Updated note [January 25, 2026]: This guide was first published in 2021 and has since been refreshed to reflect more recent data and industry shifts. It now includes updated cost ranges, notes on emerging risks like cyber exposure, inflation-aware coverage considerations, and evolving trends across the insurance space. You’ll also find expanded coverage insights and practical ideas for navigating common renter scenarios.
If you’re currently renting or are getting ready to rent, you’ll enjoy the actionable tips in this new guide. Let’s get started.
Renters Insurance Overview
Renters insurance is one of the best and easiest ways to cover losses to personal belongings and provide protection from liability claims for anyone that is renting a home, apartment, condo, or even just a room.
Do I need renters insurance?
First things first, do I even need renters insurance? Most likely, yes, you will need renters insurance. Landlords typically require their tenants to purchase renters insurance as a condition in the lease. But even if your landlord does not require renters insurance, we still highly recommend it. Continue reading to learn about a few reasons why you should consider renters insurance.
How Renters Insurance Works
Renters insurance can apply to a variety of different scenarios beyond your personal property which is why it’s so important to make sure you are properly insured. Here are just a few example scenarios of some of the most common renters insurance claims where your renters insurance would protect you.
Common Renters Insurance Claims
Scenario 1: You leave for work in the morning and come back to a trashed and rummaged apartment. It appears your apartment has been broken into and it looks like the thief stole your laptop, tv, and a few other valuable items. Your apartment has become such a mess that you need to stay in a hotel until everything is cleaned and restored.
Scenario 2: Its game night and you invite a few friends over to your apartment. You and your friends have just finished eating dinner. While helping to put some dishes away, one of your friends slips and falls in the kitchen. Unfortunately, she scraped her arm and needs to be taken to the hospital.
Scenario 3: Every day you ride your bike to work and park it outside in front of your apartment. One day, as you’re getting ready to leave for work, you notice your bike is not where you left it. You search around the area and realize it has been stolen after finding your lock snapped in half on the ground.
Scenario 4: Cyber-Related Losses
A phishing scam leads to identity theft or financial loss while using your home network. Some newer policies may offer optional cyber coverage to help with recovery costs.
What Renters Insurance Covers
Renters insurance generally provides protection across four main areas: personal property, personal liability, medical payments to others, and loss of use. Exact coverage and limits can vary by policy, but these categories form the foundation of most renters insurance plans.
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- Personal property
Personal property coverage helps protect your belongings if they’re damaged or stolen due to covered events such as theft, fire, wind, hail, or vandalism. This can include everyday items like laptops, clothing, and furniture, up to your policy’s coverage limit. Reviewing your limits can help ensure they still reflect the value of what you own.
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- Personal liability
Liability coverage protects you up to a certain amount if you get sued for an injury or other damages incurred at your home by other people. It also pays for damage that you, your family, or your pets cause to others. Liability coverage may also pay for any court judgments as well as legal expenses, up to the policy limit, which usually starts at $100,000 and can go up to $300,000. For coverage higher than that, you need to buy an umbrella policy. Events that may be covered by personal liability include dog bites, slip and falls, swimming pool accidents, falling trees causing property damage or injury, workers injured on your property by a foreseeable hazard, and more.
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- Medical payments to others
This coverage can help pay for medical bills if a guest is injured in your home, for example, if someone slips on your stairs. Limits for this coverage typically range from $1,000 to $5,000.
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- Loss of use
Loss of use coverage, also known as additional living expenses (ALE), helps pay for temporary housing and related costs if your rental becomes uninhabitable due to a covered loss. This may include hotel stays, meals, and other necessary expenses. With rising costs in recent years, some policies have increased ALE limits by roughly 20%, making it a good idea to review your coverage to ensure it still aligns with current living expenses.
What Renters Insurance Does NOT Cover
Let’s simplify what your renters insurance will most likely NOT cover:
- Flood damage and Earthquakes – usually excluded and require separate coverage, such as an NFIP policy or a standalone flood insurance or earthquake policy.
- Events not listed as covered perils – losses sometimes referred to as “acts of God” may not be covered unless specifically named in your policy.
- Building or structural damage – the physical structure of the unit is generally covered by the landlord’s insurance, not the renter’s policy.
- High-value items (jewelry, art, collectibles, and high-end electronic equipment) – most policies have special limits for unscheduled valuables, often around $1,500 (some carriers may allow up to $2,500). Items over these limits usually need to be scheduled with an endorsement.
- Intentional damage – damage caused on purpose is not covered.
- Certain pets or dog breeds – liability related to specific breeds or animals may be excluded unless additional coverage is added.
- Home-sharing or short-term rentals – many newer policy forms limit or exclude coverage for theft or vandalism related to activities like Airbnb or other home-sharing arrangements.
If you own valuables above standard limits or use your rental for home-sharing, it’s worth reviewing your policy and endorsements to avoid surprises later. Contact us to learn more about scheduling property on your policy.
How much does renters insurance cost?
Renters insurance policies are typically affordable, and the cost largely depends on the coverage you select. Premiums commonly average between $15 and $30 per month, depending on factors such as location, the size of the rental unit, and the value of the policyholder’s belongings. Actual pricing can also vary based on coverage limits, deductibles, and carrier guidelines, so shopping around is often worthwhile.
Based on 2024 NAIC data, the national average cost of renters insurance is approximately $198 per year, reflecting a modest increase from prior years. In Washington state, the average annual premium is around $175.
Costs can vary widely by state. For example, some states such as Iowa average closer to $140 per year, while higher-cost states like Nebraska may average around $280 per year. Many renters may also be able to lower their premium by bundling renters insurance with an auto policy, with potential savings often ranging from 15% to 25%, depending on the insurer.
Even replacing a small number of everyday items can add up quickly, sometimes costing thousands of dollars. A basic renters insurance policy can help cover these expenses and provide added financial protection.
How Much Renters Insurance Do I Need?
When purchasing renters insurance, one of the most important steps is making sure you have enough coverage to replace all of your personal belongings after a covered loss, such as a burglary, fire, or other disaster. While this guidance hasn’t really changed over the years, it’s still especially relevant today. The amount of renters insurance you need generally depends on your location, budget, lifestyle, and the value of your assets, as well as whether your policy pays claims based on actual cash value (ACV) or replacement cost.
To help determine the right amount of coverage, here are a few key steps to consider:
- Create a home inventory.
Putting together a detailed inventory of your belongings is one of the most effective ways to estimate how much coverage you’ll need. List items along with their age, original purchase price or current value, and any identifying details.
Digital inventory tools and apps can make this process easier and help keep records up to date. With inflation impacting replacement costs, it’s a good idea to review and update your inventory at least once a year. Many households have seen the value of their belongings increase by roughly 25% since 2021.
- Assess your liability.
As mentioned earlier, liability coverage helps pay for in the event someone is injured on your property or someone from your household causes damage to others’ property. If you often have a lot of company over or your personal assets exceed the typical $100,000 limit, you may want to consider increasing your liability limits.
Will Filing a Renters Insurance Claim Impact My Rates?
Filing a renters insurance claim is similar to filing an auto insurance claim. While your policy is there to protect you, it’s important to understand the potential effects on your premiums and coverage. Key points to know:
- Higher insurance rates
- Claims history is a top factor in setting premiums.
- Filing a claim can result in a 20–30% increase, depending on the type and frequency of claims.
- Non-renewal or policy cancellation
- Frequent claims (e.g., 2 or more in 3 years) may flag you as high risk.
- Insurers may choose not to renew or could cancel the policy in these cases.
- Reasonable caution
- Insurers view claims as signals of potential future risk, much like auto insurance surcharges.
- Consider the cost of the loss versus your deductible before filing small claims.
- Smart approach
- Use your judgment to decide when it’s worth filing a claim and when it might be better to cover minor losses out of pocket.
When Should I File a Renters Insurance Claim?
Renters insurance is designed to protect you, but deciding when to file a claim can be tricky. Not every loss is “worth it” to file, and making the wrong choice could affect your rates or future coverage.
Here’s what to keep in mind:
- Small losses may not be worth filing
- Filing minor claims for small losses can build a negative claims history.
- Always weigh the cost of the loss against your deductible before filing.
- Frequency matters
- Carriers typically expect clients to file no more than one claim every 5–10 years.
- Filing two claims within three years can flag you as high risk.
- Industry-wide visibility
- Claims are reported in CLUE or similar databases, making your history visible to other insurers. *new
- Frequent claims can make it harder to find coverage or lead to non-renewal.
- Best practice for filing
- If the loss is clearly covered and you haven’t filed recently, filing may be appropriate.
- When in doubt, consult your insurance agent to assess your options before submitting a claim.
By shopping for insurance with your local and independent agents at PNW Insurance Group, you won’t have to navigate these decisions alone. Our team can help you evaluate your situation and determine whether filing a claim is the right move for your policy and your long-term coverage.
Filing a Renters Insurance Claim
If you need to file a renters insurance claim, knowing what to do next can make the process much easier. There are generally two types of renters insurance claims:
- Property claims – for damage or loss to your belongings or for additional living expenses (ALE)
- Liability claims – for injuries or property damage you may be legally responsible for
What to Do First
- Report the incident if needed
- Contact the police for theft, vandalism, or other criminal activity and request a report.
- Notify your landlord, especially if the unit or building is involved.
- Contact your insurance agent promptly
- Let your agent know what happened as soon as possible.
- Early notification (often within 24–48 hours) helps start the claims process smoothly.
- Confirm coverage before filing
- Not every loss is covered, and even denied claims can still show up on your claims history.
- Review your policy and discuss the situation with your agent before submitting a claim.
Why Talking to Your Agent Matters
- Your agent can help confirm whether the loss is covered
- They can explain deductibles, exclusions, and next steps
- They help you avoid filing unnecessary claims that could affect future rates
Taking a few minutes to review your situation and consult your agent first can help protect both your policy and your long-term insurance options.
How to file a property claim
- Document all the damage or loss with pictures and videos. Also, don’t touch the mess! Believe it or not, if a mess has been created, it is recommended that you leave it in place until your carrier sends someone to examine everything.
- Gather all necessary documentation. This may include receipts, order confirmations, and more. Everything you want your insurance company to pay for needs to be documented. Your home inventory, your policy number, damage documentation, and the police report or witness statements, if necessary.
- Keep receipts if you need to be relocated. In the event your residence has become unhabitable, the additional living expenses you incur will be covered. Just make sure to keep the receipts.
- Complete your insurance company’s claims form as soon as possible. Insurance carriers are required to send the necessary claim forms to you by the end of a set time period (this period varies from state to state) so return the forms as soon as you can to speed up the claims process (ideally within 48 hours).
- Collect your claim.
How to file a liability/medical payment claim
Renters insurance includes personal liability (for lawsuits or damages you’re responsible for) and medical payments to others (for guest medical bills, regardless of fault).
If an incident occurs:
- Exchange insurance information with the other party
- Document the incident with photos, notes, and witness details
- Notify your insurer or agent promptly, ideally in writing
Most policies require reporting a claim as soon as practical, and many insurers expect notice within 48–72 hours. Delays or missing details can complicate or even jeopardize a claim. Being timely and thorough helps the process go more smoothly.
How to Save Money on Renters Insurance
If you’re looking to lower your renters insurance premium, consider these commonly available savings strategies. Availability and discounts can vary by insurer, but these options are worth reviewing:
- Bundle your insurance
Combine renters insurance with auto or other policies to qualify for multi-policy discounts. - Stay with the same insurance company
Some insurers offer loyalty or tenure-based discounts over time. - Install smoke detectors
Fire safety features can reduce risk and may lower premiums. - Add a security system
Monitored alarms or building security can qualify for additional savings. - Increase your deductible
A higher deductible can reduce your monthly premium, though it means paying more out of pocket in a claim. - Set up automatic payments
Many carriers offer small discounts for paperless billing or auto-pay. - Leverage your occupation
Certain professions may qualify for occupation-based discounts. - Senior discounts (55+)
Some insurers offer age-related discounts starting around age 55. - Review your policy annually
Updating coverage limits can help avoid paying for more coverage than you need. - Compare and shop around
Rates and discounts vary, so checking options periodically can lead to savings. - Use smart home technology
Devices like smart smoke detectors or water sensors may qualify for newer discounts. - Maintain a claim-free history
Fewer or no claims can help keep premiums lower over time. - Explore insurer apps or telematics tools
Some carriers offer discounts for using mobile apps or participation-based programs.
How to Purchase Renters Insurance
The best way to purchase renters insurance is to start by comparing options and shopping around. If you’d like a renters insurance quote from PNW Insurance Group, you can fill out the form below, give us a call at (253) 527-6261, or reach out by email.
If you’ve ever shopped for insurance before, you know it can take more time and effort than expected. That’s where working with an independent insurance agency can help. We shop multiple carriers on your behalf to help find coverage that fits your needs and budget.
Beyond finding a policy, we’re here to support you if you ever need to use your insurance. From answering questions to helping you navigate claims, our team works as your advocate throughout the process. And there’s no additional cost to you for using our services. If you’d like to learn more about how that works, our FAQ page explains the details.
5 Important Renters Insurance Insights
There’s often more to renters insurance than meets the eye. While the fundamentals haven’t changed, these key insights are still especially relevant when shopping for coverage today.
What is a deductible?
Your renters insurance deductible is the amount you pay out of pocket before your insurance company pays a claim. In general, choosing a higher deductible can lower your premium. For example, increasing your deductible to $1,000 may reduce your premium by as much as 25%, depending on the insurer.
How to avoid a denied renters insurance claim?
To maximize your chances of your renters insurance claim being accepted, here are 4 steps we recommend you follow:
- Keep an accurate home inventory with photos, model numbers, and estimated values
- List everyone living in your household on the policy
- Confirm the cause of loss is a covered peril before filing
Report the claim promptly, ideally within 48 hours of the incident
Named Perils Policies vs Comprehensive Policies
When it comes to insurance and personal property, there are two types of policies you should be aware of: named perils policies and comprehensive (all risks) policies. The main difference between the two is how they define specific events or “perils” that are covered by the policy.
- Named perils policies list the specific events that are covered. If a peril isn’t listed, it’s typically not covered. These policies may be a lower-cost option in low-risk areas.
- Comprehensive (all-risk) policies take the opposite approach by listing what isn’t covered. If something isn’t excluded, it’s generally covered. Coverage varies by carrier, so checking with your agent is important.
Actual Cash Value vs. Replacement Cost
These two different terms refer to how your personal property is reimbursed.
- Actual Cash Value (ACV) pays for items after depreciation is applied.
- Replacement Cost covers the full cost to replace items without deducting for age or wear.
Replacement cost coverage typically costs about 10% more than ACV but is often worth the additional premium.
Coverage for College Students
College students living in a dorm and still considered part of their parents’ household are often covered under a parents’ homeowners or renters policy. Students living off-campus, however, usually need their own renters insurance policy.
Many renters policies now limit or exclude coverage for theft or vandalism related to home-sharing activities, such as Airbnb or short-term rentals. If you rent out your space, even occasionally, it’s important to review your policy and discuss options with your agent.
PNW Insurance Group is Here to Help
Have questions or need a little guidance? Our team of insurance professionals is here to help and happy to answer any questions you may have. We hope you found this renters insurance guide helpful. If you did, feel free to share it with others, it can be a valuable resource for first-time renters and long-time renters alike.