Ultimate guide to renters insurance

Should you get renters insurance?

Do you rent your home?

Did your Landlord insist you buy something called “Tenants Insurance”?

Does it seem like a reasonable idea to spend a minimal amount of money to protect yourself from large losses due to events beyond your control?

If so, you should get renters insurance.

Renters insurance covers personal property damage or theft and some personal liability, offering thousands of dollars of protection for a low monthly cost.

Renters need to have insurance, but you also need to understand how renters insurance works.

We created this guide so you can be prepared.

About this renters insurance guide

Insurance can be overwhelming. It can seem filled with complicated choices, confusing terminology, and a fair amount of stress.

But this guide avoids all of that. We’re here to break down exactly how to find your right insurance fit.

Welcome to your easy-to-follow guide to how renters insurance works!

We’ll cover:

1. What renters insurance covers (and what it doesn’t)

   Get clarity on what basic renters insurance includes and excludes so you know what to expect when you’re protected.

2. How to get insurance in one hour or less

   Our step-by-step guide helps you compare quotes and get insured quickly and easily without overpaying.

3. How to document your items

   Learn how just a few minutes spent documenting your belongings now can spare you weeks of headaches later if you need to make a claim.

4. How to make a claim

   Discover what steps to take if disaster strikes and you need to file a renters insurance claim.

5. How to change or end coverage (policy end of life)

   When the time comes to switch providers or cancel your policy, use this guide to smoothly change or cancel coverage.

Without further ado, let’s get this done so you can go back to more fun things.

What does renters insurance cover?

Renters insurance coverage is designed to protect you financially in several scenarios, including:

• If your personal belongings are damaged by fire or smoke.
• Theft.
• Water damage due to leaks.
• Liability claims and medical expenses if someone gets injured at your place.

An average policy can be 40 pages long. But really, it all boils down to fire, theft, water, and lawsuits.

If a fire destroyed your personal possessions, you can expect your renters insurance coverage to pay for replacing your stuff and reimburse you for the extra costs involved, like:

• Temporary housing costs.
• Additional living expenses during repairs.
• Legal defense if someone threatens you with a lawsuit.

You could end up paying thousands of dollars out of your own pocket without coverage.

With Goodcover, you get all of this protection for a low monthly premium.

But it’s not just about the basics. Renters insurance covers a lot of extra risks that you might not think about, like mold remediation after a covered water leak or coverage for your jewelry.

We’ll cover the checklist of the details that matter later. For now, just remember renters insurance is designed to cover fires, thefts, water damage, and lawsuits.

What does renters insurance not cover?

The paperwork you sign for renters insurance has many exclusions and caveats. Those aren’t there to trick you.

They’re there to make sure everyone understands exactly what the policy covers to reduce fraudulent claims so that the claims process is fair to everyone.

Let’s go over the most common items people often mistakenly think renters insurance covers.

Here are some examples of what’s not covered with renters insurance:

• Vehicle damage or injuries in car accidents — that's what auto insurance is for.
• Your health and medical bills — health insurance has you covered.
• Your business (even home-based) — you'd need a business policy to cover business items.
• Damage from floods, earthquakes, war, and other catastrophes.
• Accidental damage like dropping or losing your camera. That usually falls under extended coverage (e.g., Goodcover’s SUPERGOOD plan).

Renters insurance can sometimes expand to cover earthquakes, accidental damage, or home-based businesses – but those are the exception, not the rule.

So, focus on securing solid coverage for common risks like fires and theft first.

Can a landlord require renters insurance?

Yes, your landlord can require renters insurance. Most leases require it for the liability protection.

Insurance protects your belongings and helps the landlord avoid costs from damage or injuries involving you or your roommates.

Here’s how:

If you cause damage or injure someone in your home, you may be legally responsible for paying repairs and medical bills.

Your landlord might sue you if you can’t afford to pay (or refuse to pay) those repairs and medical bills. Your liability coverage can pay those bills rather than the landlord having to take you to court.

It’s inconvenient and expensive for landlords to try to recoup high dollar losses directly from tenants — requiring liability coverage means there’s an insurance policy to tap into instead.

It makes more sense for your landlord to count on an insurance company with the financial means to pick up the tab instead of an individual tenant.

Compare renters insurance in one hour or less

Getting great renters insurance coverage shouldn’t take a lot of time. You just need to balance cost and protection as you compare providers.

The best way to know who offers the lowest price for the coverage you need is to compare renters insurance quotes yourself. Compare at least three quotes for the best results.

It takes about an hour if you're prepared. A little planning makes a big difference in having a quick, stress-free experience.

Follow our key tips below to get insured without overpaying or stressing out.

Gather key information (15 minutes)

Before you go out and get quotes, gather these below five things.

1. Details on where you live

   Goodcover just needs your ZIP to provide a fairly accurate renters insurance cost quote, but a full address helps you get the most accurate quote.

   Some other insurers will ask for details about your heating system, deadbolts, and other fire/theft safeguards. Goodcover doesn’t put you through that hassle and has a streamlined quote system that only takes a few minutes.

   Keep in mind that smoke detectors are almost always required for coverage since they are legally required in most homes.

   Having your landlord’s email and physical address available is also helpful. Adding them as an “additional interest” on your policy is recommended and sometimes required by your landlord before you sign a lease or move in to your new home.

2. A List of of everything you own over $1,000

   Expensive items may not be fully covered by standard coverage and might need extended or additional coverage. Some also schedule extra coverage, and some restrict higher values by type of item.

   Renters insurance policies often cap claims payouts for certain categories like jewelry, cameras, and musical instruments. For instance, say your engagement ring cost $14k. With standard coverage, jewelry payouts are capped at $1,500. However, if you choose extended coverage on your jewelry (up to $20,000 from Goodcover), you’d be fully protected from accidents or theft.

   If you have time (and access) to purchase receipts, put them on your list to prove their value.

   You don’t need receipts right now, but it’ll save you time later if you ever need to make a claim. Doing a full home inventory now is a big help later on, too.

3. Determine how much contents coverage you need

   How much coverage do you need on your personal belongings? Ideally, you want to insure your personal items at full replacement value.

   Start by making a list of all your possessions (including clothing, appliances, kitchen items, and furniture) and estimate what it would cost to replace them if destroyed.

   If you estimate that replacing everything would cost $25,000, aim for at least that much in personal property coverage, plus an extra buffer of at least an extra $5,000 in case you underestimated costs or get new stuff later.

4. Determine how much liability coverage you need

   Liability coverage protects you if you break or injure someone. To figure out how much personal liability coverage you need, consider these two factors:

   1. Your landlord's insurance minimum requirement: This will be listed in your lease agreement. Most require $100,000 to $300,000 in coverage. Never get less than this amount, or you’ll be in breach of your lease.

   2. Your assets: Liability insurance is inexpensive, so don't skimp on coverage. Make sure you get enough coverage to fully protect all of your assets in the event of a lawsuit.

   If you have investments or otherwise liquid assets in excess of the limits offered by renters insurance (usually around $500,000 or $1,000,000), your renters insurance policy will not sufficiently protect you in the event of a lawsuit. You need to buy Umbrella Liability Coverage. This is outside of the scope of this guide – talk to an insurance broker to get this coverage.

5. Your claims history

Not every insurer asks about prior claims (Goodcover doesn’t).

But, if asked, you need to be honest about it. Don’t hide past claims — it's unethical and it’s illegal.

You’ll need to be prepared to disclose:

• When the claim occurred.
• Why you filed the claim, such as fire or theft.
• How much you submitted the claim for.

Extra details

Goodcover doesn’t ask for any extra details, but other insurers often do. Every insurer has different items they want to know about, and they can get really personal.

For example, some other insurers ask about:

• Your dog's breed. Goodcover currently has no breed restrictions on dogs.
• Unmarried partner's details if you live together. Some insurers charge extra or don’t allow unmarried partners to share a policy, but everyone on your lease is covered automatically under your policy with Goodcover – including roommates.
• Your social security number. It’s illegal to require this in California, so if an insurer asks you to provide this for a quote – run.

Get three quotes with the same information (15-30 minutes)

Using your newly gathered information, getting quotes online should take roughly 15 minutes. If you choose insurance companies with agents, getting all three quotes may take up to 30 minutes on the phone.

The baseline policy offered by nearly every insurer is based on the Homeowners 4 or “HO-4” policy. They all have almost the same coverage.

Coverage amounts, how values are determined, and annual and monthly premiums do vary, so it’s important to get quotes.

Which insurers should I get quotes from?

If you’re in a hurry, we recommend you get quotes from online sources like:

• Goodcover
• Lemonade
• PolicyGenius
• The Zebra
• GEICO
• Progressive

If you have more time to chat with agents, you can check out these providers. Keep in mind that they may not offer policies in all states.

• State Farm
• Farmers
• Allstate

Finally, there are a few companies that serve specialized groups (like the military) or aren’t available in all states.

• USAA
• Amica
• Erie

Cut the companies that don’t measure up to the minimum

Now that you’ve gotten three quotes, it’s time to verify that each meets quality standards. If a quote fails these tests, throw it out. Get a new one from another insurer, or ask for a revision — but please, don’t accept a low-quality policy.

Replacement Cost Coverage

If you got a quote online, it’s likely your policy covers your stuff on a “replacement cost” basis. That means the insurer will pay the costs to replace your old damaged stuff with new stuff.

Think of replacement cost as the new retail cost, not the eBay or Craigslist used price. In contrast, actual cash value (ACV) reduces the value of your stuff with depreciation, so you get paid less.

We highly recommend rejecting any quote that doesn’t include replacement costs.

Check the policy declarations page to see how your renters insurance policy figures out how much to pay for your stuff. This summary page outlines your coverage details.

Look for the "Personal Property" section and the coverage limit. Next to that number, you should see wording like "Replacement Cost" or "Actual Cash Value" that tells you how the policy counts the value of your belongings.

Ensure your whole household is covered

When comparing quotes, double-check who’s covered under each policy and what it might cost to add additional people. While most insurers should allow you to add an unmarried partner as a named insured, they might not extend coverage to family members or roommates living with you. Even if they do, it could come with extra fees.

Goodcover makes it easy, though – everyone on your lease is automatically covered under your policy, no additional steps or costs are required. We believe that sharing a policy is the simplest and most affordable way to protect your entire household.

Verify the quote includes liability coverage for dog bites

Dog bites often mean lawsuits. But a quality renters policy shouldn’t exclude dog bite coverage or refuse to cover your dog based on breeds they consider “vicious.”

Rottweilers and Pitbulls need insurance, too.

If you do have a dog, make sure the quotes you get cover dog bites. If something did happen, a court probably wouldn’t look as favorably upon a Rottweiler as it might a Poodle, no matter how sweet your furbaby is.

Goodcover doesn’t keep a “vicious breed” list and includes dog bite coverage for all.

Compare your three quotes using these metrics

Okay, now it’s time to pick a renters insurance provider. Don’t automatically jump at the cheapest one, check if the quotes are truly apples-to-apples.

Check these seven items before picking a quote:

• Coverage limits: Do they meet your estimated needs for personal property contents coverage, personal liability, and loss of use?
• Deductible amount: Are you comfortable with the out-of-pocket costs if you have to file a claim?
• Valuation method: Does it pay replacement cost to replace your belongings at current prices?
• Scheduled items: Can you get enhanced coverage for valuables like jewelry, cameras, and musical instruments?
• Customer service: What are the ratings and reviews for claims processing and support?
• Online access: Can you manage your policy digitally 24/7?
• Billing options: Is there flexibility in payment frequency, such as monthly, quarterly, or annually?

Insurance can often feel overwhelming, and having help (e.g., agents or knowledge bases) from an insurer to help steer you through the process is extremely important.

Look for a provider that offers self-service through online portals but also has knowledgeable customer service representatives or agents available to answer questions.

Then, decide what works best for you.

Get insured with confidence

Once you've compared quotes and selected the right renters policy for your situation, it's time to push that “buy” button. Many people experience hesitation when buying insurance, though. Perhaps you’re afraid of being locked into an annual contract, or that you’re making the wrong choice.

Don’t second-guess yourself. You’ve done the work, and you know what policy you want.

As for the long contracts? There is an escape hatch if you need it.*

Renters insurance policies are generally structured as annual contracts with the right to cancel at any time. So if you pre-paid for a year’s coverage and decided to cancel six months later, you’d get 50% of your money back.

Plus, you researched your options as you followed this guide, and you’ve put in the diligence to make an informed decision — in the end, you know what’s best for you.

So, go for it! Take the leap and get insured. You’ve got this.

Finalizing your insurance documentation

Congratulations— you did it! You now have renters insurance coverage. We know you're excited to relax now.

But staying in "insurance mode" for five more minutes can save time, stress, and money later if you ever need to file a claim.

Here are three quick final tasks we strongly encourage you to do now:

• Download, print out, and store your policy documents. Be sure to store them somewhere secure, like a safe, bank deposit box, or external hard drive. This guarantees you have access if your insurer doesn't provide online access.
• Take photos or record a video tour of your living space to create a visual record of their current condition. You don't have to submit it, but it provides vital evidence if you face loss or damage.

How to make a successful claim

While the first part of this renters insurance guide was designed to get you the best renters insurance coverage possible, the rest will help you file a claim.

Now, 95% of people will never need this section. For the 5% that do – this section’s for you.

What you should expect when making a claim

If a covered loss occurs, you can expect:

• A fair claims process.
• Reimbursement within policy limits.
• An unbiased evaluation of your claim.

Your insurer will just need some documentation from you and time to complete its investigation.

Insurers must conduct due diligence to validate losses, protecting them and all policyholders from potential fraud. You'll need to provide evidence like photos, receipts, and police reports.

It's a small price for getting your life back in order.

Once the insurer is satisfied that:

• The loss happened as you reported.
• It's covered under your active policy.
• The settlement amounts are justified.

They will pay your claim, so there’s no need to worry.

While the claims process can feel tedious, remember the insurer is working to keep the process fair for everyone. Stay engaged and provide what they need to reimburse you quickly and fairly.

By following this guide to get insurance with great coverage limits, replacement cost valuation, and scheduling of valuables, you've set yourself up for a smooth experience.

What not to expect when making a claim

Once when I was working for a huge multinational insurance company I got a call in the middle of the night.

“Help - our boat is sinking!”

One of our policyholders had gotten my number and called me as their boat started to sink in the middle of the ocean. I was just the desk-underwriter of the policy, not a claims or even customer-facing person at all.

“Did you call the coast guard?” “Oh, not yet!” “Please do, and I’ll make a call at my end to make sure they get the message.”

If an emergency happens, call 911 or appropriate services immediately for assistance and safety. Your number one goal is safety. The BEST WAY to do that is to call emergency services immediately.

Insurance agents can not dispatch help to your location.

Once the situation is stable, you can notify your insurance provider about the loss. But don’t worry about that until you take care of the emergency.

While claims agents will help expedite processing, their primary role is investigating losses and reimbursing you after the fact, not crisis management. They aren’t trained as first responders, therapists, or concierges.

Claims agents want to handle your claim ASAP, but your safety comes first, so please call emergency services before your insurer.

Checklist for making a successful claim

Before you make a claim, you need to know your policy’s deductible amount.

Then, follow this general checklist and keep your insurance company’s specific requirements in mind to file a claim.

• Take pictures

  Photograph damage and losses as soon as it’s safe before cleaning up or repairing. Early images often provide the best evidence of what happened, leading to faster payouts.

  Prioritize safety, but documentation is key. Insurance companies love photos, so the more, the better.

• Retain all documentation and records

  Keep everything related to your losses and claim in an organized folder. Common items include:

  • Quotes and invoices
  • Receipts
  • Texts
  • Emails
  • Voicemails
  • Notes
  • Police report numbers
  • Witness statements
  • Insurer correspondence

• Write a summary

  Before contacting your insurer, write down what happened by answering:

  • Who was involved, including potential witnesses.
  • What exactly happened
  • What was damaged or stolen — even a rough inventory speeds things up dramatically.
  • Where it happened.
  • When it happened.

  Claims handlers ask specific questions but aren’t looking for excuses to deny a claim; they are just ensuring accuracy. Writing the details down in advance can help you clarify how the event happened.

• Special consideration for specific types of claims

  For thefts or vandalism

  Contact the police immediately and get an official report number. Every insurer will want to see the report when working on your claim. Additionally, avoid reporting crimes late, as it can seem suspicious.

  If you're sued

  Don't respond to a lawsuit demand letter — notify your insurer immediately. They will take over communicating with legal representatives and managing your defense.

  Preserve evidence, but let your insurer handle legal action. You’ll probably be asked not to discuss the case or situation with anyone, even on social media.

• Get follow-up details and don’t be afraid to use them

  Get contact information for follow-ups on the website or from your representative. Also, ask when to expect their next communication so you can follow up with them easily.

  If you haven’t heard from your adjuster in a while, it’s okay to follow up with them. Claims adjusters can get busy, or they could be waiting for some bit of information that you have access to, or to get in contact with a witness who you know is currently camping, etc.

  Most of the time delays aren’t neglectful and more just a misunderstanding, so follow up!

What to do if your claim is denied

If your claim is denied after following this checklist, it’s time to think about how you contest the decision. But before you do, consider one thing:

Could your insurance company be right?

Often declined, underpaid, or disappointing claims come down to a mismatch of expectations about what is and isn’t covered.

That said – you have a right to a clear explanation from your insurer, so politely ask questions until their reasoning makes sense to you.

If you've researched the reason for the denial and still believe you're in the right, you can choose to contest the decision.

How to contest a claim

If you believe your renters insurance claim was improperly denied, use these steps to formally dispute the decision:

• Escalate internally

  Request that the claims handler escalate the claim denial to their manager. It’s entirely within your rights as a policyholder to ask for a manager to reassess the situation.

  Please be polite, but don’t be afraid to be persistent. Often, it takes a little cordial firmness to get problematic denials properly reevaluated internally.

• Read your policy

  When a claim is denied, the claims handler will make note of specific clauses in the policy terms that they believe apply or do not apply to your particular claim. Take time to read those sections yourself.

  Do you clearly understand their rationale based on the policy language?

  If not, go back to your contact, point out the language you find confusing, and request further clarification. If you see other parts of your policy you think should apply, quote that back to your insurance contact. There’s nothing a claims handler loves more than knowing a policyholder has actually read their documents.

• Send a written complaint threat

  If you’ve made it this far and it still doesn’t make sense, there’s a good chance you have a valid complaint.

  You can send a letter letting the insurer know you will file a Department of Insurance (DOI) complaint, which is every insurer’s nightmare.

  Getting a written notice that you plan to involve state regulators tends to spur insurance companies into action. Formal DOI complaints can trigger in-depth investigations and negatively impact the company's reputation.

• Submit an official DOI complaint

  If you’ve followed all the steps and your claim still hasn’t been satisfactorily resolved, go ahead and submit an official complaint to your state insurance regulator.

  The specific processes vary by state but should be outlined on your state’s Department of Insurance website.

  Getting the authorities involved will help you resolve any issues with your insurer — as long as you follow through with it and have a valid claim.

How to cancel your policy

At some point, you may need to cancel your policy if you move out, find a better deal, change insurers, or purchase a home.

Renters insurance policy cancellations follow some basic rules:

• You can cancel anytime, even during an annual policy. Many states, like California, require it by law.
• Prorated premium refunds are issued on the unused portion of policies. Cancel six months into a one-year contract? Expect roughly half your money back.
• Retroactive or “backdated” cancellations may be possible with proof you no longer needed coverage as of a specific date. Retroactive cancellations require insurer approval.
• Minor cancellation fees may be allowed in some states. And if you used a broker, states like California may consider broker fees nonrefundable. Don't let minor fees deter you from canceling if needed.
• Your provider may have specific cancellation instructions.

Always remember that buying a new policy before canceling your original one is a good idea.

Canceling online insurance policies

Canceling with online insurers, like Lemonade or Goodcover, is easy. Just log into your account and select the cancellation option. Canceling online insurance takes just minutes.

Canceling through agents or legacy carriers

Searching for a cancellation link with legacy insurers rarely works. Call their customer service line and directly request policy cancellation. There may be retention efforts, but they must cancel policies upon clear request.

Get written confirmation of the:

• Cancellation date
• Expected refund amount
• Processing time frame

If the refund doesn't arrive on schedule, persistently follow up until received — delays are unfortunately common.

If all else fails…

If an insurer requires a mailed cancellation notice, send a letter including your name, policy number, cancellation effective date, and new address if moving. Keep letters brief but formal.

Here’s a free template to use to cancel your policy:

That should get the job done.

Final thoughts: Goodcover’s ultimate guide to renters insurance

Getting renters insurance right takes research upfront, but it pays off if you ever face losses. And if you need to change policies, you can switch plans when better deals arise.

We're here to simplify the process with tools like this renters insurance guide.

Our goal is to get you affordable, quality, and transparent coverage so you can stress less and enjoy your home to the fullest.

So, if you’re looking for a renters insurance policy, get a free quote from Goodcover today to see how much you can save.