A common mistake new renters make is overlooking the importance of renters insurance. Did you recently purchase a new laptop or get a brand new, expensive road bike? Then you definitely want renters insurance. Renters insurance covers the unexpected, from theft to fire. You might feel like your possessions aren’t valuable enough to justify a monthly payment to your insurance company, but, in reality, they most likely are. Even if you don’t have a brand new bike, damaged necessities, like clothing and furniture can be costly to replace if destroyed. Be proactive and sign up for a renters insurance policy to protect your valuables.
What is Renters Insurance?
Renters insurance covers freak accidents caused by natural forces or other forces out of your control that directly affect your personal belongings. While damages to your building may be covered by your landlord’s insurance policy, damages to your personal items are not. Having renters insurance guarantees that you’ll be able to replace personal belongings in case of accidents or unexpected events in your unit.
What Does Renters Insurance Cover?
Renters insurance usually pays for damage from “covered incidents.” This usually includes, but is not limited to, damage caused by the following:
- Burglary/theft
- Vandalism
- Fire
- Water (not flood damage)
- Windstorm, thunderstorm, lightning, and hail
- Volcanic eruptions
- Something falling on your apartment
- Weight of snow, ice, or sleet
- Explosions
- Smoke
Keep in mind that there are a number of things that renters insurance won’t cover. For example, there’s an additional fee if you want your belongings to be protected from flood or earthquake damage.
Renters insurance can also cover you if someone gets injured in your apartment, or if you accidentally break something in someone else’s home. If there is an incident in your apartment that damages your neighbor’s property, you’ll be covered. Finally, although unbeknownst to many, your renters insurance can actually protect any of your items stolen on vacation. That’s right, if something is stolen from you during your trip, your insurance will replace it.
How Much is the Average Renters Insurance?
The cost of renters insurance depends on where you live and how much your belongings are worth. If you don’t know what your property is worth, take a minute to walk through your space and take note of how much you spent on everything. If you’re still unsure, $20,000 is the average amount most renters own in personal items. A standard policy usually covers up to $100,000 in possessions, which is more than sufficient for most renters.
In general, renters insurance can cost you anywhere from $5-$20 per month. This is a small price to pay for peace of mind and the guarantee that your belongings will be replaced in case of an emergency or accident. Check with your insurance company to see up to how much value per item your renters insurance covers.
Are There Different Kinds of Renters Insurance?
Yes! There are plenty of different renters insurance companies that all offer various plans. Get insured for as little as $5 with the up-and-coming Lemonade. Or, check out Geico’s renter insurance plans. Keep in mind that a “cash value” policy will cover your items with depreciation in mind, or how long you’ve had your belongings. A “total replacement policy” will cover your items for the full amount you purchased them for, even if you bought them five years ago. Make sure you know what to look for in an insurance policy and do your research.
Renters insurance is a great investment, not just to protect those expensive belongings, but also to guarantee you can replace the necessities. Moving into a new apartment? Be sure to consider plenty of renters insurance policies and choose the one that works for you.
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