If you’re renting an apartment or house, you’ll need insurance to protect your things. Your landlord’s property insurance coverage will cover losses to the building, whether an apartment, a home, or a duplex.
However, your personal property and certain liabilities are covered only through a renter’s insurance policy that you must find and pay for as a tenant. According to statistics, renters have far less insurance than homeowners.
According to a SafeHome study for 2024, 95% of homeowners have homeowner’s insurance, but just 55% of renters have renter’s insurance.
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It Covers Losses to Personal Property
A renter’s insurance covers damages to your personal belongings, such as clothing, jewelry, baggage, computers, furniture, and gadgets. Even if you don’t own much, it may soon add up to much more than you know and far more than you’d want to pay to replace it all.
Renters insurance covers a surprising number of risks.
- Fire or lightning
- Natural Destructions
- Explosion or fire
- Riot or civil commotion
- Aircraft
- Vehicles
- Smoke
- Vandalism
- Theft
- Volcanic eruption
- Falling object
- Weight of ice, snow, or sleet
- Accidental water overflow or stream
Standard plans often need to cover flood and earthquake damages. Similarly, some hurricane-prone locations may require a separate rider for wind damage coverage. We can say commercial insurance provides a more comprehensive choice of coverage alternatives that may be tailored to meet these specific requirements.
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It’s Relatively Affordable
According to the National Association of Insurance Commissioners, the average renter’s insurance coverage will cost between $15 and $30 per month in 2020 (the most recent figures available).
National Association of Insurance Commissioners. “Renting Your Home? Protect Your Belongings with Renters Insurance.”
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Your Landlord Might Require It
Your landlord’s insurance protects the structure and grounds but not your items. A rising number of landlords want renters to acquire their own renter’s insurance coverage, and they expect evidence.
If you need help finding or securing coverage, your landlord can help. This might be the landlord’s notion or an “order” from the landlord’s insurance provider.
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It Provides Liability Coverage
Standard renters insurance policies contain liability coverage. This insurance protects you if someone is wounded in your house or if you (or another insured person) injure someone by mistake.
Most plans include at least $100,000 in liability coverage and a lower medical cost coverage. You may request (and pay for) increased coverage limits if necessary.
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It Covers Your Belongings When You Travel
Renter’s insurance protects your items at home, in your car, or while traveling. Your belongings are protected from theft and other insured losses wherever you travel. With this type of insurance, you will always be in secure shelter while traveling.
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It May Cover Additional Living Expenses
If one of the insured risks renders your house uninhabitable, your renter’s insurance policy may pay “additional living expenses,” such as temporary housing, food, and other expenses. Check your insurance to see how long it will cover additional living expenses and whether it limits the amount the firm will pay.
