How Much Is $300,000 in Renters Insurance?

Your $300,000 renters insurance policy protects you in three ways: personal property coverage, liability protection and additional living expenses. The $300,000 figure refers to your liability limit—the maximum your insurance pays for injuries or property damage you cause.

Most policies with $300,000 liability limits include $250,000 in personal property coverage. This protects your belongings from theft, fire, vandalism and certain natural disasters—everything from furniture and electronics to clothing and kitchenware.
If a fire destroys your rental, you'll pay your deductible first, then insurance covers the remaining replacement costs up to your policy limit.

This is your $300,000 financial protection if someone gets injured in your rental or you accidentally damage someone else's property. Your policy covers medical expenses, legal defense costs and settlements.
These situations show how quickly liability costs add up:

Without adequate liability coverage, you'd pay these expenses from your savings, future wages or face bankruptcy. Your $300,000 liability limit ensures insurance handles these costs instead.

Additional Living Expenses (ALE) coverage pays for temporary housing if a covered disaster makes your rental property uninhabitable. ALE covers hotel bills, restaurant meals, and other necessary expenses while repairs are being made.

ALE equals 20% to 30% of your personal property coverage, providing $50,000 to $75,000 for temporary living costs on a policy with $250,000 in personal property coverage.

Renters insurance with $300,000 in liability coverage typically costs $1,084 per year, or approximately $90 per month. This rate assumes $250,000 in personal property coverage, a $1,000 deductible and good credit with no recent claims.

Higher liability limits mean your insurer takes on more risk. If someone sues you for injuries or property damage, your insurer might pay out more with a $300,000 limit than a $100,000 limit. This extra protection costs you roughly $60 to $100 more per year.

Standard renters insurance policies carry $100,000 in liability coverage. Upgrading to $300,000 provides triple the protection for 35% to 45% more in premium costs. For someone paying $624 annually for $100,000 coverage, jumping to $300,000 costs roughly $1,084—an additional $460 per year, or $38 per month.

This extra protection proves valuable when facing expensive liability scenarios. When a guest is injured on your property, medical bills can reach as high as $100,000.

Your deductible choice trades monthly savings against out-of-pocket costs when filing claims. A $250 deductible increases your annual premium to $1,262, while a $2,000 deductible reduces costs to $1,008.

Select a $1,000 deductible for balanced protection, offering reasonable monthly premiums and manageable claim costs. Choose a deductible of $1,500 to $2,000 if you have emergency savings and rarely file claims. You'll save $46 to $76 annually but pay more out of pocket if disaster strikes.

Renters insurance rates for identical $300,000 coverage vary widely between insurers, ranging from $375 to $2,137 annually. That's a $1,762 difference for the same protection. State Farm leads with the lowest rates, while Chubb charges nearly six times more.

Your credit score wields enormous power over your renters insurance costs—someone with poor credit pays $2,272 more annually than someone with excellent credit for identical $300,000 coverage. That's 247% more for the same protection.

Insurers view credit scores as indicators of financial responsibility and the likelihood of filing claims. California, Maryland, and Massachusetts prohibit the use of credit scores for insurance pricing, so residents in these states won't see their credit history affecting their rates.

Renters insurance with $300,000 in liability coverage costs only slightly more than standard policies with lower limits. You're getting triple the financial protection for roughly $7 to $11 more per month.

Costs based on MoneyGeek analysis with $1,000 deductible

Whether $300,000 in renters insurance coverage works for you depends on your situation. Most renters find this amount covers liabilities and personal property losses. You might need more if you own expensive items or live somewhere risky.

Calculate what your belongings cost, think about risks like theft, water damage or liability claims, and decide if $300,000 covers you. An insurance agent can give you personalized advice.

Many renters choose $300,000 in liability coverage because it protects against lawsuits without dramatically increasing premiums. Standard $100,000 liability limits might seem adequate until you consider real scenarios: A guest slips on your stairs and requires surgery, or your overflowing bathtub damages multiple apartments below yours. Medical bills, lost wages, and property repairs quickly exceed $100,000, making higher liability limits a smart financial move.

Is Monthly or Annual Payments Better for You?

You can pay your premium on a monthly or annual basis. Annual payments include a 5% to 10% discount, reducing your total cost. For a $1,084 annual premium, paying monthly might cost $95 to $100 per month (totaling $1,140 to $1,200 annually), while paying upfront saves you $56 to $116.

Choose annual payments if you have the funds available. Monthly payments are more effective if you prefer to spread costs throughout the year.

Renters insurance with $300,000 in liability coverage costs $1,084 per year on average, roughly $90 per month. This investment provides substantial financial protection, covering medical bills, legal costs and property damage if you're found responsible for injuries or accidents.
Your actual cost depends on your deductible choice, credit score, location and chosen insurer. The financial security from $300,000 in liability coverage far exceeds the cost. Without adequate protection, a single lawsuit or major accident could drain your savings, garnish your wages or force bankruptcy. For less than $3 per day, renters insurance shields your financial future from these risks.

Below are answers to common questions about $300,000 renters insurance to help you understand how insurers determine premiums and determine whether this coverage amount is right for you.