What renters insurance covers
Your landlord's policy covers the building, not your things. As the NAIC puts it, "your landlord's insurance doesn't cover the things you own." A standard renters policy (often called HO-4) has four parts:
| Coverage | What it pays for | Example |
|---|---|---|
| Personal property (Coverage C) | Repairing or replacing your belongings after a covered loss such as fire, smoke, theft, vandalism, windstorm or sudden water damage | A kitchen fire destroys your furniture and laptop |
| Loss of use (Coverage D) | Extra living costs above your normal spending while your home is unlivable after a covered loss | Hotel bills and restaurant meals during repairs |
| Personal liability (Coverage E) | Legal defense and damages if you are responsible for injuring someone or damaging their property | Your overflowing bathtub damages the unit below |
| Medical payments to others (Coverage F) | Medical bills for guests hurt in your home, regardless of fault | A visitor trips on your rug |
Source: New Jersey Department of Banking and Insurance renters insurance guide; NAIC consumer insight on renters insurance.
Many policies also cover your belongings away from home. The NAIC notes that many cover items stolen from your car or damaged while you travel. Expensive items such as fine jewelry or art may need additional coverage. You can add a scheduled personal property endorsement to cover them fully.
Actual cash value vs. replacement cost
This is the most important choice in a renters policy:
- Actual cash value (ACV) pays what your item was worth at the time of loss, taking age and condition into account, minus your deductible.
- Replacement cost pays what it costs to buy a comparable new item, without subtracting depreciation, minus your deductible. It is often an optional upgrade that raises your premium.
The New Jersey guide gives an example: a three-year-old computer might have an ACV of $650 but a replacement cost of $1,100. Across a whole apartment of used furniture, clothes and electronics, gaps like that add up. The NAIC warns that ACV may save money upfront but can cost more later. Among the insurers NerdWallet reviewed, Erie includes replacement cost as standard; Auto-Owners and The Hanover offer it as an upgrade or in higher packages.
How much renters insurance costs
| Source | Average | Basis |
|---|---|---|
| NAIC (2022 data) | $168.46 a year (about $14 a month) | Average HO-4 premium reported to regulators |
| NAIC consumer guidance | $15–$30 a month | Typical policy |
| NerdWallet (Sept. 2026) | $165 a year | 30-year-old, good credit, no claims, $30,000 property, $100,000 liability, $500 deductible |
| Insurify (2026) | About $22 a month | HO-4 with $30,000 personal property |
Source: NAIC premium data for 2018–2022 as analyzed and published by AZ Big Media (May 2026); NAIC; NerdWallet best renters insurance (Sept. 23, 2026); Insurify renters insurance (Apr. 2026).
Location matters. Averaged over 2018–2022, NAIC data showed the highest premiums in Mississippi ($256 a year), Louisiana ($241), Oklahoma ($227), Alabama ($221) and Texas ($213). North Dakota was the cheapest at $119.
Credit and claims matter too. In NerdWallet's sample, the national average rose from $165 a year with good credit to $295 with poor credit, and to $205 after one claim. Insurify notes that credit-based insurance scores affect renters premiums in many states. Our guide to how credit scores work explains the factors behind them.
Is it worth the money?
Look at what the premium buys. In NerdWallet's sample, about $165 a year bought $30,000 of property coverage and $100,000 of liability coverage with a $500 deductible. That is roughly $14 a month. Without a policy, you would pay to replace everything yourself after a fire or burglary, cover your own hotel bills while the unit is repaired, and face any injury claim from a guest on your own. The liability part matters most if you have savings that a lawsuit could reach.
Renters insurers compared
These are options with published data, not a ranking we created. Prices are sample quotes and will differ for you.
| Insurer | Sample annual price (NerdWallet) | Avg. monthly (Insurify) | Notable facts |
|---|---|---|---|
| Amica | Not published | About $22 | Third in J.D. Power's 2026 renters ranking (689/1,000); far fewer NAIC complaints than expected; not sold in Alaska or Hawaii |
| Erie | $190 | – | Second in J.D. Power's 2026 renters ranking (692); replacement cost standard; sold in 12 states plus D.C. |
| State Farm | $135 | About $15 | Top renters score in J.D. Power's 2026 study (702/1,000); NAIC complaints close to expected; no dog breed restrictions |
| Auto-Owners | $155 | – | Renters Plus add-on covers sewer and drain backup and food spoilage; sold through agents; $780 sample for poor credit |
| Travelers | $175 | – | Covers improvements you've made to the unit; $360 sample after one claim |
| Lemonade | – | About $18 | Among the cheapest in Insurify's data |
| USAA | – | – | Includes flood and earthquake damage; only for military members, veterans, some federal workers and families |
Source: NerdWallet best renters insurance companies (Sept. 23, 2026); Insurify cheapest renters insurance (2026); J.D. Power 2026 U.S. Home Insurance Study (renters segment, released Sept. 2026; 17,191 responses).
Landlord requirements
No state requires renters insurance by law, but a landlord can make it a condition of your lease. According to MoneyGeek:
- Leases usually require $100,000 of liability coverage. Some require $300,000. When a property minimum is set, it is typically $20,000 to $30,000.
- You may need to list the landlord as an interested party, which means they are notified if you cancel. That is different from an additional insured, which gives them coverage rights and isn't always available on renters policies.
- Proof is usually your declarations page, often required before you get the keys.
- If your coverage lapses, the landlord may treat it as a lease violation, decline to renew, or buy a force-placed policy and bill you. Those policies usually cost more and may not include the personal property coverage you want.
The big gaps: flood and earthquake
Flood. Standard renters policies typically don't cover flooding, and your landlord's flood policy covers only the building. Through FEMA's National Flood Insurance Program, renters in participating communities can buy contents coverage of up to $100,000. You don't have to live in a high-risk zone. There is a $2,500 limit for items such as artwork, jewelry and furs, and contents in a basement are limited to a washer, dryer, freezer and the food in it. Coverage starts 30 days after purchase, so don't wait for a storm forecast.
Earthquake. Earthquake damage is not part of a standard policy, but it may be available as an add-on. In California, the California Earthquake Authority sells a renters policy with $5,000 or $25,000 of personal property coverage, a deductible of 5% to 25% of that limit, and $1,500 to $100,000 of loss-of-use coverage with no deductible.
Other common exclusions include wear and tear, pests, mold that doesn't result from a covered loss, and slow, continuous leaks. For more on how disasters interact with property coverage, see our guide to home insurance and natural disasters.
How to buy renters insurance
- Inventory your belongings. Walk through each room with your phone camera and estimate replacement costs. The NAIC notes that even a few items can cost thousands of dollars to replace.
- Set your property limit to at least that total. Choose replacement cost if the price difference is small.
- Pick liability limits that meet your lease. $100,000 is common, and more is worth pricing if you have significant savings.
- Add what you need: scheduled coverage for jewelry, flood or earthquake cover, or water backup.
- Ask about discounts. The NAIC lists alarms, fire extinguishers, sprinklers, deadbolts, bundling and paying in full. If you also need car coverage, our auto insurance guide can help you compare bundles.
- Compare at least three quotes with identical limits and deductibles.
Frequently asked questions
How much does renters insurance cost?
The NAIC's average was $168.46 a year in 2022, and it says a typical policy costs $15 to $30 a month. NerdWallet's September 2026 sample averaged $165 a year for a renter with good credit and no claims, rising to $295 with poor credit.
What does renters insurance cover?
Most policies cover your personal property against perils like fire, theft and sudden water damage, personal liability, medical payments to guests, and additional living expenses if your home becomes unlivable after a covered loss.
Does renters insurance cover floods or earthquakes?
Usually not. Flood contents coverage of up to $100,000 is available through FEMA's National Flood Insurance Program, with a 30-day waiting period. Earthquake coverage is an optional endorsement in many policies, and in California the California Earthquake Authority sells renters policies.
Should I choose actual cash value or replacement cost?
Replacement cost pays to buy new items without depreciation, while actual cash value pays what your used items were worth. A three-year-old computer might be worth $650 at ACV but cost $1,100 to replace, according to New Jersey's insurance department.
Can my landlord require renters insurance?
Yes, if it's in the lease. No state requires it by law, but landlords commonly require $100,000 of liability coverage and may ask to be listed as an interested party so they are notified if you cancel.
Does my landlord's insurance cover my belongings?
No. The landlord's policy covers the building. Your own renters policy is needed to cover your belongings and your liability.
Sources
- NAIC – Consumer insight: Renting your home? Protect your belongings
- AZ Big Media – Renters insurance costs by state (NAIC data, May 2026)
- New Jersey DOBI – Renters insurance guide
- FEMA / FloodSmart – Flood insurance for renters
- California Earthquake Authority – Renters coverages and deductibles
- NerdWallet – Best renters insurance companies for 2026
- Insurify – Cheapest renters insurance companies (2026)
- Insurify – Renters insurance
- Business Wire – J.D. Power 2026 U.S. Home Insurance Study (Sept. 15, 2026)
- MoneyGeek – Renters insurance lease requirements (Sept. 2026)
Rates, fees and terms change often. Figures were checked in October 2026; confirm current details with the provider before you apply.