Should you have renter’s insurance?

What is renter’s insurance?

A renter’s insurance policy protects your personal property from damages incurred in case of fire, theft, or other extraneous circumstances. Renter’s insurance also helps protect inhabitants from liability if a person gets hurt in your unit. Your landlord likely has an insurance policy that covers the building, but that insurance doesn’t extend to your personal property. Renter’s insurance is very similar to homeowner’s insurance, the difference being that it covers those that rent their home rather than own it.

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What does renter’s insurance cover?

While every policy is different, most renter’s insurance has a similar range of coverage.

Personal property

In the event of fire, hail, storm, frozen pipes, theft, or vandalism, rental insurance will generally cover the loss or damage of your belongings. Personal belongings can include clothes, furniture, games and toys, décor, appliances, tools, sports equipment, and electronic devices. Renter’s insurance typically covers personal property even if you’re not present at the time that damage or loss was incurred.

Basic policies may not cover expensive items like jewelry or art; if you have highly valuable pieces, you might want to consider additional insurance beyond basic renter’s insurance. If you have a home office, renter’s insurance might not cover items that are part of your business, such as a laptop or printer. Renter’s insurance also does not cover theft or damage of cars and other motor vehicles parked in or on your property.

Temporary moving costs

If you have to leave your home and temporarily live elsewhere due to damage caused by a storm, a fire, or other circumstances, your renter’s insurance can help pay for your temporary living arrangements.

Personal liability

If someone is seriously hurt while on your property, renter’s insurance can help cover legal fees so that you don’t incur personal liability. Renter’s insurance may also be used to pay for someone else’s medical costs related to an injury that occurred on your property.

Benefits of renter’s insurance

Renter’s insurance offers a high amount of security at an affordable price. Unprecedented situations can arise at a moment’s notice, and having a renter’s insurance policy can help you avoid unexpected costs.

1. You don’t have to worry about damage or loss to your belongings

Because renter’s insurance covers destruction and theft of personal property, you can rest easy knowing that in the event of a bad storm or burglary, you can replace your things without having to pay for them on your own. Whether it’s sports equipment, holiday decorations, your child’s toys, or your sweater collection, a renter’s insurance policy makes it easier to replace your belongings.

2. You won’t have to worry while on vacation either

Renter’s insurance still covers damage or loss of personal property even when the damage or loss occurs when you’re not at home. Plus, some renter’s insurance will cover your belongings when they’re with you while traveling. If you spend a lot of time away from home, talk to your insurance agent about what kind of coverage is possible.

3. Additional living expenses are covered

No one anticipates having to move out of their home temporarily because of a burst pipe or a fire, so having to deal with an unexpected temporary move can feel extremely stressful (not to mention expensive!) Many renter’s insurance policies cover the cost of a temporary move, including the price of accommodation and food, which can be an enormous help in a stressful situation.

When it comes to budgeting, playing it safe with a renter’s insurance policy isn’t a bad idea. We can’t anticipate everything life throws at us, but having renter’s insurance lowers the risk of having to field unexpected property costs.