Renters insurance

Renters insurance is a type of property insurance that covers a tenant’s personal belongings, liability, and additional living expenses in a rented apartment or house. Most policies protect against perils such as fire, theft, vandalism, and water damage; for example, State Farm lists 16 named perils including smoke and windstorm.

Average annual premiums in the US are about $173 according to the National Association of Insurance Commissioners (NAIC), with companies like Lemonade offering basic plans starting at $5 per month. Renters insurance does not cover building structure; landlords’ policies such as Allstate’s landlord coverage take care of the structure itself.

Standard renters insurance covers items like furniture, electronics, and clothing up to specific policy limits, commonly $30,000 for personal property. Liability protection typically pays out up to $100,000 for incidents like guests slipping on wet floors or dog bites inside your unit.

Policies exclude floods and earthquakes, so separate flood insurance from providers like FEMA is needed in high-risk areas such as Houston or New Orleans. Filing a claim usually requires documentation such as receipts or photos; insurers like Progressive process most claims within days if proof is clear.

Roommates need individual policies because insurers such as GEICO do not extend one renter’s coverage to others living in the same space, as reported by YourInsuranceInfo. Discounts often apply for bundled policies–for instance, bundling renters and auto insurance with Nationwide can yield savings of up to 10%.

You need renters insurance even if your landlord doesn’t require it; nearly two-thirds of college students in shared housing lack adequate coverage for their belongings according to College Student Insurance statistics.