Best Renters Insurance for First-Time Renters

Why Every Renter Needs Insurance (Even If Your Landlord Has a Policy)

Your landlord's insurance covers the building — the walls, roof, and structure. It does not cover your laptop, your furniture, your clothes, or your liability if someone slips in your apartment. Renters insurance fills that gap for an average of $15–$20 per month.

Think of it this way: if a kitchen fire, burst pipe, or theft destroyed everything in your apartment, could you replace it all out of pocket? For most people, the answer is no.

What Renters Insurance Covers

A standard renters policy (HO-4) includes three types of protection:

• Personal property — covers your belongings (electronics, furniture, clothing, kitchenware) against theft, fire, water damage, vandalism, and other covered perils. Typical limits: $20,000–$50,000.
• Liability — covers you if someone is injured in your home or if you accidentally damage someone else's property. Typical limits: $100,000–$300,000.
• Additional living expenses (ALE) — pays for temporary housing and extra costs if your apartment becomes uninhabitable due to a covered event.

Our Top Picks

Lemonade — Best Overall for Young Renters

Lemonade was built for the renters insurance use case. You can get a policy in about 90 seconds through their app, claims are processed by AI in minutes, and monthly premiums start as low as $5/month in some states.

Starting premium: $5–$15/month for basic coverage

What we like: Fastest signup and claims process in the industry, extra coverage add-ons for electronics and jewelry, charitable giveback program with unused premiums.

Watch out for: Available in most but not all states. Complex or high-value claims may still require human review, which slows the process.

Read our full Lemonade review →

State Farm — Best for Bundling With Auto

If you already have State Farm auto insurance, bundling renters insurance saves 10–17% on both policies. Their local agents can walk you through coverage in person, which is valuable if you have never bought insurance before.

Starting premium: $12–$20/month

What we like: Huge agent network, bundling discount, strong financial stability, replacement cost coverage available.

Watch out for: Signup is slower than digital-first competitors. The app and online experience are functional but not as polished.

Read our full State Farm review →

Amica — Best Claims Experience

Amica consistently ranks #1 in customer satisfaction for claims handling. Their mutual structure means policyholders can receive dividend checks in profitable years. If claims experience matters most to you, Amica is the pick.

Starting premium: $15–$25/month

What we like: Top-rated claims experience, dividend returns, replacement cost coverage included, identity fraud coverage.

Watch out for: Premiums are slightly higher than budget options. Not available in all states.

Read our full Amica review →

How Much Renters Insurance Do You Need?

Do a quick home inventory:

1. Walk through each room and estimate the replacement cost of everything — furniture, electronics, clothes, kitchen items, decorations
2. Most 20-somethings underestimate their total at first. A typical one-bedroom apartment holds $15,000–$30,000 in personal property.
3. Choose a personal property limit that covers your total, plus 10–20% buffer.

For liability, $100,000 is the standard minimum. If you host gatherings frequently or have a dog, consider $300,000.

Replacement Cost vs. Actual Cash Value

This is the most important choice you will make on a renters policy:

• Actual cash value (ACV) pays what your item is worth today, after depreciation. Your 3-year-old laptop bought for $1,200 might only pay out $400.
• Replacement cost pays what it costs to buy a new equivalent item. That same laptop pays out $1,200 (or whatever a comparable model costs today).

Replacement cost adds $2–$5/month to your premium. Always choose replacement cost. The small price difference is not worth the risk of being undercompensated after a loss.

FAQs

Is renters insurance required? Not by law, but many landlords require it as a lease condition. Even if yours does not, the coverage-to-cost ratio makes it one of the best insurance values available.

Does renters insurance cover my roommate? Not automatically. Each person on the lease typically needs their own policy, unless you add a roommate as a named insured (which shares your coverage limits).

Does renters insurance cover flooding? Standard policies do not cover flood damage. If you are in a flood-prone area, you need a separate flood insurance policy through the NFIP or a private insurer.

What is the cheapest renters insurance? Lemonade consistently offers the lowest premiums, often starting at $5/month for basic coverage. However, the cheapest policy is not always the best — check that it includes replacement cost and adequate liability limits.

Compare all renters insurance plans →