Basic Information about Renters Insurance

The scenario is simple: you decide to rent a house or apartment, hand over a deposit, and receive the keys. You move your items in, arrange them, and pay your rent (and utilities) monthly. But what happens when your apartment becomes damaged in a flood or fire, if someone breaks in and steals your things, or if a friend or other visitor trips, falls and ends up in the hospital?

Moving into a rented apartment or house is easy. The tricky part involves protecting your belongings (among other things) from damage, loss or theft.  This is where renters’ insurance comes in. It protects your things, along with your livelihood, kind of like homeowners’ insurance, only different.

What Exactly Is Renters’ Insurance?

Renters’ insurance is very similar to homeowner’s insurance. The main difference is that it does not protect your building or house – just the things that you have inside of it. This makes renters’ insurance cheaper than homeowners’ insurance. Many apartment complexes require all of their tenants to have a renters’ insurance policy. This is usually included in the lease, and they may even insist that you have a copy of your policy on file in their office. When it comes to rented houses, this varies and depends largely on the landlord. However, it is always a good idea to have renters insurance even if you are not legally required to do so.

Renters’ Insurance Coverage Components

Just like homeowners’ insurance, there are different sections of coverage in a renter’s policy. The first consists of your standard belongings, for example, your television, electronics, books, furniture, clothing and other items. The second involves your more expensive things. If you have a large collection of antiques, some pricey jewelry or anything worth over the “standard” amount (and this can vary depending on the insurance company) you will need an insurance rider to make sure that they are fully covered. This will add on to the cost of the insurance. The third part is liability. This will cover you should someone slip and fall, burn themselves badly, or hurt themselves in any other way inside of your apartment. It will cover medical bills and other expenses, and prevent you from paying a lot of money out of pocket.

How Do I Get Renters’ Insurance?

Many different insurance companies offer renters’ insurance. If you already have a car insurance policy with a company, call up your agent and ask if they offerrenters’ insurance. This will allow you to bundle your policies, which will get you a discount on your overall insurance package. But, if you want to switch to a different insurance company, look for one that specializes in this type of insurance. They will be able to get you the best deal on both coverage and price.

Renters’ insurance is no laughing matter. Having it can save you from having to pay large amounts of money to replace your belongings or cover the medical bills of visitors. Even if your landlord or rental company does not require that you have renters’ insurance, it is recommended that you back yourself up by purchasing it anyway.