Considering Renters Insurance? What Does it Provide?

Almost all homeowners are required to have homeowners insurance. However, less than 50% of renters buy renters insurance. Renters insurance covers your personal property should someone break into your rental and steal your property.


Typically, a landlord is not responsible, and you would have to replace your items if you don't have insurance. It's hard to find a landlord that doesn't require renters insurance these days. Even if not required by state law, they may feel obligated to help their tenants relocate in case of damage to their own unit. A renters policy takes that burden off the landlord and will cover relocation costs. Personal liability coverage is included in a renters insurance policy. It will help cover non-auto-related damages or legal expenses for other people if you are found responsible. Renters insurance is extremely inexpensive and can be bought for as little as $1 a day. You can easily shop for insurance quotes online making shopping simple and easy. Renter's insurance isn't just about protecting your belongings, and there are many other scenarios it covers. Here is what you need to know when deciding to purchase a renter's policy.

What Does Personal Liability Insurance Typically Cover?

Renters insurance would cover the cost of replacing your belongings due to vandalism, theft, fire, and other disasters. Personal liability coverage will protect a renter from scenarios such as these; their child throws a baseball through a window, a guest falls down the stairs, or if you caused a kitchen fire in your rental. Renters can also obtain additional liability through a personal umbrella policy for better protection. Most renters policies will protect the valuables you bring on vacation or the items you leave in your car. The amount reimbursed will be the same regardless of where the item was stolen or damaged. If your rental unit is unlivable due to a natural disaster or fire, most policies will cover the cost of a temporary hotel stay. There are exceptions for disaster coverage that vary from state to state.

Questions And Answers:

Here are some common questions and answers regarding renters insurance:

Q: My landlord has insurance, doesn't that cover me?

A: Landlords require renters insurance because their policies will not protect their tenants. A landlords policy likely covers the structural damage to the unit caused by fire or a storm which is separate from a tenant's personal property.

Q: Can roommates share renters insurance?

A: Yes as long as you add the person to your renter's insurance policy. However, it's important to understand that in doing so, you'll be doubling the number of items being covered and reach your coverage limits quicker. Since renters insurance is affordable, it's worth it for each roommate to obtain a separate policy.

Q: What is a home inventory?

A: Your insurance company will ask that you take an inventory of what you own that you plan on including in the policy. You may be required to show proof of ownership especially for furniture, electronics, and expensive items.

Q: Is there an actual difference between replacement cost renters insurance policies and the actual cash value of an item?

A: An actual cash value renters policy will pay you based on the current market value of your stolen property. Replacement cost coverage will pay out that actual cost to replace the same item. You can expect to pay higher monthly premiums for replacement cost policies.

Q: What are the different parts of a renters insurance policy?

A: Personal property damage coverage will repair or replace your property that becomes damaged or stolen. Personal liability coverage will protect you from legal costs when being sued for injury or damage to another person. Medical payment coverage insurance covers hospital bills for anyone who is injured in your rental unit. Loss of use coverage takes care of the cost of food and lodging if your apartment becomes unlivable.

Q: Is it possible for my claim to be denied?

A: It's tough for a renters insurance claim to get denied, but it's possible. Usually, it will only occur if there is a clear violation of the policy or fraudulent claim. Some breeds of dog are ineligible such as pit bulls due to their reputation. Your request will also be denied if you have reached your coverage limits.