Is Renters Insurance Still Worth It? What $15 a Month Actually Covers in 2025
It’s Cheap – but Is It Still Necessary?
Renters insurance has long been one of the most affordable insurance products on the market. In 2025, the average premium is just $15 to $20 a month. And yet, tens of millions of renters still skip it—either because they think their landlord’s policy covers them, or they assume they don’t own enough to make it worthwhile.
Spoiler: Both Are Usually Wrong.
Your landlord’s policy covers the building itself—not your personal belongings. That means if a fire, theft, or burst pipe damages your stuff, you’re on the hook unless you have your own coverage. And if a guest gets injured in your apartment? That could be a major liability without a policy in place.
What Renters Insurance Actually Covers
- Personal Property Coverage – Pays to repair or replace items like clothing, electronics, furniture, and kitchenware if they’re damaged or stolen.
- Liability Protection – Covers legal costs and damages if someone is injured in your rental or if you accidentally damage someone else’s property (like a water leak into a neighbor’s unit).
- Loss of Use – Pays for temporary living expenses (like a hotel) if your place becomes uninhabitable due to a covered event.
Common Misconceptions That Cost Renters Big
- “I don’t own enough to bother.” Most people underestimate the value of their belongings. Add up your phone, laptop, TV, clothes, appliances, and kitchen gear—you may own $20,000+ worth of stuff.
- “It won’t happen to me.” Fires, floods, and break-ins happen to thousands of renters every day. You don’t need to live in a “bad” neighborhood to experience loss.
- “It’s too expensive.” Renters insurance is often less than $0.75/day—and discounts are common when bundled with auto policies.
What’s Not Covered
- Flood and earthquake damage (separate policies needed).
- High-value items like jewelry or collectibles unless you “schedule” them.
- Roommates’ belongings (unless they’re also named on your policy).
How to Get the Best Value
- Use online comparison tools like Policygenius, Lemonade, or GEICO Renters.
- Raise your deductible slightly to reduce monthly premiums.
- Keep a digital home inventory to simplify claims.
- Bundle with car insurance for additional discounts.
Final Thought
Renters insurance isn’t just for worst-case scenarios—it’s a basic financial safety net. For the price of a cup of coffee each week, you can protect everything you own and avoid devastating out-of-pocket costs. In 2025, it’s still one of the smartest insurance buys around.