Few people realize the importance of having renter’s insurance to protect them and their personal belongings in case of a covered loss. Renter’s insurance is a way to ensure that you’ll have money to replace or repair you personal belongings if they’re damaged or destroyed. Learn more about renter’s insurance and how it can help you protect your apartment or rental unit.
What is Renter’s Insurance?
Renter’s insurance is a type of rental insurance for apartments. Renters purchase to protect themselves and their personal belongings in the case of loss. Even though you don’t own your apartment, you do own all the things inside and would have to replace them if they got damaged or destroyed by fire, explosion, theft, or vandalism.
With renter’s insurance, you only pay a deductible and the insurance company will pay for everything else. Renter’s insurance also provides you with liability insurance in case you’re sued by someone who was injured while in your home. Unlike homeowner’s insurance, which pays for the home and the contents, renter’s insurance pays only for the contents (which also makes it more affordable).
What Does it Cover?
Rental insurance for apartments generally consists of three types of coverage.
- Personal property coverage: This coverage will pay you to repair or replace all your personal belongings that were inside your rented home during a loss. Depending on the coverage, you’ll be paid either replacement cost or actual cash value minus the deductible.
- Liability coverage: This coverage protects you in the case of a lawsuit for damages done to others while in your home. It will also pay for any medical expenses they may have resulting from the injury.
- Additional living expenses: This coverage will pay your living expenses while you are living someplace else while your home is being repaired.
What Doesn’t it Cover?
One of the main things that is not covered by rental insurance for apartments is your actual dwelling. Although renter’s insurance generally covers everything inside your home, there are some restrictions in renter’s insurance.
- It won’t cover valuable items unless they’re appraised and itemized in a separate policy.
- It won’t cover items that are not documented.
- It won’t cover damages done by you.
How Much is Renter’s Insurance?
According to the Insurance Information Institute (III), only about 31% of renters actually have renter’s insurance. This is unfortunate because if a loss caused them to lose their personal belongings, they would have to pay 100% out of pocket to replace them. The average yearly cost for renter’s insurance is $185, so paying to replace an apartment full of personal belongings would cost a lot more!
