What is Renters Insurance and Why is it So Important?

Landlord/Tenant - June 13, 2023
A man labeleling a moving box with Living Room as he girlfriend looks on.

If you are renting your home, you already know about the struggles that renters face. You may have dealt with leaky pipes, A/C problems, issues with the rent, landlord/tenant arguments and more. But renters insurance might be something you have not thought much about.

If you are asking questions like, “What is renters insurance? Why is renters insurance so important?” you are not alone. We have heard these questions before. That’s why we have gathered answers for some of the most common concerns that renters have about this important issue. Read on to learn more!

Why do I need renters insurance?

Renters moving into a new apartment.Damage to your property can cost you a small fortune. Renters insurance covers you in case the worst happens.

What does renters insurance cover?

Personal property coverage

The best renters insurance will cover the things you value most. Here’s a quick list of the items you can pretty much guarantee will be protected:

  • Smart devices
  • Shoes and clothing
  • Beds
  • Recliners and sofas
  • Tables, chairs, rugs, and other furniture items

While looking into the best renters insurance policy for your situation, make a list of important possessions in your home. Ensure that your rental insurance policy will cover the items in question.


Renters liability insurance also protects you in case you inadvertently cause damage to someone else, someone’s property, or something belonging to your landlord. Walk through these scenarios and ask if they could ever happen in your home:

  • You host a party and a guest falls and hurts themselves.
  • A friend accidentally breaks one of your landlord’s possessions.
  • Your pet hurts somebody.

Up to certain limits, a good policy will cover your court costs if you get involved in some of these nightmare situations.

Additional living expenses

Maybe your home needs some major repairs, meaning you can’t live in it for a while. The best renters insurance should cover the costs you’ll incur during that time away, such as hotel stays, meals bought instead of cooked at home, and other expenses.

What does renters insurance not cover?

As essential as it is to know what you can protect with a policy, it is also essential to know what you cannot protect. Here are a few of the instances wherein renters insurance can’t cover the cost:

  • Earthquakes
  • Riots
  • Pests

This one is a big sticking point, but it’s important to note: Renters insurance does not cover bedbugs and other pests. While your landlord may be willing to help eradicate the pests, your policy probably won’t pay for the cost of damage caused by these wild little rascals.

Other frequently asked questions about renters insurance

Does renters insurance cover water damage?

Renters eating pizza and feeding dog as the unpack boxes.Sometimes. It all depends on what caused the water damage in the first place. If a pipe bursts or a sink leaks and something valuable gets hurt by the water, your policy may cover the costs incurred. But if a natural disaster floods your basement, you might be out of luck.

Worried about floods in your area? Consider investing in a separate flood insurance policy.

Does renters insurance cover theft?

Once again, the answer is sometimes. If your personal property is stolen out of your home, your policy should pay the cost of that property. Just make sure you have paid enough to cover the worth of your belongings.

Your renters insurance policy will not cover vehicle theft. However, if a thief breaks your car window and steals items out of your vehicle, your policy will not pay for the car damages—but it may pay the costs of those stolen items.

What about clothing? While laundry theft is annoying, you can rest easy knowing your insurance policy should pay for these losses.

What is the cost of renters insurance?

The price of rental home insurance varies depending on what you want protected. Generally, a policy will cost around $200 or less per year. If you want to cover more items or protect against certain scenarios, you will need to pay more to ensure that your policy is prepared for those instances.

Why do landlords require renters insurance?

Landlords want to protect you, themselves, and everybody else. By making sure you have a renters insurance policy in place, landlords can rest easy knowing that you are financially and legally safe if something bad happens. It also adds a layer of protection for them, in case a lawsuit arises. And if your renters insurance covers the cost of a big loss, that keeps your landlord’s insurance claims from skyrocketing. Renters insurance helps everyone and hurts no one!

Need some extra help? Here’s how to get it

Man holding his iPhone and looking at the LegalShield Get Legal Help Now home screenRenting a home requires patience, understanding between parties, and knowledge of the law. Throw in renters insurance for apartments, houses, and other spaces, and you’ve got yourself a complicated issue! You don’t have to navigate this journey alone.

For over 50 years, LegalShield has existed to serve people just like you. For a small, automatically renewing monthly fee that you can cancel anytime, you can get access to a dedicated provider law firm of lawyers.

Consult your LegalShield provider law firm to receive advice on an unlimited number of personal legal questions, get a document reviewed (starting at up to 15 pages or less) on an unlimited number of personal legal matters after consultation, and a phone call or letter can be provided on your behalf if the provider law firm determines it would be in your aid. Contact your provider law firm 24/7 with covered legal emergencies, and more—all because we care!

As you prepare to live in your rental space, you can rest easy knowing your LegalShield provider law firm is here for you as a LegalShield member. Get good deals and make sure you have access to LegalShield protection. Ask your provider law firm for advice and have them review your renters insurance today.

Speak to a provider law firm in your state through LegalShield’s network of professionals with your personal coverage plan.

Do you have questions regarding your lease agreement? Here are some things to keep in mind when signing a rental agreement.


Pre-Paid Legal Services, Inc. (“PPLSI”) provides access to legal services offered by a network of provider law firms to PPLSI members through membership-based participation. Neither PPLSI nor its officers, employees or sales associates directly or indirectly provide legal services, representation, or advice. The information available in this blog is meant to provide general information and is not intended to provide legal advice, render an opinion, or provide any specific recommendations. The blog post is not a substitute for competent legal counsel from a licensed professional lawyer in the state or province where your legal issues exist, and the reader is strongly encouraged to seek legal counsel for your specific legal matter. Information contained in the blog may be provided by authors who could be a third-party paid contributor. All information by authors is accepted in good faith, however, PPLSI makes no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of such information.