Often we speak with people who have just moved into a rental, inquiring about the “usefulness” of renters insurance. Not only is renters insurance useful, it is more than necessary. Most landlords have an insurance policy of their own to protect them from possible disasters. This only covers the things they own, like the building. When these disasters occur, all of your belongings are uninsured. That is where the renter’s policy comes in. Should a disaster occur to your rental house or apartment, this renters policy will cover your belongings. In addition, it will provide some liability coverage. Renter’s policies are often inexpensive and can often reduce the cost of your auto policy when you bundle both with the same insurance carrier.
You Mean My Landlord’s Property Insurance Doesn’t Cover my Apartment?
Landlord Property Insurance, also known as Rental Property Insurance, covers the landlord in three primary areas: property damage, loss of rental income, and liability. As such, it will pay for damages to their building for covered risks like fire, wind, hail, or snow. It also often applies to all of the properties they provide for your use, such as appliances and air conditioners. Should fire or storm damage render the property temporarily unfit to inhabit, it will cover their loss of rental income. As for liability, should you, or even one of your guests be injured on the property and sue them, the insurance company will step in on their behalf and try to settle.
Suppose a fire breaks out in the kitchen. The landlord is covered as we mentioned above, but you and your items? You are left to fend for yourself. Again, this is unless you have renters insurance.
Renters’ Insurance? It’s Up to You
These are but a few of the reasons a renter should always look into renter’s insurance. Have more questions? That is what we are here for. We are more than happy to guide you through the process of understanding a renter’s policy and finding the right one for you. Give us a call today to speak with a licensed agent, receive a free quote, and get your property insured properly.
Renters Insurance – Frequently Asked Questions
- What does renters insurance cover?
Renters insurance typically covers your personal belongings, liability protection, and additional living expenses if you’re forced to temporarily move due to a covered event like a fire or water damage. - Does renters insurance cover the building I live in?
No, the landlord’s insurance covers the structure. Renters insurance covers your possessions and personal liability only. - Is renters insurance required by law?
No, it’s not required by law—but many landlords require it as part of the lease agreement. - What’s the difference between actual cash value and replacement cost?
Actual cash value pays for items based on their depreciated value. Replacement cost pays to replace your items with new ones at today’s prices. Most renters prefer replacement cost. - Does renters insurance cover theft outside of my home?
Yes! Your belongings are typically covered worldwide—including if your laptop is stolen from your car or luggage is lost while traveling. - What is liability coverage in a renters policy?
Liability protection covers you if someone is injured in your rental or if you accidentally cause damage to someone else’s property (like leaving the faucet running and flooding a downstairs apartment). - What is loss of use coverage?
If your rental becomes uninhabitable due to a covered claim, this coverage pays for additional living expenses like hotel stays or temporary housing. - Are roommates covered under my renters policy?
No. A renters policy typically covers only the person named on the policy (the named insured). Roommates need their own individual policy unless explicitly added. - How much renters insurance do I need?
Enough to replace all of your belongings and cover personal liability—often $20,000–$50,000 in personal property and $100,000 or more in liability is a good starting point. But if you have collectibles, electronics, or expensive stuff, you may need more to replace it all! - Is renters insurance expensive?
Not at all. Renters insurance is one of the most affordable coverages—sometimes as little as $10–$25 per month, depending on your coverage limits, location, and deductible.
