Do I really need renters insurance, and what does it cover?
Your landlord's insurance covers the building, not your things. If there is a fire, theft, or burst pipe, your belongings are covered only if you have your own policy. Renters insurance also covers liability if someone is hurt in your home or you accidentally damage someone else's property. Many policies also pay for a hotel if your home becomes unlivable. Many leases require it.
The National Association of Insurance Commissioners says premiums usually run about $15 to $30 a month. When you compare policies, ask whether it pays replacement cost or actual cash value. Actual cash value subtracts depreciation, so a five-year-old laptop pays out much less. Replacement cost costs more but pays for a new item. Jewelry, art, and other expensive items may need an add-on.
Floods and earthquakes are usually not covered. Ask about separate coverage if you live in a risk area. Start the policy on the day you get the keys, not the day you finish moving in. Take photos or video of your belongings now so a claim is easier. For complaints or questions, contact your state insurance department.
Source: National Association of Insurance Commissioners, For Rent: Protecting Your Belongings With Renters Insurance · Checked October 2026