When renting a home, it is essential to make sure you have all your bases covered, a policy in place that protects your possessions and offers liability coverage in the event of an accident or other disaster. Most tenants are not covered by their landlord’s insurance (a landlord’s insurance usually only covers the protection of the physical structure), so it is beneficial to take the necessary steps to make sure that your items and property are covered at all times. 

 

What is renter’s insurance?

Renter’s insurance is a policy available to individuals who rent their home or property from another person. The policy protects the contents of the tenant’s home and also offers liability coverage if issues were to arise. Renter’s insurance is rather affordable at around $10-$15 a month or a one-time payment of $120-$180. 

 

What does renter’s insurance cover?

Liability Coverage:

Renter’s insurance usually includes liability protection. The amount of protection will depend on the terms of the individual policy. 

 

  • Example: A guest visits your home, falls on the property, and has to go to the hospital. Most renter’s insurance policies will provide liability protection that covers the medical cost of the guest and also the tenant if a lawsuit were to occur.

 

 

Accidents happen, we all know that, but it is crucial to make sure you are fully covered. Renter’s insurance will cover any damage you may inadvertently cause to your property or someone else’s. 

  • Example: Your child is playing in the front yard and accidentally throws a ball through your neighbor’s window, your renter’s insurance has you covered. The insurance will pay for the damages done to your neighbor’s property. 

 

Personal Property Coverage:

A renter’s insurance policy also takes into consideration fire and wind damage. If a tenant’s possessions are lost or damaged during a fire or from excessive wind, they can receive cash value for the damaged items or the replacement cost. 

  • Example: A hurricane came through the area and knocked over a tree that fell through your home. The insurance policy will provide cash for the value of the items lost or damaged. 

 

Renter’s insurance will also provide theft coverage. If your home is burglarized or items are stolen, the insurance policy will cover the possessions. 

 

  • Example: Your rental home was burglarized while you were away on vacation. The insurance policy will provide cash for all of the items taken from your property. 

 

 

How to pick the right renter’s insurance?

When deciding on the best renter’s insurance policy, take into consideration the following:

  1.  Ask your landlord or property manager about their current insurance policy and what it covers
  2. Do some research on different companies to get a good feel for which is best for you
  3. It might be worth your time to consider the insurance provider you use for your car when it comes to renter’s insurance
  4. Estimate the value of your personal property and decide what is a good monetary value for your insurance to cover
  5. Get a quote (in fact, get several quotes)