You just signed a lease for your new apartment. The boxes are stacked, your furniture is ready to be placed, and your electronics are waiting to be plugged in. But here’s a question that’s worth asking: How much renters insurance do I need?
Renters insurance may not be required in all situations, but more landlords are doing so. Even if it’s optional where you live, it’s worth considering. Your landlord’s insurance covers the building itself, not the items inside your unit. Renters insurance steps in to protect your belongings, help cover unexpected living expenses, and shield you from potential medical or legal costs if someone gets hurt in your apartment.
While renters insurance is easy to customize, the key is knowing how much coverage you really need. We’ll take you through everything you need to know.
What does renters insurance cover?
Before you can decide how much renters insurance you need, it’s important to understand what’s included. Most policies cover three main areas:
- Personal property coverage protects your belongings if they’re stolen or damaged by things like fire, smoke, vandalism, or water damage. Policies typically start around $20,000 to $30,000 in coverage, but you can adjust the amount based on what you own.
- Liability coverage is a part of your policy that protects you if someone gets injured in your place or you accidentally damage someone else’s property. Most standard renters insurance policies include at least $100,000 in liability coverage.
- Additional Living Expenses (ALE) kicks in when your apartment becomes unlivable due to a covered incident (a fire, burst pipes, or major mold damage), ALE helps pay for hotel stays, meals, or temporary rentals.
How much coverage do you really need?
When people ask, “How much renters insurance do I need?” the answer depends on two things: what you own and what kind of protection makes you feel comfortable. Here’s what you should consider:
Start with your belongings
Think about everything you’d need to replace if it were lost or damaged. Making a quick list of your furniture, electronics, clothes, and other essentials can give you a good idea.
Take a walk through your apartment and jot down everything you see. Then make a rough calculation to figure out how much it would cost to replace everything on that list. The answer will give you a good starting point for how much coverage to get with a renters insurance policy.
Consider your living situation
Your lifestyle also affects how much renters insurance you need. Ask yourself:
- Do you live with roommates?
- Do you have pets?
- Do you host friends often?
- Do you live in an area with higher crime or risk of natural disasters?
These factors help you figure out whether to raise your coverage amounts, especially for liability. For example, more guests may mean a higher liability risk. Also, if you own a dog, liability coverage can protect you in case your dog bites someone visiting your apartment.
Balance coverage with your budget
Renters insurance is generally affordable, with most people paying $15 to $20 per month. Still, you want to find a balance between having enough coverage and not paying more than you need.
For example, if you’re renting a furnished apartment, you won’t need as much property coverage for furniture. On the flip side, if you’ve invested in expensive tech or home office gear, skimping on coverage could leave you paying out of pocket later.
Adjust over time
The coverage you need may change as your life changes. If you buy new furniture, upgrade your electronics, or bring home a new pet, you might want to update your policy. The good news is that most insurers let you adjust your coverage whenever you need to. Check in every year and decide whether you need to increase your protection or not.
Talk to a renters insurance provider
Once you’ve taken inventory of your belongings and thought about your lifestyle, reach out to a renters insurance provider. Having your list of items ready makes it easier for them to recommend a policy that fits. For example, with ResidentShield you can get a quote online in minutes and find out easily how much renters insurance you need.
So, if you’re asking yourself, “How much renters insurance do I need?”, the best answer is enough to cover what you own and enough to keep you financially protected if the unexpected happens. You can’t predict the future, but you can make sure you’re not left paying for it all by yourself.
