Renters insurance may not be the most enticing thing about apartment living, but don’t assume that it’s unnecessary – it’s quite the opposite, actually. There are numerous benefits to and reasons for renters insurance! It keeps you and your stuff protected while renting an apartment. You never know what’s going to happen, so it’s always better to be safe than sorry (in my humble opinion)! Renters insurance will put your mind (and bank account) at ease, so don’t skip this important step in your apartment renting journey.
What is renters insurance?
You get that renters insurance is great and necessary now (if I’m doing this correctly) – but what exactly is renters insurance? A renters insurance policy is basically a form of monetary protection for you and your belongings. It includes protection for your personal property, liability coverage, and coverage for additional living expenses (we’ll dive into the details a few scrolls from now).
During your apartment search, you’ll discover that many landlords and property managers actually require their tenants to have a renters insurance policy; some even state minimum requirements on the lease, meaning that you’ll have to meet this minimum and show proof of your renters insurance before you move into the apartment. What’s the minimum requirement, you ask? Well, for instance, your property manager may require that your insurance policy provide at least $100,000 in personal liability coverage. Personal liability coverage protects you (the renter) against liability claims and lawsuits by others for injuries acquired in your apartment or damage to other’s property (their apartment).
However, you will find circumstances where there is no minimum, so you can choose your coverage and plan based on your own findings. But even if an apartment doesn’t require you to have renters insurance in any form, it’s still in your best interest to get a renters insurance policy of your own.
How much is renters insurance?
Don’t get yourself into a tizzy over the cost of renters insurance – it’s quite reasonable! In fact, most renters insurance plans cost an average of $10-$15 a month or a $120-$180 one-time annual payment. Having $100,000 in liability coverage is not only the typical minimum requirement for landlords and property managers – it’s also the average policy for renters insurance in general. For your payment, you’ll typically receive a $25,000 coverage for personal property, liability coverage of $100,000, and a $500 deductible (what you have to pay before insurance steps in). Sounds reasonable, right? It is! Especially for only $120-$180 a year. The cost of renters insurance is (by far) worth the benefits. But how do you get a renters insurance policy before you move into your new apartment?
How to Get Renters Insurance
If you already have a provider, maybe for your car insurance, then it may be easiest to use that same provider for renters insurance. However, if you’ve never had any sort of insurance before or a policy in your own name, you’ll need to take a few steps:
- Ask your property manager or landlord about their insurance policy. Typically, a property manager or landlord’s insurance policy covers the structure (the apartment building and any additional amenity structures) and the physical property, but it does not cover the tenant or any of the tenant’s belongings. Because of this, it’s best to get your own renters insurance policy in the case of theft, disaster, or accidental damage.
- Estimate the value of your personal property. I’m sure you’ve never thought about how much everything you own is worth in total – I’m right there with you. But it’s good to have some sort of general number in mind so that you can decide what renters insurance plan will best fit you and your belongings.
- Do thorough research and compare companies. One insurance company may be offering you a better deal than another. For instance, you may find that Insurance Company A is offering you a sweet deal with $500,000 in liability coverage for just a tad more money – let’s say for $40 more. If this is alluring to you, you may decide to go with Insurance Company A for their higher coverage. But maybe Insurance Company B is offering you a lower deductible for a higher monthly payment – how do you choose?
- Get a quote. You’ll want to not only ask about general coverage and costs, but about deductibles and premiums as well. Get a quote from several renters insurance providers to be sure you are getting the best deal.
What does renters insurance cover?
There are three parts to your renters insurance policy: personal property coverage, personal liability coverage, and additional living expenses. Within each of these categories, you are covered for certain things. Dive into the details with me, if you will:
Personal Property Coverage
Your “personal property” is basically your belongings – anything that you own in the apartment. This can be your furniture, clothing, electronics, accessories, whatever. It pretty much covers everything. And even if you have your laptop in your car, and it’s stolen when your car is broken into during your apartment lease, guess what? It’s covered by renters insurance! Cool, right? (The coverage, not the break-in).
Personal Liability Coverage
You probably won’t expect to damage your property (apartment) or anyone else’s. But think about this scenario: Your child is playing in the grass in front of the apartment, and accidentally kicks a soccer ball into your neighbor’s window and consequently shatters their favorite vintage vase. If you are sued or are legally obligated to pay for the damages, your renters insurance has you covered (after you hit your deductible).
If your friend is over for drinks at your place, and they slip on a rug and hit their head on your dining room table, then your renters insurance will cover their medical costs (check your policy to see the breakdown of coverage and costs for medical expenses). Or say your dog snaps at your neighbor or guest while in your apartment – your renters insurance will likely cover you here, unless they have a specific clause that does not cover injuries caused by your pets (or the policy is breed restrictive – a bummer, I know). If you have pets, this is a good thing to look out for when you’re choosing between renters insurance policies and providers!
Additional Living Expenses
Disaster strikes – it happens. It’s often sudden, so you have little time to prepare. If your apartment is damaged from any sort of natural disaster or other type of destruction (from a fire, a fallen tree, etc.), and is therefore uninhabitable, then your renters insurance will cover your hotel costs. You can avoid asking friends if you can stay at their place and calling in favors until your apartment is fixed. Your renters insurance has your back!
The benefits of renters insurance far outweigh the disadvantages (there are none). Renters insurance comes at a very affordable cost, and it will give you the coverage and peace of mind that you so desire. Though the cost is minimal, make sure to add this to your monthly rent budget or just pay it in full and consider it a move-in fee. Get with it and get covered, my fellow renters!
