It's crucial to understand what your renters insurance policy will cover before you make your final purchasing decision.
And while this might be the most boring part of moving into your new rental or apartment home.
It's also the most important; In this post today, we will answer the questions:
What does renters insurance cover?
How much renters insurance do you need?, and how to get renters insurance quotes and apply online for coverage in less than 5 minutes.
What Does Renters Insurance Cover?
Renters insurance covers your personal property, medical bills, personal liability, and the loss of use of your rental. And even though costs are very affordable, renters continually overestimate the cost of renters insurance, and that is a large part of why they aren't getting coverage.
However, apartment rental insurance is one of the most affordable ways to protect your personal property, and it's the most cost-effective. Below we will discuss what your renters insurance policy will cover in your apartment or rental home.
Your Personal Property
When we ask ourselves, what does renters insurance cover, the first answer is going to be your things or personal property.
The renter's policy you choose in general will cover things like your clothes, jewelry, appliances, furniture electronics, computers, laptops, and smartphones.
Your most basic renters insurance policy will cover you for the loss of your property if it is destroyed by a covered loss for things like:
A renters insurance policy can also cover your things if they aren't in your apartment or rental home.
Imagine if your wedding ring is stolen while you are on your honeymoon since it is your property that has been insured by your renters insurance policy.
Medical Bills & Personal Liability
If someone is injured in your home, the medical and personal liability portion of your policy will kick in.
If your dog bites someone, or someone falls or is hurt while on your property, the policy is set up to protect you by covering their medical costs or costs associated with them suing you.
I recommend getting a generous amount of coverage in this area as well, especially if you have pets.
Temporary Additional Living Expenses (Loss Of Use)
This part of the policy will cover you if something happens to the apartment to the point where you can no longer live there.
If the apartment complex burns down or is flooded and becomes uninhabitable, this Loss of Use provision would cover:
- Hotel Bills
- Food Costs
- Travel Expenses
Always read the fine print of the policy to know exactly how it will react to such a situation and what things would be covered.
Other Things Covered:
Renters insurance doesn't just stop with the coverage mentioned above. A policy can also cover you for things like:
- Items Stored Off-Site - Things in your car or in storage can also be covered by your rental insurance policy if they are lost or damaged.
- Credit Card & Bank Forgery - If someone breaks into your apartment and steals your credit card info, and starts spending money on your cards, you are covered.
- Other People's Property (OPP) - If you borrow your friend's Iron and it is destroyed by a covered loss, it will be covered by your renters policy.
- Food - Just like with homeowners coverage, if your food becomes spoiled due to losing power in the refrigerator caused by a covered loss, you can be compensated for it.
In general, you are covered for an assortment of losses, which proves that you don't need to wait for renters insurance. You need to get covered today.
What Does Renters Insurance Not Cover?
There are certain situations where your rental insurance will not cover your personal items.
Things like sinkholes, earthquakes, and floods aren't covered by most renters insurance policies, so it is best to look for a separate policy specifically for the things mentioned above if you live in an area prone to these things.
Property Damage Caused By Bugs
In general, renters insurance property damage coverage won't cover things like bugs and rodents. It's best to know exactly how your policy will treat bedbugs before you file a renters insurance claim.
Expensive Things (To An Extent)
Whenever you have things like an Action Figure Set, Rare Comic Books, or a Stamp & Coin Collection, there are limits to the amount of coverage you can get with a renters policy. Some renters insurance companies will only cover you up to a specific amount for the above things, so it would always be best to ensure those things separately with a stand-alone policy or purchase enough additional coverage for those things.
War & Nuclear Hazard
Your policy is not going to cover losses caused by War or Nuclear Hazard; in the event of a war breaking out on US Soil, you are going to be responsible for all things in your apartment. This event seems very unlikely, but it is always good to know what is or isn't covered by your policy.
Your Roommates Personal Property
If you have a roommate, then they need to get their own policy; your renter's policy is only going to cover your stuff. There is an option to get a joint policy if you want some savings, but having your own policy is probably the best way to go.
The most important thing to do is to read your renters insurance policy to be 100% sure about what isn't covered in your policy. This will save you lots of headaches if you ever file a claim.
What Is The Average Cost Of Renters Insurance?
The national average cost of renters insurance is around $15.58 per month, or about $187.00 per year. This makes it hard to use the excuse of renters insurance being too expensive. Keep in mind that your monthly premium will vary depending upon your:
Your deductible will be an annual amount you are responsible for paying before the insurance company starts covering costs. These deductibles can range from $50 to $750 and can also be attached to specific policy parts.
For instance, you might have a separate deductible of $50 for electronics vs. $100 for any other items. You can also have a different deductible for the other parts of coverage like liability, medical, or loss of use. The lower your overall deductible, the more expensive the policy will be. It is always best to read your plan specifics for how your deductibles will work.
Each type of coverage will have limits, and it is up to you to choose which options work best for you. The lower the coverage limits, the lower the monthly premium, but the higher the overall risks. The higher the coverage limits, the higher the monthly premiums, and the lower the overall risks.
Coverage limits can range from $50,000 to $500,000 or more, depending on what you are looking for. Rental insurance is very straightforward; if you have personal property and you are renting out an apartment or home, renters insurance is the only way and definitely the best way to protect it.
Renters Insurance Policy Myths VS Truth
There are several myths about rental insurance that we should clear up before we start discussing what it will actually cover or not cover:
A Renter's Insurance Policy Is Too Expensive
This myth couldn't be the furthest from the truth.
The average renter's insurance policy nationally runs at around $14.00 per month or $168.00 per year.
These policies usually have $10,000 in personal property coverage, about $100,000 of renters liability insurance, and a $250.00 deductible.
Take the above information into consideration. You can easily see you can get renters insurance for cheap without losing a large amount of the benefits.
You're Covered By Your Landlord
Anyone that owns your property, a landlord, or even a property manager is only responsible for any damage or loss to the actual apartment complex itself.
They are not responsible for your personal property.
Suppose your neighbor's water heater explodes or the building is on fire. In that case, the property owner's insurance will cover the damage to the walls or structure of the apartment. The landlord's insurance company will not pay for any damages or loss that you incur from either of those situations.
That is where your renters insurance will kick in and cover your loss. Most apartment complexes require renters insurance coverage before you can move into your unit.
Steps To Take Before Buying Renter Insurance
Before you buy some renters insurance, you need to take inventory of everything you own and its total cost.
The average person owns about $20,000 worth of personal property, but I say that you shouldn't underestimate the value of your things.
If you have a pet, you should also look into higher liability and medical limits just in case your pet attacks someone.
You also need to decide if you want to have a policy that will cover only the actual cash value of your items or if they will cover the replacement costs.
Replacement Cost Coverage
This will cover you for how much it costs to replace your item or something of similar value.
Policies with this type of coverage are more expensive or come at an additional cost. In my opinion, it is the best option to go with if you can afford it.
Actual Cash Value Coverage
This will only cover you for the current value of an item if you were to suffer a loss.
If you purchased a laptop 3 years ago for $2,000, we all know it might only be worth $300 now, and that is all that would payout to you.
These are really the most important things to do when shopping for renters insurance. Just be aware of what you have and what you will need to get covered.
Keep Some Extra Cash On The Side
Outside of your normal job, there are tons of side jobs or gigs you can do to make $400 Dollars or more really fast.
The worst position you can put yourself into is needing to file a claim but not having the available cash to take care of yourself and your family until help arrives.
It is always a good idea to keep aside a stash of cash for situations just like this.
Find A Reputable Renters Insurance Company
It's essential to find a strong renters insurance company to ensure that your renters insurance claims are paid out promptly.
The things you want to look for are a company with a good reputation for being responsive and one that provides firm liability limits and an easy claims process.
How To Get Renters Insurance Coverage?
The best way to get renters insurance coverage is by reading reviews about companies like Lemonade that allow you to buy renters insurance instantly online.
The process for getting coverage is now super fast, and you can easily get quoted and covered all online in under 2 minutes.
If getting renters insurance slipped your mind, and you need it fast before you can move into your new rental home or apartment, just click here or the button above to get the process started.
Frequently Asked Questions
How much does renters insurance usually cover?
The typical renters insurance policy covers $100,000 in liability coverage. This quantity is frequently adequate for renters. However, if you host guests at your house on a regular basis or your assets exceed that amount, you should purchase as much as the total value of your possessions.
Does renters insurance cover broken glass doors?
Yes, if the window is someone else's, it will be covered by renters insurance. The liability portion under your renters policy is responsible for this coverage. Your liability coverage will pay for the personal property damage after the insurance company determines that you are responsible for it.
How much does 300k renters insurance cost?
The average monthly cost of a policy with $100,000 in personal liability coverage is about $27. And you may buy more protection by adding to your premium. For example, if you need liability coverage of $300,000, renter insurance will cost around $28 per month or $340 per year.
Can my landlord force renters insurance?
Yes, landlords may require tenants to have a standard renters insurance policy. According to the insurance information institute (III), many landlords demand that their renters have insurance to avoid possible conflicts if the tenant's belongings are damaged on the premises or to reduce their liability in legal claims.