As a renter, you probably don’t think about insurance until you need it. But as someone who is not covered through your employer or homeowner’s policy, you will need renters insurance to protect your possessions from damage or destruction and pay for any damages that result from a covered peril. Keep reading to learn everything you need to know about getting renters insurance.
Anything that doesn’t have walls, such as furniture, electronics, and clothing, is considered personal property by your landlord and is therefore not covered by your landlord’s insurance.
Whether you have a place to live can be precarious at times. Rental agreements should include coverage for common hazards like fire, natural disasters like floods, and structural damages like windstorms or earthquakes.
This article gives you all the information you need on renters’ insurance: what it is and why you need it, how much it costs and what type of coverage is right for your situation.
What is Renters Insurance?
Renters insurance protects your possessions from damage or destruction due to a covered peril like fire, natural disasters, or theft. It covers the cost of repairing or replacing your belongings if they are damaged or stolen. You’re legally required to have renters insurance in most states, no matter how old you are or who your parents are.
This is because the risks you face as a renter are different from those of homeowners. For example, most of us don’t own things that are irreplaceable, like our homes or our furniture. And renters are at greater risk of being affected by certain perils, like fire, than homeowners are.
The cost of renters insurance is based on how much your possessions would cost to replace and how much it would cost to fix them. There are a few caveats to keep in mind before you purchase renters insurance.
Types of Renters Insurance
Renters insurance can vary in type and cost. Each type of coverage serves a different purpose for the policyholder and is priced accordingly. Here are the most common types of renters insurance.
- Comprehensive – This coverage is what you want if your belongings are not worth much. It will cover your belongings for things like natural disasters, fire, and theft. But it will not cover damages caused by normal wear and tear like water damage, rips or tears, or vandals.
- Replacement – This is what you want if your belongings are worth more than the minimum amount to be covered by comprehensive coverage. Coverage is still limited to the amount you pay for.
- Self-Exclusive – This is what you want if you have items that are not covered by comprehensive coverage, like specialty equipment like a computer or a camera.
Renters Insurance Quote
When looking for renters insurance, shop around and compare quotes from different providers. Compare the cost of different types of coverage, the amount of coverage, and the level of coverage. You should shop around for the best rate and coverage for you. If you can’t afford high-priced renters insurance, there are some alternatives to consider:
- Rely on your landlord’s insurance. If it’s required by your lease, your landlord’s insurance should be sufficient enough to cover your belongings.
- Limit the amount of personal items you have. This will limit the amount of coverage you need. You might also want to consider storing items like clothes, papers, and books in a less frequented place.
What does renters insurance cover?
- Your personal belongings – This includes items like clothing, furniture, electronics, and other items you own that are in your home.
- Damage to your home – If a covered peril causes damage to your home, renters insurance will cover the costs of repairing or replacing your belongings that are damaged or destroyed. You will only be covered for the cost to repair or replace the items, not for the original purchase price.
- Medical expenses – If someone suffers from a covered injury in your home, renters insurance will cover the medical costs.
Who Needs Renters Insurance?
If you are living in a place that is not your primary residence, like a hotel or someone else’s home, you need renters insurance. Renters insurance is required in most states and is very affordable. If you rent a home or an apartment, your landlord’s insurance will likely provide you with adequate coverage. But if you are renting a place that is not covered by your landlord’s insurance, you will likely need renters insurance.
Finding The Right Coverage for You
Before you buy renters insurance, make sure you shop around and compare quotes from different providers to find the best rate. Once you’ve found a provider, read the policy carefully to see what it does and does not cover. If you have any questions about your policy, call the provider for assistance. When you buy renters insurance, you need to be sure you are buying the right type of coverage. There are several different types of coverage to choose from so make sure you know the difference between them.
Renters Insurance FAQs
- How much is renters insurance? The cost of renters insurance depends on the amount of coverage you buy and your location. In general though, the cost ranges between $50 and $200 a year.
- How long is renters insurance valid for? The policy you purchase should specify how long it is valid for and what is covered. Some policies are effective for one year, while others are valid for five years.
- Can I get insurance at a discount? Some insurance providers offer discounts if you are younger or have lower income. You should also call around to different providers to see if they offer discounts for students or seniors.
When you rent a place and don’t live in it, you need renters insurance. This type of insurance provides coverage for your belongings if something happens, like fire or damage to your home.
Renters insurance is a good investment and affordable. There are several options when it comes to renters insurance. Compare quotes from different providers and make sure you get the right coverage for you.