a man and woman sitting on a couch with boxes and a table

Renters Insurance 101

How Does Renters Insurance Work?

Your personal possessions turn the space you rent into a place that’s uniquely yours, and we think that’s worth protecting. As a renter, you may think you don’t have that many valuables, but if you start to count the cost of your belongings — from your TV, laptop, camera, clothes, furniture, etc. — the number adds up. 

How Much Renters Insurance Do I Need?

Take a look at how much stuff you own. Typically, to see how much coverage you need, you’ll add up all of your belongings in your apartment and use that as an estimate to start.

You’ll want to make sure your coverage limit is enough to help cover the cost to replace your belongings should the unexpected happen. An agent will help factor in how your location affects the cost and also any added coverage you might want, like identity theft protection.

Narrator: From your computer to your couch as a renter you have a lot more to protect than you think, and renters insurance is an easy and affordable way to protect your belongings, and it even protects you when you're on the go.

On screen: Renters insurance

  • Protection At Home
  • Protection On The Go

Narrator: The best part? This affordable coverage is often less than two of your favorite fancy coffees a month.

On screen: Renters Insurance

Narrator: With renter's insurance, you'll have three main types of protection: personal property coverage, liability coverage and additional living expenses.

On screen: Renters Insurance

  1. Personal Property Coverage
  2. Liability Coverage
  3. Additional Living Expenses

Narrator: If your apartment is damaged from things like fire or water, your landlord’s insurance will only cover the building, not your belongings.

On screen:

  • Fire
  • Water

Narrator: And if it's broken into, you'll be on the hook for covering the cost to replace any belongings that are stolen.

On screen:

  • Theft
  • Vandalism

Narrator: That's where personal property coverage steps in. This coverage protects your belongings inside your apartment and when you're out and about on the go. To determine the amount of personal property coverage you need, add up the cost of your belongings like bike, jewelry and electronics. Your coverage types and limits should be enough to replace your stuff should the unexpected happen.

On screen: Personal Property Coverage

Narrator: Renters insurance also offers liability coverage, which provides some protection for:

On screen: Liability Coverage

Narrator: Medical bills or lost wages, if someone is injured in your home. Or, if you injure someone away from home, depending on your coverage limits.

On screen: 1. Medical bills or lost wages

Narrator: The cost to replace or repair damages you caused to another person's property.

On screen: 2. Covers the cost to replace and repair damages

Narrator: And legal costs if you're sued by your landlord or someone else for damages you caused to their property.

On screen: 3. Helps cover legal costs

Narrator: It even covers additional living expenses, like a hotel and food if your apartment is uninhabitable due to a covered loss.

On screen: Additional Living Expenses

Narrator: Now that you know how renter's insurance benefits you, connect with an American Family Insurance Agent to get a quote and see how simple and affordable it is to protect all the things that matter most to you.

On screen: American Family Insurance

Get a quote!

What Does Renters Insurance Cover?

Insurance can be confusing — we get that. We'll walk you through what you need to know about how you're covered.

What is covered:

  • Theft or vandalism
  • Fire & Smoke Damage
  • Mold
  • Water damage from plumbing, heating or cooling systems
  • Lightning, Windstorms or Hail
  • Explosions
  • Riots
  • Liability Coverage
  • Medical Expenses

What is not covered:

  • Appliances
  • Water damage from sewer back-up, septic back-up and sump pump overflow.

    But, don't fret! We offer special add-on coverage to make sure you are protected in these situations.


How Much is Renters Insurance?


Not as much as you think.
There are a number of factors that go into the cost of your coverage, so the price for renters insurance is going to be different for everyone — but a typical premium for renters insurance is usually less than the price of one dinner out with friends. The estimate of your possessions, your location and added on coverage are a few things taken into consideration when calculating the cost of renters insurance.

Looking to save more money? You can also bundle your renters insurance with other policies — such as your car insurance coverage. Check out our discounts for streamlining your coverage with an auto and renters bundle.

Getting Renters Insurance is Quick and Easy!

  • Most policies go into effect as soon as you hang up the phone with your agent.
  • Save money on premiums easily by qualifying for discounts like paperless billing, automatic payments, and more!
  • Access everything you need to know about your coverage, make payments, and report a claim through the MyAmFam App.

More Renters Insurance FAQs