Dozens of insurance companies provide renters insurance and tens of options in the renters policy you can customize. Why do you need renters insurance? How much coverage should you choose? What is the average premium in your city? What risks are not covered by renters insurance? We want to answer those questions in this article.
Why do you need renters insurance?
When you rent an apartment, a townhouse, or a single-family home, your landlord likely has insurance that covers the structure of the property. However, it does not cover your personal belongings — such as your laptop, furniture, clothing, or even e-bikes. In 2025, more landlords require tenants to carry renters insurance due to liability concerns and tenant protection policies.
In addition to your personal belongings, renters insurance also covers your liability if someone gets injured on your property. Commonly, landlords will have a minimum requirement on the liability amount.
Takeaway: Renters insurance covers your personal belongings and liability for others' injuries on your property.
What are the types of coverage for renters insurance?
Below are the most standard types of coverage. The range may vary from state to state and company to company. You should always check your own policy to review the limits of your coverage.
Personal Property Required
It is the total value of your stuff. It commonly includes furniture, clothing, and electronics. You should be aware that most carriers exclude expensive items such as jewelry, art, cameras, or high-end bicycles in this coverage. Studies show that the average person has $35,000 worth of personal possessions.
Liability Required
It covers your bills when you're responsible for injuries on your property. According to our quote data, this coverage impacts less than personal property to your final premium.
Loss of Use Recommended
When your property becomes unlivable under a covered reason, this is the max living expense you can reimburse.
Medical Payment Recommended
It is the maximum medical expense you can reimburse if your guest or neighbor gets injured on your property.
Deductible Adjustable
For each approved claim, this is the amount you need to pay. It impacts your premium significantly.
Identity Theft Protection Optional
Some modern renters insurance policies in 2025 include identity theft protection as an add-on. This can help cover the cost of restoring your identity if you're a victim of digital fraud.
Replacement cost vs. Actual cash value: If you read replacement cost or actual cash value from your policy, these are two methods to measure the value of your lost stuff. The replacement cost means the item's total value, while the ACV is the value reduced by the amount the item has depreciated.
Smart Tech Tip: Some insurers offer discounts for having smart smoke detectors, security systems, or water leak sensors installed in your home.
What are the steps for purchasing a renters insurance policy?
So you've decided that renter's insurance is a good investment and want to protect your belongings. (Smart decision!) Now what?
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1
Calculate the total value of your belongings
Evaluate the value of your furniture, clothing, and electronics. The majority of policies have a limit on costly items, so consult with your provider. For example, Lemonade requires that expensive bicycles and jewelry be listed separately. Our quote history shows customers usually choose a personal property policy starting at $5,000. They may then go up to limits from $10,000 - $30,000.
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2
Check your lease agreement to determine your liability
If your landlord has a requirement for tenants to purchase renter's insurance, they usually have a minimum liability requirement listed directly in the lease agreement. As a general idea, some high-end apartments require liability policies in the range of $300K.
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3
Choose your deductible wisely
If you need to make a claim, this is the amount that you will be required to pay out of pocket if your claim is approved. Higher deductibles mean lower premiums. However, be sure you have chosen a deductible that fits your particular financial situation. In comparison, a lower premium seems nice, but that higher deductible can be a strain in the event of a loss.
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4
Consider other parties that may need coverage
You can add your landlord as an "interested party" to your policy, allowing them to be notified if your policy is canceled. Most companies cover your spouse by default, but some may ask you to list your spouse's name or other details. Be sure that you verify that your spouse is covered.
If you have roommates, you may need to do further research. Some policies cover roommates, and some do not. While Lemonade does not cover roommates under their policies, and your roommates will need to purchase their insurance, Liberty Mutual will allow coverage of up to 3 roommates on a single policy.
Note: Read your policy carefully about the limit of your item. If your expensive items exceed the limit, you need to talk to your agent or call the customer service line to endorse those items.
How much is renters insurance?
The national average for renters insurance is around $179 per year. The premium is determined by factors such as your location, age, coverage, etc.; in some states, your credit report is also used to determine your premium. Click any state to learn more details.
| State | Average Annual Premium |
|---|---|
| Alabama | $235 |
| Alaska | $166 |
| Arizona | $178 |
| Arkansas | $212 |
| California | $182 |
| Colorado | $159 |
| Connecticut | $192 |
| Delaware | $159 |
| District of Columbia | $158 |
| Florida | $188 |
| Georgia | $219 |
| Hawaii | $185 |
| Idaho | $153 |
| Illinois | $167 |
| Indiana | $174 |
| Iowa | $144 |
| Kansas | $172 |
| Kentucky | $168 |
| Louisiana | $235 |
| Maine | $149 |
| Maryland | $161 |
| Massachusetts | $194 |
| Michigan | $182 |
| Minnesota | $140 |
| Mississippi | $258 |
| Missouri | $173 |
| Montana | $146 |
| Nebraska | $143 |
| Nevada | $178 |
| New Hampshire | $149 |
| New Jersey | $165 |
| New Mexico | $187 |
| New York | $194 |
| North Carolina | $157 |
| North Dakota | $120 |
| Ohio | $175 |
| Oklahoma | $236 |
| Oregon | $163 |
| Pennsylvania | $158 |
| Rhode Island | $182 |
| South Carolina | $188 |
| South Dakota | $123 |
| Tennessee | $199 |
| Texas | $232 |
| Utah | $151 |
| Vermont | $155 |
| Virginia | $152 |
| Washington | $163 |
| West Virginia | $188 |
| Wisconsin | $134 |
| Wyoming | $147 |
What companies offer renters insurance?
Most insurance companies like Liberty Mutual, Farmers, and GEICO, who sell auto insurance, also offer renters insurance. In addition, companies such as Lemonade and Assurant primarily provide renters insurance. Below is a comparison between those two options.
Standalone renters insurers
Lemonade, Assurant, etc.
- + More brands and price options
- + The company may have a partnership with your landlord
Bundle with auto insurance
Liberty Mutual, Allstate, GEICO, etc.
- + Save money on your auto insurance
- + Manage multi-policies at the same place
You can also shop around to see what is the best option for you. Click here to start a free quote to compare multiple companies for your renters insurance.
What is not covered by renters insurance?
Renters insurance does not cover all the risks. Here are the most common exclusions to be aware of.
Flood damage
If you live in an area with higher risks for flooding, you may need to purchase specific flood insurance separately.
Earthquake damage
Earthquake damage is typically excluded from standard renters policies. Separate earthquake insurance is available in high-risk areas.
Pet health
If you have a pet and want health insurance for your loved ones, consider buying pet insurance separately.
Property structural damage
Renters insurance does not cover damage to the building itself, including roof leaks. That is the landlord's responsibility.
Does renters insurance cover roof leaking?
Renters insurance focuses on providing coverage for the renter, which does not cover any property damage, including roof leaks. Instead, the owner/landlord is responsible for their insurance to cover those costs. However, renters insurance policies can give you protection for the following things:
Medical expenses
Covers injuries sustained in the emergency caused by the roof leak.
Personal property damage
Covers your belongings damaged by the roof leaking.
Living expenses
Covers the cost of finding a new place to live after the current residence is damaged.
Personal liability
Covers liability if someone is injured at your rental due to the roof leak.
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References
Our articles are intended for informational purposes and should not be considered legal or financial advice. Our articles are not written or reviewed by insurance agents. Consult your policies with your agent or a professional for details regarding terms, conditions, coverage, exclusions, products, services, and programs.
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