Your landlord’s insurance covers the building. It does not pay for a single thing you own, and it will not defend you if your overflowing bathtub ruins the apartment downstairs. That is the job of renters insurance, and yet only about 55% of renter households have it, according to Harvard’s Joint Center for Housing Studies.
The good news is that it is one of the cheapest policies you can buy. NerdWallet’s September 2026 analysis puts the national average around $165 a year, roughly $14 a month. Here is where we would start, and how to make sure the policy you pick actually covers what you own.
Last reviewed: October 2026 · SmartCoverage Editorial Team · How we research
Prices are averages from NerdWallet (2026: $30,000 of belongings, $100,000 liability, $500 deductible) unless marked Insurify (April 2026: $30,000 of belongings, $300,000 liability, $500 deductible). Your quote will depend on your ZIP code, building, claims history and, in most states, credit.
Price and service rarely come from the same place, except here
With homeowners and car insurance, the cheapest companies are often not the best rated. Renters insurance is different. State Farm topped J.D. Power’s 2026 customer satisfaction ranking for renters and was also one of the two cheapest large insurers in both NerdWallet’s and Insurify’s 2026 price data. That combination is unusual, and it makes State Farm the first quote we would get almost anywhere.
Lemonade is the other name that keeps appearing at the cheap end. Its model suits renters well: you buy in minutes on your phone, claims are filed through the app, and many simple claims are paid quickly. The trade-off is that there is no agent to call when a claim gets complicated, and it is not available in every state.
The two analyses do not agree on every number, because they assume different customers. NerdWallet used $100,000 of liability, Insurify $300,000; Insurify’s national average comes out at about $22 a month against NerdWallet’s $14. Both are useful for ranking companies against each other. Neither tells you your own price, which is why getting three quotes still matters.
Work out your coverage amount first
Most people pick the default personal property limit, often $20,000 or $30,000, without checking it. The total is usually higher than they expect once clothes, kitchen gear and electronics are added up. Spend two minutes on the calculator below before you request quotes, so every company is quoting the same amount.
What would it cost to replace your stuff?
Pick a home size to load starting estimates, then change any line to match what you own. Use what it would cost to buy everything new today.
Starting estimates are rough examples, not averages for your area. Special limits shown are common in standard renters policies; your policy may differ. For guidance only.
Three settings that change your price more than the company
Replacement cost or actual cash value
Actual cash value pays what your things are worth today, after depreciation. A three-year-old laptop that cost $1,500 might pay out a few hundred dollars. Replacement cost pays what it costs to buy a similar new one. It usually adds only a small amount to the premium, and on a total loss the difference can run into thousands. This is the one setting we would never skip.
Liability limit
Liability is the part of renters insurance people forget, and the part that can matter most. If a guest slips in your kitchen or a fire starts in your unit and spreads, you can be held responsible for costs far above the value of your belongings. Going from $100,000 to $300,000 of liability usually costs little; ask for the price of both.
Deductible
Moving from a $500 to a $1,000 deductible lowers the premium, but on a policy that already costs $10 to $15 a month the savings are small in dollars. Keep the lower deductible unless the quote drops meaningfully.
What a renters policy covers, briefly
A standard renters policy, called an HO-4, has three main parts. Personal property covers your belongings against events such as fire, smoke, theft, vandalism, windstorm and sudden water damage from plumbing, at home and away from home. Liability covers injuries to others and damage to their property that you are responsible for, plus legal costs. Loss of use pays for a hotel, meals and other extra costs if a covered loss makes your apartment unlivable.
The exclusions mirror those in homeowners insurance: flood, earthquake, pests and wear are not covered, and valuable items such as jewelry have low theft limits unless you schedule them. Our guide to what homeowners insurance covers explains these in more detail, and most of it applies to renters policies too.
Damage to the building itself, such as walls, floors and built-in appliances, is your landlord’s responsibility and their insurer’s. If you damage the building through your own carelessness, though, your liability coverage may pay the landlord.
Ways to pay even less
The biggest discount is usually bundling with car insurance. With renters policies costing so little, the bundle discount on the car policy can be worth more than the entire renters premium, so some drivers effectively get renters insurance for nearly free. Our guide to home and auto bundle discounts shows how the math works. If you drive, compare the best car insurance companies at the same time.
Beyond bundling, ask about discounts for smoke detectors, sprinklers, deadbolts or a monitored alarm, for paying the year in full, and for being claim-free. Some insurers also discount new policies bought well before the start date.
If your lease requires renters insurance
Many landlords now require tenants to carry renters insurance, often with a minimum liability amount such as $100,000. Read the clause before you buy. If it asks you to add the landlord as an interested party, that only means the insurer will notify them if your policy is canceled; it does not give them any coverage. Your insurer can usually add them in a few minutes and send proof of coverage directly.
Some property managers also offer their own tenant program. These can be convenient, but they sometimes cover only the landlord’s interest, such as damage you cause to the unit, and nothing you own. Compare the coverage, not only the price, before you accept one.
This guide gives general information, not personal insurance or financial advice. Coverage, prices and availability vary by state and insurer. Check the policy terms and speak to a licensed agent before you buy.
Sources
- NerdWallet: The cheapest renters insurance for 2026 (September 23, 2026)
- Insurify: Cheapest renters insurance companies (April 9, 2026)
- J.D. Power 2026 U.S. Home Insurance Study (September 15, 2026)
- Harvard Joint Center for Housing Studies: Renters vulnerable to climate disasters amid insurance gaps (December 2025)
- NAIC Consumer Insurance Search