5 Renters Insurance Myths That Cost Real Money

Renters insurance averages $23/month nationally — a pizza — and yet most renters skip it based on one of these five myths.

The myths

• **"My landlord's insurance covers me."** It covers the building, not one dollar of your belongings, your hotel bill after a fire, or your liability. This is the myth that does the most damage.
• **"My stuff isn't worth insuring."** Inventory honestly: phone, laptop, TV, clothes, kitchen, furniture. Most renters clear $20,000 replacing everything at today's prices — which is exactly what a $30K policy covers.
• **"It only covers theft."** The policy's quiet superpowers: liability (a guest's injury, your dog, water damage you cause to the unit below), loss-of-use (hotel and meals when the unit is uninhabitable), and off-premises coverage (the laptop stolen from your car).
• **"Roommates can share one policy."** Almost never true — unrelated roommates each need their own. One policy on the lease covers one named insured's property.
• **"Filing is more trouble than it's worth."** With replacement-cost coverage (choose it — it's a few dollars more than actual-cash-value), a documented claim pays today's price for your five-year-old TV, not its depreciated scrap value.

Prices vary meaningfully by state — from around $16/month in the cheapest to $36 in the priciest — see your state, and compare a couple of carriers; the same coverage spans nearly 2x between them.