Renter’s Insurance – What You Need To Know

According to a 2016 poll by the Insurance Information Institute, only 40% of tenants carry renter’s insurance.

Renter’s insurance is usually thought of as “optional” coverage – it just makes sense to add an insurance policy that covers that loss of your possessions. Just because you rent doesn’t mean your possessions are any less valuable!

Who need renters insurance?

Everybody who rents! In the result of a fire, flood or other disaster, your landlord’s insurance does not cover your possessions. The only things that their insurance covers is the building and grounds – not the contents of each unit.

Renter’s insurance covers your belongings,  in the event of :

  • Fire
  • Smoke Damage
  • Vandalism
  • Theft
  • Lightnighg
  • Some types of water damages (burst water pipes, or leaks from upstairs)

When was the last time you looked around at your possessions and took inventory? You might be surprised at how valuable your possessions really are and what it would cost to replace them. Keeping an updated inventory records will be extremely valuable if you ever have to file a claim. There are many resources you can use that can help create a home inventory (check this one out).

What else does renters insurance cover?


Renter’s insurance also offers an add-on liability protections which protects you from lawsuits should someone be injured on your property.

Another big bonus to renter’s insurance is that some policies offer what is called “off-premise coverage”. This means that your belongings are covered outside of your home. For example, if you are staying in a hotel or your car is broken into – they are protected.

How much does renters insurance cost?

The short answer is: not much, compared to the cost of replacing all your stuff. Some insurance policies offer a discount to your auto or business insurance if you add on renter’s insurance – making the cost even more affordable. Working with your agent is the best way to find which coverage and policy is for you. Your agent will help go through your list and determine if you need “actual cash value” or “replacement cost” coverage. Determining this will determine the cost of your premium.