For most renters, yes. Renters insurance averaged about $171 a year in the U.S. (roughly $14 a month, NAIC 2022 data), while replacing everything you own after a fire, paying for weeks in a hotel, or defending a liability claim can cost thousands or even tens of thousands of dollars. It’s usually one of the best-value insurance purchases a renter can make.
The simple math
Compare a year of premiums with what a single bad event can cost. The loss figures below are illustrative examples, not averages:
| What happens | Possible cost without insurance | With renters insurance |
|---|---|---|
| Fire destroys your belongings | Replacing furniture, clothes and electronics, often $15,000–$40,000 for a typical apartment | Paid up to your limit, minus your deductible |
| You can’t live in your unit for a month after the fire | A month of hotel and restaurant costs | Paid by loss-of-use coverage |
| Laptop and bike stolen | $2,000 to replace | $1,500 back with a $500 deductible |
| Your overflowing tub ruins the unit below | The neighbor’s repairs and belongings, plus legal costs if they sue | Paid by liability coverage |
| Nothing goes wrong all year | $0 | About $171 in premiums (U.S. average) |
You’re paying a small, predictable amount to avoid a large, unpredictable one. See average costs by state.
Four reasons it’s worth it for most renters
- Your stuff is worth more than you think. Add up clothes, furniture, electronics and kitchen items and most people pass several thousand dollars quickly. Use this checklist to find out.
- Your landlord’s insurance doesn’t cover you. It covers the building, not your belongings or your liability. Why.
- Liability is the hidden risk. A guest’s injury or water damage to a neighbor’s unit can cost far more than your belongings. Liability coverage explained.
- It pays for a place to stay. After a fire or major leak, loss-of-use coverage covers hotel and extra living costs. Loss of use explained.
When it may matter less
- You own very little and have enough savings to replace it and cover a liability claim yourself. Even then, liability protection alone can justify the cost.
- You’re already covered. A college student in a dorm may be covered by a parent’s policy. Check the details.
And if your lease requires it, the decision is made for you. What landlords can require.
How to get the most value
- Choose replacement cost coverage so a claim actually replaces your things.
- Pick a deductible you could pay tomorrow. How deductibles work.
- Bundle with auto insurance and compare at least three quotes.
Ready to buy? How to get renters insurance, step by step.
Source for average premiums: NAIC 2022 data via the Insurance Information Institute.
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.