Top 6 Reasons to Have Renter's Insurance

Every home or apartment renter needs a renter’s insurance policy to cover their belongings. Landlords take out property insurance policies to cover any damages or losses to the physical building itself, however, your personal belongings inside the structure, whether it be a house, duplex, or apartment, are not covered in the landlord’s policy. 

You’ll need a renter’s insurance policy bought and paid for by you, the tenant, to cover your personal property and certain liabilities. While 85% of homeowners have a homeowner’s insurance policy, only 57% of renters have renter’s insurance as of 2022.

Why is it that so few renters carry insurance? Many people assume their landlord’s policy covers their belongings. This is not the case. People will also often underestimate the value of their possessions. If you combine the value of just clothing and electronics, it probably wouldn’t take long to tally up thousands of dollars in value.

Liability is another frequently overlooked reason to carry a renter’s insurance policy. If a friend, neighbor, or stranger is injured in your house, they could sue you. If you’re a renter not carrying a renter’s insurance policy, here are the top 6 reasons why you should. 

It’s important to have the right kinds of church insurance to bring security and peace of mind.  We will cover some of the most common types of insurance a church may need below.

1. Renter’s Insurance is Affordable

According to the National Association of Insurance Commissioners’ (NAIC) latest figures in 2022, the average renter’s insurance policy costs $15 to $30 a month. The actual cost of your policy will depend on many factors such as the amount of coverage you need, your chosen coverage, where you live, and your deductible amount.

2. Personal Property Losses Are Covered in Your Policy

Jewelry, computers, electronics, furniture, luggage, and clothing are all personal property protected in a renter’s insurance policy. The cost to replace most or everything you own can quickly add up, even if you don’t think you own very much. 

Most people are surprised by the amount of things protected in renter’s policies. For example, a standard HO-4 policy specifically for renters, will cover personal property losses from:

  • Damages caused by aircraft
  • Damages caused by vehicles
  • Explosion
  • Falling objects
  • Fire
  • Lightning
  • Civil commotion
  • Riot
  • Smoke
  • Theft
  • Vandalism
  • Malicious mischief
  • Volcanic eruption
  • Weight of ice, snow, or sleet
  • Windstorm
  • Hail
  • Steam or water damage from plumbing, household appliances, heating, fire-protective sprinkler systems, or air conditioning.

Any losses from earthquakes and floods will not be covered in standard renter’s policies. You will need to take out a separate policy or rider for these perils. In areas prone to hurricanes, a separate rider might be needed to cover wind damage.

A deductible may need to be paid on your renter’s insurance policy before you can receive coverage.

3. Many Landlords Require Renter's Insurance Policies

Your personal property is not included in your landlord’s insurance policy. Many landlords require proof of renter’s insurance policies in order to rent to a tenant.

Your landlord may be able to provide assistance in finding a renter’s insurance policy, should you need help. You may be required to provide proof of insurance by the landlord themselves, or, it could be required by the landlord’s insurance company. Many insurance companies agree that some responsibility can be shifted away from the landlord if the tenants are covered.

4. Liability Coverage is Provided

Standard renter’s insurance policies include liability coverage. In the event someone is injured in your home, protection is provided. The policy will pay any legal expenses and court judgements up to the chosen policy limit.

At least $100,000 of liability coverage is provided in most renter’s insurance policies. There is also usually a smaller amount allotted for medical-payments coverage. Higher coverage limits are available for purchase if necessary.

Keep in mind that losses caused by intentional acts or negligence won’t be covered in your renter’s insurance policy. Falling asleep with a lit cigarette and causing a fire, for example, will most likely not be covered by the policy.

5.Your Belongings are Covered When You Travel

You can travel with confidence knowing wherever you are, your belongings are covered. Whether your belongings are in your car, in your home, or with you while traveling, they are covered from loss due to theft and other covered losses anywhere you travel. Check your policy details or ask your insurance agent for more information on what is considered “other covered losses.”

6. Additional Living Expenses May Be Covered

If a covered peril renders your home uninhabitable, additional living expenses may be covered by your renter’s insurance policy. These additional living expenses can include costs associated with temporary living arrangements, food, and more. The length of time additional living expenses are covered and any caps in the amount the company will pay can be found in your policy.

Is Renter’s Insurance Worth Having?

Yes. Although a common reason for neglecting to buy a renter’s insurance policy is affordability, you can’t really afford not to have renter’s insurance. A renter’s insurance policy provides liability coverage, protects your belongings, and can even cover your personal items while you’re traveling.

What Does Renter’s Insurance Cover?

A long list of items are included in a renter’s insurance policy. But the most common ones are furniture, electronics (including tablets and computers), and articles of clothing.

How Much Does Renter’s Insurance Cost?

Renter’s Insurance costs on average $18 – $21 per month in the states of West Virginia and Kentucky, according to LendingTree.

The Bottom Line

Renter’s insurance covers your personal belongings, whether they are in your car, in your home, or with you while traveling. Renter’s insurance also provides liability coverage in the event someone is injured in your home or if you cause accidental injury to someone in your home.

It’s important to  understand all that your policy covers, and ask your agent about deductibles, available discounts, and coverage limits.