Insurance Curator Renters insurance is one of the smartest, most affordable protections a tenant can buy. However, standard renters policies (often called HO-4) have important exclusions that can leave you exposed in costly events like floods and earthquakes. This guide — focused on renters in the United States (with city-specific notes for Los Angeles, Miami, Houston, New York City and San Francisco) — explains what a typical policy covers, what it does not, how much separate coverage costs, and how to close the gaps.
What a standard renters policy covers (quick overview)
Most renters insurance covers three main areas:
- Personal property — replacement or actual cash value of belongings after covered perils (fire, theft, wind, vandalism).
- Liability — legal defense and settlements if you’re responsible for bodily injury or property damage to others.
- Loss of use / Additional living expenses (ALE) — temporary housing costs if your unit becomes uninhabitable after a covered loss.
Typical national cost: $12–$20 per month (about $144–$240/year) for an average policy with $30,000 personal property and $100,000 liability, depending on location and deductible. Sources: Policygenius, NerdWallet.
(See links at the end for sources.)
What standard renters insurance does NOT cover
These exclusions are consistent across most major insurers (State Farm, Allstate, Nationwide, Lemonade, etc.):
- Flood damage — water rising from storms, storm surge, river overflow.
- Earthquake damage — shaking, ground rupture, landslides triggered by earthquakes.
- Routine wear and tear, pests, or mold from neglect.
- High-value items beyond policy limits (jewelry, fine art, collectibles) — may require scheduled/endorsement coverage.
- Business losses — equipment and inventory for home-based business typically aren’t covered.
- Intentional acts or criminal activity by the insured.
- Sewer backup — often excluded unless you add a specific endorsement.
Why floods and earthquakes are separate: the numbers
- Flood insurance: The National Flood Insurance Program (NFIP) and private flood carriers provide flood policies — standard renters policies exclude flood. Average NFIP premiums vary by risk area, but FEMA reports the NFIP remains the primary option for many renters in flood zones. See FEMA for program details: https://www.fema.gov/flood-insurance
- Earthquake insurance: In high-seismic areas like Los Angeles and San Francisco, earthquake endorsements or standalone policies are required for quake coverage. The California Earthquake Authority reports average earthquake policy premiums can be several hundred to over $1,000 per year depending on dwelling value, location and deductible. See CEA for details: https://www.earthquakeauthority.com/
Example city notes:
- Los Angeles / San Francisco — earthquake risk: consider a CEA policy or private quake insurer; expect higher premiums than general renters insurance.
- Miami / Houston — flood risk and hurricane storm surge: flood insurance is critical; NFIP or private flood policies recommended.
- New York City — flood zones in parts of NYC (e.g., lower Manhattan or coastal boroughs) may need NFIP or private flood insurance; high-cost rentals may benefit from higher personal property limits.
How much do the add-ons cost? (estimates)
Below is a ballpark comparison. Actual premiums vary widely — get quotes from the insurer.
| Coverage | Typical annual cost (national) | Notes |
|---|---|---|
| Standard renters insurance | $144–$240 | Varies by city; typical limits: $30k–$50k personal property, $100k liability. [Policygenius, NerdWallet] |
| Flood insurance (NFIP) | ~$700 (avg NFIP policy) | NFIP & private market differ by ZIP; coastal and low-lying areas much higher. [FEMA] |
| Earthquake insurance | $300–$1,500+ | Depends on structure, deductible (often 10–20% of dwelling limit). Higher in CA (Los Angeles, SF). [CEA] |
| Sewer/backup endorsement | $30–$100 | Add-on to renters policy; small premium for big peace of mind. |
| Scheduled personal property (jewelry) | $50–$200 | Cost depends on item value and deductible. |
Sources and average ranges: Policygenius, FEMA, California Earthquake Authority, NerdWallet.
Which companies handle these gaps?
- Lemonade — well-known for low-cost renters policies (advertised starting rates as low as $5–$10/month in some cities) and fast claims tech; earthquake and flood are still separate. See comparison pages when shopping.
- State Farm — broad agent network; renters insurance averages in the national mid-range; flood via NFIP or private, earthquake endorsements available through some partners.
- Allstate — similar to State Farm; offers endorsements and can bundle with other personal policies.
Sample pricing (illustrative ranges):
- Lemonade: advertised entry-level renters policies often under $10/month in some urban areas; actual average depends on limits and location.
- State Farm & Allstate: typical national averages often fall in the $12–$20/month range for standard coverage.
Always get multiple quotes for your specific ZIP code — premiums differ between Manhattan, LA's Westside, Miami Beach and Houston suburbs.
Practical strategies to close coverage gaps
- Flood: Buy NFIP insurance if you live in a FEMA flood zone — policies typically have a 30-day waiting period. Consider private flood insurers for faster/competitive options in high-risk areas (Miami, Houston).
- Earthquake: In California, get an earthquake policy through the California Earthquake Authority or a private insurer; expect higher deductibles expressed as percentage of dwelling coverage.
- High-value items: Schedule jewelry, expensive cameras, instruments, or collectibles to get full replacement coverage and avoid sub-limits.
- Sewer backup: Add an endorsement if you’re in a building with older plumbing (common in NYC brownstones, older Midwest buildings).
- Increase liability limits: For roommates or high-traffic social situations (NYC apartments, college-area rentals), consider $300k–$500k liability.
When to prioritize which add-on (by location)
- Miami/Houston/coastal Florida/Texas: prioritize flood insurance and hurricane preparedness.
- Los Angeles/San Francisco/Seattle: prioritize earthquake (where applicable) and higher deductibles for quake losses.
- New York City/Chicago: consider sewer backup endorsements and higher personal property limits for high-value electronics/furniture.
- Nationwide renters: always carry adequate liability and schedule valuable items.
Quick checklist before you buy
- Verify whether the property is in a FEMA flood zone (check FEMA Flood Map Service Center).
- Inventory your possessions and estimate replacement cost (use photos and receipts).
- Check sub-limits: standard policy jewelry sub-limit often $1,500 or less — schedule expensive pieces.
- Ask about endorsements: sewer backup, identity theft, umbrella liability (if you have significant assets or roommates).
- Compare quotes from at least three providers (include national carriers and insurtech firms).
Further reading (internal resources)
- Best Insurance For Renters: What Policies Cover and How Much Personal Property Protection You Need
- Best Insurance For Renters on a Budget: Low-Cost Companies and Money-Saving Tips
- Best Insurance For Renters Comparing Providers: Lemonade, State Farm, Allstate and More
Sources
- Policygenius — "Average cost of renters insurance" (estimates and national averages): https://www.policygenius.com/renters-insurance/average-cost/
- FEMA — Flood Insurance and NFIP information: https://www.fema.gov/flood-insurance
- California Earthquake Authority — earthquake insurance overview and average premiums in California: https://www.earthquakeauthority.com/
- NerdWallet — renters insurance cost guide and company comparisons: https://www.nerdwallet.com/article/insurance/renters-insurance-cost
If you live in a high-risk area (flood-prone Miami, hurricane-exposed Houston, or seismically active Los Angeles/San Francisco), plan for separate flood and earthquake coverage — standard renters insurance alone will likely leave you with large, uninsured losses.