Do You Need Renter's Insurance? Here's What an Expert Says

Kristine Solomon and Heather Barnett
·6 min read


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Many people think that one of the benefits of renting is that the landlord is responsible for everything. While that’s mostly true in the case of apartment maintenance, it’s most certainly not the case when it comes to emergencies and unexpected damage — including damage to your own furnishings and belongings from things like theft, burst pipes or pet damage, to name a few. Protecting your stuff is actually your responsibility as the renter. So, if the worst happens, do you need renter’s insurance coverage?

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In the latest reports by Simply Insurance, as of 2020 about 57 percent of renters in the U.S. have renters insurance — that’s more than a 25 percent jump over the last eight to 10 years. “Renter’s insurance offers you financial help if certain unfortunate things happen to you or your stuff, protecting you and your belongings from the unexpected,” a representative from insurance provider Lemonade told SheKnows.


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Lemonade offers renter’s insurance policies that cover personal property and personal liability, as a good policy should, and premiums start at just $5 a month — that’s about a third of the average. See all the incredible benefits of getting renter’s insurance from Lemonade (including lightning-fast claim approvals) and why it’s one of the most popular renter’s insurance companies in the U.S.


According to the National Fire Protection Association, firefighters responded to 350,800 home structure fires from 2016 to 2020, causing $7.3 billion in direct damage.


Is Renter’s Insurance Legally Required?


Renter’s insurance is not required by law and is usually optional, our Lemonade rep confirmed, but it might be required by your particular landlord or property manager. If your landlord does require you to purchase renter’s insurance, they’ll typically make it a part of your lease terms. You can opt to buy a policy separately, though, whether it’s required or not.


What Happens if You Don’t Have Renter’s Insurance?


If you don’t have renter’s insurance, you may have to cover unexpected events and damage to your property — or, rather, someone else’s — out of pocket. However, the damage might also be covered by other insurance. For example, floods are not covered under renter’s insurance, but a separate flood insurance policy will cover damage related to this kind of disaster.


Also, depending on the unexpected event, you may have some items that are covered by your landlord, says our Lemonade rep. However, this will likely cover damage to the unit or house itself and would not cover you for any personal belongings, medical costs or a hotel in case your place is not livable.


Is Renter’s Insurance Worth It?


“Renters insurance starts as low as $5 a month, which is the same cost as one cup of coffee,” says our Lemonade rep, and “can give you coverage up to almost $100,000 in case of an unexpected event covered under your policy. The value and peace of mind for the price is one of the main reasons we always recommend renter’s insurance. Additionally, people may not know how much it actually covers.”


Our rep says renter’s insurance is a great idea if you’ve just moved to a new city or apartment, just got engaged (primarily to protect the ring in case it’s stolen), live in an area that experienced a lot of inclement weather or travel frequently. So, is renter’s insurance worth it? You be the judge.


What Does Renter’s Insurance Cover?


Your landlord’s insurance covers the physical property he or she owns, but it doesn’t cover anything that belongs to you. It also may not cover liability from accidents that happen on your property as the result of your negligence (like leaving your water hose unwound in the wrong place).


Renter’s insurance does cover these things when they’re damaged by “named perils,” which typically includes fire and smoke, electrical surge, water damage from bursting pipes, lightning, vehicles, falling objects, theft, vandalism, riots and even lava. These are the specific things covered by a base renter’s insurance policy:


Personal property


This typically includes your furniture, clothes, books, electronics and other personal belongings


Personal liability


This applies to damage against someone else on your property. The policy might cover things like medical costs if someone is injured on your property (for example, if they’re bitten by your dog). It may also cover any court costs if they sue you.


Loss of use


The policy may cover you for some other place to live if your dwelling is in a state that makes staying a non-option. Just carefully read those provisions, as some may cover you up to a certain amount, a certain time period, etc.


Mold


The policy may cover things like mold and mildew, wet or dry rot and bacteria.


You can also choose add-ons in addition to your base renter’s insurance policy. These include jewelry, fine art, bicycles, cameras and musical instruments.


Do I Need Renter’s Insurance if I Live With a Boyfriend or Girlfriend?


“Your renter’s insurance policy covers losses suffered by everyone living in your home and related to you by marriage, blood, or adoption,” says our Lemonade rep. However, “you can add your significant other living with you to your policy for a small fee.” Whether you and your partner can be covered on the same policy is based on where you live. “You’ll want to take inventory of whether you own items together or separately,” they add. “If you own items separately, you may want to carry your own policy.”


What Does Renter’s Insurance Not Cover?


What renter’s insurance normally doesn’t cover is:


Flood or earthquake: Research the National Flood Insurance Program and FEMA’s website for information on Earthquake Insurance.


Widespread power outages (in most states)


Theft of your car, or car parts: Though renter’s insurance would cover belongings stolen from inside your car.


Your roommate’s stuff


Things that occur during a short-term rental: For instance, if you Airbnb your apartment, the event won’t be covered.


Damage from or removal of pests: Think things like mice, rats, ants and bed bugs.


Mold: In some instances, unless it results from certain causes.


Damage to your apartment caused by your pets


Most property damage to your physical rental (that’s what your landlord’s insurance is for)


How Is the Price of Your Policy Calculated?


The price of your policy will vary based on the type of coverage you choose and any add-ons. If you have very few possessions or they’re all secondhand items that aren’t worth much, you could feasibly get away with a policy that covers only liability. But before you make that decision, consider this: If something destroys all your possessions, meager though they may be, could you afford to replace them?


The bottom line? It’s usually up to you whether you want to opt in for renter’s insurance (unless your landlord or management company requires it), but for the price, we’d say it’s absolutely worth the peace of mind.

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