Why Every Renter Needs Insurance
Your landlord's insurance covers the building — not your stuff. If there's a fire, flood, or break-in, you're on your own without renters insurance. The good news: renters insurance is remarkably affordable, typically $15–$30/month for solid coverage.
What Renters Insurance Covers
A standard renters policy covers three things: your personal belongings (against theft, fire, water damage, and more), liability (if someone is injured in your apartment and sues you), and additional living expenses (hotel costs if your apartment becomes uninhabitable).
Actual Cash Value vs Replacement Cost
Pay attention to this distinction. Actual cash value policies pay what your items are worth today — after depreciation. A 3-year-old laptop might only be worth $200 even if it costs $800 to replace. Replacement cost coverage pays what it actually costs to replace items with new equivalents. Always choose replacement cost coverage if your budget allows.