By Fausto Bucheli Jr.
President | Owner
CA license number: 0E59876
NPN: 8282775
Renters insurance, also called tenants or apartment insurance, protects personal belongings and liability. It also covers temporary living expenses. While a landlord policy covers only the physical building, renters insurance covers everyday property. This includes furniture and electronics at home. It even covers a laptop at a coffee shop. CheapInsurance.com explores top rated policy options below to safeguard everyday essentials.
CheapInsurance.com by the Numbers
50+
Years of Experience
50+
Insurance Options
50
States Served
$205
Avg. Annual Savings
1.8M+
Customers Helped
3min
Avg. Quote Time
CheapInsurance.com Renters Insurance Statistics
Is Renters Insurance Mandatory?
Renters insurance is not legally mandated by federal or state law, though landlords frequently require it as a condition of the lease agreement. Without coverage, tenants must pay out of pocket for losses from theft, fire, or guest injuries.
What Is Not Covered by a Renters Insurance Policy?
Most policies have specific exclusions. Common examples include:
Pests, bed bugs or large infestations.
Business activity conducted on the property.
Intentional injuries caused by the policyholder.
Flooding.
Vehicles, aircraft, and watercrafts.
Types of Renters Insurance Coverage
Personal Property Coverage
What Is Personal Property Coverage?
This protects your belongings, clothes, electronics, furniture, and appliances.
- Typical Perils: Fire, lightning, windstorms, theft, vandalism, and sudden and accidental water damage (like a burst pipe)
- Off-premises protection: Most policies cover your items even when they aren’t at home. If your laptop is stolen from your car or a hotel room, your renters insurance provides coverage.
Liability & Medical Payments
How Does Renters Insurance Liability Protect Me?
This is your financial shield if you are held responsible for an accident.
Personal Liability: When, for example, an overflowing tub floods a neighboring unit or a guest sues after being injured in your apartment, this covers legal fees and court awards.
Medical Payments to Others: Often called “guest medical,” this covers small medical bills (usually $1,000–$5,000) if a visitor is injured at your place, regardless of who is at fault.
Additional Living Expenses (ALE)
What Does ALE Cover?
Known as additional living expenses. This is arguably the most underrated part of the policy.
What it does: If a fire or major leak makes your home uninhabitable, ALE pays for the “extra” costs of living elsewhere.
Examples: Hotel bills, restaurant meals, groceries, and even temporary pet boarding. Also, additional mileage beyond your normal commute.
Common Add-Ons Or Endorsements
What Optional Add-Ons to Consider For Renters Insurance?
Standard policies have sub-limits on high value items. You can add a policy endorsement for:
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Scheduled Personal Property: Higher limits for jewelry, fine art, or expensive musical instruments.
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Water Backup: Covers damage if a sewer or sump pump backs up into your unit. Standard policies often exclude this.
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Identity Theft: Provides funds and services to help restore your credit.
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Earthquake/Flood: These are excluded from standard policies and require a separate add-on.
When Should You Add Optional Coverage?
- Specific personal items of higher value → Add Scheduled Personal Property
- Rental property has a sump pump → Add Water Backup
- Concern about identity fraud → Add Identity Theft
- Exposure to regional earthquakes or flooding → Add Earthquake/Flood
According to Fausto Bucheli Jr, a licensed insurance broker and owner of CheapInsurance.com, renters should focus on value, not just price.
“When renters understand that the renters insurance national average falls between about $170 and $260 per year, they realize how affordable meaningful protection actually is. The key is matching the policy to the building and lifestyle. A high rise apartment with sprinklers may price differently than a suburban townhome. Once you align coverage correctly, renters insurance is often the cheapest financial protection you can buy.”
Where Can I Find A Renters Insurance Policy?
Finding a renters insurance policy starts with assessing coverage needs and comparing quotes across multiple providers. Comparison websites allow for quick side-by-side evaluation to help you secure the most competitive rate.
What Factors Affect My Renters Insurance Premium?
The cost of renters insurance can be as little as $12 per month. Your insurance premium is influenced by:
Deductible amount: Choosing a higher deductible will lower your premium, but you will pay more out-of-pocket if you file a renters insurance claim.
Coverage limits: Depends on the amount of personal property and liability coverage you select.
Location: Geographic location and local crime rates.
Discounts: You can qualify for discounts by improving safety with features like deadbolt locks, fire alarms, and security systems. You can also get a multi-policy discount by bundling your renters and car insurance with one company.
How Do I File A Renters Claim?
Notify your renters insurance company right away.
Document the damages or loss.
Fill out a claims form from the insurance company detailing the incident and the items affected.
Review your coverage details and deductible information.
Cooperate with the insurance adjuster assigned evaluating the claim.
Video Transcript
The following is a transcript of the video above. It has been lightly formatted for readability.
If you’re renting an apartment and you don’t have renters’s insurance, you’re one bad day away from losing everything with zero backup. Here’s what most renters don’t realize.
Your landlord’s insurance covers the building, not your stuff. Your TV, your laptop, your clothes, your furniture.
That’s all on you if there’s a fire, a break-in, or a burst pipe. And renters’s insurance isn’t expensive.
The national average is about $25 a year. That’s less than 60 cents a day to protect everything you own.
On top of that, it covers your liability, too. So, if a guest gets injured in your apartment and sues you, you’re covered. It even pays for a hotel if your place becomes uninhabitable.
Cheap insurance.com compares top carriers across all 50 states and gets you a free quote in under 3 minutes. No pressure and no spam.
Link in the description. Seriously, this is one of the easiest financial decisions you’ll ever make.
Frequently Asked Questions About Renters Insurance
What does renters insurance typically cover?
Renters insurance generally covers your personal belongings against theft, fire, vandalism, and certain natural disasters. It also provides liability coverage if someone is injured in your rented home or apartment and may include additional living expenses if your rental becomes temporarily uninhabitable.
Do I need renters insurance if my landlord has insurance?
Yes. A landlord's insurance typically only covers the building structure, not your personal belongings or liability. Renters insurance protects your possessions and provides liability coverage, ensuring you are financially protected in case of accidents or damages.
How can I lower my renters insurance premium?
You can reduce renters insurance costs by comparing quotes from multiple insurers, increasing your deductible, installing security devices like smoke detectors or locks, bundling with auto insurance, and maintaining a good claims history.