What renters insurance covers
Renters insurance covers your belongings, your liability if someone is hurt in your home, and extra living costs if the home becomes unlivable after a covered event. The premium depends mainly on how much personal property coverage you choose, your deductible and your location.
The formula
Coverage needed = the cost to replace everything you own
How much coverage do I need?
List your furniture, electronics, clothes and kitchen items room by room. Many renters find the total is $20,000 to $40,000.
How to use this calculator
Enter the value of the belongings to cover and a rate per $1,000 of coverage, then choose the liability coverage and the deductible. The calculator estimates the cost of renters insurance per month, per year and per day from those four inputs. Change one input at a time to see how much each one moves the estimate. The result is an estimate, not a quote. Only an insurer can give you a price.
More examples
Here is an example inventory for a one-bedroom apartment. The amounts are what it would cost to buy each group of items new.
| Category | Replacement cost |
|---|---|
| Living room furniture | $6,000 |
| Bedroom furniture and bedding | $5,000 |
| Electronics | $7,000 |
| Clothes and shoes | $4,000 |
| Kitchen items | $3,000 |
| Total | $25,000 |
This renter would look for about $25,000 of personal property coverage. Most people guess low until they add it up, because small items such as clothes, cookware and linens are easy to forget.
What the result means
The estimate is the price of the coverage you entered, spread over 12 months. It is not the amount you would be paid in a claim. In a claim, the insurer pays the covered loss minus your deductible. For example, if $3,000 of belongings are stolen and your deductible is $500, the payout is $2,500. A loss smaller than the deductible pays nothing.
What changes the result
- Belongings coverage. More coverage costs more. Match it to your inventory total instead of picking a round number.
- Deductible. A higher deductible lowers the premium, because you carry more of each loss yourself. Pick an amount you could pay on short notice.
- Liability limit. A higher limit raises the premium. Liability protects your savings and income if you are responsible for an injury or for damage to someone else’s property.
- Location. Insurers price by area, so the same coverage costs different amounts in different places.
- Replacement cost or actual cash value. Replacement cost coverage costs more because it pays more in a claim.
Common mistakes
- Insuring for what your things are worth used. Add up what they would cost new.
- Choosing a deductible you could not pay. A low premium does not help if you cannot cover your share of a loss.
- Overlooking item limits. Many policies pay only up to a set amount for categories such as jewelry or collectibles, so read the policy and ask about extra coverage for valuable items.
- Keeping no record. Photos or a video of each room and receipts for large purchases make a claim easier to prove.
- Assuming floods are covered. They are not, as the answers below explain.
Related calculators
Add the premium to your housing budget with the rent affordability calculator. If you are planning a move, the moving cost calculator estimates the movers. For flood coverage, see the flood insurance cost page.
Frequently asked questions
Does my landlord’s insurance cover my belongings?
No. It covers the building only.
What is replacement cost coverage?
It pays what a new item costs today. Actual cash value coverage pays less because it subtracts depreciation.
Does renters insurance cover floods?
No. Flood damage needs a separate policy.
What is a deductible?
The part of each covered loss that you pay yourself. The insurer pays the rest, up to your coverage limit.
How soon does a flood policy start?
A new National Flood Insurance Program policy usually has a 30-day wait before it takes effect, so do not leave it until a storm is forecast.
Does my roommate’s policy cover me?
Usually only if you are named on it. Ask the insurer before you rely on someone else’s policy.
How often should I update my coverage?
Review your inventory once a year and after any large purchase. If the total has grown, raise the belongings coverage to match.