Renter’s insurance is required by many property management groups and landlords, but what exactly do you need it for? Many renters, from first-timers to veteran renters, often don’t think about renters insurance and many may not even know what it is. Other renters may stray from renters insurance because it may seem daunting, complicated or expensive.
The truth is, renters insurance is usually fairly inexpensive and highly valuable to renters.
So, what is renters insurance?
Renter’s insurance is insurance that protects you and your personal belongings in the home or apartment you are renting.
Won’t the landlord’s insurance cover damages?
Yes, their insurance or homeowner policy will cover their property – the building- but not your personal belongings. So for example, if someone breaks into your home, or if there is a small fire, the homeowner policy won’t cover your lost or stolen items, but renters insurance will.
What kind of items does renters insurance cover?
Renters insurance covers several types of property in your home including clothing, furniture, electronics, jewelry and even home appliances. While you may think it is silly to insure some or all of your personal items, just remember that these items can quickly add up!
How much is renters insurance?
Renters insurance does not have to cost an arm and a leg. The average cost of renters insurance is about $12.00 a month.
What do I need to know before buying renters insurance?
- Read the insurance coverage carefully. While most coverage usually includes theft, fire, or stormy weather it often does not include flooding or earthquakes. However, most companies will allow you to add on flood and/or earthquake protection. Additionally, be sure to take a good look at what is protected. Often your clothing, jewelry, and electronics will be covered, but items like cars, glassware or items made of porcelain or china, may not be covered. Pets are also not usually covered by renters insurance.
- Choose the right coverage amount. Some property management groups or landlords will require a certain amount of coverage, so be sure that your policy meets those requirements. You should also take an inventory of your possessions and their estimated cost, so you can get a better idea of the amount of coverage you will really need.
- You can often bundle your insurance policies. Certain insurance companies allow you to bundle your policies and many offer a bundle discount. If you already have an insurance policy, such as auto insurance, reach out to your insurance company to see if they offer renters insurance as well.