Do I need renters insurance?

How much renters insurance do I need?

You need enough renters insurance to cover everything you own, as well as enough liability coverage to protect you in case you're held responsible for injuries to someone else, or damage to their property. Let's break down the two main coverages.

Renters insurance calculator

Average renters insurance rates in Texas

Most & least expensive ZIP codes for renters insurance in Texas

Most expensive
Least expensive

ZIP code	City	Highest rate
78368	Mathis	$264
77014	Houston	$264
77444	Guy	$263
77374	Thicket	$262

ZIP code	City	Lowest rate
75070	McKinney	$183
78132	New Braunfels	$183
75072	McKinney	$183
75013	Allen	$183

Read our methodology

How much renters insurance personal property coverage do I need?

Your personal property coverage should equal the full replacement cost of everything you own, including appliances, electronics, furniture, clothing, and items ranging from kitchen utensils to towels and bedding. To find that number, create a personal inventory and assign a replacement value to each item. Renters insurance doesn't automatically include replacement cost coverage, so ensure that you have upgraded your coverage. Note that high-value items such as expensive jewelry and artwork may require a separate rider; ask your insurance agent whether you need one.

Determining this amount takes work, but with our expert tips on how to create an inventory list for home insurance, it shouldn’t be too difficult.

Your best bet is to create a personal inventory of your possessions and assign value to these items for personal possessions coverage. The Insurance Information Institute says some of the items in this inventory should include:

Appliances and electronics
Clothing
Furniture
Other items ranging from kitchen utensils to towels and bedding

After adding up the replacement values you have assigned to these items, you should have a rough idea of how much coverage you need.

Remember that some items -- such as expensive jewelry and artwork -- may require you to purchase a separate rider to cover their value. Speak to your insurance agent about whether you need such a rider.

How much liability coverage do I need for renters insurance?

You need enough liability coverage to protect your assets in the event of a lawsuit. Renters insurance comes with $100,000 in coverage as standard, but increasing it to $300,000 is recommended and costs very little. If you have a lot of assets to protect, consider higher coverage limits; $500,000 is usually the top end. Umbrella insurance provides extended coverage if you need it.

What does renters insurance cover?

A standard renters insurance policy covers your personal property, personal liability for damages or injuries to others, and loss of use, or additional living expenses, if you have to live elsewhere due to a covered loss.

1. Personal property coverage: As with homeowners insurance, most renters insurance policies reimburse you for losses of your possessions that are due to perils such as:

Fire and smoke
Lightning
Theft and vandalism
Explosions
Windstorms
Some types of water damage

The policy itself will spell out which types of disasters it covers.

2. Liability coverage: The liability portion of a renters insurance policy protects you when you are responsible for damages to other people or their property. This policy will reimburse you for fixing the damages or protect you in the event of a lawsuit. It also provides no-fault medical coverage, covering medical bills for anyone injured on your property regardless of fault.

3. Additional living expenses coverage: Renters insurance policies usually offer additional living expenses or loss of use coverage. This kicks in if your rental unit is destroyed or severely damaged and you need funding to secure a new place to live while the rental unit is being repaired. In most cases, you are covered for an amount equivalent to the difference between your normal living expenses and the additional expense of securing temporary quarters. Additional living expenses might cover costs such as hotel bills, rentals on a temporary basis, and restaurant costs.

What isn't covered by renters insurance?

Renters insurance doesn't cover any part of the structure; your landlord is responsible for that. It also doesn't cover floods or earthquakes; you need to purchase a separate flood insurance policy and an earthquake coverage endorsement for those perils to be covered.

Is renters insurance required by law?

No, renters insurance is not required by law. However, in most states, landlords can have their own renter's insurance requirements and require renters insurance before signing a lease.

Oklahoma is the only state where this is not true, although, in some states, there may be limits on how much insurance a landlord can require. For example, Oregon landlords can only require tenants to have $100,000 in liability.

What happens if you don't have renters insurance?

If you don't have renters insurance, and damage occurs to your property, or someone is injured in your apartment and sues you, there won’t be any coverage for you or your property, and you will have to cover everything out of pocket. In a total loss, you could face tens of thousands of dollars in costs to replace everything; a lawsuit could cost even more. If renters insurance is part of your lease agreement and you don’t maintain it, your landlord may terminate the lease.

How much is renters insurance monthly?

Renters insurance costs an average of $24 a month for $40,000 in personal property protection and $300,000 in liability, with a $1,000 deductible, according to Insurance.com data. At $60,000 in personal property coverage, the cost is $31 a month.

The table below compares renters insurance costs by coverage level; all rates have a $1,000 deductible.

Coverage level	Monthly premium
$40,000 property/$100,000 liability	$23
$40,000 property/$300,000 liability	$24
$60,000 property/$100,000 liability	$29
$60,000 property/$300,000 liability	$31

FAQ: Renters insurance

Does California require renters insurance?

Renters insurance is not required in California by state law, but a landlord can require you to carry it.

Do I need renters insurance before signing a lease?

You need renters insurance before signing a lease if your landlord requires it. Read your lease agreement and ask your landlord to confirm so you know what coverage is required.

Should I get renters insurance for an apartment even though my landlord has insurance?

Yes. Renters insurance covers your personal property; your landlord's policy doesn't. The landlord's insurance only covers the structure and any owned items inside, like appliances.

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