Renters insurance protects your personal belongings in the case of a fire, natural disaster, or another covered disaster. It also covers you if someone is injured on your property and you are held liable. While it’s not as common as homeowners insurance, renters insurance has grown in popularity recently.
Renters insurance provides coverage for personal property inside your home—like clothes, electronics, and furniture. It is different from condo or homeowner association policies, which generally cover only the common areas and shared spaces of an apartment complex or condo building. Below are some of the top benefits of renting a policy.
Loss of your belongings
A renters insurance policy can cover the cost of replacing your belongings if they are stolen or destroyed by weather or other covered causes of loss. Some policies let you build a cash-value account, which gives you a discount on future premiums. Make sure you check your policy’s details to see if you have this option.
A standard policy covers up to $25,000 for personal property. If you live in an area prone to earthquakes, floods, tornadoes, hurricanes, and other severe weather, you might want to consider purchasing a more expensive policy that covers a large amount of property. If you live in an area prone to flooding, you may also want to consider purchasing flood insurance along with your renters insurance policy.
Protection against liability
Your renters insurance policy can help cover the cost of medical bills and other damages if someone is injured on your property. Your personal assets, such as your car and savings, are protected against a lawsuit. You can opt to add extra liability coverage if you have a particularly large amount of assets you want to protect.
Help repair your apartment after a disaster
Your renters insurance policy can help pay to repair any damage to your apartment caused by a covered disaster. This coverage is usually higher if you live in a flood-prone area or near a hurricane or tornado-prone region.
Make sure you’re covered for the cost of rebuilding your home. You may want to pay for an extra coverage option that can help you repair your apartment quickly. An expedite repair coverage can help speed up the process if you experience a covered event and have damage to your home.
Covers your possessions when traveling
If you travel a lot, you can purchase additional coverage for your belongings when you’re out of town. Your policy will extend the amount of coverage you have for your belongings at home. For example, if you have $25,000 worth of coverage for your belongings at home, you can purchase $25,000 worth of coverage to take with you when you travel.
You can purchase a renters insurance policy that covers you when you’re traveling outside the United States. Your policy will cover you if your belongings are damaged, stolen, or lost due to a covered cause of loss while you’re traveling outside the U.S.
Sum-up: So, now you’re probably wondering – how much does renters insurance cost?
Most providers offer a free quote so you can shop around and find the best deal. You can purchase a policy as part of a bundle with other types of insurance, like car insurance or health insurance. Make sure you check that the policy includes coverage for the types of items you have in your apartment.
Keep in mind that the average cost of renters insurance is $15 per month. If you have a roommate, it’s important to have each person’s name on the renters insurance policy. This protects each person’s belongings in the event of theft or damage. If you don’t have renters insurance, start shopping for a policy as soon as you move in. Your landlord may have a coverage recommendation for you, but you’ll need to get your own policy to protect your own belongings.