Renters Insurance: Why You Need It Even If You Think You Don’t (2025)

When I was 24 and renting my first apartment in Portland I didn’t have renters insurance. Couldn’t see the point honestly. My furniture was from Craigslist and my parents’ garage. My TV was ancient. What was I gonna insure, my collection of secondhand books and mismatched plates?

Then the apartment below mine caught fire.

Some guy fell asleep with a candle burning. The fire didn’t reach my unit but the smoke damage was insane. Everything I owned smelled like a campfire. Clothes, mattress, couch—ruined. The walls were covered in soot. I couldn’t live there for three weeks while they cleaned and repainted.

I was out probably $4,000-5,000 in ruined stuff. Plus hotel for three weeks. Plus eating out every meal because I had nowhere to cook. None of it was my fault. I didn’t set the fire. But my landlord’s insurance? That covered the building. Not my stuff. Not my hotel. Not my smoke-damaged mattress.

Renters insurance would have cost me like $15 a month. Maybe $180 a year. I lost thousands because I was trying to save $15 a month.

Don’t be 24-year-old me.

What renters insurance actually is

It’s basically homeowners insurance insurance for people who don’t own their home. Covers your stuff if it gets stolen or destroyed. Covers you if someone gets hurt in your apartment and sues. Pays for you to live somewhere else if your place becomes unlivable.

That’s it. Not complicated.

Your landlord’s insurance does NOT cover you

I need to say this clearly because people get this wrong constantly. Your landlord has insurance. It covers the building. The structure, walls, roof, common areas. It does not cover your stuff. Does not cover your liability coverage. Does not pay for your hotel.

Building burns down? Landlord’s insurance rebuilds the building. Landlord is fine. You’re standing in the parking lot with nothing but what you’re wearing.

I had people call me during my adjusting years completely devastated because they assumed their landlord’s insurance covered them. It never does. Never has. Your stuff is your responsibility.

It’s really really cheap

According to Insurance Information Institute the average renters insurance is about $173 a year. That’s like $14-15 a month. Less than Netflix. Less than one dinner out. Less than like three fancy coffees.

For that you get $30,000-50,000 in personal property coverage, $100,000 in liability protection, and coverage for additional living expenses. That’s an insane value.

And your stuff is probably worth more than you think. Go through your apartment room by room and add it up. Bed plus bedding. Couch. TV. Electronics. ALL your clothes. Kitchen stuff. Bathroom stuff. Furniture. Books, games, decorations. Most people have $20,000-40,000 in stuff and don’t realize it.

What’s not covered

Flooding—same as homeowners, rising water from outside isn’t covered. Earthquakes unless you add it. Your roommate’s stuff—your policy covers YOUR stuff, they need their own. Expensive items above sublimits. Bed bugs which is gross but true.

Liability is lowkey the most important part

Most people think renters insurance is stuff insurance. But liability coverage might be more valuable. Someone gets hurt in your apartment and sues? Tens of thousands in medical bills and legal fees even if you win. Your dog bites someone. You accidentally start a fire. You flood the apartment below by leaving the tub running. Liability covers it.

$100,000 standard. Can increase to $300,000 for like a few bucks more per month.

How to get it

Any insurance company that does auto probably does renters too. Call whoever handles your car insurance and ask about bundling—you’ll get a discount. Most companies let you get a quote online in ten minutes.

Pick a deductible you can afford. $500 is common. Estimate your stuff’s value for coverage amount—$20,000-50,000 for most people. Make sure it’s replacement cost not actual cash value.

That fire still bugs me

I still think about sitting in that hotel room doing math on my phone. The guy who fell asleep with the candle? He had renters insurance. His stuff was covered. Meanwhile I was buying new underwear at Target because all of mine smelled like smoke.

The worst part is I thought I was being smart by not “wasting” $15 a month. Turns out fires happen to other people all the time. And “other people” includes the people in your building.

Liability just laid an egg somewhere weird again—she does this—but seriously. Get renters insurance. $15 a month. Future you will either never need it (great) or be incredibly grateful (also great). There’s no losing.