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December 29, 2021

What Is Renters Insurance and What Does It Cover?

What is Renters Insurance and What Does It Cover?

Renters insurance, or tenant’s insurance, is vital to protect your personal possessions, liability and any additional living expenses. Renters insurance acts as an important safety net to assure your personal property and belongings won’t need to be replaced out of pocket. If you are moving into an apartment or condominium, think about looking into different available policies. 

A renters insurance policy may provide coverage or reimbursement if you experience damaged or stolen items or face personal or medical liabilities. Knowing that your property and belongings are insured, especially if you cannot afford to replace them, may save you from stress in the future. Many renters may not know that their landlord’s insurance does not protect their personal property or reimburse them if they are forced to temporarily move out of their apartment for maintenance. 

Is Renters Insurance Required?

It is quite common for landlords to require renters insurance these days. You can ask questions about your lease and discuss the requirements with your landlord if you are unsure. However, it’s normal to be curious about the cost and benefits of different insurance policies and how to find the best one for you.

Renters insurance is always worth having to protect your investments and finances. Even if you do not own many possessions or think losing your items won’t present significant loss, replacing these items can add up quickly. Luckily, a renters insurance policy is typically affordable, with property and liability coverage averaging $14 a month

If you are trying to get a better understanding of insurance policies, here are the two types that are available for renters:

  • Actual Cash Value (ACV): Also known as depreciated cash value, this policy will replace your possessions with a reimbursement minus any decrease in value due to wear or age.
  • Replacement Cost Value (RCV): This policy will provide reimbursements on the present-day value of your items.

It may not be easy to identify which policy or amount of renters insurance coverage is ideal for you. If you have questions about customizing your policy, requesting a quote from an experienced insurance agent can help narrow down the one that fits you at your point in life.

Renters insurance might be necessary for you

Is Renters Insurance Necessary?

If you would not be able to replace or pay for all of your personal items in case they are damaged, stolen or destroyed, renters insurance might be necessary for you. Though these policies can vary in the coverage that they provide, they will give you some level of financial protection. When determining how much renters insurance you need, there are a few questions that you should consider:

  • Is liability coverage included in my policy? If so, how much?
  • Is there optional coverage I can choose to add on or not?
  • Do I have roommates that would affect my insurance policy?
  • Will the cost of my policy go up if I own a pet?
  • If there is damage to my building, will I have to pay additional rent to move somewhere else temporarily?

Coverage for natural emergencies such as flood, earthquake and hurricane damage usually isn’t covered in the average renters insurance policy. However, you can discuss options with your insurance agent to possibly add on this coverage. You may also want to think about renters insurance if you are a student living in a college dorm or off-campus housing. 

If you live on campus but are a part of another household, such as your parents, their existing policy may keep you covered. You may need to secure your own renters insurance policy if you live off-campus in case of damage or other perils. Getting your own renters insurance is especially wise if you are a student living with several roommates, as renters insurance can protect you from unwanted lease violations or unpaid rent.

Benefits of renters insurance

What Are the Benefits of Renters Insurance?

Having renters insurance may provide peace of mind if you encounter an unforeseen event that leaves you with inconvenient repairs and expenses. Knowing you may be protected from situations that are out of your control might make you feel more secure when renting an apartment, condo or another type of home. Benefits of having a renters insurance policy include coverage related to:

  • Fire: An accidental fire caused by someone else in your building may cause your personal items to be damaged or ruined completely.
  • Certain pets: If your pet, such as a dog, injures or bites someone on your property, renters insurance may protect you from liability. This may also depend on your dog’s breed, as specific breeds may cause your insurance cost to change. 
  • Theft or break-Ins: If someone steals your belongings from your apartment or breaks in and causes damage, renters insurance may be able to provide reimbursement for the stolen items. 
  • Injury: Your renters insurance may provide you with legal defense and pay for damages if someone has a medical issue or is accidentally injured on your property.
  • Vacation: Your renters insurance policy may also cover you if you lose your personal belongings while on vacation. You may be reimbursed for your items as long as the cause of their damage or replacement is listed under your specific inclusions and limits.

Any of these issues can occur while you are renting, and having renters insurance can offer assistance in these situations. Because renters insurance is often affordable on many different budgets, it is important to make sure your property and personal items are taken care of. If you do not have renters insurance and experience one or more of these challenging circumstances, you may regret not securing yourself with a coverage policy. 

Contact Lewis Insurance and Financial for Insurance Help

Knowing which renters insurance policy is best for you can be a challenge. You may have no idea which policy to choose or what is covered within them. If you want to learn more about your options, benefits, cost, coverage and other factors of your renters insurance, contact Lewis Insurance and Financial. We strive to provide our customers with helpful advice, customized policies and quality reassurance. 

Our agents will provide an annual policy review to answer questions and address any concerns you may have. You can trust that you will get better coverage for a better price with us. If you have questions or are interested in getting insurance, fill out our online form or call us at 717-872-2466, and our team members will work to get you the answers you need. 

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