Renters Insurance 101: The Basics

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

Why Have It:

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

  • Liability protection. Lawsuits abound in todayís society, and, if one were brought against you, it could mean financial ruin. Accidents happen all the time, and you donít want to end up financially devastated because of a mistake you made. Liability protection includes 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 protected.
  • Landlord policies do not include personal belongings. Remember that the average resident has over $20,000 in personal property that a landlordís plan would not look after. In the event that the items inside your residence were ever damaged, stolen, or vandalized, a policy would reimburse you for your losses.
  • This protection is cheap. When you compare the cost of renters insurance with what you stand to lose if you donít have it, it underscores how inexpensive this is. Usually, you can get adequate protection for about $12/month (for average coverage).

What It Covers

These 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 plan 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. Policies typically also includes medical payments coverage, which covers the medical expenses of a person who does not live at the insured property.

Did you know you can get renters insurance to
to protect your stuff while you are living in a
property that you rent? No longer is home
owners insurance the only game in town.
Getting covered is smart financial
Renters Insurance 101
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How much renters insurance
coverage do you need? You
are going to want enough
to cover your belongings
in case anything
should happen.
Renters insurance can be tricky
because it is a relatively
new concept. Luckily we
have a list of FAQs to help
help answer any questions
you may have.
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