Your Lease Requires Renters Insurance: What to Get in California

You found the apartment, the application went through, and then the lease says it: "Tenant must carry renters insurance." Maybe it lists a dollar amount. Maybe the property manager wants proof before you get the keys.

Don't worry, this part is usually simple. Here's what that requirement usually means, what we recommend on top of it, and the extras that are easy to miss until something goes wrong.

Your landlord's policy is not your policy

This is the biggest misunderstanding we hear. Your landlord's insurance is there to protect the landlord: the building, and the landlord's own liability. According to the California Department of Insurance, a landlord does not provide insurance for a tenant's personal property.

So if a fire, a break-in or a burst pipe ruins your couch, your laptop or your clothes, the landlord's policy generally won't replace them. And if a guest gets hurt in your unit, or you accidentally cause damage to a neighbor's apartment, you may be the one held responsible. That's what renters insurance is for.

For the basics of what a renters policy can include (belongings, liability, medical payments to others and extra living costs after a covered loss), see our guide on why California renters need renters insurance.

What most landlords ask for: $100,000 in liability

In our experience, the most common lease requirement is $100,000 in personal liability. Personal liability can help pay for covered claims when you're legally responsible for someone else's injury or for damage to their property, such as a kitchen fire that spreads to the unit next door, or a guest who slips and gets hurt.

Two things to know:

• This is a lease requirement, not a California law. No statewide law makes every renter buy renters insurance. When a landlord requires it, it comes from your rental agreement. Read the insurance section of your lease for the exact amount and any proof the landlord needs.
• $100,000 is a common starting point. The California Department of Insurance notes that personal liability on a renters policy is generally subject to a minimum of $100,000. Some leases ask for more, so match the number in your lease.

What we recommend on top of that: $10,000 for your belongings

A policy that only satisfies the landlord's liability requirement may leave your own things with little protection. That's why, at Street Smart, we also recommend at least $10,000 in contents (personal property) coverage as a practical starting point.

$10,000 can sound like a lot until you add it up: bed and mattress, couch, TV, laptop, phone, clothes, shoes, kitchen items, tools. The Department of Insurance points out that you are the best judge of what your belongings are worth, and that people often forget everyday items like linens, small appliances and utensils.

A few quick tips:

• Walk through your place with your phone and take a short video or photos. It's the easiest home inventory you'll ever make.
• Ask about replacement cost. With replacement cost, depreciation is generally not subtracted from covered belongings. With actual cash value, it generally is.
• Pick a deductible you could actually pay. A higher deductible may lower the premium, but you pay more out of pocket after a loss.
• Ask about special limits. Jewelry, cash, collectibles and similar items often have lower limits inside the policy.

Add-ons renters often overlook

A standard renters policy doesn't cover everything. Depending on the insurance company, you may be able to add some of these. Optional coverages cost extra, have their own limits, and aren't available everywhere.

Water or sewer backup (strongly suggested in storm season). This is the one we bring up most. Standard renters policies generally don't cover water that backs up through a sewer or drain. A water/sewer backup endorsement can help cover your belongings when that happens. With storm season here, and especially in El Niño years when heavy rain can overload drains, it's worth asking about. It covers your belongings. The building itself is the landlord's responsibility.

Flood. Flood is generally not covered by a standard renters policy. Some renters insurance programs offer a flood option. Another route is a separate contents-only policy through the National Flood Insurance Program (NFIP), which can cover up to $100,000 of a renter's belongings. NFIP policies usually take effect 30 days after purchase, so don't wait for the forecast.

Earthquake. Renters policies do not cover earthquake damage to your belongings. You can add earthquake coverage for your belongings and for extra living costs if you have to move out during repairs. Much of it is sold through the California Earthquake Authority (CEA) by participating insurance companies. One helpful fact: under California law, renters policies must cover fire damage caused by an earthquake, even if you don't have earthquake coverage.

Identity fraud expense. It can help pay certain costs of restoring your identity after fraud, up to a set limit.

Bed bugs. Some programs offer limited coverage to help treat a bed bug infestation in your home. Standard policies usually exclude insects.

Pet damage. If you have a dog or a cat, some programs offer a limited add-on for accidental damage your pet causes to the rental, such as stained carpet or chewed baseboards. Always tell us about your pets when you get a quote.

Student belongings. If you have a son or daughter away at college, some policies can set a separate limit for their belongings at school.

Not sure what your lease requires? Send us the insurance section of your lease and we'll help you check it. Text (714) 736-9048, 24/7, in English or Spanish.

A few more things to check before you sign

• Roommates. Roommates aren't automatically covered under your policy. Confirm who is named on it.
• Proof for the landlord. Many landlords want proof before move-in. Some also ask to be listed on the policy so they hear if it cancels. Send us the exact wording from your lease so we can tell you what your insurance company can do. If you're also renting space for a business, our guide on why landlords require a certificate of insurance explains how business proof works.
• Your car is separate. Renters insurance doesn't cover your car. If you're moving, update the address on your auto policy too. Here's why your address and household information matter. And if your car is stolen, ask whether personal items taken from inside it fall under your renters policy.
• Storm prep. Getting ready for the rain? Read our tips for driving in Southern California rain.

Landlords and property managers: feel free to share this

If you own or manage rentals, this guide is a simple way to explain to tenants why your policy doesn't cover their things, and what your lease asks for. We're happy to help your tenants compare options in English or Spanish.

Get a renters quote by text

The easiest way to get started is a text. Text (714) 736-9048 with your full name, date of birth, and rental address (including your apartment number). We'll check your lease requirement and walk you through the options in English or Spanish. You can also request a renters insurance quote online.

Official sources

• California Department of Insurance: Residential Insurance, Homeowners and Renters
• California Department of Insurance: Earthquake Insurance
• California Earthquake Authority
• National Flood Insurance Program (FloodSmart): Buy a Flood Insurance Policy

Educational information: This article is general information for California renters, not legal advice or a coverage decision. Coverage, optional endorsements and limits vary by insurance company and are subject to eligibility, policy terms, conditions, deductibles and exclusions. Optional coverages cost extra and may not be available everywhere. Read your lease and your policy for exact requirements.