Should I Have Renters Insurance in Military Housing?

Updated 2025.

Once upon a time, the Department of Defense built a small renters-insurance allowance into BAH, and privatized military housing companies commonly provided renters insurance as part of their leases. That changed in 2015, when DOD removed renters-insurance costs from the BAH calculation.

As a result, most privatized housing companies stopped including renters insurance automatically, and many companies now require residents to purchase their own policies.

But even if it's not mandated, should you get renters insurance anyway? The short answer is yes, and here’s why.

1. Renters insurance will provide replacement or financial compensation for your household goods.

The most relatable reason for buying renters insurance, in or out of military housing, is to protect your personal belongings. The housing company’s insurance doesn’t cover damage to your goods. So, if a fire, flood, wind, or a break-in ruins your household goods, a renters insurance policy is the only path to recoup your loss. 

In the event of severe property destruction, you're responsible for the contents of your house. The housing company’s insurance for the structure does not cover your belongings.

2. Renters insurance can provide a defense against legal action and major accidents. 

You never know when disaster will strike. After a productive morning spent doing laundry, I sat down with my tablet and a cup of coffee. The next thing I knew, our neighbor in the unit below was banging on our door. Our washing machine had leaked water through our floor and into his apartment. Thankfully, our renters insurance policy included liability coverage. We submitted a claim and helped cover the damage to our neighbor's property.

Beyond Household Problems

Renters insurance protection can extend beyond household-related incidents, however. For example, say your dog uncharacteristically bites someone, or your child hits a baseball through the neighbor's window. A policy can be helpful if there's a chance of a lawsuit. Discuss these types of accidents with your insurance provider to look at coverage and monthly fees.

Another unfortunate scenario where renters insurance preserves sanity is if there’s a disaster that makes your home unlivable. Insurance companies sometimes refer to this as “loss of use.” Not only can your policy help recoup damage to your belongings, but it can also help with displacement costs, like lodging, food, pet boarding, and more.

3. Renters insurance protection extends beyond military housing. 

In a lifestyle where we travel and PCS frequently, insurance that covers all the in-between and transitional seasons makes financial sense. Many policies cover your property even when your belongings are located outside your physical address.

Take these scenarios, for example:

• If valuables are stolen from your vehicle
• If your belongings are damaged while in a storage unit
• If anything happens to your household goods during a PCS shipment

Photo by annastills via Canva.com

4. Renters insurance can cover weather-related mishaps such as a power outage. 

One summer, we had an intense thunderstorm and lost power. Of course, it was immediately after making a grocery run to restock the refrigerator. With a quick call to our insurance provider, I explained the situation.

They asked for an estimate of how much we’d spent on the now-spoiled groceries, told us to file a claim, and without delay, our renters insurance policy helped us recoup the loss. 

Note that renters insurance policies often have a food spoilage or power outage limit of $500-$1,000, and reimbursement claims may require photos and documentation.

The Surprising Affordability of Renters Insurance

Moving is expensive, and savings are hard to come by. But bypassing renters insurance to save money rarely works in your favor. One minor accident in your home could cost you more than a year of rental insurance through a reputable company. 

On average, for $30,000 in personal property coverage and the most common $100,000 in liability coverage, renters insurance costs around $227 per year ($19/month). 

This number fluctuates based on location and the depth of coverage. But even if you nearly double the property coverage to $50,000, you’re spending the equivalent of a Starbucks coffee once a week. 

Don’t overthink it. Renters insurance is affordable and widely hailed as worthwhile. It’s possible to save some money by asking for a military discount or negotiating with your current insurance provider to add renters insurance to a cost-effective bundle of services. Military-friendly companies like USAA and NavyFed are good places to start.

Before You Secure a Renters Insurance Policy

Renters insurance is not one-size-fits-all. As with any insurance policy, you'll want to tailor your renters insurance to fit your needs. For example, if you own valuable jewelry or expensive electronics, you might want additional coverage. A complete inventory of your belongings (and appraisals) is helpful to have in hand before you shop for the best coverage and price.

Examples of high-value items to include in your inventory: 

• Art 
• Antiques 
• Collectibles 
• Jewelry 

While there might be more security living on base, military housing isn’t any different from renting off-base when it comes to renters insurance. It’s a necessary expense to protect your belonging and liability.