For rent sign, in front of a rental property.

Common Myths About Renters Insurance

Updated April 4, 2024 . AmFam Team

Renters insurance can help protect you from various losses up to your coverage limits, but you may believe it covers less than it does. 

Coverage examples include your personal belongings and liability after a qualifying loss. It can also help pay your living expenses if your rental becomes uninhabitable after a covered event.   
This article addresses five common myths about renters insurance and explains how a policy can help you.

Two roommates unpacking boxed in their new living room.

What is renters insurance?

Renters insurance is a type of insurance offered to those renting an apartment, condo or house. It may help offer financial protection from unexpected events, including fire and theft.
It's also customizable. You can build a policy with standard and add-on coverages that help you reduce accident-related losses.

Happy woman sitting on her new living room floor using a calculator in front of her laptop.

5 Debunked Renters Insurance Myths

The following debunked renters insurance myths help explain how a policy may be able to help you.

Renter sitting on her couch after a break-in.  

Myth 1: My Landlord Will Replace My Damaged or Stolen Belongings

Truth: Your landlord’s insurance typically only covers the building, not what’s inside. Therefore, it's your responsibility to insure your personal belongings.  


Bonus: Your renters insurance helps protect your valuables, such as electronics, even while on the go. That means if someone takes your laptop or phone while you're away from home, it may help you pay for a new one up to your coverage limits after paying your deductible.*

Young person budgeting her monthly bills.

Myth 2: Renters Insurance Isn’t Accessible for Everyone

Truth: Our renters insurance is customizable. You can choose your protections and deductibles based on your budget.   


Bonus: We offer a variety of ways to help you save on your renters insurance, such as our renters and auto policy bundling discount.


Packed suitcase sitting in front of a hotel bed.

Myth 3: Renters Insurance Can't Help Pay Temporary Living Expenses

Truth: If your rental becomes uninhabitable after a covered event, such as a fire, your rental insurance may be able to help. The loss of use portion of your policy can help pay for additional living expenses up to your coverage limits while repairs are made.   


Bonus: Keep your receipts when you file a claim to take advantage of your loss of use coverage. That can help ensure you're compensated for your losses.


Person with a broken foot.

Myth 4: Renters Insurance Only Covers My Belongings

Truth: While a standard renters policy can help cover your belongings at home and on the go, it covers other losses, too. For example, it includes limited loss of use coverage. It also protects you from medical expenses for guests injured in your rental, along with associated legal fees.


Bonus: Learn more about all the ways that renters insurance can help protect you.


Two happy roommates lounging on a couch together.

Myth 5: My Roommate’s Insurance Covers My Stuff

Truth: No, it’s best to get your own coverage. While your roommate may be able to add you to their insurance, you must be listed on their policy to benefit from their coverage. Otherwise, your belongings won't be protected by their insurer. Moreover, if you and your roommate share a policy and they file a claim, that loss could affect your future insurability and premiums. 


Bonus: With your own renters policy, you can personalize it with added coverages, such as pet insurance or home-based business insurance.


Couple moving boxes into their new living room.

Renters Insurance from American Family Insurance

For more information, visit our renters coverage overview page or speak with an American Family agent. If you're ready for coverage, you can get an online renters insurance quote and build a policy today.


This information represents only a brief description of potential coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

*Regular coverage limits do not apply when traveling outside of the country. Coverage is limited to 10 percent of your personal property coverage limits.

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