Renter’s Insurance: 5 Quick Answers

September 04, 2018
Renter's Insurance
If you are renting an apartment or home, it’s important to consider whether you should purchase renter’s insurance. Here, we’ve put together answers to some of the most common questions people ask regarding this type of coverage. 
 
  1. What is it?

    Renter’s insurance provides coverage for your possessions if you live in a rented property, including a house, apartment or mobile home. Renter’s insurance may also cover injuries to someone who is visiting your home, if that injury is ruled to be your fault.
     
  2. What does it cover?

    Renter’s insurance covers your personal possessions within the rented property if they are lost, damaged or stolen. It may also cover costs associated with an injury to someone in your home, if that injury is deemed to be your fault, as well as legal fees associated with any lawsuits that may arise from the injury. Some policies also cover possessions in your car should they be stolen or damaged in an accident. What this essentially means is that, should your possessions be damaged, destroyed or stolen, you can file a claim with your renter’s insurance company to receive reimbursement in order to replace those items.
     
  3. What does it not cover?

    Renter’s insurance does not typically cover damage caused by flooding. Dog bites from certain breeds of dogs are also often excluded. While renter’s insurance may cover damage to your possessions in your car, it would not cover any damage to the car itself. Some policies include possessions in a storage unit, but your policy would need to be written specifically to cover this. Damage caused by pests such as bedbugs, as well as the costs to remove them, are also not typically covered by renter’s insurance.
     
  4. How much does it cost?

    Renter’s insurance is typically very reasonable. According to Rentersinsurance.com, the average cost of renter’s insurance is between $150 and $180 per year, or between about $13 and $15 per month. Your premium is determined by several factors, including where you live, how much coverage you elect to have, whether you have alarms (theft and fire) installed and what deductible you choose. The deductible is the amount you will pay out of pocket before your insurance coverage kicks in. This can range from about $500 to over $2,000. The lower your deductible, the higher your premium.
     
  5. Do I need it?

    Renter’s insurance is important to have if you want to protect your possessions. Consider everything you own inside your home: how would you replace it in the event of a fire or burglary? Many people think they can rely on their landlord’s insurance, but your landlord’s policy will not cover your possessions or injuries to people at your home if they are ruled to be your fault. Your landlord’s insurance is on the structure itself, not on what’s inside of it. In some cases, your landlord may even require you to show proof that you have renter’s insurance.

Purchasing renter’s insurance is a smart and affordable investment if you’re renting your home. Be sure to talk with an agent at the Mid-Hudson Valley Insurance Agency who can help you understand what you need to protect, how much coverage you need and what deductible is best for you.