As a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Written By Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Lead Editor, Insurance Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
| Deputy Editor, Insurance
Updated: Apr 1, 2024, 7:02am
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
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Renters insurance is versatile. Whether you’re renting an entire house, a small studio apartment or sharing a place with roommates, the best renters insurance covers a host of problems such as stolen items, guest injuries and even hotel bills if you can’t live in your place because of a problem covered by the policy (like a fire).
“Replacing everything could get expensive in a hurry and be a real burden,” says Josh LaRoche, a spokesperson for Toggle by Farmers Insurance. “Getting renters insurance is a fairly inexpensive way for you to manage that risk.”
Renters insurance covers tenants if your personal belongings are stolen or damaged by a problem covered by the policy. It also provides liability coverage and additional living expenses coverage. Renters insurance includes coverage for medical payments to others, which pays for medical bills for guests who suffer minor injuries, regardless of who’s at fault for the injury.
A standard HO-4 renters insurance covers damage caused by:
Renters insurance doesn’t cover floods or earthquakes. You need separate flood insurance or earthquake insurance policies to have that coverage.
Finding the best renters insurance takes a little research to figure out how much coverage you need and get quotes from multiple companies:
What’s covered by renters insurance can generally be broken down into three main coverage types:
Think of all that stuff you have accumulated—furniture, clothes, kitchen items, jewelry, collectibles and electronics. Personal property coverage pays to repair or replace your possessions if they are stolen or damaged by a problem covered by your policy, like a fire or tornado.
Many people underestimate how much stuff they own and dismiss renters insurance. If you lost all your belongings in a disaster, would you be able to buy all new stuff?
Liability insurance pays for injuries or property damage to others when you’re legally responsible. For example, liability insurance pays for medical bills if your dog bites someone at the park. Liability insurance also pays for your legal defense if you are sued because of an incident covered by your policy.
Sometimes called “loss of use,” ALE reimburses you for extra expenses like hotel bills, restaurant meals and services such as pet boarding or laundry if you can’t live in your home because of damage covered by the policy.
Renters insurance doesn’t cover damage to the actual building, such as storm damage. That falls under your landlord’s insurance.
“When it comes to the items within your four walls, you’re responsible, because they belong to you,” says Yael Wissner-Levy, a spokesperson for Lemonade Insurance. She adds that for problems like fire, the landlord’s insurance will pay to repair the building but it won’t pay for your temporary living costs if you are displaced.
The next step is to determine how much renters insurance you need. The best way to start this is by creating a home inventory.
A good home inventory will contain:
You can use an app such as the National Association of Insurance Commissioners’ home inventory app (available in the App Store or Google Play).
Now that you have all of your stuff in a handy list, tally up the total estimated value, and you have a ballpark figure for how much personal property coverage you’ll need. A typical amount is $20,000 or $30,000, but you can buy more coverage if needed.
American Family Insurance has a renters insurance calculator to help add up a coverage amount.
Liability coverage in a renters insurance policy will default to a standard amount such as $100,000. You can increase that amount, and you may want to in order to account for what could be taken from you in a lawsuit.
Coverage for additional living expenses will also have a default amount, such as 40% of your personal property coverage. With $30,000 of personal property coverage, that would be $12,000 for loss of use. Here, too, you can buy increased coverage.
A good place to start looking for renters insurance is your current car insurance company. You may get a bundling discount if you buy both policies with the same insurance company.
But also look beyond your current insurance companies and don’t focus only on the big names with humorous commercials. Here’s our evaluation of the best renters insurance companies, which combine competitive prices and good customer service.
It’s also wise to research insurers that offer coverage types beyond the basics. Three examples are:
Get covered in as little as 90 seconds
Lemonade offers AI assistance for securing policies and filing claims
Average renters insurance cost
On Lemonade's WebsiteLemonade offers AI assistance for securing policies and filing claims
Once you have a list of renters insurance companies that you like, you want to get quotes.
Get renters insurance quotes for the same coverage level from each renters insurance company, so you can do an apples-to-apples comparison. Don’t forget to ask about discounts.
The easiest way to shop for renters insurance is to compare quotes from multiple insurance companies. You can get free quotes online or by calling an independent insurance agent.
Once you’ve figured out your desired coverage level and checked out quotes from multiple companies, you can choose the right renters insurance policy for you.
If price is the most important, you’ll likely go with the company with the lowest quotes. Or, you may value special coverages and perks more than price and go with a company that costs a bit more but better matches your needs. You can apply for renters insurance at most insurance company websites.
It’s wise to check quotes at least every few years to see if you’re still getting a good deal.
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Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others make well-informed decisions.
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