Do you actually need renters insurance?

A common misconception is that a landlord's insurance covers a tenant's belongings. It doesn't — and that gap is exactly what renters insurance is built to fill.

What your landlord's policy covers

Landlord insurance covers the building itself — the structure, fixtures, and the landlord's own liability. If a pipe bursts and ruins your furniture, the landlord's policy pays to fix the pipe and the wall, not your damaged belongings.

What renters insurance adds

A renters policy covers your personal property against theft, fire, and other listed perils, plus liability if someone is injured in your unit, plus loss-of-use costs (temporary housing) if your unit becomes unlivable after a covered event.

Why it's cheap relative to what it covers

Because renters insurance doesn't cover the building structure — the most expensive part of any property policy — premiums are typically a small fraction of homeowners insurance for a meaningful amount of coverage.

The liability piece is easy to overlook

If a guest is injured in your rental and sues, renters insurance liability coverage can pay legal costs and damages up to your policy limit — protection that has nothing to do with your furniture and everything to do with your finances.