Have you recently moved into a new house or apartment? If you are a
renter, then you may be questioning if it’s really necessary to purchase
your own insurance policy. Sure, you would have to buy insurance if you
were the homeowner – but do you really need it as a renter? The truth
is, renters insurance is incredibly important for you as a tenant to
make sure you’re protected against financial liability, damage, and
What Is Renters Insurance?
Renters insurance is a type of insurance policy that protects tenants of
houses and apartments who don’t own their living space. While your
policy will be based on your circumstances, renters insurance usually
covers the costs for personal property damage and some forms of
liability. Renters insurance bridges the gaps in liability where you may
be responsible for damages and loss, or instances where your
landlord’s insurance policy doesn’t cover your personal
How Does Renters Insurance Work?
Renters insurance is different from homeowners insurance. Depending on
the type of policy, your insurance plan can cover everything from
personal property loss to liability for injuries suffered by your
guests. Just like other forms of home insurance, you will need to file a
claim and undergo an investigation process to receive compensation for
your losses. It provides you a financial advantage, since you do not
have to pay out of pocket for your losses or damages.
For example, say that someone breaks into your home while you are away
and you return to find that the burglar took your new TV. Without
renters insurance, you will have to pay out of pocket to replace your
TV. With renters insurance, your insurance provider can cover the
expenses of a new TV.
Renters insurance can also cover injuries to visitors at your home. If
someone suffers an injury on your property, then they can file a claim
with your insurance company to recover compensation for losses such as
medical expenses and lost wages. If you did not have insurance,
you would be liable for these injuries.
The amount of compensation you receive will depend on the following
The type of loss you or the person filing the claim incurred
The amount of coverage you have in place
The deductible you have to pay before the company will give you a
A deductible refers to the amount of money you have to pay out of your
own pocket before the insurance company will give you a payout. For
example, say that you have a $500 deductible and the replacement cost of
your stolen TV is $1,000. After your deductible, the insurance company
will give you $500 to replace your TV.
Do I Need a Renters Insurance Policy?
You may wonder if purchasing a renters insurance policy is necessary if
your landlord or property owner has an insurance policy for your home.
This is a common misconception but homeowners policies only protect your
landlord’s property—not yours. If your apartment were to
flood, repairing the building would be covered by your landlord’s
insurance policy, but
you would be responsible for replacing any personal belongings that
were damaged. Renters insurance provides great peace of mind for the protection of
your possessions and your pocketbook.
Renters insurance is necessary if you meet the following criteria:
You are renting a house or apartment
You want to protect your possessions from damage, theft, or loss
You don’t want to be liable for injuries that people suffer in
While the law does not require you to carry renters insurance,
purchasing a policy is a smart financial investment. Depending on your
landlord, you may be required to purchase renters insurance when you
sign your lease. When you carry renters insurance, you protect both
yourself and your landlord from potential liabilities and damages to the
property. These policies help bridge the gap between the coverages your
insurance and your landlord’s insurance provide.
What Instances Does Renters Insurance Cover?
You can customize your renters insurance policy based on your needs and
circumstances. As we mentioned above, renters insurance typically covers
liability, loss, and damage – but there are other compensation
options you can receive with renters insurance. Below you will find some
of the most common types of coverage that renters insurance can provide.
Liability coverage is one of the most important components of renters
insurance and an essential part of a standard policy.
comes into play in many circumstances but the most common type of
liability claim occurs when someone suffers an injury in your home.
Liability coverage provides compensation to the injured person for costs
such as lost wages, legal fees, and court judgements up to the policy
Liability coverage can also provide compensation for damage that occurs
to your property that your landlord’s insurance does not cover.
For example, if your child breaks someone’s window while playing
ball outside, your liability insurance can cover it. If you accidentally
cause a fire by smoking inside, your liability insurance can pay to
repair the damage.
Personal Property Coverage
Another essential component of renters insurance is protection for
personal property. If you leave your home for a weekend and come back to find that
someone broke in and stole your belongings, then you could replace your
items with the coverage provided by your renters insurance. Without
renters insurance, you’d be expected to pay for all of your lost
property out of your own pocket. For large-scale robberies and other
instances where lots of items are missing or damaged, these costs can
quickly add up – but renters insurance provides you with
The types of losses and damages that your renters insurance will cover
is dependent on your specific policy. However, many renters insurance
policies will replace lost or damaged property under the following
Fire and lightning
Windstorms and hail
Snow, ice, or sleet
Plumbing, heating, or air conditioning damage
Natural disasters such as hurricanes and earthquakes
Explosions or riots
Damage from someone else’s vehicle
Damage from certain appliances, such as steam-heating systems
Scheduled Personal Property
If you would like to extend coverage beyond your own renters insurance
or even your landlord’s insurance, you can invest in scheduled
personal property coverage. This supplemental insurance policy will
ensure that you receive
of expensive, valuable items in case of damage or theft. In addition,
you won’t have to pay a deductible on the items you want to
With a typical renters insurance policy, you can only receive coverage
for your personal property up to a certain amount. You can either
receive the actual cash value amount for a lost possession, which is
often less for the amount you paid for it, or you receive replacement
cost coverage. Valuable items typically have a limit that you can
receive to compensate for their loss, which is usually less than the
amount you need. You will also need to
pay a deductible before you can receive compensation.
However, when you choose scheduled personal property coverage, you do
not have to consider depreciation. You receive coverage for the full
value of the item you lost – scheduled personal property plans
usually include electronics, jewelry, firearms, business property, and
other high-value items. You may also receive coverage for the damage to
your property even if you lost or damaged the item yourself.
Reimbursed Living Expenses
In some circumstances, your home or apartment may become uninhabitable.
For example, you may need to leave your home for a few days while you
wait to have mold removed. One of your plumbing pipes may burst and
flood your home, requiring you to vacate for a period of time while
you’re waiting for cleaning crews or contractors to repair this
damage. During this time, you could incur costs for rent, hotel stays,
food, a rental car, and more – if you’re out of your home
for a week or more, these costs can add up significantly.
When you have reimbursed living expense coverage in your insurance
policy, you can receive compensation for these expenses. If you cannot
live in your home for a period of time due to damage for which you filed
a renters insurance claim, the insurance company will compensate you for
your cost of living. This way, you can safely live outside of your home
even in emergency circumstances.
Guest Medical Coverage
Guest medical coverage is another important component of your renters
insurance. In the event that someone suffers an injury on your property,
they may need to seek medical attention immediately and they may then
suffer from other ongoing issues caused by the injury, requiring
therapies and surgeries. To receive compensation for their medical
expenses, this person would submit a claim through your renters
As someone who resides in the property,
you are financially liable for these costs if someone suffers
an injury in your home. If you do not have insurance to absorb these
costs, then you could end up paying for these medical bills out of
pocket. Your landlord’s insurance won’t usually cover these
costs, so it is imperative that you have renters insurance to protect
Identity Restoration Coverage
Identity theft is a serious problem in the United States – it can
happen to anyone and the potential that it could occur to you is quite
high. Another unexpected form of coverage that your renters insurance
can provide is identity restoration coverage, which helps protect you
during instances of identity theft. Depending on the terms of your
policy, you may be able to claim compensation for the costs you incur
because of identity theft, such as legal fees, lost wages, and other
How Much Coverage Do I Need?
Renters insurance is not a one-size-fits-all type of insurance
policy. Whatever coverage you invest in will depend on your circumstances and
the risks you could reasonably encounter. For example, if you live in a
high-crime neighborhood, you would want to invest in a higher amount of
personal property coverage than the average person. If you entertain
others at your home often, then you may want to purchase higher amounts
of liability and guest medical coverage. Whatever the circumstances,
speak to an insurance representative to discuss your options and build a
policy that works for you.
When you begin to choose your renters insurance, you will need to
consider three basic types of coverage and the coverage amounts you want
Personal property: You will usually need a minimum
amount of $2,500 for personal property coverage, but it is always a
good idea to purchase more than what you think you need. The average
person has over $20,000 worth of personal belongings, and you want to
cover as much as you can.
Liability coverage: You want to cover your bases for
liability claims and legal fees you may incur. While you can choose
your amount of coverage, a good baseline is $100,000 – you may
need more or less, depending on your situation. Your adjuster can help
advise you on this amount.
Additional forms of coverage: Do you have any
big-ticket items you want to protect in any circumstances? Scheduled
property coverage may be right for you. In addition, you may want to
check and see if the policy comes with living expense coverage and
guest medical expenses.
Of course, the more coverage you have, the more expensive your monthly
renters insurance cost will be. However, renters insurance is typically
an inexpensive policy – many people can pay as little as $15 to
$20 per month. To determine how much insurance you should carry, make an
itemized list of your belongings and consider the potential costs of a
liability claim. You should come up with a ballpark figure to help you
determine an amount that is right for you.
Get Renters Insurance
Renters insurance is a smart financial investment that all rental
property tenants should consider. You never know what could happen
– from break-ins to accidents to natural disasters, you do not
want to be financially responsible for replacing your belongings or
paying for someone’s medical bills.
Renters insurance helps reduce your responsibility for
these expenses, protecting your home and your pocketbook at the same
Do you need assistance finding a renters insurance policy that works for
you? Acceptance Insurance can help! Our team specializes in matching
individuals with insurance policies that work for them, including
Contact us today to speak with
one of our representatives and learn more about how renters insurance
can help protect you!