Renters Insurance: What It Costs and What It Covers
Why $15/month coverage is one of the best deals in personal finance.
Renters insurance averages $15-$25 per month and is arguably the best value in personal insurance. It covers your belongings, liability for damage you cause, and additional living expenses if your unit becomes uninhabitable.
What it covers
Personal property: typically $20,000-$50,000 in coverage for belongings damaged by fire, theft, vandalism, or covered water damage. Includes belongings outside the home (laptop stolen from a car, for example).
Liability: $100,000-$300,000 if a guest is injured in your unit or if you accidentally damage someone else's property (apartment fire spreading to neighbors, water leak damaging unit below).
Additional living expenses: pays for a hotel and meals if your unit becomes uninhabitable due to a covered event.
What it doesn't cover
Floods (separate NFIP policy required), earthquakes (separate policy in CA, OR, WA, others), bed bug infestations, damage from neglect.
Replacement Cost vs. Actual Cash Value: spec replacement cost — pays to replace at today's prices rather than depreciated value. Costs $2-5 more per month and makes a major difference at claim time.