Renters insurance for your first apartment protects your belongings, covers you if you accidentally injure someone or damage their property, and pays for somewhere to stay if the apartment becomes unlivable. It costs about $171 a year on average in the U.S. (2022 NAIC data, via the Insurance Information Institute), and many landlords require it. Here’s what first-time renters need to know.
Do you need renters insurance for your first apartment?
No state law requires renters insurance, but your lease might, so check it first; see is renters insurance required? Even when it’s optional, it fills gaps first-time renters often don’t expect: your landlord’s insurance covers the building, not your things or your liability (more on that). And even if you don’t own much yet, the liability coverage alone can matter: if a kitchen fire or overflowing bathtub damages a neighbor’s unit, you could be responsible.
Does your parents’ insurance cover your first apartment?
Usually not. A parent’s homeowners or renters policy covers relatives who live in their household. Standard policies make an exception for full-time students who live away at school, within age limits, but once you move out on your own, you generally need your own policy. Ask your parents’ insurer before you rely on their coverage; see renters insurance for college students for how the student rules work.
How much renters insurance do you need for a first apartment?
| Part of the policy | How to choose |
|---|---|
| Personal property | Add up what it would cost to replace everything you own. Clothes, a laptop, a bed and kitchen gear add up faster than most people expect; a room-by-room inventory helps. |
| Liability | Liability limits generally start at about $100,000, and some experts recommend at least $300,000, according to the Insurance Information Institute. |
| Loss of use | Often set automatically by the insurer. Check that it would cover a few months of rent somewhere else. |
| Deductible | The III suggests a deductible of at least $500; raising it to $1,000 can lower your premium by as much as 25 percent. Pick an amount you could pay from savings. |
For a fuller walkthrough, see how much renters insurance do I need?
Should you choose actual cash value or replacement cost?
Replacement cost coverage pays what it costs to buy new items; actual cash value subtracts depreciation, so a three-year-old laptop pays out far less than a new one costs. Replacement cost costs about 10 percent more than actual cash value, according to the III, and is usually worth it. See actual cash value vs. replacement cost.
How much does renters insurance cost for a first apartment?
Renters insurance averaged about $171 a year in 2022, according to NAIC data reported by the III, with state averages ranging from about $123 in North Dakota to about $262 in Mississippi. The III lists bundling with auto insurance and safety features such as smoke detectors and deadbolt locks among the ways to lower the price. See average cost by state.
First-apartment renters insurance checklist
- Read your lease for any insurance requirement, minimum liability amount or request to list the landlord on the policy.
- Make a quick inventory of what you own, with photos or video.
- Choose your personal property, liability and deductible amounts.
- Get at least three quotes; see how to get renters insurance.
- Set the policy to start on move-in day; see when to get renters insurance.
- Send your landlord the declarations page if the lease asks for proof.
- Check the gaps: floods are excluded (flood insurance for renters), jewelry has low limits (jewelry), and roommates usually need their own policy (roommates).
What mistakes do first-time renters make with insurance?
- Assuming the landlord’s insurance covers their things. It covers the building only.
- Assuming a parent’s policy still applies after moving out for good.
- Underestimating what they own, then choosing too little personal property coverage.
- Sharing a policy with a roommate without both names on it.
- Forgetting to update the policy when they move again; see renters insurance when you move.
Sources
- Insurance Information Institute, Renters insurance
- Insurance Information Institute, Facts + Statistics: Homeowners and renters insurance (NAIC data, 2022)
New to this? Start with What is renters insurance?
This site offers general information, not insurance or legal advice. Coverage, prices and rules vary by insurer, policy and state, so always read your own policy and ask your insurer or agent about your situation.