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Renters insurance basics for your first apartment

October 20, 2026 · First Apartment Kit

A lot of first-time renters assume the landlord's insurance covers everything inside the apartment. It usually does not. Here is a plain-English rundown of what renters insurance is, what it typically covers, and the few choices you will make when you buy a policy.

Your landlord's policy covers the building, not your stuff

According to the National Association of Insurance Commissioners (NAIC), a landlord's insurance does not cover the things you own. If your laptop is stolen or a fire ruins your furniture, the landlord's policy is not the one that pays. A renters policy is how you cover your own belongings. Some leases also require renters insurance, so read yours before move-in.

The three usual parts of a policy

The NAIC says most renters policies include three types of coverage:

• Personal property. Helps pay to repair or replace your belongings if they are damaged, destroyed, or stolen by a cause the policy covers.
• Liability. Can help if a guest is injured in your home or you accidentally damage someone else's property. Every policy has a liability limit, the most it will pay.
• Additional living expenses. If a covered loss means you cannot live in the apartment, this helps with the extra cost of temporary housing. It pays the difference between your normal costs and the new ones, not all of your living expenses.

Many policies also cover your belongings away from home, for example items stolen from your car or a hotel room.

Actual cash value vs replacement cost

This is the choice that matters most when you file a claim. Actual cash value pays what an item is worth today, after age and wear. Replacement cost pays to replace it with a similar new item. The NAIC's example: a five-year-old computer that cost $2,000 might be worth about $500 today, and that is what actual cash value would pay. Replacement cost usually costs a bit more per month but pays out much closer to what it takes to replace your things.

What it usually does not cover

• Floods. Standard renters and homeowners policies generally do not cover flood damage. Renters can buy contents-only flood coverage through the National Flood Insurance Program (see FloodSmart.gov).
• Earthquakes. Usually excluded unless you add coverage.
• High-value items. Jewelry, electronics, collectibles, and similar items often have lower limits for theft. Ask about adding coverage if you own something expensive.

Every policy is different, so read the declarations page and the exclusions list.

How to pick coverage in about an hour

1. Make a quick home inventory. Walk room by room and list what you own with rough replacement prices. Phone photos and a short video help a lot if you ever file a claim.
2. Pick a personal property amount that covers the total, with some room to spare.
3. Choose a deductible you could pay tomorrow without stress. A higher deductible lowers the premium but means you pay more out of pocket per claim.
4. Get two or three quotes with the same limits and deductible so you are comparing like with like. Ask whether bundling with car insurance lowers the price.
5. Check your lease for a required liability minimum or a requirement to list the landlord as an interested party.

What it costs

The NAIC puts an average policy at roughly $15 to $30 a month. Your price depends on your state, building, coverage amounts, deductible, and claims history.

Sources

• NAIC: Renting your home, what you need to know about renters insurance
• NAIC: Protect your belongings with renters insurance
• FloodSmart.gov (National Flood Insurance Program)
• Your state insurance department, which you can find through the NAIC state directory

Want the rest of move-in week covered too? The free First Week in Your Apartment checklist walks you through it.

Not legal, financial, or insurance advice. Coverage, prices, and rules vary by insurer and state. Read your policy and talk with a licensed agent or your state insurance department before you buy.