Renters Insurance 101

Renters insurance policies are designed to protect the belongings and liability exposure of renters and their families. The policies are usually very affordable, but often forgotten or thought of as unnecessary. Approximately 40% of Americans rent their home and over 60% of those same individuals are uninsured, according to iii.org. This means many Americans are leaving themselves and their families exposed and unprotected in the event of a loss, such as an apartment fire, tornado, or liability claim.

Many property managers have started requiring tenants to have renters insurance with a personal liability limit of $100,000 and the association listed as an additional interest. This has helped increase the number of renters who purchase coverage, but most aren’t aware of what coverages they’re purchasing or what coverages they need. Some apartment complexes even offer an easy solution of bundling your renters insurance in with your monthly rent for a small fee, but those options usually end up being MORE expensive for LESS coverage because the associations main concern is making sure their requirements are met.

What Coverage Parts Make Up A Renters Insurance Policy?

Coverage C: Personal Property
Your family’s personal belongings fall under this coverage. This includes your family’s clothing, furniture, pots and pans, etc.

Coverage D: Loss of Use
If you are unable to stay in your home due to a covered loss, your loss of use coverage will provide coverage for your additional living expenses until your home is safe to live in again.

Coverage E: Personal Liability
If someone gets hurt on your property or you accidentally damage something, your personal liability coverage will go towards the medical bills and repairs.

Coverage F: Medical Payments
Medical payments coverage provides protection for small medical claims without the need to establish you are legally liable for the injury

Who needs renters insurance?

Are you renting an apartment with a few friends and one of them has their own renters insurance policy? If so, you still need your own to be properly covered. Did you just move in with your boyfriend/girlfriend who has a renters or homeowners policy? If so, you still need your own policy. Are you renting an off campus college apartment? Yes, you need your own policy. The short answer here is anyone who doesn’t own their home. If you are unsure if you need a renters insurance policy, check with your local agent and they can help you find the best solution for your current situation.