What is Renters Insurance? Complete Guide to Renters Insurance Coverage

Introduction

Renters insurance is one of the most important things you can do as a renter. Sure, landlords have insurance on the buildings they own and manage, but that coverage doesn’t extend to your personal belongings. Renters insurance will protect against many different types of losses and accidents, including fire, theft and more.

What is Renters Insurance?

Renters insurance is a type of coverage that protects you and your belongings in the event of a catastrophe. It’s not just for renters! If you live in an apartment, duplex, or condo building with more than one unit (i.e., not a detached single-family home), chances are good that you have some sort of renters insurance policy.

Renters insurance typically covers things like food spoilage caused by power outages, water damage from burst pipes or overflowing toilets, and even theft from outside the house—all the fun stuff that can happen when your landlord isn’t around to fix it for free!

Renters insurance doesn’t usually cover damage caused by natural disasters like hurricanes and fires—those are covered under separate policies known as homeowners’ policies.

Why Do You Need Renters Insurance?

Renters insurance is a type of property insurance that covers your belongings in the event that they are damaged or stolen, which can be a huge financial loss. When you live in an apartment or house that is not owned by you and does not have renters insurance, then it’s up to the landlord to pay for repairs or replacements if something happens to your personal property. The landlord may decide that he doesn’t want to replace items like furniture or appliances if they aren’t very valuable, so he may just ask you for money instead.

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There are several other reasons why it’s important for renters to have this type of coverage:

  • It protects against liability: If someone slips and falls on your rental property’s flooring because it wasn’t properly cleaned, then their medical bills could easily exceed $10K. This can result in thousands of dollars worth of debt on top of what the injured person paid out-of-pocket if they had their own health insurance plan that covered these costs (which most people do). With just one accident occurring every 6 minutes in America today (according to CDC), this means that there may be hundreds more potential lawsuits coming down the pipeline toward any given renter–the average person will potentially face at least one lawsuit over his lifetime—and these numbers don’t even include claims from accidents involving pets! Rental properties generally don’t come with any sort of legal defense fund either (as would be provided by homeowners’ insurance), which means tenants need their own protection against legal action taken against them both inside and outside their own home space.* It protects against theft: Since so many households depend upon electronics such as laptops/tablets/smartphones/etc., thieves know where these things are likely located inside residential buildings so there are plenty opportunities available for stealing them either directly off someone’s desk or through break-ins related specifically toward gaining access into an apartment building itself.* It covers losses due damage caused by disasters: Earthquakes

How Much Does Renters Insurance Cost?

The average cost of renters insurance is about $15 to $30 per month. This amount can vary based on the size of your apartment, the coverage you need, and the company you choose.

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For example, if you’re living in a small studio apartment with contents worth less than $5,000 then your monthly premium could be just over $10/month. However if you live in a large three-bedroom house with possessions valued at more than $50,000 then your monthly payment could be as high as $50 or more per month.

Renters insurance premiums also depend on factors like:

  • Your age and location
  • Your credit history

What Does Renters Insurance Cover?

Renters insurance covers a wide range of risks, including:

  • Personal property coverage. This protects your belongings from damage and losses due to theft, fire and other disasters. It also covers loss caused by earthquakes or floods if you live in an area that has a high risk for those events.
  • Liability coverage (also known as personal liability). This pays for any injuries that you or guests cause to someone else in your home as well as medical expenses related to those injuries, regardless of fault — even if it’s your fault!
  • Loss of use coverage. If you have to move out of your apartment temporarily because it’s uninhabitable after a fire or flood, this pays for alternative housing expenses such as hotel bills and temporary storage costs until the unit becomes habitable again.

Renters insurance also includes contents coverage — which includes furniture, clothing and other items within the rental unit — along with additional living expenses (ALE), which provides funds should you need them while unable to stay at home following a covered disaster like fire or theft

How Much Does Renters Insurance Cost Per Month?

How much does renters insurance cost per month?

When you’re shopping for renters insurance, it’s important to know what you can afford. After all, no one wants to pay more than they need to. So let’s take a closer look at how much different types of coverage will run you—and whether or not it would make sense for your budget.

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Renters Insurance Cost Per Month

According to our 2017 Renters Insurance Study, the average annual premium is $150 (or $12 per month). That said, this figure can vary quite a bit depending on where you live and what type of policy (or policies) you choose. The table below shows the monthly breakdown for several common types of policies:

Which Company Has the Best Renters Insurance?

If you’re looking for an insurance company with great coverage and a reasonable price, the following companies are among the best in their class:

  • State Farm
  • Allstate
  • Progressive
  • Chubb Corporation

Additional Coverage Available for Rental Properties

Coverage for your personal property includes:

• Personal Property Coverage—This covers your belongings, including furniture and other household items.

• Additional Living Expenses—This covers additional expenses that you incur as a result of being unable to use your home due to damage from specific covered events.

If you’re renting a property that has tenants living in it at the time of the damage, you may be able to cover their belongings with this coverage as well. You can also purchase liability addition coverage if you have someone else living in the rental unit and they are injured on your premises.

Conclusion

We hope that we were able to answer your questions and concerns about renters insurance. If there’s anything else you want to know, just let us know! We’re always here for you.

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