Nowadays, getting renters insurance is commonplace before signing a lease. Regardless of whether it’s required by your landlord, renters insurance is a smart decision for protecting yourself from unforeseen financial losses. However, it’s normal to have questions before getting a policy.
What exactly does renters insurance cover? What does it not cover? How much does it cost? These are common questions that may arise when considering renters insurance. If your insurance agent doesn’t provide clarity, don’t worry—that’s where we come in.
In this guide, we’ll tackle the most frequently asked questions about renters insurance, including:
- What is renters insurance?
- Is renters insurance required?
- What does renters insurance cover?
- What isn’t covered by renters insurance?
- How much does renters insurance cost?
- How do you get renters insurance?
- Can you bundle renters insurance with other polices?
- How do you file a renters insurance claim?
What is Renters Insurance?
Renters insurance protects your personal belongings and liability. Regardless of whether you’re renting an apartment, condo, or single-family property, your renters insurance coverage will safeguard your possessions in the event of theft, fire, certain types of water damage, and more. It’s also designed to protect you in case of displacement from property damage or injuries inside your rental space.
Is Renters Insurance Required?
Renters insurance is not required by any state or federal mandates. However, that doesn’t mean you’re completely off the hook. Most landlords and property management companies require renters to be insured before moving into their new place. This protects not only the renters but also the landlord from potential liability issues.
Landlords often require renters insurance to minimize their risk. For example, say a renter has a house party and someone gets injured. If they don’t have renters insurance, they could claim the landlord is responsible for medical expenses. However, if they have renters insurance, the responsibility shifts and the landlord cannot held be liable.
Even if your landlord or property management company doesn’t require it, getting renters insurance is still a smart decision. For a relatively small cost (which we’ll discuss later), you gain a financial safety net to cover unexpected accidents or damage. Many find the peace of mind that comes with this coverage far outweighs the potential expense of paying out of pocket for costly mishaps.
What Does Renters Insurance Cover?
While renters insurance policies are customizable, they all start with three main components: personal property, liability, and additional living expenses coverage. Each of these pillars offers protection for different situations, from home displacement to on-site injuries.
Personal property
Your personal property coverage protects everything you own within your rental, from a favorite pair of jeans to a large sectional sofa. If your belongings are stolen or damaged during a break-in, your renters insurance will cover the cost of repair or replacement. This coverage can also extend beyond your home’s walls to include items outside the property, such as those in your car. For instance, if your laptop is stolen from the front seat of your car parked outside your home, your policy would cover the cost of replacing it.
Liability coverage
Liability coverage financially protects you from on-site injuries or mishaps. Say your child kicks a ball into a neighbor’s window. In this situation, your renters insurance will take care of the repair costs. Or say a friend of yours injures themselves in your apartment and needs medical attention. Your liability coverage can take care of these medical expenses and potential legal fees if the situation escalates.
Additional living expenses
Coverage for additional living expenses comes into play if your home becomes unhabitable. For example, say a fire breaks out in your kitchen and causes serious property damage. If your home is damaged to the point of inhabitability, your renters insurance will cover the costs of displacement, including temporary housing, meals, transportation, etc.
What Isn’t Covered by Renters Insurance?
Renters insurance provides valuable financial protection. However, it’s not entirely foolproof. There are certain things that standard renters insurance policies won’t cover. Depending on your policy, you may be able to extend your coverage for an additional cost. However, if you get a basic policy, the following won’t likely be covered:
Flood and earthquake damage
Natural disaster protection isn’t typically included in a renters insurance policy. However, it is something you can add on if needed.
As you can imagine, needing natural disaster coverage depends on location. If you live in a high-risk area, such as Florida or California, you’re best off opting for additional coverage. However, living somewhere landlocked or low-risk may not warrant the extra cost for flood or earthquake protection.
Pet liability
The standard renters insurance policy also doesn’t include pet liability coverage. This type of coverage protects you financially in case your pet causes damage or injury to someone else’s property. This could include anything from a dog biting someone to a cat scratching up furniture.
If you have pets, it’s important to consider adding this coverage to your policy. It typically doesn’t add much more cost and can save you from having to pay out of pocket for unexpected pet-related incidents.
Roommates’ belongings
Unless you and your roommates are on a joint policy, your individual coverage will not extend to their belongings. If your provider doesn’t offer joint coverage, it’s important that every household member has their own policy. This will prevent any disputes or issues in the event of damage or theft.
High-value items without endorsements
Standard personal property protection typically won’t cover high-value items like jewelry, fine art, and other expensive collectibles. Most policies have a coverage limit of $1,00 to $2,000. If you have items that are worth more than this amount, you’ll need to get an endorsement or a separate policy to cover them.
How Much Does Renters Insurance Cost?
The average cost of renters insurance in the US is $148 per year or $12 per month, according to NerdWallet. However, your specific rate will largely depend on where you live. States like Louisiana, Mississippi, Arkansas, Oklahoma, and Georgia have the highest renters insurance costs, while Wyoming, Alaska, Wisconsin, Iowa, and Vermont boast the lowest rates.
Beyond location, other factors that influence the cost of renters insurance include your coverage needs and the type of property you’re insuring. If you require additional coverage options—such as the add-ons mentioned earlier—your premium is likely to be higher than someone opting for basic coverage.
How Do You Get Renters Insurance?
Getting renters insurance is pretty straightforward. First, you need to determine your coverage needs. This includes deciding on the type of policy, the amount of coverage, and any additional coverage options you may want.
Next, gather quotes from different insurance companies to compare rates and policies. You can do this easily online by using comparison websites or by contacting insurance companies directly.
Once you’ve chosen a policy and insurer, you’ll need to provide some basic information like your name, address, and personal details. The insurer will also likely ask for information about your rental property and its contents. After applying for renters insurance and getting approved, you’ll typically pay a monthly or yearly premium depending on your payment preferences.
Can You Bundle Renters Insurance with Other Policies?
Many insurers offer the option to bundle renters insurance with other policies like auto coverage. This can often result in a discount on your premiums and make it more cost-effective to have all your insurance needs covered under one provider.
Bundling also offers the convenience of having only one insurer to deal with for all your policies, making it easier to manage payments and claims. However, it’s important to compare the overall cost and coverage options of bundling versus purchasing separate policies from different providers.
How Do You File a Renters Insurance Claim?
Filing a renters insurance claim is a straightforward process, but it’s important to follow the proper steps to ensure that your claim is processed smoothly.
- Review your policy coverage: First, make sure you know what is and isn’t covered by your insurance policy. You don’t want to waste time filing a claim on something that isn’t actually included in your policy.
- Gather all necessary information: Before you file a claim, make sure you have all the relevant information on hand. This includes your policy number, any receipts or documentation of damaged or stolen items, and a detailed list of what was lost.
- Contact your insurance provider: Once you have gathered all the necessary documents and information, contact your insurance provider as soon as possible. Most companies allow for claims to be filed online or over the phone.
- File a police report (if necessary): If your personal property was stolen or vandalized, it is important to file a police report and obtain a copy of the report. This document can serve as proof for your insurance claim.
- Document the damage: Take photos or videos of the damage to your personal property, as this will provide evidence for your claim. If possible, make a list of all damaged items and their estimated value.
- Submit your claim: Follow the instructions provided by your insurance provider to submit your claim. Include all necessary documentation and information to expedite the process.
Learn More About Renters Insurance on Apartments.com
Got questions? We’ve got answers! At Apartments.com, we’re here to help you explore your options with confidence. Whether you’re settling into a new home or updating your current renters insurance, our expertly crafted resources are designed to guide you every step of the way. Dive into our comprehensive blog to discover everything you need to know about renters insurance and other must-know topics for apartment living.
