Renters Insurance: What Does It Cover and How Much Does It Cost?
Renters insurance is one of the most affordable ways to protect yourself financially, yet many renters don’t fully understand what it covers or why it matters. Whether you rent an apartment, condo, or home, renters insurance helps protect your belongings, your finances, and your peace of mind.
Below, we’ll break down the most important coverages in a renters insurance policy and answer the most common question we hear: How much does renters insurance actually cost?
What Does Renters Insurance Cover
While renters insurance includes several types of coverage, these three main areas are important to understand.
Personal Property Coverage
Personal property coverage protects your belongings—your “stuff.” This includes furniture, electronics, clothing, kitchen items, and anything else you bring into your rental.
Most renters insurance policies include replacement cost coverage, often referred to as “new for old.” This means if your belongings are damaged or stolen, the policy pays to replace them with brand-new equivalents rather than reimbursing you for their depreciated value.
When choosing your coverage limit, it’s important to think about how much understanding it would cost to replace everything you own today. Many policies start at $30,000 in personal property coverage, but your needs may be higher depending on what you own.
Certain high-value items—such as jewelry, business equipment, tools, or bicycles—often have coverage limits. If you own any of these, ask your agent whether additional coverage or a rider is needed.
Personal Liability Coverage
Personal liability coverage protects you if you’re held legally responsible for damage to property or injuries to others.
For example, if you accidentally start a kitchen fire that causes $50,000 in damage to the apartment, your renters insurance can help cover the cost. Without renters insurance, your landlord or their insurance company could pursue you directly for reimbursement.
Liability coverage also applies to bodily injury claims. One of the most common examples is a dog bite. Some renters insurance policies exclude certain dog breeds, so if you own a dog, it’s important to confirm coverage before a claim ever happens.
Additional Living Expense (ALE) Coverage
Additional Living Expense coverage helps pay for temporary housing and related costs if your rental becomes unlivable due to a covered loss.
This coverage can help with:
- Temporary rent or hotel stays
- Increased food costs from eating out
- Laundry services
- Other necessary living expenses
ALE coverage is often overlooked, but it can be a financial lifesaver if repairs take weeks or months.
What Does Renters Insurance Cost?
One of the biggest surprises for most renters is just how affordable renters insurance is.
On average, renters insurance costs between $10 and $30 per month. Pricing depends on factors such as:
- Coverage limits
- Deductible amount
- Location
- Claims history
- Optional add-ons (like jewelry coverage)
For less than the cost of a streaming subscription, renters insurance can protect tens of thousands of dollars in personal property and shield you from expensive liability claims.
Do You Really Need Renters Insurance?
Many renters assume their landlord’s insurance covers their belongings—but it doesn’t. A landlord’s policy only protects the building itself, not your personal property or liability.
Renters insurance helps ensure that a theft, fire, or accident doesn’t turn into a long-term financial setback.
Does Renters Insurance Cover a Storage Unit?
In most cases, renters insurance does cover personal belongings stored in a storage unit, as long as the loss is caused by a covered event like fire, theft, or vandalism. That said, coverage for items stored off-premises is usually limited to around 10% of your personal property coverage. For example, if your policy includes $30,000 in personal property coverage, about $3,000 may apply to items in storage. High-value items such as jewelry or business equipment may have additional limits, so it’s worth reviewing your policy if you keep valuable belongings in a storage unit.
Get a Renters Insurance Quote Today!
Renters insurance is simple, affordable, and easy to set up. Whether you’re moving into a new place or already renting, having the right coverage can make all the difference when something unexpected happens.
Get a fast renters insurance quote today and make sure you’re protected.
