Top 5 Reasons You Should Get Renters Insurance

(And Why It’s More Important Than You Think)

Renting a home or apartment comes with a lot of freedom—no property taxes, fewer maintenance responsibilities, and the flexibility to move. But many renters overlook one critical aspect of protecting their lifestyle: renters insurance.

According to a study by the Insurance Information Institute, only about 57% of renters in the U.S. have renters insurance, compared to 95% of homeowners who carry homeowners insurance. Why the gap? One big reason is a misunderstanding of what renters insurance covers—and how affordable it is.

Here’s a closer look at the top 5 reasons you should get renters insurance and why it’s one of the smartest financial decisions a renter can make.

1. It Protects Your Personal Belongings from Common Risks

Many renters assume their landlord’s insurance covers their personal belongings. Unfortunately, this is not the case. Your landlord’s policy only protects the building’s structure—not your stuff inside it.

Renters insurance protects your possessions against common perils such as fire damage, theft, water damage, and weather damage.

Imagine the cost of replacing everything you own—your laptop, phone, TV, furniture, clothes, and kitchen appliances—if your rental were burglarized or damaged in a fire. Renters insurance helps you recover the value of your belongings without paying thousands of dollars out of pocket.

2. It Covers Liability – So You Don’t Have to Pay Legal Costs Alone

Accidents happen, and they can be costly. If someone gets injured while visiting your home—maybe they slip on a wet floor or trip over a rug—you could be legally responsible for medical bills and legal fees.

Renters insurance typically includes liability coverage, which helps cover medical expenses for injuries to others, legal defense costs, court judgments if you’re found responsible, and damage to someone else’s property. For example, if you were to accidentally start a fire in your apartment kitchen that damages a neighbor’s unit, your renters insurance would cover that liability.

Many policies offer at least $100,000 in liability protection, with options to increase limits for just a few dollars more per month.

3. It Pays for Temporary Living Expenses if You’re Displaced

What would you do if your rental became uninhabitable due to a covered disaster like a fire or severe water damage?

This is where loss of use coverage (also called additional living expenses, or ALE) comes in. Renters insurance can help cover hotel stays, temporary rent, meals, laundry costs, and additional transportation.

This coverage ensures that you’re not left scrambling for a place to stay—or forced to foot the bill for extended hotel stays—if disaster strikes.

4. It’s Affordable—More Than You Might Think

One of the most common myths about renters insurance is that it’s expensive. In reality, it’s one of the most affordable types of insurance you can buy.

The cost of renters insurance depends on the amount of coverage you need, where you live, your deductible, and whether you bundle it with other policies. First State Insurance, for example, offers package discounts on auto and renters insurance. This maximizes your coverage without breaking the bank, ensuring that you stay protected at the best price.

Imagine your neighbor has a fire in their apartment, causing you to lose everything. A new television would cost you more than a renters insurance policy does. It’s important to keep in mind that in most cases, one new item in your household costs more than a renters insurance policy. For less than the cost of a weekly coffee habit, you can protect everything you own and gain crucial liability protection.

5. It Gives You Peace of Mind in an Unpredictable World

From natural disasters to break-ins to unexpected accidents, life can be unpredictable. Renters insurance gives you a cushion against life’s curve balls and lets you focus on getting back on your feet, not worrying about the financial fallout.

Whether it’s a burst pipe soaking your electronics, a friend tripping over your coffee table, or a wildfire forcing you to evacuate your apartment, renters insurance helps cover the unexpected. That kind of peace of mind is priceless.

Need help finding the right policy?

Still have questions about renters insurance policies? Contact your local branch for more information about how First State Insurance can help you stay protected.