As one of the most straightforward types of insurance, renters insurance is a simple and affordable way to protect your belongings. With renters accounting for more than one-third of all households in the United States1, it’s an important insurance type to consider if you rent. In addition to protecting your possessions inside your rented home or apartment, it can also provide you peace of mind in the event of a catastrophe. Here’s a guide to help you better understand renters insurance and why you should consider purchasing it.
What is renters insurance?
Renters insurance, also known as tenant insurance, is a type of home insurance coverage that helps protect you and your belongings if you’re renting. Your landlord’s insurance typically covers the building itself, not your possessions inside. Renters insurance covers the belongings inside the apartment or home you rent, covering the cost of replacing these possessions in the event of theft, an accident, or a natural disaster. For example, if a tornado struck your apartment complex, your landlord’s insurance would cover things like repairing the roof, structure and windows, but your renters insurance would cover replacing lost items inside your apartment, including electronics, furniture and other valuables.
Renters Insurance Coverage
The typical renters insurance policy has three types of coverage:
- Personal property: Coverage can include items like furniture, clothing, sporting goods or electronics, in the event of a covered loss (whether they get damaged at your home, apartment or anywhere else). For example, your renters insurance would cover the cost of replacing your laptop if it were stolen from your apartment.
- Liability: Provides coverage for bodily injury and property damage sustained by others. For example, if someone is injured inside your apartment and needs medical treatment, the liability portion of your renters insurance would cover the cost of those bills.
- Additional living expenses: Helps pay for lodging, meals and other expenses in the event the residence you rent is damaged and left uninhabitable. For example, if you’re unable to live in your apartment for a period of time after a natural disaster, the additional living expenses portion of your renters insurance would help pay for your stay at a hotel while the repairs were being made.
Cost of Renters Insurance
Renters insurance is typically one of the most affordable types of insurance coverages. The National Association of Insurance Commissioners estimates the average monthly cost of renters insurance ranges from $15 to $30 per month.1 The cost of insurance rates varies based on your location, credit score and how much coverage you need. The more you want to protect, the higher your premiums will be, but the amount of coverage you purchase is up to you. Considering its general affordability and the peace of mind it provides, renters insurance is typically a worthy investment.
Finding Renters Insurance That is Right for You
Before you begin exploring your options for renters insurance, it’s important to take inventory of everything you want to protect to determine how much coverage you would need. There are many carriers that provide renters insurance so it’s extremely beneficial to shop around and compare both coverage and rates. At SelectQuote, we can do that for you in just minutes, providing unbiased price comparisons from some of the most trusted insurance companies in the nation.