Renter's insurance: what it covers and what it costs

Renter’s insurance is inexpensive for what it protects, and more landlords are now requiring it as a lease condition rather than treating it as optional.

What it actually covers

A standard renter’s policy covers your personal property against things like fire, theft, and water damage, plus liability protection if someone is injured in your unit or you accidentally damage a neighbor’s unit. Most policies also cover additional living expenses — a hotel and meals — if your unit becomes temporarily uninhabitable.

What it doesn’t cover

The building itself is your landlord’s responsibility and their insurance, not yours — your policy is entirely about your belongings and your liability. Flood and earthquake damage typically need a separate rider or policy on top of a standard plan.

Why most landlords require it

It protects them too: if a fire that started in your unit spreads, or a guest is injured on the property, your liability coverage is often what pays out first — instead of a claim landing on your landlord’s policy (or on you directly, out of pocket).

What it costs

Typically $12–20/month for $20,000–$30,000 of personal property coverage, which is inexpensive relative to what it protects against. The exact price depends on your coverage amount, deductible, and location.

Getting a policy

Lemonade offers fast online quotes and is often the cheapest option for renters. State Farm and Assurant are worth a look too, especially if you already bundle other policies with them. Once you have a certificate of insurance, upload it in your Lease tab — that’s what marks it “on file” for your landlord.