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What is Renter’s Insurance and Why Do You Need It?

by | | Aug 15, 2018 | 4 min read |

Renters insurance is a type of insurance policy that provides coverage for your lost, stolen or damaged personal possessions in a rented apartment. It also covers any injury to visitors in your rented apartment in case they file a law suit against you.

Now that most landlords and property managers require renter’s insurance for their rental properties, the number of people getting renters insurance is higher now than ever. But do people really understand what renters insurance is and why they need it?

Renters insurance is important to protect your personal possessions especially your damages in case of theft, vandalism or accidents in your rented apartments. The homeowner’s insurance will not cover your possessions in cases of emergencies.

top-10-us-highest-monthly-renters-insurance

ValuePenguin calculated the average cost of monthly and annual renter’s insurance in every state in the US. Taking first place is Mississippi at $20.33 a month and $244 a year. California clocks in at the 12th spot on the list at $17.25 a month and $207 a year. Take a look at the full list.

In most cases, renters will purchase an insurance policy without fully understanding the concept and on the long run, they get to realize that the insurance they got is not really covering anything.

This is what renter’s insurance covers

Before getting a renters insurance, it is important to know what the insurance will cover and if there is a value limit for coverage on valuables such as jewelry and artworks. For most insurance policies, there is a value limit on some personal possession and to ensure the valuable, it will be necessary to get additional coverage on such items.

Renters insurance provide coverage mainly for your personal property, liability claims and other additional riders such as your valuables. When you choose an insurance policy, you need to set a reasonable limit for the coverage amount that will cover all personal possessions in the rented apartment. The best way to determine the amount of coverage to get is to list your belongings and how much they cost so as to have an idea of the coverage to get.

Get instant, hassle-free renter’s insurance through the Sure Insurance App.sure-insurance-app-renters

Renter’s insurance for business

You should check to see if your business materials are covered by the insurance policy if you have a home office or you store your business material at home. Renters insurance will generally only cover business-related items up to $1,000 which might pose a problem because your business possessions might be way more than that.

Small business owners that work from home are more at risk because of the coverage limit of the policy which might not cover most of the business materials. It is important to be sure of what your insurance policy covers when it comes to your business materials and how much additional coverage is needed to ensure them.

Up Next: Find out how soon you can buy your first home with our Poplar Street Home Savings Calculator

Some not so known benefits of renter’s insurance

Renters insurance policies include some additional benefits, that most renters usually don’t know about. For example, the liability coverage of most renters insurance offers medical payment coverage for their clients. In addition to taking care of any lawsuit filed against the renter, the liability coverage takes care of expenses for surgical operations, stay in the hospital, dental procedures and other medical expenses.

Renters insurance policies also take care of debris removal if necessary after an accident. Insurance also takes care of any repair of the damages after an emergency. It is important that you the know details about your insurance policy, so you get the most out of any insurance policy you get.

Situations where renter’s insurance does not cover your property

Lastly, it is important to take into consideration the situations and conditions for which your insurance policy doesn’t cover your property. For example, most renters’ insurance policy doesn’t cover damages to properties caused by flooding. For that, you need to get additional coverage.

So you need to know what your insurance covers and what it doesn’t, so as to avoid complications in case of emergencies like flooding. Some policy might not cover your valuables if they are stored in storage units outside your rented apartments. So it is very necessary to read and understand the policies well before getting into any.

Related: How Student Loans and Debt Influence the Affordable Housing Crisis

Is renter’s insurance needed for everyone?

When homeowners rent their apartment, they want to be sure they are renting it out to the most responsible renters as possible. They also want to be sure that the renter that gets can take care of any emergency that happens. Renters that have a good insurance policy have better chances of renting their dream apartments or house because then homeowners are sure that your insurance policy can cover any damage to their property.

But before thinking about getting a renter insurance policy, you need to get the right apartments and house for yourself. You can get the lists of apartments and houses that are perfect for you with Onerent Property Management.

Renters can instantly schedule a showing to hundreds of available properties in their area and apply for a home for free.

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Ray Wei
About the Author
Ray Wei is the Content Marketing Specialist and Marketing Manager at Onerent. Ray focuses on managing and growing content on Onerent’s platforms including the blog, social media, and video. Ray has been with Onerent since the company has been in a garage and seen the team grow into many cities and departments.

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