If you're renting an apartment, there's a good chance your landlord has already asked you about renters insurance. Maybe you brushed it off, thinking your stuff isn't worth insuring, or assumed your landlord's policy would cover you. Here's what might surprise you: nearly 55% of renters skip insurance altogether, often because they overestimate the cost or misunderstand what it covers. The reality? Renters insurance typically costs less than your monthly streaming subscriptions—around $12 to $24 a month—and it protects you from financial disasters that could cost thousands.
Whether your landlord requires it or you're trying to figure out if you need it, this guide breaks down everything you need to know about renters insurance for apartments—from what it actually covers to how it works when you have roommates.
What Renters Insurance Actually Covers
Let's clear up the biggest misconception right away: your landlord's insurance policy covers the building structure, not your stuff and definitely not your liability. If a pipe bursts and ruins your furniture, or if someone trips over your rug and breaks their ankle, your landlord's policy won't help you. That's where renters insurance comes in.
A standard renters insurance policy includes three main types of coverage. First, personal property coverage protects your belongings—clothes, furniture, electronics, and more—from covered perils like fire, theft, vandalism, and certain types of water damage. The average renter owns about $20,000 worth of stuff, which adds up faster than you'd think when you count your laptop, TV, phone, clothes, and furniture.
Second—and this is the part most people underestimate—liability coverage protects you if someone gets injured in your apartment or if you accidentally damage someone else's property. If a guest slips on your wet bathroom floor and needs medical treatment, or your bathtub overflows and damages the apartment below you, liability coverage handles the bills and legal fees. This is huge, because a single lawsuit could cost you tens of thousands of dollars without insurance.
Third, loss of use coverage (also called additional living expenses) pays for your hotel, meals, and other costs if your apartment becomes uninhabitable due to a covered event. If a fire forces you out of your apartment for two weeks while repairs are made, this coverage handles your temporary housing costs.
Why Landlords Require Renters Insurance
More landlords are making renters insurance a lease requirement, and it's not just to make your life difficult. While renters insurance isn't required by law, landlords can absolutely require it as a condition of your lease—and they increasingly do.
From your landlord's perspective, requiring renters insurance makes financial sense. If you accidentally cause a fire or flood that damages the building or other units, your liability coverage pays for it instead of the landlord having to file a claim on their property insurance. Most landlords require at least $100,000 in liability coverage, which protects both you and them from costly damage claims.
If you've already signed a lease without a renters insurance requirement, your landlord typically can't force you to buy it mid-lease. However, when your lease comes up for renewal, they can absolutely add it as a new requirement. It's much easier to get coverage from the start than to scramble for it later.
You'll usually need to provide proof of insurance—called a certificate of insurance or declarations page—before you can move in. Your insurance company will send this to you, and you'll forward it to your landlord or property management company.
What You Need to Know About Roommates and Coverage
Here's a question that catches a lot of people off guard: does your renters insurance cover your roommate? The short answer is no—renters insurance protects the policyholder, not everyone living in the apartment.
Your roommate's belongings aren't covered under your policy, and if they accidentally cause damage or someone gets hurt in the apartment, their liability isn't covered either. This means each roommate typically needs their own separate renters insurance policy.
Some insurance companies will let you add a roommate to your policy, but this comes with serious downsides. When you add a roommate, your coverage limit doesn't double—it gets split between you. If you have $30,000 in personal property coverage, you're now sharing that $30,000 for both of your belongings combined. Even worse, if your roommate files a claim, it goes on your insurance record too, which could increase your rates in the future.
Given that renters insurance costs around $12 per month on average, it almost always makes more sense for each roommate to carry their own policy. That way, everyone has full coverage for their own belongings and liability, and you're not financially tied to each other's claims history.
How Much Renters Insurance Do You Need?
Your landlord might specify minimum coverage requirements, but you'll still need to decide on the right coverage limits for your situation. Start by taking inventory of your belongings. Go room by room and add up the replacement cost of your furniture, electronics, clothes, kitchen items, and other possessions. Most renters are surprised to find they own between $20,000 and $40,000 worth of stuff.
For liability coverage, $100,000 is often the landlord-required minimum, but $300,000 is a smarter choice for most people. The cost difference is minimal—typically less than $2 per month—but the extra protection is worth it if you ever face a serious liability claim. Medical payments coverage, which handles minor injuries to guests regardless of fault, usually comes with a limit of $1,000 to $5,000 and costs very little to add.
Your deductible—what you pay out of pocket before insurance kicks in—also affects your premium. A $500 deductible is standard, but choosing a $1,000 deductible can lower your monthly cost. Just make sure you have enough in savings to cover that deductible if you need to file a claim.
How to Get Started with Renters Insurance
Getting renters insurance is refreshingly simple. Start by getting quotes from multiple insurance companies—many let you get a quote online in less than 10 minutes. If you already have auto insurance, check with that company first, since bundling your policies often gets you a discount on both.
When you're comparing quotes, look beyond just the monthly cost. Check what's actually covered, what the deductible is, and whether the policy covers replacement cost or actual cash value. Replacement cost coverage pays to replace your belongings at today's prices, while actual cash value deducts for depreciation, meaning you get less money back. Replacement cost coverage costs a bit more but is usually worth it.
Once you purchase a policy, your insurance company will email you a declarations page or certificate of insurance within a day or two. Send this to your landlord as proof of coverage, and keep a copy for your records. Most policies start the same day or within 24 hours of purchase, so you can get covered quickly even if your move-in date is approaching.
Whether your landlord requires it or not, renters insurance is one of those rare insurance policies that makes sense for almost everyone. For less than you spend on coffee each month, you get protection from financial disasters that could otherwise cost you thousands. Take 10 minutes today to get a quote—your future self will thank you if disaster ever strikes.
