Renters Insurance 101: The Basics

Before you embark upon finding renters insurance, you’ll want to have a solid grasp on what it is and why you need it in the first place. Here we’ll give a brief explanation of renters insurance, explain why you need it, and tell you what it covers.

Why Have Renters Insurance

A lot of people have the misconception that, because they rent their home, they are exempt from needing insurance protection. This could not be further from the truth. Insurance is not just for homeowners, and here is why.

• Liability protection. Lawsuits abound in today’s society, and, if one were brought against you, it could mean financial ruin. Accidents happen all the time, and you don’t want to end up financially devastated because of a mistake you made. Liability protection covers inadvertent damage to property or bodily injury that you case. For example, if a fire starts in your apartment because of your negligence, the other tenants could potentially bring legal action against you. Accidental occurrences, like someone tripping over something and hurting themselves in your apartment, are likewise covered.
• Landlord policies do not cover personal belongings. Remember that the average renter has over $20,000 in personal property that a landlord’s policy would not cover. In the event that the items inside your residence were ever damaged, stolen, or vandalized, renters insurance would reimburse you for your losses.
• Renters insurance is cheap. When you compare the cost of renters insurance with what you stand to lose if you don’t have it, it underscores how inexpensive coverage is. Usually, you can get renters insurance for about $12/month (for average coverage).

What Renters Insurance Covers

Renters insurance policies will specifically state the events against which you are insured. Typically, the major events include:

• Smoke damage
• Vandalism
• Fire
• Lightning damage
• Wind damage
• Theft
• Vehicle/aircraft damage
• Water-related damages

Aside from the aforementioned perils, your renters insurance will also include liability protection, which means you are covered in the event that you cause unintentional property damage or personal injury to another person. Usually, the policy will even cover your legal fees, if necessary. Renters insurance typically also includes medical payments coverage, which covers the medical expenses of a person who does not live at the insured property.