Renter’s Insurance: Is it Necessary?

What is Renter’s Insurance?

When moving into an apartment, one thing tenants need to take into consideration is renter’s insurance. Renter’s insurance is a type of insurance for the protection of renter’s belongings in cases where unexpected events such as fire damage, water damage or theft occur. These policies protect a renter’s personal belongings such as clothing, electronics and furniture, but will not cover apartment fixtures that come with the unit. Renter’s insurance will also typically cover any liability for injury within your rented home. This is different from the homeowner’s insurance, which will cover the actual structure of the building or unit you live in. Renter’s insurance is necessary in the event of these damages to protect your belongings. If you don’t have it, your landlord is not liable for any damages to your property . 

How do you know if you need it?

When determining whether or not you should sign up for a rental insurance policy, the best way to start is to determine the value of your belongings. Do you have an expensive TV, or pricey clothing items? What is the value of the furniture in your unit? Do you have the funds to pay out of pocket for your items if they are damaged or ruined? In many cases, renters are not aware of the total value of their things, but when added up, the sum can be more than anticipated. By estimating the total sum of your belongings, you can decide which policy amount, if any, is best for you! Keep in mind that the price you spent on an item might not be the price it costs to replace it. Do your research when it comes to what your belongings are worth in the present, not what they were worth 10 years ago. Remember, if there is a flood or fire, the building owner’s insurance will NOT cover the replacement of any of your property, it’s only for the building. Renter’s insurance may also cover food and accommodations in the case that you are displaced by an event like a flood, fire or building emergency. 

How Much Does Renter’s Insurance Cost?

Typically when you think of insurance, it can often be costly. However, the average renter’s insurance policy totals right around $180 a year, which equals out to $15 a month. If you think about it, $15 a month is less than the cost of just one meal at some restaurants. 

So, How Do I Sign Up?

There are a number of options you have when it comes to renter’s insurance. Some tenants choose to add rental insurance to a bundle with the same company they use for car or life insurance. This can often come at a discounted rate, making it even cheaper to protect your home. Other renters choose to use renter’s insurance companies such as Lemonade to get cheap and accessible policies. No matter who you go with, there are often different policies and it is important to review them all to choose the best fit for you.