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Quick answer: Renters insurance (also called an HO-4 policy) can help cover your personal belongings, personal liability, and temporary living expenses if the property you are renting becomes uninhabitable after a loss. These are all things your landlord's insurance may not cover. Indiana doesn't require renters insurance by law, but many landlords do. At Indiana Farm Bureau Insurance, you can get a renters insurance quote and purchase a policy online, and you can save with the Multi-Line Discount when you bundle with auto insurance.
A responsible landlord will have insurance on the building you live in. But that policy likely only covers the structure — the walls, the roof, the foundation. It does not typically cover your couch, your laptop, your clothes or your liability if a guest gets hurt in your rental.
That's where renters insurance comes in. It's often one of the least expensive insurance products you can buy, and it protects things your landlord's policy typically doesn’t cover.
An HO-4 policy, commonly referred to as renters insurance, is designed for people who rent their living space rather than own it. Instead of covering the building (that's your landlord's responsibility), it primarily focuses on three things:
Your personal property: the belongings inside your rental
Your personal liability: protection if someone is injured at your place or you accidentally damage someone else's property
Additional living expenses: temporary housing costs if a covered event makes your rental uninhabitable
This is often the core of a renters policy. It can cover your personal belongings like electronics, furniture, clothing, appliances, kitchenware and more against a list of specific events called "named perils."
A standard Indiana renters insurance policy generally covers losses from:
Category | Covered Perils |
Fire & Weather | Fire, lightning, windstorm, hail, volcanic eruption, weight of ice/snow/sleet |
Crime | Theft, vandalism, riot, or civil commotion |
Accidents | Explosion, falling objects, damage from vehicles or aircraft, smoke damage |
Water & Systems | Accidental discharge of water from household systems, freezing of plumbing/HVAC/sprinklers, sudden tearing or cracking of household systems, damage from artificially generated electrical currents |
For these named perils, your personal property inside your rental home or apartment may be covered depending on your renters policy coverage. Coverage may extend in additional scenarios as well. For example, if your laptop is stolen from your car or your luggage is lost during a trip, your renters insurance policy may help cover the loss.
This is a commonly misunderstood aspect of renters insurance. A standard renters insurance policy pays actual cash value (ACV), which is the current value of the item after depreciation, not necessarily what you paid for it. On the other hand, replacement cost will pay the approximate value of a new, comparable replacement for the damaged or stolen item.
Your three-year-old laptop was stolen. You paid $1,200 for it new.
ACV policy: Pays approximately $400 (original price minus depreciation)
Replacement cost policy: Pays approximately $1,200 (what it costs to buy a comparable new laptop today)
Replacement cost coverage typically costs more than ACV but can make a significant difference in a large claim.
If you experience a covered loss, replacement cost coverage can help ensure that you can replace your belongings with new items at today’s prices. Ask your agent if it’s right for you.
Renters insurance can also protect you if you're found legally responsible for someone else's injury or property damage. There are a wide range of liability limits available; your agent can help you select the most appropriate limit for your needs.
Here are some situations where liability coverage may apply:
A guest is injured at your place. A friend slips in your entryway after you just finished mopping your floor. Your liability coverage may help pay their medical bills.
Your dog bites a visitor. If your pet injures someone at your rental, your policy may help cover any resulting medical costs and legal fees. Check with your insurer as some dog breeds may have coverage restrictions.
You accidentally damage someone else's property. You're grilling on your patio, and a gust of wind carries embers to a neighbor's balcony, damaging their furniture. Your liability coverage may help pay for their loss.
Damage from your unit spreads to a neighbor's. A pipe bursts in your bathroom, and water damages the unit below yours. Your policy may cover the neighbor's damage if you're found liable.
Renters insurance often includes medical payments to others coverage, which pays for a guest's minor medical expenses (typically $1,000 to$5,000) without needing to determine who was at fault. This does not cover injuries to you or people who live with you — only guests and visitors.
For additional protection beyond your renters insurance policy limits, consider a personal umbrella policy.
If a covered event, like a fire, tornado, or burst pipe makes your rental uninhabitable, your policy can help cover the cost of temporary housing. This may include reasonable hotel bills, restaurant meals and other expenses above what you'd normally spend while your living space is being repaired.
Understanding common exclusions is just as important as understanding your coverage:
Floods. Standard renters policies do not cover flood damage. If you live in a flood-prone area, you'd need a separate flood policy through the National Flood Insurance Program.
Earthquakes. Standard renters policies do not cover earthquake damage. Supplemental earthquake coverage may be available.
Your car. Vehicle theft and damage are covered by your auto insurance policy, not your renters insurance. However, personal items stolen from your car (like a laptop or camera) may be covered by your renters policy.
Your roommate's belongings. Your policy covers your stuff. Your roommate needs their own renters insurance policy to protect theirs.
Intentional damage. Damage you cause on purpose is not covered.
Pest infestations. Bed bugs, termites and other pests are generally not covered.
Power failures. Losses caused by external power outages are typically excluded.
While many factors determine the cost you’ll pay for renters insurance, including your location, amount of coverage selected, deductible amount, and claims history, many Indiana residents pay between $15 and $25 per month.
At Indiana Farm Bureau Insurance, you can get a free renters insurance quote online. Then, you can purchase your policy right from your computer or phone. Use our renters insurance calculator to estimate how much personal property coverage you may need before you get your quote.
And if you also have auto insurance with Indiana Farm Bureau Insurance, you can save with the Multi-Line Discount when you bundle your renters with other policy types.
Indiana law does not require renters to carry insurance. However, many landlords and apartment complexes require it as a condition of your lease. Even if it's not required, it's almost always worth having. Here's a quick way to help you decide:
Your Situation | Need Renters Insurance? |
Renting an apartment or house | Recommended. It helps protect your belongings and liability |
College student in a dorm or off-campus rental | Recommended. Your parents' policy may cover some items, but there are often limits and exclusions |
Your lease requires it | Yes. It's a lease requirement |
Subletting a room | It depends. The primary tenant's policy often will not cover your belongings |
You own very few belongings and could replace everything out of pocket | It depends. Liability coverage alone may still be worth the estimated $15-$25/month |
Ready to protect your belongings?
Get a free renters insurance quote online in minutes — or connect with your local Indiana Farm Bureau Insurance agent to build a policy that fits your needs and budget.
No. Your car is covered by your auto insurance policy, not your renters policy. However, if a personal item, like a laptop, camera or bag, is stolen from your car, that item may be covered under your renters insurance personal property coverage.
No. Your renters policy only covers your personal property. Your roommate needs their own separate renters insurance policy to protect their belongings.
No. Standard renters insurance does not cover flood damage. If you live in an area prone to flooding, you will need a separate flood insurance policy. However, water damage from burst pipes or accidental discharge from household systems may be covered.
No. Indiana does not have a state law requiring renters to carry insurance. However, your landlord or apartment complex can legally require it as a condition of your lease. Many Indiana landlords now require tenants to carry at least $100,000 in liability coverage.
Indiana renters often consider between $20,000 to $50,000 in personal property coverage and at least $100,000 in liability protection. One of the best ways to estimate your personal property coverage is to do a home inventory. Add up the replacement cost of your electronics, furniture, clothing and other belongings. Indiana Farm Bureau Insurance's renters insurance calculator can help.
Yes. At Indiana Farm Bureau Insurance, you can save on your policy premiums with the Multi-Line Discount when you bundle renters insurance with auto insurance or other qualifying policies. Contact your local agent or get a quote online to see your savings.
You can get a quote and purchase a policy online, call 800-723-3276, or visit your local agent. The process can often be completed within minutes.
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