Most know that if you’re a homeowner, you must have homeowners insurance in the event of property damage or an accident that injures somebody on your property. However, what if you rent or lease? Many don’t know that there is important insurance available that covers your property against things like fire, smoke, vandalism, theft, and explosions and liability even if you don’t own your own home.
What is Renters Insurance?
Renters insurance is a type of property and casualty insurance that covers losses to personal property and protects you from liability claims.
Contrary to popular belief, your landlord’s insurance only covers the rental building, not your stuff in it or your liability in the event of an accident.
You might look around your apartment and think you don’t have much stuff or that nothing will ever happen to your building. The truth is, having insurance as a renter is important, because it affords you protections from things you may not usually think of.
What Does it Cover?
Renters insurance provides four protections:
What isn’t Covered?
Just like homeowners insurance there are some things that most basic policies do not cover such as backup sewage, earthquakes, floods, and other “acts of God.” However, endorsements are available to take care of these risks if you feel it is warranted, but it will be expensive.
If you share an apartment or townhome with a roommate, a common misconception is that the roommate’s renters insurance will also cover your stuff in the event of a loss. This isn’t true. Only his or her belongings will be covered; you need your own coverage.
Whether you just moved into an apartment or a townhome or have been renting for a long time, you will definitely want to consider renters insurance. Most standard coverages are very affordable, and when you bundle your renters insurance with your auto insurance, you can save even more money. You can and should protect yourself with affordable renters insurance.