Do I need renters insurance?
For most renters, yes. A landlord’s policy protects the building, not your personal belongings or liability. A renters (HO‑4) policy is the primary way to cover your property and legal exposure, and adoption has climbed in recent years: roughly 55%–60% of U.S. renters now report having renters insurance, according to recent polling summarized by the Insurance Information Institute, with independent summaries showing similar mid‑to‑high‑50% penetration. Growing lease requirements at professionally managed properties have contributed to this increase (NMHC). Digital-first, embedded purchase options at lease signing also make it easier to buy and verify coverage (J.D. Power).
The case for renters insurance
Cost is typically modest compared with what it would take to replace your stuff. In 2025, a typical renters policy averages about $200–$220 per year ($17–$18 per month) for common coverage levels, with many renters paying $150–$250 depending on location, limits, and discounts. This updates the latest finalized NAIC/industry benchmark (about $173 in 2022) using recent inflation in the BLS “tenants’ and household insurance” index and aligns with current quote studies (Insurance Information Institute; BLS CPI; Bankrate; NerdWallet; Forbes Advisor). Standard renters policies cover losses like fire, theft, and certain wind/water damage from sudden events, but they generally exclude flood, earthquake, landslide, and mudslide.
Protection goes beyond belongings: policies typically include Additional Living Expenses if a covered loss makes your home uninhabitable, no‑fault medical payments to others, and personal liability if you’re sued—often starting at $100,000 with options to raise limits. Insurers generally provide and pay for your legal defense (subject to policy terms) in addition to liability limits, a key value of renters insurance (III: Renters insurance overview; NAIC consumer guidance; IRMI). If you host guests, have a dog, or want more protection, many carriers offer $300k–$500k liability options and personal umbrella policies for added coverage (III: Umbrella).
Landlords’ property insurance will not replace your belongings or cover your liability. Today, about 55%–60% of renters carry their own policy—up from roughly 40% in the mid‑2010s—driven by lease requirements, easier digital purchasing, and heightened awareness after severe weather and fire events (Insurance Information Institute; ValuePenguin; Forbes Advisor; J.D. Power).
Average Annual Insurance Premiums
What’s next?
- We’ve already researched the best renters insurance providers, so take a look at our top picks and get a few quotes. Also compare widely recommended 2025 standouts such as State Farm and Nationwide (often praised for affordability and bundling), Amica and Erie (service leaders where available), Travelers and Allstate (national reach and endorsements), digital-first options like Lemonade and Toggle for fast online purchase, and USAA if you’re eligible—frequently cited for value and including flood and earthquake in standard renters coverage (NerdWallet; Bankrate; USAA; Lemonade; Toggle).
- Here are a few ways to make your renters insurance premium even cheaper — bundle it with your auto insurance at the same company, install home security and safety devices, or raise your deductible (just make sure it’s not more than you could afford to pay out-of-pocket). Expect modest savings for basics like deadbolts, smoke detectors, and local alarms, while centrally monitored burglar/fire systems and interior sprinklers can reduce premiums by roughly 15%–20% with some insurers. Many carriers also credit water‑leak mitigation (smart sensors or automatic shutoff valves). Bundling and claims‑free/good‑payer discounts can materially reduce costs when combined (III: ways to lower costs; Travelers: Protective Device Discount; Chubb: water leak detection; Bankrate).
- If you live somewhere prone to floods, earthquakes, landslides, or mudslides, consider adding standalone policies for those events, since most renters insurance policies won’t cover them. Renters can buy contents‑only flood insurance through FEMA’s NFIP (typically with a 30‑day waiting period and no Additional Living Expenses), or consider private flood options that may include ALE or higher limits; in California, earthquake coverage is widely available via the California Earthquake Authority alongside private markets; and in Florida, Citizens is phasing in flood requirements for many policyholders—trends that reflect climate‑driven changes in coverage and underwriting (FEMA FloodSmart: Renters; FEMA Risk Rating 2.0; CEA; Citizens FL: Flood requirements).