What to Know About Renters Insurance
While homeowners and auto insurance are commonly discussed, you don’t hear as much about renters insurance.
If you’re a renter, this type of insurance may be required. But even if it isn’t, it can be a good idea to have a renters insurance policy to protect yourself and your belongings. Here are some common questions (and answers) about it.
Q: What is renters insurance?
A: This is a type of property and casualty coverage that may provide coverage for your personal belongings, liability and temporary living expenses.
Q: What does it cover?
A: Unlike homeowners insurance, which covers the building itself, renters insurance only covers your personal property.
It generally provides coverage for possessions that are stolen or damaged due to issues like fire or plumbing malfunctions. Many policies will extend coverage to your personal belongings outside of your home. For example, you may be able to file a claim if items are stolen while you are traveling.
Renters insurance also commonly includes personal liability coverage, which means the policy can help cover legal fees if someone is hurt in your home.
Lastly, if you need to leave your home due to a covered event (such as a fire), renters insurance can help pay for your living expenses, like hotel stays and food.
Keep in mind that renters insurance does have some coverage exclusions. Damage caused by natural disasters, such as earthquakes and landslides, is often not covered.
Q: How does it work?
A: You should create an inventory of your possessions to help you determine how much coverage you need.
Like other types of insurance, a renters insurance policy has a deductible and monthly (or annual) premiums. The average cost of renters insurance is between $12 and $30 a month.
Q: Do you need renters insurance?
A: Some landlords require tenants to have it, but it can be a worthwhile investment even if that isn’t the case for you.
If you have questions about what kind of coverage you may need, reach out for help.
