Now that you found an apartment, it's time to sign the lease. Before you move in, decide if you need to purchase coverage that protects your personal property.
What is this coverage?
Imagine the roof leaks and floods your bedroom. The landlord typically pays to repair the building, but you are responsible for replacing damaged or stolen belongings. This type of policy pays to repair or replace items that are damaged, destroyed, or taken.
If you live in a building at risk of rising water from outside the structure, also consider Renters Flood Insurance for flood-specific protection.
Is it required?
Your lease may include a clause that requires you to carry a policy for your belongings. A required policy protects your landlord and the mortgage holder from certain liability and can limit disputes after a loss. There is no single law that makes this coverage mandatory for all renters; requirements depend on the lease and the building owner's rules.
Decide how much coverage you need
Although you can usually choose whether to buy this protection, it is a prudent investment. A small grease fire and the resulting smoke and water damage can destroy most of what you own.
Replacement cost vs. actual cash value
- Replacement cost — Pays to buy new items at today’s cost, regardless of what you originally paid. This option is more expensive but gives fuller reimbursement.
- Actual cash value (ACV) — Pays the item’s current value at the time of loss after accounting for depreciation. It is less expensive up front but may not be enough to replace older items with quality new ones.
To pick a coverage amount, make a detailed inventory of what you own and assign fair values to each item. That list will guide how much protection to buy and help when you file a claim.
You're also ready to choose a deductible: higher deductibles typically mean lower premiums, but be sure you can afford the out-of-pocket cost after a loss.
Review your options with a licensed agent who can explain policy details and limits, including how different endorsements work. For guidance on policy types and wording, see a Tenant policy (renters insurance) overview and learn available features.
If you want a general starting point for comparing providers and plans, visit the Renters Insurance storefront to review offerings. Finally, when you have questions about quotes or need help completing an application, talk to an agent.
Frequently Asked Questions
Does this coverage pay for flood damage?
Standard policies typically do not cover external flood damage from rising water; you may need a separate flood policy for that risk.
Can a landlord require me to have coverage?
Yes—many leases require tenants to carry a policy to protect their belongings and reduce potential liability for the landlord.
What’s the difference between replacement cost and ACV?
Replacement cost pays to buy new items at current prices, while ACV pays the depreciated value of items at the time of loss.
How much coverage should I buy?
Inventory your belongings and estimate replacement values; aim for enough coverage to replace everything you would reasonably need to repurchase after a total loss.