Renters Insurance: Does Every Tenant Need A Policy?

We've all heard stories of nightmare roommates. Heck, we’ve had nightmare roommates ourselves! (We’re looking at you, Gina, who never, ever took out the trash.) They leave dishes in the sink, let their cousin sleep on the sofa for 2 weeks, and refuse to clean the toilet. 

While you might think your landlord’s insurance will cover any damage that happens to your belongings while you're sharing the space with roommates, nothing could be further from the truth. 

So let’s hash things out once and for all: in this post, we’ll cover why you need renters insurance in the first place, and whether every tenant living in the space needs their own policy.

Why Is Renters Insurance So Important?

Here’s the number one reason (in our opinion!) why you need renters insurance: because although your landlord’s policy will protect the structure of the building you rent, it won’t protect your stuff — which is what you, as a renter, ultimately care about. Getting renters insurance will offer protection for your personal property and also cover you against liability claims.  

So whether it’s your first apartment or you’re decades into your lease, renters insurance can offer a number of benefits: 

• Personal property coverage: If a fire breaks out or your upstairs neighbor decides to have an indoor pool party, personal property coverage can help replace your belongings.

• Liability protections: Say your dog bites a visitor and you’re on the hook for medical bills. Liability coverage in your renters policy can help with those costs. 

• Additional living expenses: If your rental becomes uninhabitable owing to property damage, most policies offer loss of use coverage that pays for expenses like a hotel room or meals.
  

And in many cases, coverage extends beyond the four walls of your home. So if your laptop is stolen while you’re working in the library, you might be covered. Likewise, some policies cover short-term rentals, such as Airbnb, so even when you’re on vacation, you’ve got the protection you need.

Does Every Tenant Need Renters Insurance? 

For the most part, yes. Every roommate needs insurance. 

We get that this might feel like an unnecessary expense, but skipping or sharing renters insurance is not the place to save money. And oftentimes, you may not evenhave a choice: many landlords now require that each of their tenants show proof of an active rental insurance policy. 

And although roommates can sometimes share policies depending on the state, this isn’t always possible. Besides, sharing renters insurance doesn’t guarantee that all tenants are in the clear should something happen (like, say....liquid damage from your roommate’s kegger. We're looking at you, Neil!).

So for many reasons, it’s smart to have your own policy, since:

• Only those active on the policy are covered by the policy (unless you’re married or a relative of the policyholder)
• A roommate with bad insurance history or previous claims could affect your premiums (or make it impossible for you to get a policy in the first place). 
• A rental insurance policy covers only a fixed amount of property, so if you share coverage, you’ll have to split that between tenants. 
• A shared policy means another shared bill. If your roommate isn’t great with their finances, you could be on the hook for the premiums.  

How Much Coverage Should Tenants Have?

Unlike car insurance, where coverage amounts and rates are specific to the vehicle model, renters insurance is more standardized. Typically, these limits are $30,000 for personal property coverage and $100,000 in liability protections, with a $500 deductible. However, your landlord may require more — and, of course, more coverage could also benefit you.

Calculating Renters Insurance Coverage

The average renter pays under $200 per year for an insurance policy — which is relatively affordable, considering the coverage you’re getting. That said, location will definitely impact your premiums, as will your insurance and credit histories. 

Before investigating policy options, take an inventory of your personal property. You’ll want to think about whether, in an emergency, you would want an actual cash policy that pays you what your items are worth at the time of the event, or whether you’d want replacement cost coverage, which allows you to purchase new versions of what you own. But note: replacement cost coverage tends to be pricier than a cash value policy, so compare the rates on both to help make your decision. 

Make a note of any big-ticket items, such as your electronics, jewelry, or artwork. For anything particularly expensive or special, you may want to purchase a rider to extend your coverage. 

And if you’re worried about costs, you may want to consider bundling your renter’s insurance with another policy (like auto, if you have a car) to reduce your premiums. Many providers offer discounts when you combine policies.

Keep Your Assets Covered With Marble

A roommate can be both a blessing and a curse, and that’s why there’s renters insurance. To shop policies and compare quotes, check outMarble, where you can earn rewards just for having insurance. Sign up today!