Renters Insurance Explained: A Comprehensive Guide

If you’re getting ready to move into a new apartment or other rental property, you will likely need to get renters insurance. 

Like homeowner’s insurance, a renters insurance policy ensures you and your rental property are covered if there is damage or another emergency. Finding the right policy and understanding what it covers can be overwhelming. 

Keep reading to learn more about renters insurance, what it typically covers, and more helpful advice. 

What Is Renters Insurance? 

Renters insurance protects anyone renting in an apartment building, house, or other dwellings. Your renter’s insurance policy protects you, your belongings, and your apartment in the event of theft, damage, or another emergency. 

Like a homeowner’s insurance policy, renters insurance ensures you are covered for damages up to a certain dollar amount. 

What Does It Cover? 

Renters insurance is broad, and it covers many different types of damages and emergency situations. There are three main coverage areas included in most renters insurance policies. The three coverage areas are: 

1. Liability Coverage 

Liability coverage protects you as a renter if you accidentally damage someone else’s property. You’re also covered if someone is injured at your apartment, and the policy will pay their medical bills up to a certain amount. 

2. Personal Property Coverage 

Personal property coverage will repair or replace items in your apartment, such as furniture, electronics, and clothing. 

Some renters insurance policies also offer theft coverage. So if there is a break-in at your apartment, the policy will help you replace stolen items. Theft coverage isn’t in all policies, however, so make sure you review your coverage carefully. 

3. Additional Living Expenses Coverage 

If your home or apartment isn’t liveable while repairs are made, additional living expenses coverage will help you cover the costs to relocate to a hotel or new home temporarily. 

How Much Coverage Do I Need? 

Required coverage for renters insurance will vary. Your apartment building or landlord may have specific coverage limits that you need, so start by asking them for guidance. 

If there aren’t specific requirements you have to meet, start by taking inventory of what you own to determine how much coverage you need. For example, if you own a lot of expensive electronics, you’ll likely want more coverage so you can replace these items if necessary. 

How to Find The Best Renters Insurance Policy 

Finding the best renters insurance policy may take some time. You should always get quotes from multiple companies before deciding on a policy to ensure that you’re not overpaying for your insurance. 

Start by looking online for top insurance companies or see if you can bundle your policy. For example, if you have a car insurance policy, see if the provider also offers renters insurance. Bundling policies can sometimes help you save money. 

Learn More About Renters Insurance 

Renters insurance will give you peace of mind, so even if your landlord or state doesn’t legally require you to have it, it’s something you should still purchase. It’s usually only a small amount of money per month, but you’ll feel better knowing that you’re covered if something goes wrong. 

If you still have questions about renters insurance or want help finding a good policy, make sure you check out the rest of our website for helpful tips.