What Is Renters Insurance & Who Needs It?

Just what is renters insurance exactly? Are you on your own for the first time? Off to college and renting a dorm. Ever heard of renters insurance? What does it cover? Why do you need it? Just what is renters insurance? Anyone who rents a home needs to be insured.

Why do I need renters insurance?

If you rent, you need insurance that will help in replacement of personal property and even your rental home.

  • Personal property protection. A renter’s insurance policy should cover replacement of your personal property.
  • Personal liability coverage. Covers your guests if they become injured or suffer property damage on your rented property. It may even cover court costs, should that be necessary.
  • Loss of use coverage. This coverage will reimburse any expenses beyond normal if you are put out of your home due to serious damage.

Renters insurance is an insurance policy that covers you, your guests and your personal property. Almost any insurance agent will have renters insurance policies. Key things that renters insurance should cover are; fire, acts of God, such as weather, earthquake etc., vandalism, theft, and even water damage from pipes and such in your rental unit.

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 renters insurance. You are just stuck replacing everything on your own.

Your renters insurance policy will cover personal property loss and injuries to your guests.

Where can I find renters insurance?

There are several places to go to find renters insurance. Asking your landlord is a perfect place to start. Using the same insurance carrier as your landlord could save some on your premium. It’s always good to shop around. Check with your current auto insurance carrier. Do a search online. Grab a phone book and call a few insurance agents, find out what rental insurance is offered. Shop around and compare notes and pricing. Choose a policy that will cover the best for the best price.

Before choosing your renters 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 insurances agents. 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 research and look at several types of policies and choose the one that fits your situation and budget. Depending on the location, you may want to include coverage that is optional like floods and earthquakes. These are not offered in typical renter’s insurance coverage.

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