Many people don’t think about renter’s insurance for a number of reasons – because they assume that their landlord’s policy will cover them, they don’t believe that they’ll ever need it, or because it’s too expensive. In fact, none of these are exactly true. Renter’s insurance can definitely be worth it, and here’s why:

It’s Affordable

The average renter’s insurance policy costs $187 a year, according to 2011 figures reported by the National Association of Insurance Commissioners (NAIC) in 2013. Your actual cost will be determined by other factors like how much coverage you need, the type of coverage you choose, the amount of your deductible, and where you live.

It covers losses to personal property.

A renter’s insurance policy provides coverage to your personal property such as clothes, jewelry, luggage, computers, furniture, and electronics. If you don’t own much, it can quickly add up to an extravagant amount – certainly more than you’d want to pay to replace it. According to esurance.com, the average renter owns about $20,000 worth of personal property.

Some notable liabilities that renter’s insurance covers include:

  • Damage from water or steam from sources including household appliances, plumbing, heating, air conditioning or fire-protective sprinkler systems
  • Vandalism or malicious mischief
  • Theft
  • And more!


Your landlord might require it.

Your landlord’s policy covers the building itself and the grounds, but not your belongings. A growing number of landlords have started requiring tenants to purchase renter’s insurance, and usually they’ll expect to see proof. This could be the landlord’s idea, or could be required by the landlord’s insurance company in an attempt to shift some of the responsibility away from the landlord.

It provides liability coverage.

This provides protection if someone is injured while in your home or if you (or another covered person) accidently injure someone. It pays any court judgments as well as legal expenses, up to the policy limit.

It covers your belongings when you travel.

Renter’s insurance protects your possessions whether they are in your home, car, or with you when you travel. Your belongings are protected from theft or other covered losses no matter where you are in the world. Check your policy or ask your insurance agent for details on what constitutes “other covered losses.”

It may cover additional living expenses.

If your home becomes uninhabitable due to a peril of some kind, your renter’s insurance may cover “additional living expenses,” including the cost of living somewhere else temporarily, food, and more. Check with your policy to find out how long it will cover additional living expenses, and if it caps the amount the company will pay.


All in all, renter’s insurance can be extremely useful if disaster were to strike. Especially because of its affordability, it really is worth it to invest in this protection when you move into a rent-controlled property!