Renters Insurance

While you live in a rental home, you have to pay rent, take care of the space and make sure that you leave it in good condition for the next person. At the same time, you have to protect yourself in that space. One of the best ways to protect yourself and others on the property is to have renters insurance.

What's Renters Insurance?

Homes, even rental properties, have insurable interests. You might not own the house, and you therefore don’t need the full homeowner’s policy someone else might. but you still own the possessions inside. You still pose liability risks to others by living in the space. If damaging accidents occur in the home, then you might face personal challenges that you can’t easily afford to fix.

Your landlord is usually not responsible for replacing your damaged belongings, or for paying for damage that is your fault. Renters insurance can provide you with a financial settlement that can alleviate your own cost burdens after accidents in the home.

In essence, if you rent a home, you must have this coverage. From Millennials to retirees, families and more, anyone can benefit from the protection that renters insurance can provide.

What Does My Renters Insurance Cover?

A true HO-4 Renters Insurance policy will offer a few standard types of protection:

Liability Insurance
Liability coverage applies to cases where the policyholder (you) causes harm to a third party. If you are at-fault for someone else’s bodily injuries or property damage, liability insurance can help cover that party’s losses. Coverage can also provide you with legal assistance in the event of a lawsuit.

Contents Insurance
HO-4 policies typically cover your personally-owned items, like furniture, clothing or electronics damaged by a variety of accidents, including:

• Fire & smoke damage
• Wind, hail & lightning
• Explosions
• Falling objects
• Riots & civil commotions
• Damage by vehicles & aircrafts
• Theft
• Volcanic eruption
• Weight of ice, snow & sleet
• Water damage from utilities
• Electrical surges
• Vandalism & malicious mischief

As long as a covered peril damaged the items, almost any possession can receive contents coverage.

Living Expenses Coverage
Sometimes, damaging accidents might make the home temporarily unlivable. While the home undergoes repairs, this coverage can pay for expenses like your hotel or dining bills.

What About Coverage For The Home’s Structure?

Sometimes, HO-4 property damage liability insurance will pay for damage you cause to the rental property itself. So, if damage in the home is your fault, this coverage can help you pay for the repairs.

However, if the structural damage was not your fault, then it is not your responsibility to pay for. Rather, that falls onto the landlord and their rental property insurance.

How Much Renters Insurance Should I Carry?

The right renters insurance needs cover the full value of your personal assets and liabilities.

• Landlords frequently require renters to carry minimum liability insurance limits. Most HO-4 policies will start with at least $100,000 in liability limits. You can increase these limits to offer yourself (and by default, others) more assistance.
• To get the right contents insurance, you will need to inventory or appraise your personal belongings. You need to know not only what you have, but also items’ purchase values.
• Most policies will include deductibles. We’ll help you tailor yours to ensure you never have to pay more for a claim, personally, than you can afford.

Replacement Cost Value vs. Actual Cash Value Coverage

Contents insurance might offer either replacement cost value (RCV) coverage or actual cash value (ACV) protection. Each element will influence how much coverage you can receive.

• ACV insurance will pay a possession’s depreciated value at the time of the damage. This is not an item’s new-purchase value.
• RCV coverage will pay you enough money to buy a new item of equal or lesser value. RCV coverage will usually provide you with more coverage. However, it might make your premium more expensive.

Is Renters Insurance Affordable?

Everyone’s renters insurance premiums will vary. The type of home (houses, apartments, condos), the amount of coverage you buy and other demographic factors will influence your premium. However, most policies are very affordable, and you can pay your premiums monthly, so that they fit your budget.

Frequently Asked Questions