Renting a Home? Don’t Forget to Get Renters Insurance

When you rent a home or apartment, it is important to ensure that you are protected from unforeseen events such as theft, fire or water damage. This is where renters insurance comes into play. While landlords typically have insurance that covers the structure of the building, it may not cover your personal belongings or liability. In this article, we will take a deeper dive into renters insurance so that you can make an informed decision about whether it is right for you.

What is Renters Insurance?

Renters insurance is a type of insurance policy that provides coverage for personal belongings, liability, and additional living expenses in the event of a covered loss. A covered loss can include damage caused by fire, theft, water damage or other unforeseen events. Renters insurance is also known as tenant insurance or contents insurance. It is important to note that renters insurance is typically not required by law, but some landlords may require tenants to have it as part of their lease agreement.

What Does Renters Insurance Cover?

Renters insurance typically covers the following:

• Personal Belongings: This includes your furniture, electronics, clothing, and other personal items in the event they are damaged or stolen.
• Liability: This coverage helps protect you in case someone is injured while in your home or if you accidentally damage someone else’s property.
• Additional Living Expenses: If your home is uninhabitable following a covered loss, renters insurance can cover the cost of temporary lodging, meals, and other expenses.

It is important to review your policy carefully to understand exactly what is included and what is not. For example, some policies may not cover certain types of damage or may have limits on coverage amounts.

How Much Does Renters Insurance Cost?

The cost of renters insurance can vary depending on several factors including the amount of coverage you need, your location, and your insurance provider. According to the National Association of Insurance Commissioners (NAIC), the average annual premium for renters insurance in 2017 was $180.

It is important to shop around and compare quotes from different insurance providers to ensure that you are getting the best coverage at the best price. Many insurance providers offer discounts if you bundle your renters insurance with other types of insurance such as auto or life insurance.

Why is Renters Insurance Important?

There are several reasons why renters insurance is important:

• Protection for Personal Belongings: Renters insurance can help protect your personal belongings in the event of a covered loss. Without renters insurance, you would be responsible for replacing your damaged or stolen items out-of-pocket.
• Liability Protection: If someone is injured while in your home or if you accidentally damage someone else’s property, renters insurance can help protect you from legal and financial consequences.
• Peace of Mind: Renters insurance can provide peace of mind knowing that you are protected in the event of a covered loss. This can give you the confidence to enjoy your home and belongings without worry.

FAQs About Renters Insurance

What is not covered by renters insurance?

Renters insurance typically does not cover damage caused by natural disasters such as earthquakes, floods or hurricanes. Additionally, some policies may not cover damage caused by pests or normal wear and tear.

Is renters insurance required by law?

Renters insurance is typically not required by law, but some landlords may require tenants to have it as part of their lease agreement. It is important to review your lease carefully to understand what is required by your landlord.

What is the difference between renters insurance and homeowners insurance?

Renters insurance and homeowners insurance have some similarities but there are also some key differences. Homeowners insurance typically covers the structure of the home as well as personal belongings and liability. Renters insurance only covers personal belongings and liability because the structure of the building is typically covered by the landlord’s insurance policy.

How do I file a renters insurance claim?

If you experience a covered loss, you should contact your insurance provider as soon as possible to begin the claims process. You will need to provide detailed information about the loss and provide documentation such as receipts, photos or police reports to support your claim.

Can I cancel my renters insurance policy?

Yes, you can cancel your renters insurance policy at any time. However, be sure to review the cancellation policy of your insurance provider to understand any fees or penalties that may apply.

Conclusion

Renters insurance can provide valuable protection for your personal belongings, liability, and additional living expenses in the event of a covered loss. While it may not be required by law, it is important to consider purchasing renters insurance to ensure that you are fully protected. Remember to review your policy carefully, compare quotes from different insurance providers, and ask questions to make an informed decision about renters insurance.