Why you need your own policy
The landlord's policy does not protect a tenant's belongings. The NAIC says your landlord's insurance does not cover the things you own, and the California Department of Insurance warns that renters without coverage can lose everything in a fire or other insurable event. Your belongings, and your own liability, need a policy in your name. The NAIC report on insurance prices calls it the HO-4 form: broad named-perils coverage for the personal property of tenants, which means it pays for losses caused by the perils the policy lists, such as fire or theft.
The parts of a renters policy
The California Department of Insurance lists the typical coverages of a renters policy. The minimums vary by insurer.
| Coverage | What it pays for | Typical amount |
|---|---|---|
| C: Personal property | Repairing or replacing your belongings if damaged, destroyed or stolen | The amount you choose, above the insurer's minimum |
| D: Loss of use | Extra living costs while your home cannot be lived in after a covered loss | 20% of Coverage C |
| E: Personal liability | Claims or lawsuits for injury or property damage to others | Generally at least $100,000 |
| F: Medical payments to others | Medical bills of a guest hurt in your home | Generally at least $1,000 |
Personal property coverage also follows you: the NAIC notes it can apply to items stolen from your car or damaged away from home. Expensive items such as fine jewelry or an art collection may need extra coverage, called a rider or floater.
How a claim is valued, at actual cash value or replacement cost, makes a large difference to the payout. That choice and the inventory that backs up a claim are covered in home inventory for insurance.
Liability: the part people skip
The liability part is easy to overlook. The NAIC says it can protect you if a guest is injured in your home or apartment, or if you accidentally damage someone else's property, and that it covers claims or lawsuits resulting from bodily injury or property damage to others. In the typical policy the California Department of Insurance describes, liability starts at $100,000 and medical payments to others at $1,000. Compare that with the $25,000 someone might set for belongings, and the liability limit is often the larger number.
Students have one more option to check first. The NAIC says students under 26 living in on-campus housing may be covered under their parents' homeowners or renters policy, with limits worth reading before relying on it.
What it usually does not cover
- Floods. The California Department of Insurance says flood losses are generally not covered by a homeowners or renters policy. Renters can buy flood coverage through the National Flood Insurance Program, which allows up to $100,000 for personal belongings.
- Earthquakes. The NAIC says floods and earthquakes are not generally covered by a renters or homeowners policy. Ask your insurer whether you need additional coverage.
- The building. Damage to the structure is a matter for the landlord's insurance.
- Anything above the limits. Each coverage pays up to its limit, and expensive items may need a rider.
What it costs
The NAIC publishes average premiums from data reported by insurers. In its report on 2023 data, published in July 2026, the countrywide average premium for an HO-4 renters policy was $173 a year, or about $14.42 a month. The average rises with the amount of personal property insured:
| Amount of insurance | Average yearly premium, 2023 | Per month |
|---|---|---|
| $15,000 to $19,999 | $148 | $12.33 |
| $20,000 to $24,999 | $156 | $13.00 |
| $25,000 to $29,999 | $164 | $13.67 |
| $30,000 to $34,999 | $185 | $15.42 |
| $50,000 to $59,999 | $205 | $17.08 |
Your price depends on your state, the coverage amount, the deductible and the insurer. The NAIC says some insurers give discounts for fire or burglar alarms, fire extinguishers, sprinklers or deadbolts, and for holding more than one policy with them. The California Department of Insurance adds that a larger deductible may significantly reduce your premium. Put the yearly cost into the budget planner next to rent and utilities; how much rent can I afford shows how housing costs fit an income.
A claim worked through
A grease fire in the kitchen of a rented apartment. The tenant has $25,000 of personal property coverage, which under the typical 20 percent rule gives $5,000 of loss of use coverage. The insurer values the damaged belongings at $6,800.
| Deductible | Belongings valued at | Insurer pays | Tenant pays |
|---|---|---|---|
| $500 | $6,800 | $6,300 | $500 |
| $1,000 | $6,800 | $5,800 | $1,000 |
The apartment cannot be lived in for 2 months. Before the fire, rent and food came to $1,950 a month; in a short-term rental with restaurant meals they come to $3,150. The NAIC says additional living expense coverage pays only the difference between your previous living expenses and your new temporary ones, so the policy pays $1,200 a month, $2,400 for the 2 months, well inside the $5,000 limit. How the deductible applies to each coverage is set by the policy; this example takes it off the property part only.
If the same damage came from a flood instead of a fire, the renters policy would generally pay nothing for it. That is the gap a flood policy fills.
Checklist before you buy
- Add up what your belongings would cost to replace, room by room, and set Coverage C from that.
- Ask whether claims are paid at actual cash value or replacement cost.
- Check the liability limit; the typical floor is $100,000.
- Check that loss of use is included and what its limit is.
- List valuables such as jewelry or a camera, and ask about a rider for them.
- Ask about flood and earthquake coverage if you live where either is a risk.
- Compare at least two deductibles and the premium for each.
- Ask about discounts for alarms, deadbolts or holding more than one policy with the same insurer.
- Keep an inventory with photos and receipts somewhere other than your home.
- Read the policy when it arrives, and ask the agent or insurer to explain anything unclear.
- Pay the insurance company or agency, never an individual agent in cash.
Frequently asked questions
What does renters insurance cover?
Three main things: your personal property if it is damaged, destroyed or stolen; your liability if someone is injured or their property is damaged and you are responsible; and, on some policies, extra living expenses if a covered loss makes your home unlivable. Many policies also include medical payments to others.
Does my landlord's insurance cover my things?
No. The NAIC says your landlord's insurance does not cover the things you own; it covers the building. The California Department of Insurance puts it plainly: your landlord does not provide insurance for your personal property.
How much does renters insurance cost?
In the NAIC's report on 2023 data, the countrywide average premium for a renters policy (form HO-4) was $173 a year, about $14.42 a month. The price rises with the amount of coverage and varies by state and insurer.
Does renters insurance cover floods or earthquakes?
Generally no. The NAIC says floods and earthquakes are not generally covered by a renters or homeowners policy, and the California Department of Insurance says flood losses are generally not covered. Renters can buy flood coverage for belongings through the National Flood Insurance Program, up to $100,000.
Am I covered by my parents' policy at college?
Possibly. The NAIC says students under 26 living in on-campus housing may be covered under their parents' homeowners or renters policy, often with a capped amount. Check the limit before deciding whether a separate policy is needed.
Sources
- NAIC: Renting your home? Protect your belongings with renters insurance (personal property, liability, loss of use; the landlord's insurance does not cover your things; expensive items may need extra coverage; discounts)
- NAIC: For rent, protecting your belongings with renters insurance (liability for bodily injury or property damage to others; living expenses if the home is uninhabitable; riders or floaters)
- NAIC: Do I need renters insurance for college? (additional living expenses pay only the difference; students under 26 on campus may be covered by a parents' policy)
- NAIC: From homeowner to renter (floods and earthquakes are not generally covered by a renters or homeowners policy)
- NAIC: Homeowners Tenant and Condominium/Cooperative Unit Owner's Insurance Report, data for 2023, July 2026 (Table 5: HO-4 countrywide average premium $173 and averages by amount of insurance; HO-4 is named-perils coverage for tenants' personal property) (PDF)
- California Department of Insurance: Residential insurance guide (typical renters coverages C to F; loss of use at 20% of Coverage C; liability generally at least $100,000; flood not generally covered; NFIP up to $100,000 for belongings; deductibles)
General information based on the sources above, not tax, legal or financial advice.