Renters Insurance: The Essentials

Have you ever heard of renters insurance? Headed to college? Renting a dorm room? Renting your first home? Renters insurance is essential and ideally should be budgeted into your with your monthly rental payment. 

What types of renters insurance are available?

There are three basic types of renter’s insurance. All cover your guests, in case of injury, and your contents, if damaged or stolen. Choose the one that will fit your needs.

  • The first type of renter’s insurance is a basic policy. This is the least expensive option. This type of policy covers the basics. Exactly what this policy covers will vary depending on your agent offerings and location. Most natural disasters are covered. There is limited content coverage.
  • The next type is a broad form policy. This offers a little more protection than a basic policy. This is the most popular option as there are more options and greater coverage of your property and liability.
  • The third type of renters insurance is even more customizable. This policy is for those extremely high replacement cost items. Electronics, jewelry, valuable art work, and other expensive items in your home can covered with this policy.

Why Have Renters Insurance?

Renters insurance can save you a lot of money if you should happen to experience a natural disaster, fire, or robbery. Let's say you have a guest over. You just cleaned the bathroom floor, your guest goes into your bathroom and slips and falls, breaking his ankle. Your guest decides to sue you for the hospital and doctor bills. If you do not have any kind of renters liability insurance, there is a real possibility that your guest will want reimbursed for their out of pocket expenses.  If you have the right renter’s insurance policy, some or all of those medical bills will be covered!

Say your neighbor falls asleep with something on the stove. Their apartment catches on fire. The fire spreads throughout several other apartments, including yours. You and your neighbors lose everything. Your neighbor had a renter’s insurance policy and receives a check within days to help with replacing his items. You did not have renter’s insurance. You are just stuck replacing everything you own on your own.

These are just a couple of very good reasons to have renters insurance. Your renter’s insurance policy will cover replacing personal property loss, and liability for your guests, if your guest should be injured. How much you insure you should have on your personal property be looked at very closely.

What Renter’s Insurance Policy is Right for You?

Before choosing your renter’s insurance policy, take an inventory of your belongings. Write everything down. Take pictures of the most expensive items. Be able to put a price tag on replacing what you currently own. Talk to an insurance agent. Discuss all of your options. Where you live and what you own will determine what a renter’s insurance policy offers the right coverage for your needs. Do some good research. Look at several types of policies and choose the one that fits your situation and budget.

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