Table of Contents
If you are renting a home, renters insurance can cover your personal belongings against things such as fire damage or theft. In exchange for that protection, you pay a premium to your insurance provider.
Finding affordable renters insurance might be a priority if you’re living on a tight budget. Numerous companies offer affordable renters insurance that can provide you with the coverage you need for less money.
Key Points
• Renters insurance covers personal belongings, liability, and temporary living expenses.
• It typically costs under $30 per month, and basic coverage is often under $20.
• Prices and coverage limits vary depending on the insurer.
• The cost depends on location, coverage amounts, the deductible, and personal factors.
• Comparing multiple quotes helps you find the best value and available discounts.
What Is Renters Insurance and How Does It Work?
What is renters insurance? If you live in an apartment, the owner of the building likely has landlord insurance, which covers damage to the property. This doesn’t offer protection to you as a tenant or your property. For this, you need renters insurance, which is also sometimes referred to as tenant insurance.
You’re typically not obligated to buy a policy unless your landlord requires renters insurance as part of your lease agreement. If you live with roommates, each of you can individually decide if you want to have this coverage.
Personal insurance planning is important for protecting yourself financially. Having renters insurance is a good idea if you’re concerned about your personal possessions being damaged or stolen, or about other situations that could result in financial losses.
Recommended: What Does Renters Insurance Cover?
Find Affordable Renters Insurance.
Compare quotes from the top renters insurance companies you know and trust to find your best price.
What’s Included in Renters Insurance Coverage?
If you’re paying for renters insurance, it’s important to know what’s covered and what’s not, as this varies depending on the insurer and your level of coverage. Generally, renters insurance offers three layers of protection:
• Personal property
• Liability
• Additional living expenses
The personal property coverage in a renters insurance policy is designed to protect your belongings against damage from wind, smoke, fire, vandalism, theft, explosions, and other disasters listed in the policy. Some types of water damage are covered, but you may need to purchase separate coverage for flood and earthquake damage.
Personal liability coverage protects you against lawsuits related to any injuries sustained by other people on your property. For example, if you host a party at your apartment and someone trips and injures their ankle, your liability protection could pay their medical bills.
Additional living expenses coverage can pay your costs if your apartment is damaged and becomes unlivable. Your policy can reimburse you for hotel expenses, meals, or temporary housing until you can move back in.
Renters insurance can cover you at home and away. If you take personal belongings on a trip, for example, and they’re damaged by a covered danger, you can get reimbursed for them through your policy.
How Much Does Renters Insurance Cost?
If you’re searching for affordable renters insurance for apartments, it’s important to understand the costs involved. But just how much is renters insurance?
There are two costs to consider: premiums and deductibles. Your renters’ insurance premium is the amount you pay to the insurance company, typically monthly, to receive coverage. Your insurer bases your premium on several factors, including your location, your deductible, your coverage limits, and your claims history.
According to a 2026 Forbes report, the average premium for renters insurance is $153 a year for a policy with $15,000 of personal property coverage. A policy with $30,000 of personal property coverage costs an average of $202, and a policy with $50,000 costs an average of $269. Costs can vary widely by state. For $15,000 of personal property coverage, renters pay the highest rate in Rhode Island, where it averages $346 per year, and the lowest in Wyoming, where premiums average $89 annually.
If you make a successful claim, you’ll also pay a renters insurance deductible. This is the amount you pay before the insurance company pays toward your covered damages. In this aspect, renters insurance is no different from auto, health, or homeowners insurance.
Different types of deductibles have different costs. Opting for a higher deductible typically results in a lower monthly premium, but you should make sure the deductible you choose will be easily affordable on your budget if you file a claim.
Recommended: Cheapest Renters Insurance Companies: Find Affordable Coverage
Most Affordable Renters Insurance Policies
Some renters’ insurance policies are more budget-friendly than others. When evaluating affordability, it’s important to consider the premium and deductible, as well as the coverage you’re getting in return.
To help you in your search, take a look at the average annual premiums for 10 large renters insurance companies that operate across various U.S. states. The rates are for a tenant with $30,000 in personal property coverage and $100,000 in liability coverage.
| Company | Average Annual Premium |
|---|---|
| State Farm | $129 |
| Lemonade | $147 |
| Auto-Owners | $154 |
| Allstate | $212 |
| Travelers | $369 |
| American Family | $212 |
| Country Financial | $185 |
| Nationwide | $195 |
| Farmers | $239 |
| USAA* | $164 |
Source: Quadrant Information Services
*USAA renters policies are available only to active military, veterans, some federal workers, and their families.
None of these policies cost more than $18 per month but remember that these are baseline quotes generated using a hypothetical scenario. Your actual quotes will depend on where you live, the coverage limits and deductible you choose, and your claims history. Your insurance company may also consider your credit score when calculating your premium. Adding optional coverage, such as bed bug endorsement or cyber insurance, can raise your premium costs.
How Do You Find Affordable Renters Insurance?
Finding affordable renters insurance for apartments means doing some comparison shopping. You generally have two options for purchasing renters insurance: traditional insurers and online insurance companies.
Traditional insurance companies offer face-to-face interactions and personalized advice. They may also have the local knowledge needed to understand specific risks and insurance needs where you live.
Online insurers allow you round-the-clock access to quotes and customer service and often offer competitive rates due to their lower operational costs. It may also be easier to compare different insurance options online.
When comparing your options for affordable renters insurance, ask yourself these questions:
• Can I bundle renters insurance with an existing insurance policy?
• How much coverage do I need?
• What kind of premiums and deductibles will fit my budget?
• How easy would it be to file a claim if necessary?
• What kind of customer support is available?
• Are there any discounts or other incentives that could save me money?
• What is the insurer’s overall reputation?
Reading online reviews of renters insurance companies can give you an idea of their pros and cons and how likely their customers are to recommend them. You can also get free quotes online to estimate your total costs before purchasing a policy.
The Takeaway
If you’re renting an apartment and something unexpected happens, having the right renters insurance coverage in place can give you financial protection against specific risks. Policies typically have three parts: property coverage in case of damage or theft, liability coverage in case someone sustains injuries on your property, and loss of use in case you need to find housing elsewhere while repairs are made to your rental. The national average premium for renters insurance is $171 annually.
Your belongings matter, even if you don't own the space you live in. SoFi makes it simple to find renters insurance that fits your life — so you can feel confident the things you care about are protected. Explore your coverage options.
SoFi brings you real rates, with no bait and switch.
FAQ
What does renters insurance cover?
Renters insurance covers your personal belongings if they are damaged, stolen, or destroyed. It also provides liability protection if someone is injured in your rental and can cover temporary living expenses if your home becomes uninhabitable.
How can I find the most affordable renters insurance?
To find the most affordable policy, compare quotes from multiple insurers, consider coverage limits, and look for discounts or bundling options. Generally, increasing your deductible will decrease your premium, but make sure you keep it within budget.
Is basic renters insurance enough for most people?
Basic renters insurance often provides sufficient protection for typical personal belongings and liability. Review your specific needs to ensure adequate coverage for high-value items or special circumstances.
Photo credit: iStock/fizkes
INSURANCE PRODUCTS ARE NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY SOFI BANK, N.A. OR ANY OF ITS AFFILIATES
How SoFi Agency Is Compensated:
â—Ź Commissions: A fee paid by the insurer for originating your policy, typically calculated as a percentage of your premium.
If you have any questions about how we are compensated, please feel free to reach out to SoFi Agency.
All insurance products shown on SoFi are underwritten and provided by licensed insurance carriers, not SoFi Agency. SoFi Agency does not underwrite or price insurance policies. Insurance products presented may not be available in all states, and your rates and savings will vary based on individual factors. The rates or savings advertised are not necessarily available from all providers or advertisers. Not all carriers or options in the marketplace are shown.
There is no charge to use SoFi Agency. However, we receive compensation from insurers and other vendors in the following ways:
â—Ź Contingent & Supplemental Commissions: Performance-based bonuses from insurers for hitting annual targets, like customer volume or retention. (Supplemental commissions are based on past performance and known in advance; contingent commissions are not).
● Marketing Fees: Compensation for presenting promotions or linking you to an insurer’s application site.
â—Ź Affinity Partner Revenue: Income earned when you engage with or request services from third-party partners advertising on our platform.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOPRO-Q126-069