Renter's Insurance 101: What It Covers and Why You Need It

Here's something most renters don't realize: your landlord's insurance doesn't protect your stuff. At all.

If there's a fire, the landlord's policy covers the building. Your belongings? Not covered.

What Renter's Insurance Covers

Personal Property Coverage

Your belongings — furniture, electronics, clothing, everything that isn't part of the building.

Covered against: Fire, theft, water damage, vandalism, windstorms, lightning.

Coverage extends beyond home: Your stolen laptop from your car is often covered too.

Replacement cost vs. actual cash value: Replacement cost pays for a new item. Actual cash value pays depreciated value. Get replacement cost.

Liability Coverage

Someone gets hurt in your apartment
Your dog bites someone
You accidentally damage someone else's property
Legal defense costs

Standard policies include $100,000 liability. Consider increasing — it costs very little.

Additional Living Expenses

If your unit becomes uninhabitable, this pays for:

Hotel stays
Restaurant meals
Temporary housing

Medical Payments to Others

Small medical bills for guests injured in your home, regardless of fault.

What It Doesn't Cover

Flooding (requires separate flood insurance)
Earthquakes (separate coverage needed)
Your roommate's stuff (they need their own policy)
Your car (that's auto insurance)
High-value items without riders (jewelry often capped at $1,000-2,000)

How Much Does It Cost?

Typically $15-30/month — less than Netflix.

Factors: coverage limits, deductible, location, bundling discounts.

Common Scenarios Where It Saves You

The Fire: Building gets repaired by landlord's insurance. Your belongings are destroyed. Your insurance covers replacement plus temporary housing.

The Theft: Break-in takes your electronics. Your insurance reimburses you.

The Water Damage: Pipe bursts, ruins your furniture. Your insurance covers it.

The Liability Claim: Guest breaks their ankle. Their $30,000 medical bills and lawsuit are covered by your liability insurance.

How to Get It

Get quotes from 2-3 providers
Compare coverage, not just price
Entire process takes 15 minutes online

Renter's insurance is cheap, essential protection. There's no good reason not to have it.

At Tillson Woods, we require/recommend renter's insurance for all residents.

Questions about our insurance requirements? Contact us.