If you are searching for a new apartment, have a lease renewal coming up, or want to protect your belongings from damage or theft, renters insurance is something you should be looking into. It is inexpensive and can save you from serious financial strain.
What is Renters Insurance?
Renters insurance is a type of insurance policy that protects renters’ belongings from theft, damage, or destruction due to covered events like theft, fire damage, water damage, or storm damage. If you had a break-in and your jewelry and electronics were stolen, your renter’s insurance policy would typically cover the costs of replacing the stolen items.
If there is a fire that damages your belongings your policy would cover the costs of full or partial replacement for the destroyed items. A policy can also protect against liability if someone is injured on your property. If a visitor breaks a leg on your wet bathroom floor, the renter’s insurance liability clause can pay for their medical expenses.
Renters insurance protects renters from financial strain and liability following a covered event. It is very similar to homeowners insurance but is for renting individuals in apartments, condos, or other residential spaces.
Should I Buy Renters Insurance if it Isn’t Required by My Landlord?
Some landlords or apartment complexes will require renters to purchase a rental insurance policy. But if you are not required to purchase rental insurance, should you buy it anyway?
In our opinion, YES.
Because a policy is typically very low in cost ($120 average per year), we seriously suggest buying a policy even if not required by your building. No one can predict the future and apartment buildings with multiple tenants can have lots of things go wrong (especially if the building is on the older side).
Think about the apartment above you having a major toilet leak which floods your apartment, damages your belongings, and makes your apartment unlivable. If you don’t have an insurance policy you will get zero compensation to replace your damaged belongings and will get zero financial assistance to temporarily live somewhere else while repairs are being completed. If someone is injured on your property and you don’t have renters insurance they could sue you for damages and if you lose you’d have to pay out of pocket. Renters insurance protects you from liability in cases like this.
Considering its low cost and huge value if you need to file a claim, we seriously recommend buying an insurance policy.
How Much Renters Insurance Should I Buy?
Renters insurance is typically inexpensive. You should purchase enough coverage to replace the total value of your belongings. For most young people a protection level of $10,000 will be suitable. For renters with a higher level of valuables within their apartment, a higher level will be smart.
Consider things like family heirloom jewelry. If a single necklace is appraised at $8,000 and your renter’s insurance only covers $5,000, it will not even cover the value of a single item. Your level of coverage should reflect the total value of belongings within your apartment. This is why it is good to itemize your belongings (with appraisals for jewelry) to make sure you know the total value of your belongings should they need to be replaced.
Where renters insurance is required you should get at least the minimum coverage level, but that number should still reflect the total value of your belongings. For folks like college students, $10,000 is typically more than enough coverage.
Where Should I Get Insurance?
If you’re in the market for an insurance policy the most important thing you can do is compare multiple policies from multiple different insurers. This way you ensure that you’re getting the best possible deal because you’ve compared coverage levels and prices from multiple different insurers.
Get a Renters Insurance Quote
Finding the right renter’s insurance stats with a thorough price comparison.
Lemonade – Our Preferred Insurance Provider
Looking for a painless low-cost renters insurance policy? Lemonade is leading the way in affordable renters insurance and is our preferred partner for good reason:
- Low costs
- Instant approval
- Superb claims process
- Consumer Awards
- and more
See why Lemonade is our favorite renter’s insurance company today.
