Renters Insurance

It’s important for landlords to have homeowner’s insurance and landlord insurance, but tenants should have insurance too.

It can also provide liability protection just in case someone is injured on the property.

Some landlords require their tenants to obtain renters insurance before they move in. Making renters insurance mandatory can prevent a lawsuit, reduce responsibility, and give peace of mind. Renters insurance is just as beneficial to landlords as it is to tenants.

What Does Renters Insurance Cover?

Renters insurance covers the contents of your rented unit. A standard HO-4 policy would cover damage or loss caused by:

  • Fires
  • Lightning
  • Explosions
  • Riots
  • Vehicular accidents
  • Smoke
  • Vandalism
  • Theft
  • Falling objects
  • Ice, snow, or sleet
  • The overflow of water or steam from household appliances, air conditioning, plumbing, heating, etc.
  • An artificially generated electrical current

It is common for policies to also cover the loss of use, which is when your unit becomes uninhabitable because of the perils listed above. If your policy includes this, you’ll be provided with some money to pay for temporary housing. Your renters insurance may also cover the contents of your car and your luggage while traveling.

If you have a pet, make sure to declare them on your policy. Your premium may be higher, but it’s worth it for your furry friend. For more information on renting with pets, check out this guide.

What Doesn’t Renters Insurance Cover?

Most policies usually don’t cover things referred to as “acts of God,” such as floods, earthquakes, and so on. If you feel that you are at higher risk, you can add this coverage to your policy for an increased premium.  In addition, if you have significantly valuable items in your unit, you may want to purchase a rider (policy add-on) to meet your specific needs.

Tips for Applying
  • Take a picture or video of all the items you own and write down specifications for your more valuable possessions.
  • Research different insurance companies and find the policy that works best for you.
  • Apply for more than one insurance policy to see which company gives you the most coverage.
  • Customize your policy. Make sure that you are receiving adequate coverage and not paying for coverage you don’t need. Choose a deductible that you can feel comfortable paying — you can always increase it later.