Renters insurance is a type of insurance policy with a similar structure as a homeowner’s insurance policy. However, renters insurance only covers your personal property and provides liability coverage when you rent a spot, be it an apartment, house, or condo.
Renters insurance or tenant insurance will cover occurrences that lead to loss of your personal property including events like storms, fire, and theft. A renters insurance plan costs way less than homeowner insurance as you would only be insuring your belongings and not the building itself.
For some people, renting an apartment is a lot easier and less tedious than owning a house. You never have to worry about fixing the building, painting, or getting it insured as that’s the landlord’s responsibility. However, as a tenant, this doesn’t mean you’re entirely off the hook.
In the case of a storm sweeping away your belongings, or a robbery case involving the loss of your possessions, your landlord’s insurance plan does not cover up the fees―you get to bear the FULL losses incurred alone. If you want to keep your properties protected in case of any unexpected event, you’ll need a renters insurance plan in place.
Most of the time, yes, renters insurance is necessary. Some landlords will require that you provide proof of renters insurance. However, you shouldn’t opt-in for a renters insurance plan because of your landlord. If your personal belongings consist of high-end electronics, furniture, clothing, and jewelry, renters insurance might be the best protection you can get. With that in place, you don’t have to pay out of your pocket when any of the insured items gets stolen.
Coverage provided by a renters insurance policy often depends on the insurer. However, a standard policy will cover your personal items and extra living expenses if you have to stay elsewhere while your living space is undergoing repairs.
Personal Property – A typical renters insurance policy will reimburse you for the loss or damage to your personal items. This includes jewelry, smartphone, clothing, and other electronics. Depending on your policy, you could cover your items from the following occurrences – Fire, lightning, windstorm, theft, vandalism, riot, explosion, falling object, and volcanic eruption. You will receive coverage for your belongings regardless of where they are. This means you can still claim your insurance if your covered items get stolen while you’re shopping or outside your home.
Additional Living Expenses – If you ever have to live outside your home due to an occurrence covered by your policy, your insurer will cover your additional living expenses until you return back to your home. This insurance policy will cover your hotel bills, meals, and other costs incurred while living out of your house.
Liability Insurance – If someone gets injured in your home and files a lawsuit, this insurance policy will help cover your expenses. It will pay for injury or damage done to others by you and your family while they are in your home.
Renter Insurance won’t cover damages due to earthquakes or floods. This means you would have to pay out of your pocket for repairs and replacement for items damaged during any of these disasters. If you need earthquake insurance or flood insurance, you will have to apply for that separately.
Renters insurance won’t cover damages due to pests like bedbugs or mice. If you live with a roommate and you’re the only one with renters insurance, your roommate’s possessions won’t be covered if they are stolen or damaged.
The actual cost of rental insurance depends on the number of possessions you want to cover and the cost value of your possessions. On average, you might pay between $15 to $30 a month to maintain coverage. Some insurance companies may offer discounts if you add other insurance policies to your entire plan or you bring another interested party along with you.
Before looking for renters insurance, you should determine how much coverage you need and how much you’re willing to spend to cover your property in a month. You should also cross-check the possibility of any disaster occurring.
Once you’ve got that all covered, you can go ahead with your search. Pick five or more insurance companies to get quotes. You can easily get an online quote from most companies that offer renters insurance. You could try major U.S insurers such as Progressive, Farmers, State Farm, and Geico. You can compare their rates, benefits, and bonuses before making your decision.