Renters Insurance: Do You Need It and How Much Do You Need?

Renting Tips
Stephany Lamas

August 11, 2022
5 mins read

Renters insurance is a type of insurance specifically for people who rent their homes. It can cover your personal belongings in the event of damages caused by fire, smoke, water, theft, or vandalism. Renters’ insurance can also provide liability coverage in the event that someone is injured while on your property. Most importantly, renters insurance can give you peace of mind knowing that you and your belongings are protected.

How much do you need?

Property coverage

That depends on a few factors, such as the value of your belongings and the amount of coverage you want.

You will want to buy personal property coverage limits close to or greater than the value of your belongings. This level of coverage will protect you in a worst-case scenario if your property is destroyed. If you want to save some money and take a risk on the cost of your policy, you can choose to purchase coverage limits lower than the value of what you own. However, know that the policy will only cover you up to those limits in an extreme event.

It’s also good to consider the likelihood of damage or theft. If you know you live in an area with above-average crime levels, it might be a good idea to purchase more comprehensive protection.

You can choose property coverage limits ranging anywhere from as little as $5,000 to hundreds of thousands of dollars. Before you buy a policy, you should make an inventory list of the value of your possessions to determine how much renters insurance is enough to cover the cost of replacing them.

Take Our FREE Credit Literacy Quiz!

In just a few minutes, discover your credit knowledge level and get instant access to a FREE credit education course tailored to you!

Take The Quiz!

Liability coverage

​​A standard renters insurance policy will cover $100,000 of liability coverage, which is likely enough to protect most tenants from liability exposure. 

For example, if your ladder fell out of your balcony due to negligence and seriously injured a passerby, you could be held responsible for damages above $100,000.

Still, you should note that you can usually add additional liability coverage upwards of $300,000 to $500,000 to a renters insurance policy for only a few dollars per month. 

Your choice of liability coverage limits will depend upon your risk tolerance. You should also consider whether you need additional coverage, such as flooding or earthquakes, and purchase additional liability coverage if you entertain guests often.

Once you know how much coverage you need, you can start shopping around for policies. Be sure to compare the coverage limits and deductibles of different policies before choosing one.

Renters’ insurance is relatively affordable, with most policies costing only a few dollars per month. And if something does happen to your home or belongings, it will be worth having it.

Do you need renters insurance?

That’s really up to you and your landlord. If you rent an apartment or home, check with your landlord to see if they require you to purchase renters insurance. Even if it is not required, it is still a good idea to consider purchasing a policy to help protect your belongings, as landlords’ insurance won’t cover you.

If you want to protect your home and belongings, then it’s a good idea to invest in it. Plus, you probably own more than you think, which is a bigger reason to protect your things.

If you’re comfortable with the risks of not having insurance and losing everything in case of a break-in, natural disaster, or fire, you may not need it. However, if you want peace of mind knowing that you and your belongings are protected, renters insurance is a good option.

Renters’ insurance is generally very affordable, so it is a wise investment for peace of mind.

About the Author
Stephany Lamas

Stephany joined the RentReporters Marketing Team in 2021.

Stay on top of credit building tips

Join our newsletter for new credit building tips, videos and resources.

  • This field is for validation purposes and should be left unchanged.

Our Promise to You

We are committed to helping you get the credit you deserve. If you are not delighted with your score change, we will gladly issue a refund.

Quality in everything that we do, every day.


Service that makes a difference.


Satisfaction guaranteed.