What Is Renters Insurance?

What it covers

A standard renters policy covers three things: your personal belongings, your liability if someone is injured or you damage the property, and additional living expenses if the unit becomes uninhabitable.

It does not cover the building itself — that is the landlord's policy — and it typically excludes flood and earthquake damage.

What it costs

Renters insurance is one of the cheapest lines in a housing budget, commonly $12 to $30 a month depending on coverage limits, deductible, and location. Many leases now require it and ask for proof before move-in.

Choosing coverage

Estimate the replacement cost of your belongings rather than guessing. Choose replacement-cost coverage over actual-cash-value if the price difference is small, and consider scheduling high-value items such as jewelry or instruments separately.

Keep reading

• What Is Homeowners Insurance?

  Coverage parts, what is excluded, and how premiums are set.

• How Much Rent Can I Afford?

  The 30% rule, what landlords actually screen for, and how to set a rent budget that survives the rest of your life.