- Assuming the landlord covers you — their policy protects the building, not your stuff.
- Guessing the value of your belongings — skip the home inventory and you’ll under-insure.
- Buying too little liability — a single injury claim can dwarf your property limit.
- Ignoring exclusions and sub-limits — flood and jewelry are often capped or excluded.
- Choosing on price alone — the cheapest policy can leave the biggest gap.
The most common renters insurance mistakes are assuming the landlord’s policy covers your belongings, under-insuring because you never did a home inventory, buying too little liability, ignoring exclusions and high-value sub-limits like flood and jewelry, and choosing a policy on price alone. Each one leaves a gap exactly where you’d need the coverage most.
Renters insurance is one of the most affordable protections you can add — about $171 a year (~$14 a month) on average, per the Insurance Information Institute, 2022. The catch isn’t the price; it’s the details people skip. Here are the five that quietly weaken a policy, and the fix for each.
Mistake 1: Assuming your landlord’s policy covers you
This is the big one. Your landlord’s insurance covers the building — never your belongings or your personal liability. If a fire or burst pipe destroys your furniture and electronics, that’s on you, not them.
The fix: Get your own renters policy (an HO-4) — the only thing that protects your stuff. For where the line falls, see renters insurance vs. landlord insurance.
Mistake 2: Guessing the value of your belongings
Most people lowball what they own. Add up your furniture, clothes, kitchen, and electronics and the number climbs fast — usually past the round figure people guess. Under-insure, and a claim leaves you covering the difference.
The fix: Do a quick home inventory — a photo and a rough value for each room. It gives you a real number to size your personal property coverage, and it speeds up any claim later.
See your renters insurance options →
Mistake 3: Buying too little liability
People protect their things and forget the part that can cost the most. If a guest is hurt in your place or you’re responsible for damage, liability helps with the legal and medical costs — which can run far higher than your belongings are worth.
The fix: Don’t default to the lowest liability limit because it’s cheaper. Think about what one serious claim could cost, then size from there.
Mistake 4: Ignoring exclusions and high-value sub-limits
A standard policy doesn’t cover everything, and caps some things you’d assume are protected. Floods and earthquakes need separate coverage. And high-value items — jewelry, watches, collectibles — often have a sub-limit, so a stolen ring may only be partly covered.
The fix: Read what’s excluded and capped before you buy. If you own something valuable, ask about a rider (or floater) to cover it fully. To see what a standard policy includes, read what renters insurance covers.
Mistake 5: Choosing only on price (or the wrong deductible)
The cheapest policy usually gets cheap by cutting coverage or pairing a low premium with a high deductible — what you pay out of pocket before coverage kicks in. A deductible you can’t afford in an emergency defeats the point.
The fix: Compare on coverage and deductible together, not price alone. Pick a deductible you could comfortably pay tomorrow, and confirm the limits actually match what you own.
Frequently asked questions
Is renters insurance expensive?
Usually no. The average renters policy costs about $171 a year — roughly $14 a month — per the Insurance Information Institute, 2022. Choosing on price alone is one of the most common renters insurance mistakes, because the cheapest option often leaves the biggest gap.
Do I need renters insurance if I have a roommate?
Generally yes. Your policy usually covers only your belongings, not your roommate’s, unless they’re named on it. Each person typically needs their own coverage.
How do I know how much coverage I need?
Start with a home inventory — a photo and a rough value for each room. Add up what it would cost to replace everything, then size your personal property and liability from that number, not a guess.
Avoid the gaps, keep your progress
None of these are hard to fix — they take a few minutes before you sign. Get your own policy, size it to what you own, and compare on coverage, not price. That’s how one bad day stays a bad day instead of undoing years of work.
Compare and get your renters insurance with Finhabits today →
Source: Insurance Information Institute (III), Facts + Statistics: Renters Insurance (average premium $171, 2022). Verified 2026-06-18.
This content is prepared and reviewed by the Finhabits team to ensure clarity and accuracy. It is intended for educational purposes only.
Disclaimer:
Insurance services are offered by Finhabits Insurance Services LLC, an agency licensed in certain states. California License 6001946. See licenses at www.finhabits.com/insurance-licenses for more details. In all other states, Finhabits Inc. provides information for educational purposes only. All information in this document, as well as any communications on social media, is not an offer of insurance in any state except those where licensed. Finhabits Advisors LLC is not a fiduciary with respect to the products or services of Finhabits Insurance Services LLC.
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