Leases and deposits
Is renters insurance required, and how much does it cost?
Updated By the Housing Rocket moderators
Short answer
No law requires renters insurance, but many landlords and apartment complexes require it in the lease, often with a minimum amount of liability coverage. A basic policy is inexpensive, commonly somewhere around $10 to $25 a month, depending on where you live, how much coverage you choose and your deductible.
Even when it's optional, it is usually worth having. Your landlord's insurance covers the building, not your belongings, and not your liability if a guest is hurt in your unit or you accidentally flood the apartment below.
How to choose a policy:
- Estimate what it would cost to replace everything you own. Walk room by room, because most people underestimate this.
- Choose replacement cost coverage over actual cash value if you can. It pays to replace items new rather than their depreciated value.
- Pick a deductible you could pay tomorrow without trouble.
- Match the liability limit to what your lease requires, and list the landlord as an interested party if they ask for proof.
Bundling with car insurance often lowers the price. Start the policy on or before move-in day so you are covered from the first night, and keep the declarations page handy, since many landlords ask for it at lease signing.
Want the whole picture? Read Renting Your First Apartment: Applications, Leases and Move-in Costs.