Why renters insurance matters in 2026
Most landlords' policies cover the building — not your stuff. If a fire, theft, or burst pipe damages your belongings, you're on the hook unless you have renters insurance. The average renter owns roughly $30,000 worth of personal property, yet only about 4 in 10 renters carry coverage.
The good news: renters insurance is one of the cheapest insurance products you can buy. The national average is around $14 per month, and many policies start as low as $5/mo for basic coverage.
Our top pick: Farmers Renters Insurance
★ Editor's PickAM Best AMulti-policy 20%
Farmers Renters Insurance
Best Overall Renters Coverage
9.0
★★★★★
Score
★ What we like
- Personal property coverage up to $100,000
- Liability protection up to $500,000
- Loss-of-use (additional living expenses) included
- Identity theft protection available
- Multi-policy discounts up to 20%
⚠ Things to know
- Slightly higher premiums than budget-only carriers
- Some endorsements only available through local agents
Starting at
$5/mo
Avg policy
$14/mo
Coverage
All 50 states
Get Free Quote on Farmers Renters Insurance →
🔒 Secure quote · No purchase required
Affiliate disclosure: AmericanSaverGuide may earn a commission. This does not affect your price.
What renters insurance actually covers
✅ Typically covered
- Personal property — clothes, furniture, electronics, kitchenware
- Liability — if someone gets hurt in your apartment and sues you
- Medical payments to guests
- Additional living expenses — hotel and meals if your unit becomes unlivable
- Items stolen outside your home — like a laptop stolen from your car
❌ Typically NOT covered
- Floods — requires separate flood insurance through NFIP
- Earthquakes — separate endorsement needed in CA, OR, WA
- Bedbugs and pest damage
- Roommate's belongings — each roommate needs their own policy
- High-value jewelry above policy limits — needs scheduled rider
How to save on renters insurance
- Bundle with auto insurance — most insurers give 10-25% off
- Increase your deductible — going from $250 to $1,000 cuts premiums 15-20%
- Install smoke detectors and deadbolts — basic security discount
- Pay annually instead of monthly — saves the installment fee
- Maintain good credit — affects rates in all states except CA, MA, MD, HI
Renters Insurance FAQ
Is renters insurance required by law?
No federal or state law requires it, but many landlords now make it a lease requirement — typically demanding $100,000 of liability coverage minimum.
Does my roommate need their own policy?
Yes. Renters insurance only covers the named insured and family members.
Will renters insurance cover my stuff if it's stolen from my car?
Generally yes — most policies cover personal property anywhere in the world.
Does it cover my dog biting someone?
Liability usually covers dog bites, but many insurers exclude or surcharge specific breeds. Always disclose pets when applying.
How fast can I get covered?
Most online quotes take 2-5 minutes and policies can be active the same day.