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Renters insurance

Coverage for your belongings and your liability in a home someone else owns — the cheapest serious insurance most people ever buy.

What renters insurance covers

A renters policy (HO-4) covers three things: your personal property (furniture, electronics, clothes — against fire, theft, water damage from burst pipes, and similar named perils, at home and often away from it), your liability if you injure someone or damage their property (including dog bites, in most policies), and loss of use — extra living expenses if a covered event makes your place uninhabitable. It does not cover the building; that is your landlord’s policy, and it protects the landlord, not you.

Who needs it

• Every renter whose belongings would hurt to replace — add yours up honestly; most people underestimate by half.
• Dog owners: liability coverage for bites is a major, underrated reason to carry a policy (check breed rules).
• Anyone whose lease requires it — increasingly common, and landlords may ask for proof.

What it typically costs

The national average renters premium is about $171 per year — roughly $14 per month (Insurance Information Institute, citing NAIC data). State averages run from under $140 to about $260. Your price moves with how much property you insure, your liability limit, your deductible, and your state — which is what our estimator models.

What moves your price

• Personal property limit you choose (do the inventory)
• Liability limit ($100,000 is a common default; higher limits cost little more)
• Deductible ($250–$1,000 typical)
• State and ZIP (claim costs and state rules)
• Building type and safety features (sprinklers, alarms)
• Bundling with your auto policy — often the biggest single discount

How to shop it

1. Inventory your belongings room by room; set the property limit to the real total.
2. Choose replacement-cost (not actual-cash-value) coverage for your property if offered — the price difference is small, the claim difference is not.
3. Raise liability to at least $300,000 if you have a dog or host often; it is usually a few dollars a year.
4. If you have auto insurance, quote the bundle at your current insurer and at one digital-first insurer.
5. Photograph serial numbers and keep the inventory in cloud storage — claims go faster with proof.

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Sources: Insurance Information Institute, “Facts + Statistics: Homeowners and Renters Insurance” (NAIC data: average renters premium $171/yr, 2022 series); III state average range reporting.