Renters Insurance
As a renter, it’s essential to understand that your landlord’s insurance policy protects the building you reside in, but it usually does not cover your personal belongings. Additionally, it won’t cover legal fees or settlements if you’re sued for injury or property damage. This is where renters insurance can make a difference.
What does renters insurance cover?
Your personal property is protected in the event that your belongings are damaged or stolen. Just like homeowners insurance, renters insurance generally covers unexpected incidents such as storms, theft, and fire. This coverage can extend even if your belongings are away from your home when the damage or theft occurs.
Liability coverage is also included. If someone outside your household is injured—like a guest tripping over a rug—or if their property is damaged and you are sued, this coverage can help pay for legal fees and settlements, up to the limit you select, if you are found liable.
Additionally, coverage for extra living expenses helps cover your rent, food, and other costs if you need to live elsewhere while your home is being repaired.
What is the cost of renters insurance?
Renters insurance can cost as little as $10 per month, with the national average around $15 per month or approximately $174 annually, according to 2019 data from the Insurance Information Institute. However, your premium will depend on various factors, including your location, the amount of coverage you desire, the deductible you choose, and the value of your belongings.
If you own high-value items such as expensive electronics or collectibles, your coverage needs may differ significantly from someone starting out with just basic essentials.
Additionally, if you want your insurance to cover the replacement of your belongings, the cost will be higher compared to opting for actual cash value coverage, which pays out the depreciated value. For instance, if a 5-year-old computer is stolen, replacement value coverage would allow you to buy a new one, whereas actual cash value coverage would only reimburse you for the computer's depreciated worth.
Should I get renter's insurance?
Some landlords may require tenants to purchase renter's insurance with liability coverage to protect against damage to the building or unit. Even if your landlord doesn’t mandate it, it's crucial to know that their insurance typically doesn’t cover your personal belongings, such as furniture, electronics, or clothing. A renter's policy can help cover damages or losses if, for example, a fire occurs or a pipe bursts and damages your items.
How much renter's insurance should I get?
To determine how much insurance you may need, it's helpful to create an inventory of your personal belongings—such as electronics, furniture, appliances, jewelry, art, and other valuables—along with their estimated values. Then, discuss with us the type of policy that would best protect your items, including the possibility of additional coverage for high-value possessions.
How to evaluate renters insurance quotes.
When requesting renters insurance quotes, it's essential to make direct comparisons. Select similar coverages, limits, and deductibles to ensure the most accurate evaluation.