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Renters insurance can help if your cash is stolen, but the payout may be limited. Most policies only offer a small amount of coverage for cash theft, typically a few hundred dollars. While that’s better than having no coverage at all, it’s a good idea not to rely on renters insurance alone to safeguard your savings.

Let’s break down how renters insurance handles stolen cash, what limits to watch out for, and how to protect your money in the first place.

When Does Renters Insurance Cover Cash?

In general, a renters insurance policy considers theft a covered peril. This means if someone swipes your wallet on vacation or walks off with your prized coin collection, your insurance company may cover your loss — up to a limit. As with other valuables, like jewelry, fine art, and firearms, insurance companies have lower coverage limits, known as sublimits, on cash.

How Much Stolen Cash Will Renters Insurance Cover?

Most renters insurance policies cover stolen cash up to a low limit — typically around $200 or so. In some cases, the limit might be even lower. That’s why it’s important to check your policy details, so you know exactly what and how much coverage applies.

Coverage Scenarios for Stolen Cash (At Home and Away)

Renters insurance can cover theft or stolen cash in certain situations, whether you’re at home or away. For example, if someone breaks into your rental and steals cash, your policy may reimburse you for the loss. But again, coverage is usually limited to a few hundred dollars.

If your cash is stolen while you’re out — such as from your storage unit or a hotel room — your policy may still apply under what’s called off-premises coverage. This typically covers up to 10% of your total personal property limit. You’re also usually covered if the cash was stolen along with other items, like if your bag containing cash, your phone, and other valuables was taken. In that case, your insurance may reimburse you for the total loss minus your deductible, up to your policy’s limits.

However, there are situations where stolen cash isn’t covered. If the amount taken from you is more than your policy covers, you’ll only be reimbursed up to the limit. Your claim may also be denied if you don’t have proof of the theft, such as a police report.

And if the cash simply goes missing or you can’t explain how it was lost, renters insurance likely won’t cover it, since most policies exclude what’s known as “mysterious disappearance.”

What Renters Insurance Does Cover (Beyond Cash)

Besides providing some coverage for stolen cash, renters insurance can also provide an affordable way to protect yourself in four key areas:

•   Personal property coverage: This covers your belongings if they’re stolen or damaged by things like fire, smoke, wind, or theft.

•   Liability coverage: If you, a family member, or even your pet accidentally injures someone or damages their property, your policy can help cover legal fees, medical bills, or repair costs — up to your policy’s limit.

•   Additional living expenses: If a covered event (like a fire or major storm) forces you out of your home, renters insurance can help pay for temporary housing, meals, and other extra costs while you’re displaced.

•   Medical payments: Let’s say a guest trips in your home or your dog bites them. Your policy may help cover their medical bills, even if you weren’t at fault. Just note that your policy doesn’t cover injuries to you, your family, or your pet.

Protecting Your Cash and Minimizing Loss

Here are a few practical tips to help you minimize the chance of someone stealing your cash:

•   Keep some emergency cash in a safe place. Experts often recommend keeping a small amount of cash at home — usually just enough to get you through a day or two — in case of an emergency. Store your emergency cash in a water- and fireproof safe that’s easy to access in case you need to leave quickly.

•   Use secure travel gear. If you’re carrying cash or valuables while out and about, consider theft-resistant products. For example, a money belt or a slash-proof pouch can help keep your belongings and money safe when you’re on the go.

•   Make sure your money isn’t visible to others. Avoid leaving cash or valuables in plain view. If someone can’t see it, they’re less likely to steal it.

•   Store most of your money in a bank account: While it’s smart to have a small emergency stash at home, the rest of your cash should be stored securely, like in a bank account protected by the Federal Deposit Insurance Corporation (FDIC). Bank accounts like high-yield savings accounts are usually insured up to $250,000 per depositor. Plus, you might even earn some interest.

What to Do If Your Cash Is Stolen

Here’s what to do if your cash — or anything else — is stolen:

•   Make an official report with the police to back up your claim.

•   Notify your landlord right away so they’re aware of the situation, especially if the incident took place in or around your rental property.

•   Contact your insurance company as soon as possible to report the loss and find out what’s covered under your policy.

If cash was stolen along with other valuable items, such as your laptop, phone, or watch, you can file one claim for everything together. Just remember, your deductible will be taken out of the total amount you’re claiming.

On the other hand, if cash is the only thing that was stolen, it might not be worth filing a claim at all. Renters insurance only covers a small amount of stolen cash, and filing a claim — even just one — can cause your premium to go up. For example, if your deductible is $500 and you lost $700 worth of stuff, you’d only get $200 back. In a case like that, it might make more sense to skip the claim and avoid a higher premium later on.

The Takeaway

Does renters insurance cover theft of cash? If your money is stolen, renters insurance might reimburse you but only up to a limited amount. Most policies cap reimbursement for stolen money at a few hundred dollars, so while it’s helpful, it’s not meant to replace a large sum of savings. For that reason, keeping your cash in a more secure place, such as a bank account, may be a safer option.

To make sure you’re adequately covered, take a moment to review what your policy includes. If the coverage feels too limited, your insurer may offer add-ons or other options to help fill the gap.

Looking to protect your belongings? SoFi has partnered with Lemonade to offer renters insurance. Policies are easy to understand and apply for, with instant quotes available. Prices start at just $5 per month.

Explore renters insurance options offered through SoFi via Experian.

FAQ

How much cash does renters insurance typically cover if stolen?

Renters insurance usually covers stolen cash, but the payout tends to be limited. Most policies cap coverage at around a few hundred dollars, depending on your insurer. If you regularly keep large amounts of cash at home, consider storing it in a secure place or looking into additional coverage options.

Does my policy deductible apply if only cash is stolen?

The answer ultimately depends on your insurance company and the details of your policy. Some policies apply the deductible to all claims, while others only apply it to certain types of losses. If only cash is stolen, the amount is usually too small to exceed your deductible, so some insurers might waive it. But if the cash is part of a larger theft, like a break-in, your deductible would apply to the total claim. This could reduce how much you get back overall.

Why is the coverage limit for stolen cash so low?

The coverage limit for stolen cash is typically low because cash is hard to track and theft is tough to prove. Insurance companies may set low limits to help prevent fraud. After all, anyone could claim cash was stolen, and it’s difficult to verify. Keeping the limit small can help protect both insurers and honest policyholders.

Is cash covered if stolen outside my rental home?

Yes, renters insurance may cover stolen cash even if it’s taken outside your home — what insurers refer to as off-premises coverage. However, there are limits. Off-premises coverage typically only offers up to 10% of your total personal property limit. And since cash already has a very low coverage cap, the amount you’ll be reimbursed is likely to be small. It’s a good idea to check with your insurer to see what’s covered.

Are stolen gift cards or prepaid cards covered like cash?

Renters insurance may cover gift cards if they are stolen, but coverage tends to be restricted like it is with cash. Gift cards are often treated like cash, which means reimbursement is typically capped at a few hundred dollars. To know exactly what’s covered, check your policy details or ask your insurer directly.

Photo credit: iStock/Liubomyr Vorona

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q225-056

If you have any type of assets, have a family, or both, then trust and estate planning should be a priority regardless of your age. But alarmingly, only 24% of Americans have a will, and that number has been declining over the last few years, according to Caring.com’s 2025 Wills and Estate Planning Study.

Without having the right legal documents in place, you run the risk of state laws dictating how your assets are distributed after your death — and those processes may not align with your personal vision. No matter how old you are or how much money and property you have, learn about wills and estate planning to save your loved ones time and effort during what would already be a difficult period.

Understanding Estate Planning

What is estate planning? Understand what it is — and isn’t — to find out if you need a plan and how to get started.

Definition and Purpose

Estate planning is the process of designating how your assets and property will be distributed when you pass away. It can also include legal decisions like power of attorney and health care directives so that your wishes are executed in a variety of situations that could happen in the future.

Depending on your needs, an estate plan may incorporate a will, life insurance, a letter of intent for your executor, trust accounts, and documentation on how and where to access your financial accounts.

Wondering about the difference between estate planning vs. a will? A will is one document that’s part of estate planning. But estate planning is a much broader process that can include a number of documents, accounts, and directives.

Common Misconceptions

There are several myths around estate planning, especially when it comes to who actually needs a plan in place. Here are some that you may have heard or thought of:

•   Only rich people need an estate plan.

•   You don’t need an estate plan if you’re young.

•   It costs a lot to create an estate plan.

•   I already have a will, so I don’t need to do estate planning anymore.

•   My family knows how I want my assets handled.

The reality is, any adult who has a family and any size of assets or property should have some type of estate plan in place.

Recommended: How Much Does Estate Planning Cost?

Who Needs an Estate Plan?

It’s important to know if you need estate planning because not having the right plan in place can lead to legal battles and slow access to your assets for your intended beneficiaries. With a proper estate plan in place, you could help your family avoid or shorten probate, a court process that makes sure the estate is distributed in accordance with your will and other legal documents.

Even if you don’t have any assets to distribute, an estate plan can include instructions on how you want certain medical and legal situations to be handled. If something happens and you can’t make medical decisions on your own, a health directive gives guidance to someone you trust to make those decisions for you.

The same is true for assigning power of attorney. This responsibility allows someone to legally and financially act on your behalf — all within the limits of the document created as part of your estate plan.

Finally, even new parents need estate planning. In addition to creating a will, you should assign a guardian to your children, and may also opt to purchase a life insurance policy to financially provide for your children in a worst-case scenario.

Key Components of an Estate Plan

Here are the most common estate planning documents to consider including as part of your own plan.

Wills vs. Trusts

A will serves as a foundational document in an estate plan. It’s a legal document that primarily outlines who will inherit your assets once you pass away. Generally, there are three types of wills to choose from:

•   Simple will: This is the most basic version and can be done easily and affordably with an online estate planning tool. A simple will typically states who will receive your property and money after your death and who you’d like to serve as guardian for any minors in your household.

•   Joint will: As the name implies, this type of will is shared by two people, usually a married couple. It will outline how the estate will be divided in two scenarios: if one individual passes away, and if both pass away.

•   Testamentary trust will: This version incorporates a trust into your will, which means you can make stipulations as to how and when your assets are given to your beneficiaries. A trustee is in charge of making sure those wishes are met.

Most wills don’t allow your beneficiaries to avoid going through probate. Adding a trust in addition to a will is usually for larger or more complex assets, but avoids probate by transferring asset ownership to a trust account.

Powers of Attorney & Healthcare Directives

The next component of estate planning is your powers of attorney and healthcare directives. Collectively, this is called advance care planning and legally assigns proxies who can make legal, financial, or medical decisions on your behalf. You get to add details on how you would like those decisions made, so you’re not blindly giving someone else total control over these scenarios.

•   Financial power of attorney: You can limit when the power begins and ends, and what accounts your agent has access to. For instance, perhaps they can pay your bills from your checking account, but can’t sell your house.

•   Durable power of attorney: This goes into effect as soon as the document is legally created.

•   Springing power of attorney: In this version, a licensed physician must confirm that the individual is incapacitated before the document can be used.

Decisions outlined in a medical directive include:

•   Do not resuscitate (DNR) order

•   Do not intubate (DNI) order

•   Do not hospitalize (DNH) order

•   Out-of-hospital DNR order

•   Orders for life-sustaining treatment

Beneficiary Designations

In addition to naming heirs in your will, you can also designate beneficiaries on individual financial accounts, such as checking, savings, investment, and retirement accounts. The advantage of doing this step is that it skips the probate process entirely. Depending on the type of account, funds can be paid out or transferred to your beneficiary (or beneficiaries) immediately after your passing.

The Estate Planning Process

Now that you understand the parts of an estate plan, here are the steps it takes in order to get everything in place.

Gathering Documents and Information

Before you figure out how you want to distribute your assets through an estate plan, make sure you have a complete understanding of what you actually own. Create an inventory list of the following information and the relevant documents:

•   Property, including real estate, vehicles, jewelry, and collectibles

•   Checking and savings accounts

•   Investment accounts, including retirement funds and health savings accounts

•   Contents of safety deposit boxes

•   Cryptocurrency holdings

•   Life insurance policies

Also gather information on debt and other liabilities, like mortgages, lines of credit, and loans. Any outstanding balances are usually paid from the estate before the remaining funds are distributed to your heirs.

Working with Professionals (Attorneys, Financial Advisors)

Depending on the type of assets you have, you may need to loop in a team of professionals to help establish your estate plan. Your financial advisor can be a great place to start. They can help you designate beneficiaries on your account, and the firm can help execute your wishes after you pass away.

Consulting a tax professional can help you minimize your tax burden, both during your lifetime and after your death. Finally, an estate attorney can help establish legal documents like your will and advance care directives. On top of that, they can help establish and manage more complex estate needs, like trusts.

Recommended: Estate Planning Checklist

Why Estate Planning Is Important

Getting a proper estate plan in place comes with a number of benefits.

Protecting Loved Ones and Assets

One of the biggest advantages of having a clear estate plan in place is protecting those you love and making sure your wishes are followed for asset distribution. Perhaps most importantly for parents, you can also name a guardian for your minors, which can prevent family discord and additional stress for the kids.

Avoiding Probate and Minimizing Taxes

Avoiding or minimizing the time in probate court benefits your heirs because it allows them to access their inheritances more quickly. Plus, there’s less contention with an established estate plan because your directions are clear.

Your estate plan can also help navigate any potential tax issues. The government sets a threshold for what size of assets must pay an estate tax. As of 2025, anything under $13.99 million won’t be taxed, but that provision is set to expire and future tax bills can change that amount as well. Individual states may also levy their own estate taxes at different amounts.

Ensuring Your Wishes Are Followed & Reducing Conflict

An estate plan gives clear instructions on your final wishes, from funeral details to asset distribution. And with legally sound documents in place, there’s little room for arguing among family members who may feel they’re entitled to part the estate.

Common Estate Planning Mistakes to Avoid

Here are mistakes to avoid in order to ensure the estate planning process goes smoothly for you and your beneficiaries.

Failing to Update Your Plan Regularly

Life doesn’t stay the same, and your estate plan needs regular review in order to make sure everything is in order. Take an in-depth look every three to five years. On top of that, do another review when major life events occur in your family, such as a birth, death, or divorce.

Overlooking Tax Implications

Stay on top of tax law updates to make sure you understand new tax implications as regulations change. Prior to the 2017 Tax Cuts and Jobs Act raising the exemption to just under $14 million, the estate tax exemption cut off was around $7 million. It’s unclear what that number will be in 2026 and beyond.

Forgetting Digital Assets

Digital assets can refer to a few different things and all need to be tended to properly. In terms of financial assets, it can be things like cryptocurrency and non-fungible tokens (NFTs). Have a plan in place that allows your beneficiaries to access and transfer those assets in the way you wish.

Other digital assets may be more common — things like your passwords to online accounts. You can manually create a list of your accounts or use a password management tool that only requires a single password to access all of your accounts.

The Takeaway

Estate planning is important for every adult, regardless of net worth or family situation. And once a plan is in place, it’s important to revisit it every few years to ensure everything still fits your needs.

When you want to make things easier on your loved ones in the future, SoFi can help. We partnered with Trust & Will, the leading online estate planning platform, to give our members 20% off their trust, will, or guardianship. The forms are fast, secure, and easy to use.

Create a complete and customized estate plan in as little as 15 minutes.

FAQ

What’s the single most important estate planning document?

A will is the most foundational estate planning document. It can outline all the vital information, such as naming an executor, guardianship for minors, distributing assets, and even medical and financial directives.

Can I create an estate plan myself online?

Yes, there are a number of online will makers that can walk you through the process to create a customized will.

Why do people put off estate planning?

Many people put off estate planning because they think they don’t need to do it, often because of age or a lower net worth. Plus, it can be hard to think about death and plan for different challenging scenarios.

How does probate work and why is it often avoided?

Probate helps to settle an estate through the court system. Each state has its own process and records are made publicly available. People try to avoid it because it takes time as well as money.

Do beneficiary designations on accounts override my will?

Yes, typically accounts with named beneficiaries override wills and won’t go through probate.

Photo credit: iStock/PeopleImages

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q225-057

College students who took out federal student loans and graduate, withdraw, or drop below half-time enrollment must complete student loan exit counseling. Student loan exit counseling, or FAFSA exit counseling, helps students better understand their federal student loans and what their options for repayment are.

What to Expect With Student Loan Exit Counseling

Depending on your school, students typically complete their exit counseling online or through an in-person meeting with a counselor at the school’s financial aid office. Schools may also offer online counseling programs to review all of the important information regarding paying back student loans. Each student should check their school’s website to find out what their options are.

How Long Does Exit Counseling Take?

Generally, student loan exit counseling takes about 20 to 30 minutes if completed online. If the student meets with a counselor or has specific questions, it might take longer. Although a presentation about financial planning might not sound all that exciting, it’s a great idea to take advantage of the learning and soak up as much knowledge as possible.

Recommended: 9 Smart Ways to Pay Off Student Loans

How to Prepare for Exit Counseling

Before student loan exit counseling, the student must prepare some information. First, they should know the outstanding balances on their current federal student loans. This can be found on the Federal Student Aid website.

The student should gather the names, addresses, email addresses, and phone numbers for a close relative, two references that live in the United States, and their employer, if they have one. The Department of Education requires this information in the event that a borrower defaults on their loans and cannot be contacted.

During the student loan exit counseling, the student will also spend some time mapping out their potential salary and living expenses, such as rent and utilities, so that they can create an expected budget.

Recommended: How to Create a Budget in Six Steps

Topics Covered in Student Loan Exit Counseling

Topics you’ll encounter in student loan exit counseling include understanding your loans, plans and options to repay, how to avoid default, prioritizing financial planning, and choosing a repayment plan.

Understanding Your Loans

During the first portion of student loan exit counseling, the student receives a summary of their federal student loans, including total balance, terms and conditions, and the date that the first payment is due.

Next, counseling will cover the interest rates on student loans. Each loan has a set interest rate that depends on the loan type (subsidized, unsubsidized, PLUS, etc.) and the year dispersed. Students may want to write these interest rates down so that they can calculate their monthly payments in a later section.

Plans to Repay

Next, student borrowers will learn all about the rules of student loan repayment. They typically have control over the repayment plan that they choose, so it is wise to understand the pros and cons of all options.

For example, income-driven repayment plans may lower the borrower’s monthly bill (in accordance with their income), but could cost them more in interest over time. Keep an eye out for the differences between plans.

Borrowers are provided with a number of helpful student loan repayment calculations. Most students going through student loan exit counseling will see calculations that show how expensive it can be to utilize a grace period. Interest still accrues during a grace period and as it accrues, it is capitalized, which means it is added to the balance of the loan. Yet another calculator shows the borrower how much can be saved by making additional payments.

Student borrowers are also provided with logistical repayment information, such as in what scenarios you should contact your loan service provider.

Avoiding Default

Not paying loans on time so that they fall into delinquency could have consequences in many areas of a borrower’s life. Therefore, during student loan exit counseling, there is a large focus on borrowers avoiding default on their student loans.

This section will discuss the consequences for both a borrower’s federal loans (such as loss of student loan deferment options) and for career and future income (such as wage garnishment and impact to credit scores).

It will also cover options in the event that a borrower cannot make payments, such as deferment and forbearance, and the pros and cons of each of these options.

This section will also explain federal loan consolidation, student loan forgiveness programs, loan discharge for the permanently disabled, and how to settle student loan disputes.

Prioritizing Financial Planning

The borrower’s program should discuss budgeting, credit management, and other basics of money management. Borrowers are encouraged to consider their short-term and long-term financial goals.

Repayment Information

Last, a borrower chooses a repayment plan, enters in their new contact information, employer or future employer’s information, and provides the names and contact information of references. The borrower’s loan servicer then reviews the information and provides the borrower with a repayment plan.

According to Federal Student Aid, the borrower is told to list their preferred repayment options, at which point their loan service will make a final decision and assign the borrower a repayment plan.

What Your Exit Counselor Doesn’t Tell You

Student loan exit counseling is necessary, important, and required of all students with federal student loans. But overall, the program is pretty light and quick.

Think about it: Some borrowers could have tens of thousands or even hundreds of thousands of dollars to pay back and get just 20 minutes of guidance as they click through some online slides. This information very easily could be part of a full, multi-credit course at a university.

Also, there is some important information that a borrower just won’t receive in exit counseling, and that’s information on how to handle their private student loans. While there are some similarities, private student loans will have many of their own nuances that are imperative to understand.

For example, private loans determine their own repayment plans and generally don’t offer deferment or forbearance options, and they may or may not allow for advance prepayment on a loan.

Student Loan Refinancing

Federal student loan exit counselors and programs generally do not cover student loan refinancing. Refinancing is the process of paying off student loans—both federal and private—with a new loan, ideally at a lower rate of interest.

Refinancing could potentially help lower a borrower’s interest rate and combine multiple loan payments into one.This is different from federal loan consolidation, a program offered through the government that takes a weighted average of the existing loans’ interest rates. The main purpose of a federal loan consolidation is to simplify monthly payments; whereas a refinance through a private lender ideally lowers your interest rate.

With refinancing, the lender pays off your government loans with a private loan. It’s important to note that refinanced loans are not eligible for federal repayment programs such as income-driven repayment, deferment, and public service loan forgiveness.

For borrowers who have no plans to use these programs, it may be worth considering refinancing. You may qualify for a better interest rate through refinancing if your credit score or financial situation has improved since you initially took out your loans as a student.

Regardless, it is a great idea to go into student loans exit counseling with a clear head. Paying back your loans is no small feat, so it will be so worth it to do some hard work up-front to make the rest of the process as smooth as possible.

If you do decide to refinance your student loans now or down the line, consider SoFi. SoFi offers flexible terms and no origination or prepayment fees.

FAQ

What happens if you don’t complete exit counseling?

Exit counseling for federal student loans is required. Failure to complete exit counseling could result in your school withholding your diploma or official transcript. This could affect your ability to apply for a job that requires a transcript or diploma or apply to graduate school.

What is an exit interview for student loans?

Student loan exit counseling helps students understand their federal student loans, repayment options, and interest rates. It also provides students with tips for avoiding delinquency and default on their loans. At the end of exit counseling, students choose a repayment option.

What happens if you never pay off your student loans?

The consequences for failing to repay student loans can be severe. After 270 days of missed payments, federal student loans go into default. At that point, the entire unpaid balance of your loan and any interest owed is due immediately. Your wages may be garnished and your tax refunds withheld. The default is reported to the credit bureaus and damages your credit rating, which could take years to rebuild and impact your ability to buy a house or a car. And finally, your lender or loan servicer can take you to court.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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