Insurance seems to be a part of life. In some states, having insurance is the law, as is the case for automobile insurance. Renters are no exception. Rental insurance offers protection and peace of mind usually at reasonable rates.
Property owners usually maintain an insurance policy on their investments, apartment buildings included. However, that coverage does not extend to the tenants who reside in the building. Purchasing renters insurance is optional, up to each renter, but can be a wise move to ensure a measure of protection similar to the owner’s property insurance.
Renters insurance evolved from changes to homeowner insurance policies in the 1950s. Eventually, in the 1970s, policies that would become what is now recognized as Renters Insurance were available. Born of need, this coverage offers personal property protection for tenants. It’s one of the primary benefits of such policies.
Terms vary but when a renter suffers loss or damage, replacement of their belongings—or the funds to replace them—can make a big difference in the event of a catastrophic event such as a fire, flood, or theft.
Do Landlords Require Renters Insurance?
Once unheard of, insurance for renters is not only common; in some markets, landlords require it. While there is no federal law regulating it, landlords are free to make renters insurance a mandatory part of the lease agreement.
Insurance giant Progressive offers a helpful list of renter insurance information by state: https://www.progressive.com/answers/state-renters-insurance-requirements/. Again, even in states where it’s not compulsory, a landlord can choose to mandate proof of renters insurance from tenants. They may also request to be added to the renters policy as an additional insured.
Farmers Insurance explains further, “Most states allow it, but no state requires it. Landlords can require renters insurance in every state but Oklahoma. Some states set limits on the amount of insurance that can be required.”
When it is a requirement, Farmers notes, “Often, a landlord will specify a minimum amount of insurance required. Tenants are typically asked to provide proof of coverage before moving in.”
Rental real estate technology company Realpage reports “84% of multifamily communities require renters insurance for residents.”
At first glance, this mandate might not make sense to a potential tenant. Renters insurance typically covers the tenant’s personal property, not the building structure—a landlord responsibility. However, renters insurance affords landlords an extra layer of protection.
Self-described “digital insurance company” Lemonade says renters insurance is “a win-win for tenants and landlords alike.”
Benefits to landlords include protection against personal liability and reduced risk of lawsuits. It may also alleviate tenant relocation costs for landlords, where applicable.
“In some states, landlords have to cover the cost of relocation for their tenants if the property becomes unlivable for certain reasons,” Lemonade shares. “That’s another worry that’s lifted by renters insurance, since renters’ loss of use coverage can help foot the bill for some extra living expenses that tenants might incur while they’re away from home like food, lodging, and laundry.”
Lemonade also suggests that renters with insurance may be considered more favorably during tenant screenings as landlords view them as more caring and responsible.
What's In It for You as a Renter?
A rental insurance policy offers many benefits to tenants, too, of course. These policies can cover loss or damage to personal property, offer some liability coverage, and can even help with additional, unexpected expenses as a result of being temporarily displaced.
It’s difficult to put a price tag on peace of mind. Turns out it’s very affordable! Numerous financial and insurance sites share a typical cost range of approximately $15 to $25 a month. This is $180 to $300 annually. Some sources show even lower rates. Nerdwallet.com reports the national average for renters insurance (as of January 2026) is $151 per year, or about $13 per month.
“We based this estimate on a policy for a 30-year-old tenant with $30,000 in personal property coverage, $100,000 in liability coverage, and a $500 deductible.”
Every policy and deductible is different. Some geographic areas at higher risk for natural disasters, for example, may have higher premiums. The bottom line is, for the cost of a meal out or a couple of lattes, renters can afford this important protection.
Financial guru Dave Ramsey extols the essential and affordable nature of this coverage. His 2023 Facebook post on the topic remains accurate and relevant.
“Renters insurance coverage is dirt cheap. If you're currently renting, take care of this today! There's no excuse for not having this in place before you go to bed tonight!”
Ramsey says it’s sometimes called "contents insurance" because it covers the tenant-owned contents inside the apartment (or other living space) not owned by the tenant.
“A lot of renters just assume that if the building burns down, the apartment or landlord's insurance will cover their belongings as well. It doesn't,” explains Ramsey. “Say you're renting a house. If the house burns down—taking all your stuff with it—the landlord's insurance will pay to rebuild the house. It covers the landlord's losses, not yours. Your stuff is your responsibility.”
Some renters might balk, thinking they don’t have much in the way of worldly possessions. Instead of minimizing, consider the retail or replacement value of everything, from your shoes and clothing to your laptop, television, and other electronics. Costs quickly escalate. It warrants protection.
Farmers Insurance agrees, “Even if you don’t own much, replacing all of your personal possessions at today’s prices could be very expensive unless you have renters insurance to help cover the cost. You’ve got furniture, clothes, electronics, weekend gear, and dishes in the cupboard. It all adds up.”
Natural disasters, theft, fire, water and smoke damage, or any number of accidents can be catastrophic for tenants. Sharing walls with strangers comes with its own risks. It’s part of rental territory. Mitigating the risk is worth the minimal investment.
What Renters Insurance Actually Covers — A Real-Life Example
Sadly, some tenants learn the hard way. Chal Whitfield rented his first apartment stateside, having returned from U.S. Navy active duty overseas. At that time, rental insurance wasn’t common. It wasn’t a consideration for the veteran nor did the landlord require it.
Whitfield’s apartment was broken into. He was robbed of myriad personal items, property, and electronics. Perhaps most heart-breaking was the loss of irreplaceable family heirlooms and mementoes from his time in the service.
“When I moved in, I never considered getting robbed,” recalls Whitfield. “In hindsight, I know renters insurance couldn’t have replaced everything, but it sure would’ve helped.”
Years later, when Whitfield rented again, he made sure to purchase renters insurance through USAA, lest lightning strike twice. Thankfully, it did not, but the coverage provided a degree of assurance important to Whitfield.
USAA exclusively serves military members and their families. They explain, “Renters insurance helps protect your property and finances. It can pay to repair or replace your things if they’re stolen or damaged by a covered event,” like Whitfield’s experience.
“Liability coverage helps when you’re responsible for someone else’s injury or damage to their property.”
The company offers coverage even if the renter lives on base.
“Whether you're in an apartment, house, dorm or military base, renters insurance can help protect you from the unexpected,” USAA says.
How to Get the Best Rate on Renters Insurance
Although renters insurance is reasonably priced, saving money is always a good idea. BusinessInsider.com offers these tips on how to make this important coverage even more affordable.
- Bundle your renters insurance with auto insurance
- Choose a lower coverage amount
- Choose a higher deductible
- Set up autopay
- Add a home security system
- Shop around and compare quotes from at least three insurer
Some options, like reducing the amount of coverage, may depend on landlord requirements. Others, like comparing quotes, are easily done online. Some providers even offer cost comparison tools. Insurify.com and Compare.com are sites with that service.
For tenants with roommates, it’s worth noting that each renter should have his/her own renters insurance policy.
Georgia-based insurance broker Hart Insurance Group says it best.
“Renters insurance isn’t just something landlords make you get. It’s actually one of the most affordable ways to protect yourself financially.”
