What is renters insurance & why do you need it?

Moving into a new rental can be exciting! However, you may be thinking of items such as moving, location amenities, insurances and other administrative items associated with relocating.

And when it comes to renter’s insurance, you may find yourself with more of a stress load than you bargained for. But once you understand the basics, you’ll have a grasp firm enough to keep yourself moving during your new rental journey. 

What is renters insurance?

Renters insurance offers protection for personal goods in a rental property, and many complexes and landlords require tenants to purchase a renters insurance policy.  

It’s similar to homeowners insurance as it protects your personal items. However, renters insurance is cheaper than homeowners insurance. On average, it costs about $15 a month.  

What does renters insurance cover?

Renters insurance offers personal property coverage and liability coverage. Some policies may even offer coverage for additional living expenses should you become unable to occupy your rental residence. And for those without additional living expenses in their policy, many insurance companies will offer additional add-ons for said coverage. 

What renters insurance does not cover

Even though renters insurance offers coverage against a wide range of perils, there are some things not covered. In fact, many policies won’t cover pests, earthquakes or flooding. However, that doesn’t mean your personal property cannot be covered. You may just need to take out additional coverage to fill in the areas that your required policy may leave empty.

Is renter's insurance a good idea?

Renters insurance policies offer protection when disaster strikes, leaving you and your personal property covered. Without it, you may find yourself liable for situations that are not your fault, such as a neighbor accidentally starting a unit fire that impacts neighboring units.

This alone could run you as much as $20,000 or more, depending on the damage done from someone else’s negligence. 

So, while renters insurance may be a requirement for some, it’s worth the purchase for all. After all, peace of mind is one of the facets that makes a home comforting, regardless of ownership.