How Does Renters Insurance Work
Renters insurance policies help you recover costs that result from personal property damage, theft and other situations. It typically covers all types of personal property, from clothes and electronics to furnishings and appliances, and isn’t limited to events that happen inside the property.
As with other types of insurance, you pay a premium, often monthly or annually, and in return, you’ll have a certain amount of coverage if an incident occurs. To receive payment for an eligible loss, you’ll file a claim with your insurer detailing the events that led to the damage or other occurrence, such as an injury on the property, and may receive an amount up to your coverage limits.
If you have a deductible on your policy, you will have to pay that amount before your insurance company will pay out on the claim.
Extra Insurance For Renters
You can often add other coverage types to get even better renters insurance, such as:
- Flood insurance. Disastrous floods are on the increase and can wipe away what you own. Whether its a flood from a hurricane or torrential rain, renters across the country can be affected by flooding. Flood insurance for renters is available from FEMA and can start at $100 a year.
- Earthquake damage.Earthquake insurance for renters will cover damage to personal property in the event of an earthquake.
- Personal cyber insurance.Personal cyber insurance pays for expenses if you are the victim of a cyber attack or identity theft.
Improve Your Credit Score
Most states allow insurance companies to use a persons credit history to set rates. While the use of credit as a pricing factor is controversial, insurance companies often cite a correlation between low credit scores and a higher likelihood to file an insurance claim.
Generally, the better your credit score, the less you will pay for renters insurance.
Does Renters Insurance Cover Pets
Most renters insurance policies cover personal property, liability, and additional living expenses. Your average renters insurance plan does not typically cover damage your pet causes to you, your roommate, your family, or any of your personal property. Pet damage to your apartment may sound like damage to personal property, but most insurance carriers only cover destruction caused by certain circumstances when it comes to personal property. Pets arent usually considered a covered peril, whereas earthquakes and fires usually are.
Renters insurance with pet coverage will usually cover is damage your pet caused to others and their property. Keep reading to find out how to add pet coverage to your policy and what it can do for you.
What Pet Liability Insurance Covers
An independent pet liability insurance plan will cover basically the same things as renters insurance with pet coverage. That is, pet liability insurance will help you out if your pet destroys someone elses property or causes harm to someone else. Pet liability insurance typically helps pay for legal fees, repair costs, and medical bills, including mental health bills.
For example, if you leave town for a few weeks and leave your friendly feline with a trusty pet sitter at your apartment. At some point your cat scratches your pet sitter, which later the scratch gets infected. In this case, pet liability insurance would most likely cover your pet sitters medical bills, as well as any legal fees if your pet sitter decides to sue. Also, if your cat decided to rip up your pet sitters expensive scarf, pet liability insurance may help to replace it.
Pet liability insurance can pay up to 70-90% of the cost associated with any pet damage, so it can save you a lot of money.
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Protecting You And Your Possessions With Renters Insurance
You can get a quote for a renters insurance policy online in just a few minutes or consider making a quick call to your Travelers representative to get things started. Renters insurance can help cover the loss of or damage to your possessions, additional living expenses if you have to leave your home due to a covered event, and may protect you from personal liability claims, too. Renters insurance can help protect you from the potentially devastating costs of losing the things you own, from the home or apartment that you dont. Get answers to your frequently asked renters insurance questions like, “How much renters insurance do I need?” on our renters insurance FAQ page.
Property That May Not Be Protected By Renters Insurance
Personal property coverage may not help protect everything you own. Certain types of belongings, such as jewelry or a coin collection, have limited coverage under a standard renters insurance policy. You may be able to add additional coverage, called scheduled personal property coverage, to your policy to help protect your valuables. A local insurance agent can help you determine whether this coverage makes sense for your situation.
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What Does Renters Liability Insurance Cover
Typically, renters liability insurance covers damages to other peoples property and other peoples injuries that youre responsible for. It includes things like:
- Dog bites even at the dog park
- Injuries from slipping and falling
- Fire damage to other apartments
You might be wondering if your landlords insurance would cover a guests injuries or damage to other apartments caused by things like a fire or a leak. Your landlords insurance generally covers damage to the building itself and injuries that occur in common areas, like in the hallways or on the sidewalks but it wont cover injuries or accidents that occur in your unit.
It Protects You From Lawsuits
Renters insurance protects you from liability issues that may arise during your tenancy. If a guest sustains an injury during a fall or as a result of an accident, your renters insurance policys liability coverage may cover the cost of a potential lawsuit, associated legal fees, and the guests medical bills.
Likewise, your policy may cover the cost of fire or water damage sustained by other tenants in your building due to hazards that originate in your unit, such as an electrical fire caused by a faulty hair dryer you left plugged in.
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How Much Does Renters Liability Insurance Cost
Renters liability insurance is included with your standard renters insurance policy, but you can purchase higher coverage limits if you think you need more. If you choose a higher coverage limit, your renters insurance premium will go up, but itll be worth it to pay a few more dollars a month if the unexpected happens.
How Much Personal Property Coverage Do I Need
Think of everything you own. The value of your belongings can quickly add up. How much would it take to replace them if they were damaged or destroyed?
When purchasing a renters insurance policy, you may have a few different choices when it comes to selecting personal property coverage. Here are a few things to keep in mind:
- You’ll want to set coverage limits that are appropriate for your situation. Creating an inventory of the belongings you store in your apartment or home may help you assess the value of your things so you can decide how much personal property coverage is right for you.
- You may also have to decide what kind of personal property coverage to purchase. A policy that provides actual cash value protection typically covers belongings up to their current market value . A policy that includes replacement cost coverage may help you pay to replace your items at today’s retail prices after a covered loss.
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Why You Need Renters Insurance
Protect your property
Your landlords insurance policy isnt enough. It most likely ONLY covers the building you live in. Not your personal belongings.
Protect yourself and others
If someone gets hurt in your apartment, guess who might be held responsible. Yes. You. Apartment insurance offers liability coverage to protect you.
Ensure you have somewhere to live
If the home you reside in gets damaged and you cant live there, you could have to pay for temporary housing.
How Much Is Renters Insurance For An Apartment
The average cost of renters insurance for an apartment is $228 per year, or about $19 per month. However, quotes vary depending on where you live, your insurance history and the coverage limits you choose. Understanding these factors can help you find a renters insurance policy that’s affordable and tailored to your apartment.
Compare Cheap Renters Insurance in Your Area
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How Much Does Pet Liability Insurance Cost
The cost of pet liability insurance varies a lot, depending on the pet you want to cover. Usually, plans cost around $100-$1,000 per year, although the cost depends on the kind of pet you have and their history.
The most important thing to remember about pet liability insurance is to do your research. Every plan covers different things and costs a different amount. And its on you to decide what kind of coverage you need and how much you can afford.
Renters Insurance: The Bottom Line
As weve made clear, the cost of renters insurance depends on a few factors, including how much coverage you need and where you live. You can expect to pay around $29 a month for a basic policy.
Because renters insurance rates dont go up all that much when you increase coverage, its always best to overestimate your needs than to find yourself underinsured. And because rates vary by company, you might get more coverage from one insurer at the same price as a lower-coverage policy from another. Shop around and compare companies to find the best coverage at the best price.
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What Is The Average Cost Of Renters Insurance
The average cost of renters insurance is $347 a year, or about $29 a month. Thats the national average rate for a policy with coverage levels of $40,000 for personal property coverage, with a $1,000 deductible and $300,000 of liability protection, according to Insurance.com’s 2022 rate analysis. But thats just one set of coverage limits.
Renters insurance rates go up as you increase coverage, but it depends on the type of coverage. For example, you can increase your liability to $300,000 for just a dollar more a month on average, while adding extra property coverage costs a bit more.
Can A Landlord Require Renters Insurance
Some landlords are requiring that tenants purchase renters insurance in order to avoid potential liability claims from renters due to damaged property from problems such as fire. Theft is another reason a landlord may require renters insurance for tenants.
If your personal belongings are stolen, renters insurance typically covers this loss. Without renters insurance to recoup losses, a renter might decide to sue the landlord failing to protect the property.
Landlords who require renters insurance often do so by including a clause in the lease. For example, a lease might state that the renter must provide proof of renters insurance within 14 days of the first day of the lease.
Reasons Why You Need Renters Insurance
Do you rent your home or apartment? Renters insurance protects your belongings from loss, damage, or destruction following things like burglaries, fires, tornadoes and other covered events. Plus, renters insurance also protects your liability if someone is injured at your rental home or apartment.
Check out these top five reasons why you need renters insurance.
What Does Tenant Insurance For Renters Cover
Tenant insurance could cover your belongings against common risks such as theft, fire, loss and much more. It’s an easy and affordable way to protect your investment in your personal property. Coverage applies to your belongings that are both in your home and temporarily away, such as when you go on vacation. If your home becomes unlivable due to a covered loss, tenant insurance will cover any necessary and reasonable additional living expenses until you can move back in or find another place to live.
Coverage for personal liability may provide financial protection should you be sued for accidently injuring someone or damaging someone else’s property. Liability protection is often your best line of defense if youre named in a lawsuit or considered personally responsible for unintentional bodily injury or property damage.
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Is Pet Liability Insurance Right For You
Depending on your pet, you can choose between renters insurance, an umbrella policy, a personal liability policy, and a pet liability policy, or a combination of policies, to protect yourself and your pet. Generally, anyone with a pet should have some form of pet liability insurance. And those with exotic pets or certain dog breeds may need extra pet liability insurance.
Renting with pets isnt easy, especially if renters insurance doesnt cover your particular pet. Having proper insurance can make renting with pets a little simpler because you can worry a little less about any damage your pet causes to others or their property.
Managing Your Renters Insurance Policy Is Easy
Meet with a local agent to learn more about renters insurance and personalizing your policy.
Policy Service and Claims
You can directly , or contact the GEICO Insurance Agency partner for help with:
- Additional policy info
Riders and endorsements are “add-ons” to an insurance policy, providing extra protection for certain items. Check out the additional types of coverage that may benefit you and other handy tips on our Renters Resource Guide.
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It Has An Unavoidable Cost That Could Impact Your Budget
Yes, renters insurance protects you from personal liability for bad things that happen inside your apartment and reduces the cost of replacing your stuff after a covered loss. But like all good things in life, its not free.
Its not particularly expensive either, but if youre on a tight budget, any additional spending might be too much to bear. Taking your chances and saving the $200 or $300 youre likely to spend for a basic policy could keep your cash flow positive.
At least, until bad luck comes knocking.
What Doesn’t Renters Insurance Cover
There are some situations where renters insurance may not cover damage or losses of your personal property. These specific events include:
- Jewelry or artwork of high value
- Items not documented in the policy
If you own high-value items or live in an area prone to earthquakes, you can look into supplemental coverage. This can help fill in any gaps left by your insurance.
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Understand What Renters Insurance Covers
Renters insurance covers personal property, such as furniture, clothing, jewelry and electronics. It doesnt protect the physical apartment, which is covered by your landlords insurance.
Renters insurance also often has liability insurance coverage. Liability insurance pays for injuries and damage that you accidentally caused to others. That includes legal defense costs if you get sued because of an accident. You choose the amount of liability coverage and can add umbrella insurance for extra liability insurance.
Protection For Your Personal Belongings
Its a good idea to take inventory of your belongings. If the worst happened, how would you replace the costly electronics you ownthings like smartphones, smartwatches, laptops, tablets, TVs and gaming systems? What about the hundreds or thousands of dollars worth of shoes and clothes you have? And whats your furniture worthsofas, tables, chairs, beds, mattresses and recliners? All of these personal belongings, and more, can be covered by a renters insurance policy.
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Your Possessions Are Valuable
Even if you dont live lavishly, your rental units contents are more valuable than you realize. Setting aside stuff like your major kitchen appliances and bathroom fixtures, which the owner probably provided and therefore covers, you might have:
- A TV and possibly a streaming device
- A laptop or desktop computer
- Small appliances, such as a toaster oven and coffee maker
- Other electronic devices, such as a tablet, smartphone, and smart speakers
- Furniture, which has value even if you picked it up at a yard sale
Individually, these items might not be worth much. Together, theyre prohibitively expensive to replace thousands, maybe tens of thousands of dollars for a lifetimes worth of possessions.
How To Get Cheap Renters Insurance
While the cost of renters insurance is typically low, its good to compare quotes from multiple insurance companies. Dont pick a company based on a clever commercial.
You can also save on renters insurance by asking about discounts. Common renters insurance discounts include:
- A multi-policy discount for buying more than one type of insurance from the same company, such as bundling car insurance with renters insurance.
- Having protective devices such as a fire alarm, sprinkler, burglar alarm and/or deadbolt locks.
- Small discounts for getting a quote in advance, paperless billing, enrolling in auto-pay or paying your premium in full.
- Price breaks when you havent made any renters insurance claims.
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What Type Of Damage Does Renters Insurance Cover
A renters insurance policy through GEICO provides low cost coverage for you and your belongings for things like:
- Electronics and appliances
- Furniture and clothing
- Extra expenses if property is uninhabitable due to a covered loss
- Accidental damage to someone else’s property
- Medical expenses and/or legal fees if someone is injured at the residence you’re renting
If you have a jewelry collection of items like engagement rings, wedding bands, diamond bracelets, etc., you may also need special coverage for these along with your renters insurance policy. If that’s you, we can help you with a jewelry insurance policy for those valuables.