A recent nationwide survey found that only 34% of tenants carry a Renters Insurance policy, which means most renters are taking a financial gamble with their belongings.
Many respondents cited reasons for not buying coverage that reflect common misunderstandings about what tenant coverage protects—and what it does not.
Common reasons renters skip coverage
- Nearly three in five (57%) felt the rented home has such effective security that theft protection was unnecessary. However, even a secure building cannot prevent other losses: a fire could destroy possessions, an accident might make a unit temporarily uninhabitable and create extra living expenses, and a visitor’s injury could result in medical bills or a lawsuit. Typical contents coverage can help address these risks.
- More than half (52%) believed they couldn't afford coverage; many overestimate the annual premium. While costs vary by location and limits, many renters find coverage is available at modest cost compared with replacing belongings after a loss.
- Nearly half (48%) assumed the landlord's insurance covers their property. Landlord policies generally protect the building and the owner’s interests, not a tenant’s personal property or personal liability.
Although a landlord carries insurance for the building itself, that policy does not cover a tenant’s belongings or personal liability. For more information about what a tenant-level policy covers, see Tenant policy (renters insurance).
If you’re unsure which options suit your situation, consider taking a few minutes to talk to an agent who can explain coverages, limits, and any discounts that may apply.
Frequently Asked Questions
Does my landlord’s insurance cover my personal property?
No. Landlord policies typically cover the building and the owner’s property, not a tenant’s personal belongings or personal liability.
What kinds of losses can tenant coverage help with?
Tenant coverage commonly helps with losses from fire, some types of theft, certain weather events, temporary living expenses after a covered loss, and liability for injuries to others on the premises.
Will a claim affect my ability to rent in the future?
Filing a claim does not automatically prevent you from renting elsewhere, but landlords and insurers may review claim history when making decisions, so keeping records and discussing options with an agent is useful.
How do I decide how much coverage to buy?
Inventory your possessions, estimate replacement cost, and discuss limits and deductible options with an insurance representative to match coverage to your needs.