Is Renters Insurance Worth It?

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Consider how much it would cost to have to replace everything in your home. If you're a renter, it's worth having renters insurance, even if your landlord doesn't require it. It's an affordable way to protect yourself if a disaster happens.

Why Is Renters Insurance Worth It?

As a renter, one of the biggest perks is that your landlord is responsible for the upkeep and maintenance of the building. However, your landlord's insurance will not cover your belongings if someone robs you or if a windstorm destroys your items. Landlord's insurance will only protect the building, not your personal property. This is where renters insurance comes in, to provide financial assistance if unexpected damage or loss occurs, or if someone else is hurt in your home. While it won't cover everything, it's more cost-effective than paying out-of-pocket if a disaster happens.

Knowing what renters insurance covers can help you determine if it is worth it. While policies may vary, most cover the following events:

  • Disaster: Losses like theft, windstorms and fire are covered.

  • Personal property: Items like furniture, clothing, electronics and more are covered.

  • Loss-of-Use: If you have to temporarily live somewhere else while your landlord makes repairs, renters insurance will cover your meals, hotel room and other related expenses.

  • Medical Costs: Medical bills are covered if someone is injured on your property regardless of fault.

  • Packages: Stolen packages with proof of purchase and delivery are covered.

  • Pets: Any damage caused by your pets to someone else's pet, person or property is covered.

  • Liability: Costs for property damage and bodily injury are covered if you're found responsible.

  • Loss of items outside of the home: Let's say someone stole your bike or a laptop from your car. Renters insurance would cover these losses, up to policy limits.

You can always opt for additional coverage, called riders or floaters for specific items like expensive jewelry. You can also find coverage for identity theft.

Your landlord's insurance will not cover your belongings if someone robs you or if a windstorm destroys your items.

What Isn't Covered by Renters Insurance?

Every insurance policy has things it will or will not cover, and renters insurance is no exception. Below is a list of things not covered by renters insurance.

  • Specific disasters: It won't cover floods, sinkholes and earthquakes.

  • Stolen items without receipts: It won't cover anything that doesn't have proof of purchase.

  • Certain possessions: It won't cover certain items that go beyond your coverage limits. You may need to add a rider to your policy for these.

  • Roommates: Your insurance won't cover your roommate's belongings.

  • Infestations: It won't cover pests or infestations, like termites or bed bugs.

  • Vehicle damage: It will not cover any damage to your car, even damage or loss occurs at your place of residence; your car insurance would cover this.

  • Damaged building: It won't cover structural damage to your building, something your landlord will cover.

  • Packages: It will only cover stolen packages with proof of purchase and delivery.

  • Pets: It won't cover damage to your property caused by your pets.

Find Affordable Renters Insurance

How Much Renters Insurance Is Needed?

Determining if renters insurance is worth it depends on a variety of considerations. If you live in an area known for thefts and vandalism, or if you just want peace of mind, getting renters insurance is the best option for you. Depending on your coverage, it is often affordable and can help you get through a tough spot. When looking for renters insurance, you will need to determine how much coverage you want for your belongings, temporary housing if your building is being repaired (loss-of-use), medical costs and personal liability.


Consider what you currently own and how much it would cost to replace them after a covered loss. For example, if you frequently use your laptop, you will want to be able to replace it if it was damaged or stolen, but you may not want to replace cheap cooking pots.

Living Expenses

If your building is temporarily uninhabitable, think about what you would reasonably budget for housing, meals and emergency expenses.

Medical Costs and Liability

Medical costs and personal liability can be more complicated to determine. If you have a pet, a swimming pool or a big backyard with lots of trees or cracked walkways, you may want to protect yourself in case someone suffers a dog bite, a slip-and-fall or any other injury related to your property. Consider the cost of legal fees, medical costs and property damage costs without any coverage. Buying renters insurance may be extremely worth it for you.

Why Choose Renters Insurance Over Alternatives?

The number of renters in the U.S.reached 44 million in 2021 but only 41% of renters carry renters insurance. Many mistakenly believe that they are covered under their landlord's or roommate's insurance policy. It's always the best option to carry renters insurance in case you need to replace all of your belongings if destroyed or stolen.

While it won’t cover everything, renters insurance is more cost-effective than paying out-of-pocket if a disaster happens.


Is college renters insurance worth it?

Yes, college students renting an apartment should carry renters insurance to cover their laptop, TV, school supplies, jewelry, furniture and all other items that can be difficult to replace out-of-pocket.

Is earthquake insurance worth it for renters?

Earthquake insurance may be worth it for renters who live in an earthquake prone area.

Does my landlord's insurance policy cover me?

No, landlord's insurance only covers damage to the building and offers liability protection for the landlord only. It will not cover any damage to a tenant's belongings; it is designed to just protect the landlord.

Protect Yourself From Losses With Renters Insurance

By buying renters insurance, you can protect yourself from the financial distress that comes with replacing items after an unexpected loss, such as a natural disaster or theft. Smart Financial can help you find the perfect coverage within your budget. Just enter your zip code below and answer a few questions for free renters insurance quotes in your area.

Get a Free Renters Insurance Quote.