What is Renters Insurance?

What is Renters Insurance?

Renters insurance is designed for anyone who rents a home, be it a house or an apartment. You may not own the place where you live, but you still need insurance protection.

Here are some specific reasons you should consider buying a renters insurance:

The policy can provide protection for your personal property
against such perils as fire, theft, and vandalism.

The renters policy is remarkably inexpensive
To see for yourself, get an online renters rate quote today.

You could be held responsible for injury to another person
or for damage to another person’s property if an incident occurred within your rented residence, or elsewhere. Renters insurance can help protect you in case of a liability lawsuit against you.

You could be eligible for premium discounts
on both renters and auto insurance when you purchase both policies from State Farm. Not available in some states or provinces.

A renters insurance flexible
allowing you to select the coverages and insurance amounts that suit your needs.

A reputation for quality service
is a primary reason people choose an agent or another for their insurance needs.

What is Renters Insurance?

The amount of personal property coverage you need depends on how much your property is worth.

You may think your things aren’t worth much, but the average person has over $20,000 worth of stuff. Stuff that’s probably not covered by a landlord’s policy.

This chart shows an example of typical personal property replacement values for a two-bedroom apartment. Your values may run more or less.

Take inventory

A great way to determine how much coverage you need is to take a complete inventory of your possessions:

  • List each item, when you acquired it and the purchase price or current value.
  • Total up the amounts of these items to give you a rough idea of what your property is worth.
  • Once this is done, put your inventory in a safe place away from home — for example, in a bank safe deposit box.
  • Consider adding photos to your inventory — they can help if you have a claim.

Something else to keep in mind

Coverage for certain types of property has a dollar limit. Here is a typical list of the types of property that may have “special limits” in a renters policy:

  • Money, bank notes, coins
  • Business property (on and off premises)
  • Securities, negotiable instruments
  • Watercraft, including trailers, furnishings and equipment
  • Trailers (other than boat trailers)
  • Jewelry and furs
  • Firearms (limitation applies to theft only)
  • Silverware and goldware (limitation applies to theft only)

If you have this type of property, you may need special coverage — either an endorsement or a personal articles policy.

General questions to ask yourself regarding your renters insurance needs

-How much are my belongings worth?
-Can I afford to buy it all back again if it were destroyed in a fire or stolen?
-What would I do in the event of a liability lawsuit against me?

What are my deductible options?


The deductible is the portion of a covered loss that is your responsibility. Although deductibles vary by state, they are typically available in amounts such as $250, $500, or $1000.

For example, if you had a $500 deductible, you would need to pay $500 of the covered loss.

Generally speaking, higher deductibles lower your premium, but increase the amount you must pay out of your own pocket if a covered loss occurs. Ask yourself how much you are willing to pay in order to save on premium.

Other things you should know about our renters insurance policies

Loss Settlement Provisions/Personal Property 

Limited Replacement Cost Loss Settlement

Provides payment based on the cost to repair or replace the damaged property at the time of loss, if actually replaced.

Depreciated Loss Settlement

Provides payment based on the cost to repair or replace damaged property less depreciation at the time of loss.

Personal Property Special Limits

While the Personal Property Loss Settlement provisions determine the loss payment on your personal property, it’s important that you know that special limits apply to certain types of property.