Renter’s insurance is an insurance coverage policy type that protects you and your personal belongings from theft, damage, fire, flood when leasing another person’s property. It will also protect you against legal liability should you be involved in a lawsuit because someone was injured while in your rented property or damage to a neighbor’s property if a flood or fire in your rented accommodation causes damage to the them or their belongings.
What Is Renter’s Insurance?
The landlords homeowner insurance policy does not cover you against theft, damage or any liability nor does it cover you if the landlord sues you for the damages you caused even accidently.
Does the Landlord Policy Cover You?
State law does not require that tenants have a renters insurance however some landlords will insist that their tenants have an adequate insurance policy in place especially if they have pets or any valuable personal items.
Am I required to have a renters Insurance Policy?
How much your actual policy costs is a function of many different factors. These include:
How Much Does Renter’s Insurance Cost?
- The amount of maximum coverage you carry
- The zip code you live in, based on past claims the insurance company has on record for theft and claims in that area
- Security/fire alarms in the property or building
- The deductible that you choose for your policy
- Any discounts for multiple polices with the same insurance company i.e. car and renters insurance with the same company
- Your past insurance claims history.
What Does Renter’s Insurance Cover?
- Contents Loss or damage On the Premises – include clothing, couches, TVs, computers, stereos, books, luggage etc
- Contents Loss Off Premises – fpr example laptops, cameras, and bicycles. If they are stolen, damaged, or lost, they may still be covered by your renter’s insurance policy even if these items were not on your property when they were damaged or stolen.
- Additional Living Expenses – This should also be covered by the landlords home insurance and will cover living expenses above your normal expenses that are incurred as a result of having to move out from your current residence.
- Personal Liability Loss – covers various issues both on and off your property which could result in you getting sued. For example if a visitor is injured and sues you for damage or if your pet bites a child. Details of what is covered will be in your policy.
- Medical Payments Loss – covering payments to others who have been injured on your property (or off) as a result of something that you did.
- Optional Coverage’s for Special Items – This is for expensive or valuable items like jewelry, antiques or art that have high values.
- Perils Not Covered – A typical renter’s insurance policy excludes coverage related to earthquake damage, flood damage, many water-related issues, intentional acts, failure to take reasonable steps to deter a loss, vapors, wear and tear, rust, mold, toxic chemicals, rodents, damage to vacant units, construction issues, seizure by the government, and more.
The deductible is the amount you pay for the first X amount dollars of any claim. For example if you have a $2000 loss and a $500 deductible the insurance company will give you $1500. The higher your deductible the lower the insurance premium.