What renters insurance covers, why your landlord requires it, and what it actually costs in all five states.
Illinois doesn't require renters insurance, but more and more landlords and property managers do, and for good reason. The building is insured. You aren't. A renters policy (an HO-4) is one of the cheapest, most useful policies we write, and the bundle discount with auto often covers most of the premium.
The three things it does
Personal property replaces your belongings after fire, theft, smoke, vandalism, a burst pipe or a windstorm, furniture, clothes, electronics, kitchen gear, bikes, everything. Personal liability covers you if a guest is injured in your unit or you accidentally damage the building or a neighbor's unit (a kitchen fire, an overflowing tub). Loss of use pays for a hotel and extra living costs if a covered loss makes the unit unlivable.
Replacement cost vs. actual cash value
This is the one thing to get right. Actual cash value pays what your five-year-old couch and laptop are worth today, not much. Replacement cost pays to buy new equivalents. The difference in premium is small; the difference at claim time is enormous. We write replacement cost by default.
Heads up: add up your stuff before you guess
Most renters lowball their belongings. Walk the apartment room by room: bed, couch, TV, laptop, phone, clothes, shoes, kitchen, tools, sports gear, a bike. A one-bedroom apartment routinely holds $20,000–$40,000 worth of replaceable stuff. We'll help you land on the right number.
Why landlords require it
If your negligence damages the building, a grease fire, a tub left running, a candle, the landlord's carrier can come after you for the repair bill. Your renters liability coverage is what pays that. It also covers a guest who trips on your rug and a dog that bites the neighbor. Many leases now require $100,000 in liability with the landlord listed as an interested party; we set that up on the policy so the certificate is ready at lease signing.
What it costs
Renters insurance in all five states typically runs a small monthly amount, the exact figure depends on how much property you insure, your liability limit, deductible, credit history and whether you bundle with auto. Add the auto + renters multi-policy discount and the net cost of the renters policy is often close to nothing. Farmers and Toggle (Farmers' digital-first renters product) are both options; we'll show you both.