You’re probably familiar with life insurance, auto insurance, health insurance and home insurance — but what do you know about renters insurance? This is one form of insurance that’s needed by far more people than actually carry it. Here’s what you need to know:
- Who Should Hold Home Insurance for Renters?
There can sometimes be some slight confusion over the term, since renting a property should trigger insurance changes for both the landlord and the tenant. If you’re a homeowner renting out your house, it’s important that you check your policy to ensure it’s still relevant; most policies cover owner-occupied houses only. But if you’re the one renting, you should also carry renters insurance.
- What Does Renters Insurance Cover?
Your landlord’s insurance covers the building you’re living in. But what about all your belongings? If your possessions are damaged due to fire, storms or plumbing problems, you’d only be able to get that covered through a renters insurance policy.
Renters insurance also covers theft (even if your belongings are stolen somewhere other than your apartment) and your liability for personal injury occurring in your rented space. That means that if a pipe bursts in the winter and ruins your TV, you’ll be able to replace it; if your laptop is stolen out of your car, you’ll be able to replace it; if your friend trips in your apartment and breaks a bone, your insurance will help with the medical costs.
- How Much Does Renters Insurance Cost?
Most home insurance providers offer renters insurance, so it’s worth shopping around for some cheap renters insurance quotes. You’ll often be able to get a policy for $10-$15 a month. Of course, your policy amount will differ based on the value of your belongings. Normally, you’ll be asked to self-assess your possessions, but it’s not worth under-valuing your things in order to get a lower rate; you’re only cheating yourself, since you wouldn’t get enough to replace all your belongings in case of a disaster.
Do you have anything to add about getting home insurance for renters? Join the discussion in the comments.