Home Finances

Is renters insurance worth it? What it covers and costs

Many renters assume the landlord's insurance protects their belongings. It usually does not. Here is what renters insurance actually does.

By the Vida no Bolso team · Updated on September 20, 2026

A fire, a burst pipe or a break-in can take everything you own in a rented apartment. The building is insured. Your things, usually, are not.

What renters insurance covers

According to the Insurance Information Institutea standard renters policy usually includes three parts:

• Personal property: your belongings, against events like fire, theft and certain water damage.
• Liability: if someone is hurt in your home or you damage someone else's property.
• Additional living expenses: hotel and meals if your home becomes unlivable after a covered event.

What it usually does not cover

• Flood and earthquake, which need separate policies.
• Your roommate's belongings, unless they are on the policy.
• High-value items above the policy limits, like jewelry, unless you add coverage.

How to choose

1. Make a quick inventory: walk through with your phone and film each room.
2. Estimate what it would cost to replace everything.
3. Prefer replacement cost coverage over actual cash value.
4. Pick a deductible you could pay from savings.
5. Ask about bundling with your car insurance.

Is it worth it?

For most renters, yes. The premium is usually small next to the cost of replacing everything you own, and the liability part protects you from a bill that could be much larger.