A common myth among renters is that they don't need insurance because they don't own the building. "My landlord has insurance," they say. And while that's true, your landlord's policy only covers the building—the walls, the roof, and the plumbing. It does not cover your 65-inch TV, your wardrobe, or your laptop sitting on the kitchen table.
If your apartment building burns down or a pipe bursts and ruins your furniture, your landlord isn't responsible for replacing your things. That's where renters insurance comes in.
It's surprisingly affordable.
Renters insurance is one of the cheapest insurance products available. The average policy costs between $15 and $20 a month. For that small price, you typically get:
- Personal Property Coverage: Replaces your belongings if they are stolen or damaged by fire, smoke, vandalism, or water leaks.
- Liability Coverage: Protects you if you accidentally injure someone or damage their property (like overflowing a bathtub that leaks into the apartment downstairs).
- Loss of Use: If your apartment becomes uninhabitable due to a fire or other covered disaster, this pays for your hotel bills and extra food costs while you're displaced.
Coverage Away from Home
Here's a perk many people don't know about: renters insurance often covers your property even when it's not in your apartment. If your laptop is stolen from your car or your luggage is swiped at a hotel, your renters policy may reimburse you.
Actual Cash Value vs. Replacement Cost
When buying a policy, you'll choose between "Actual Cash Value" (ACV) and "Replacement Cost." ACV pays you what your item is worth today (depreciated value). So, that 5-year-old laptop might only get you $200. "Replacement Cost" pays you what it costs to buy a brand-new equivalent item today. While Replacement Cost policies are slightly more expensive, they are almost always worth it when you have to start over.
Don't leave your financial stability to chance. Get a renters insurance quote in minutes.