policy easily meets.
What it costs
Renters insurance is one of the most affordable policies out there — often just a few dollars to around $15–$30 a month, depending on where you live, how much property you’re covering, and your deductible. Bundling it with auto can lower both.
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FAQs
Isn’t my landlord’s insurance enough?
No. Your landlord’s policy covers the building, not your belongings or your personal liability. Renters insurance is what protects you.
Are my things covered away from home?
Usually yes — personal property coverage often follows you, so items stolen from your car or while traveling can be covered, subject to limits.
Can it cover my roommate too?
Generally a policy covers the named insured and family members; roommates usually need their own policy. We can help you set it up right.
This guide is general information, not legal advice or a coverage promise. Coverage varies by policy, carrier, and state — a licensed agent confirms what applies to you.