5 Myths About Renters Insurance Debunked

Myth 1: Renters Insurance Is Expensive

Renters insurance does come at a cost, but it's generally not very expensive. In fact, you'll usually pay much less than you would for a home insurance policy. The average price for renters insurance is $12.75 per month—or $153 per year—according to June 2025 data from Experian. (Meanwhile, it costs over $2,000 per year for homeowners insurance, according to insurance marketplace Insurify.)

The exact price you'll pay for renters insurance can vary, though. Factors that impact your cost include your policy limits, location, history of claims and the deductible you choose, among other factors. Your credit can also play a role in the premiums you'll pay for renters insurance by way of your credit-based insurance score, which is different from a credit score but considers some similar factors.

Learn more: How Much Does Renters Insurance Cost?

Myth 2: My Landlord's Insurance Covers My Belongings

Your landlord will almost certainly have a home insurance policy on the property you're renting, but that only covers damage done to the structure of the building itself—not your belongings that are housed within it. It usually won't cover any losses due to theft either.

If your property is damaged by a flood or accident, burglarized or damaged in some other unexpected event or storm, your landlord's insurance policy won't compensate you for those losses. Instead, you'll need to cover them out of pocket, which could get expensive. You'll need an insurance policy of your own to protect your personal items.

Learn more: What Does Renters Insurance Cover?

Myth 3: I Don't Need Renters Insurance Because I Don't Own Anything Valuable

Legally, you don't have to have a renters insurance policy, but many landlords do require it. If your landlord doesn't, you may still want to buy some—even if your belongings wouldn't cost too much to replace.

That's because renters insurance covers more than just your personal items. With renters insurance, you also get liability protection. So, if someone is injured while in your home, your renters insurance policy will cover their medical bills and any legal costs that arise if they sue you.

Renters insurance will also cover certain living expenses if you need to find somewhere to live temporarily while your home is being repaired after a weather event or other damage has occurred. This is called additional living expenses (ALE) coverage.

Learn more: Is Renters Insurance Required?

Myth 4: My Roommate's Renters Insurance Covers Me

While it's possible to share insurance coverage with a roommate, they would need to add your name to their policy for it to cover you.

Even then, doing this can pose some issues. For one, any claims you or your roommate make could impact your insurance record and potentially increase your insurance premiums moving forward. There could also be complications with any claims payouts, since these are made to all policyholders.

Generally speaking, it's safest to have your own insurance policy to ensure you're properly covered and that any claim payouts go directly to you and your losses.

Learn more: How Much Renters Insurance Do I Need?

Myth 5: Renters Insurance Is Only for Students and Young People

While students and young people can certainly benefit from having a renters insurance policy, it can also be useful for anyone who cannot comfortably cover the costs that could come with theft, unexpected weather events or injuries on their property out of pocket.

If you file a renters insurance claim, you will typically only need to pay a deductible if the claim is approved. Then, your insurance company will step in to pay the rest. The typical renters insurance deductible ranges from $250 to $2,500, depending on your policy and insurer.

You will also likely want renters insurance if you have any high-value items that would be particularly costly to replace. This might include certain electronics, artwork, jewelry, collectibles or musical instruments. Additionally, if you regularly host guests or visitors, renters insurance can be wise, as it protects you against liability if someone gets hurt.

Learn more: Benefits of Renters Insurance

Frequently Asked Questions

Don't Believe the Myths

Renters insurance may be a valuable protection if you currently rent your home, so don't let common misconceptions cloud your judgment. And if price is a concern, work on improving your credit, as this can impact the premium you get on your policy. Check your FICO^® Score^Θ for free with Experian and learn more about credit-based insurance scores before you apply for insurance.