$15–$30Typical monthly cost (NAIC)
$168NAIC national average per year (2022)
$100,000Common liability limit landlords require
702Top renters satisfaction score (State Farm, J.D. Power 2026)
Key takeaway: Your landlord’s insurance covers the building, not your belongings or your liability. Renters insurance pays to replace your things after fire, theft and other covered events, covers you if someone is hurt in your home, and pays extra living costs if you have to move out during repairs. It typically costs $15 to $30 a month, and some insurers charge less.
How we put this guide together: We used NAIC consumer guidance and premium data, the New Jersey Department of Banking and Insurance renters guide, FEMA flood materials, J.D. Power’s 2026 home insurance study and 2026 price analyses from NerdWallet and Insurify. Figures were checked in October 2026; your price depends on where you live, your limits and your insurer. See our advertiser disclosure.

What renters insurance covers

CoverageWhat it pays for
Personal property (Coverage C)Your furniture, clothes, electronics and other belongings, at home and often away from home
Loss of use (Coverage D)Extra living costs, such as a hotel, if your home becomes unlivable after a covered loss
Personal liability (Coverage E)Legal defense and damages if you’re responsible for injuring someone or damaging their property
Medical payments (Coverage F)Small medical bills for guests injured in your home, regardless of fault

Source: New Jersey DOBI renters guide.

Covered events typically include fire, lightning, smoke, explosion, theft, vandalism, windstorm and hail, sudden water damage such as a burst pipe, and the weight of ice and snow. Many policies also cover belongings stolen from your car or damaged while you travel.

What it doesn’t cover

  • Flood, including storm surge. You need separate flood cover, available through the NFIP for up to $100,000 of contents.
  • Earthquake, unless you add it.
  • The building itself, which is your landlord’s responsibility.
  • Wear and tear, pests and most mold.
  • High-value items above sublimits, such as jewelry or art, unless you schedule them.

What it costs

The NAIC says an average policy costs between $15 and $30 a month, and its data put the national average at about $168 a year in 2022. NerdWallet’s 2026 sample (30-year-old, $30,000 of property, $100,000 liability) averaged $165 a year with good credit, rising to $295 with poor credit. Our cost guide breaks prices down by state, insurer and discount.

Actual cash value vs. replacement cost

Choose replacement cost if you can. Actual cash value pays what your things are worth today after depreciation; replacement cost pays what it costs to buy new. In New Jersey’s example, a three-year-old computer was worth $650 at actual cash value but $1,100 to replace. Replacement cost raises the premium a little but pays far more after a loss. Our coverage guide explains this and other choices.

Is renters insurance required?

No state requires it, but landlords can require it in the lease. Many ask for $100,000 of liability cover and to be listed as an “interested party” so they’re told if your policy lapses. If you let it lapse, you could be in breach of your lease.

Choosing an insurer

In J.D. Power’s 2026 study, State Farm (702), Erie (692) and Amica (689) scored highest for renters satisfaction. We compare prices and features in our guide to the best renters insurance companies. Students should also read our college student guide.

All Renters insurance guides

Best Renters Insurance Companies for 2026: Prices, Satisfaction and FeaturesInsurers compared on 2026 prices, satisfaction, complaints and coverage features.How Much Does Renters Insurance Cost? Averages, Price Factors and DiscountsAverage costs by state and insurer, what moves your price and the discounts that help.Renters Insurance Coverage Explained: What’s Covered and How Much You NeedWhat’s covered, limits to choose, replacement cost and the gaps to fill.Renters Insurance for College Students: When a Parent’s Policy Covers You and When It Doesn’tWhen a parent’s policy covers a student and when they need their own.

Frequently asked questions

How much is renters insurance a month?

Typically $15 to $30 a month according to the NAIC, though some insurers charge around $11 to $15 for basic cover.

Does renters insurance cover my roommate?

Usually not, unless they’re named on the policy. Each roommate should normally have their own policy.

Does renters insurance cover water damage?

It covers sudden, accidental water damage, such as a burst pipe. It doesn’t cover flooding or gradual leaks.

Is renters insurance required by law?

No, but landlords can require it in your lease.

Does renters insurance cover theft outside my home?

Often yes. Many policies cover belongings stolen from your car or while traveling, sometimes with lower limits.

Sources

Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.