Looking to protect everything you own in your apartment?
Don’t count on your landlord’s insurance coverage. Here’s why:
They’re not protecting you.
Renters without proper insurance pay thousands of dollars out of pocket if the apartment is damaged by fire, theft, water damage, and other causes.
When you include liability claims, expenses add up quickly.
But here’s the good news…
Getting the right renters insurance for tenants isn’t difficult.
With the best renters insurance advice, you can maximize protection and still keep your costs low.
After all, did you know that 43% of renters don’t have coverage? There’s a lot of unprotected renters out there in need of guidance.
Here’s how to unlock comprehensive renters insurance coverage without paying too much.
Your Coverage Guide:
- What Renters Insurance Actually Covers
- The True Cost Of Renting Without Insurance
- How Much Coverage Do You Need?
- Premium-Cutting Strategies You Need To Know
- Coverage Gaps To Be Aware Of
What Renters Insurance Actually Covers
Renters insurance is not one thing. It’s three.
Coverage falls under these three important categories:
- Personal Property Coverage
- Liability Protection
- Temporary Living Expense
Personal Property Coverage
The first part of renters insurance pays to replace your personal property. This includes furniture, electronics, clothing, etc.
For example, if a fire damages or destroys the apartment, the policy covers the cost of replacing the contents.
Renters insurance covers belongings against theft, fire, vandalism, lightning, smoke, water damage (from pipes, etc. ), and many other perils.
Insurance also extends outside of the home. For example:
- Your laptop is stolen from your car. Covered.
- Your luggage is lost by the airline. Covered.
- Your bike is stolen from the gym. Covered.
- And so on.
As you can see, renters insurance does cover quite a bit. Standard policies protect personal property at home and away.
Liability Protection
Renters insurance liability coverage is a large component of policies.
This part covers the policyholder in the event they cause bodily injury or property damage to someone else.
If a guest is hurt in your apartment, liability coverage kicks in. Medical bills, legal fees, court settlements, and other costs are covered.
Liability claims can cost tens of thousands of dollars. Without insurance, policyholders are left to cover that entire amount out of pocket.
Temporary Living Expenses
When a rental property becomes uninhabitable due to covered damage, the third part of a renters insurance policy covers the cost of living elsewhere.
Renters insurance companies will cover hotels, restaurant meals, transportation, and other living expenses.
For example, if a water leak causes major damage, the landlord may not be able to provide an alternative apartment for several weeks.
The insurance policy covers living expenses while the apartment is uninhabitable.
Renters insurance does cover quite a lot, then. It protects belongings, liability, and even living expenses while repairs are made.
The True Cost Of Renting Without Insurance
If you rent and don’t have renters insurance, you need to know this:
Renters Insurance is insanely cheap.
The average renter pays only $174 per year for comprehensive coverage.
That’s less than $15 per month. That’s cheaper than most streaming services.
Meanwhile, the average renter would need at least $20,000 of coverage to replace everything they own.
If a disaster happens, that $20,000-$40,000 is an out-of-pocket expense.
And don’t forget liability claims.
A simple mistake by a renter that injures someone can lead to claims in the tens of thousands of dollars.
Renting without renters insurance is unwise, then.
The low annual premium is small compared to the potential out-of-pocket losses.
How Much Coverage Do You Need?
Getting the right coverage amount is key.
Underinsuring yourself is just as bad as having no coverage.
Having the wrong amount of renters insurance coverage leads to being unable to replace everything you own after a loss.
The only way to avoid this is to have enough coverage to pay for everything.
For personal property, this means taking an inventory and knowing the total cost to replace everything.
Liability coverage is more a matter of “how much can you afford to lose?”. Experts recommend at least $300,000 of liability coverage.
Most policies start at $15,000, but many renters need $30,000 to $50,000 for personal property to be fully protected.
Premium-Cutting Strategies You Need To Know
Nobody likes paying more than necessary for insurance coverage.
The good news is that there are ways to trim a renters insurance premium without sacrificing protection.
- Bundle policies together. Combining renters with auto insurance saves 15-25% on both policies in most cases.
- Increase the deductible. Jumping from a $500 to a $1,000 deductible can cut the premium by 20-30%. Just make sure you have the savings to cover the deductible if needed.
- Install safety features. Smoke detectors, deadbolts, and other safety devices qualify for discounts.
- Pay the premium annually. Monthly premiums are usually more expensive due to processing fees. Paying once a year saves a few percent.
- Ask about discounts. Many insurers offer small discounts for good credit scores or being claim-free for several years.
These savings can easily add up to $50-100 per year.
Coverage Gaps To Be Aware Of
Renters insurance policies are great, but they don’t cover everything.
- Flooding and earthquakes are not covered. Renters in flood zones or earthquake zones will need separate flood or earthquake insurance or a rider added to the policy.
- High-value property limits may apply. Items like jewelry, artwork, collectibles, electronics, etc. may have a sub-limit of around $1,500-2,500. Anything more valuable will need to be on a rider or floater to be covered.
- Business equipment is not covered. Renters running home businesses will need to get business insurance to cover professional equipment and inventory.
- Roommates are not covered. Each roommate is required to purchase their own policy. Sharing a policy with roommates will not work unless they are all family members.
- Intentional damage is excluded. This goes without saying, but renters insurance does not cover damage that the policyholder causes on purpose.
By understanding these common gaps, renters can ensure complete coverage with no nasty surprises when a claim is filed.
Additional Protection Worth Considering
Renters insurance policies cover quite a bit, but there are some add-ons worth the extra cost.
- Replacement cost coverage instead of actual cash value. This typically costs about 10% more but has a big benefit – it pays to replace lost items with new ones instead of depreciated values.
- Water backup coverage. This is a must for older buildings. Sewer or drain backup damage is not covered by standard renters insurance.
- Scheduled personal property. This rider covers specific high-value items like engagement rings, camera equipment, etc. without a deductible.
All of these extra coverages will provide comprehensive renters insurance coverage for specific risks.
Making A Claim The Right Way
When the time comes to file a renters insurance claim, don’t make these mistakes:
- Document everything. Take photos and videos of all damage immediately, before cleaning or repairing anything. The more documentation you can provide, the better.
- Report the incident ASAP. Most policies require the incident to be reported within 24-48 hours. The longer you wait, the harder the claims process will be.
- Save all receipts. Proof of ownership makes claims go much smoother. Receipts, credit card statements, or even photos help prove what you owned.
- Get a police report. Theft or vandalism incidents will need to have a police report for the insurer.
- Track temporary living expenses. Save all receipts for hotels, restaurants, and other living expenses while displaced to get reimbursed.
Properly handling a renters insurance claim is straightforward once you know what to do.
Wrapping Up Your Protection Plan
Renters insurance protection doesn’t have to be a mystery.
You don’t need to be an insurance expert to maximize coverage.
The best renters insurance advice can be summed up like this:
- Get enough coverage to replace everything
- Don’t skip liability protection
- Bundle policies to save money
- Document belongings before disaster strikes
- Understand what’s not covered and add riders when needed
Comprehensive renters insurance for tenants costs less than $15 per month.
Considering the tens of thousands of dollars at risk without coverage, it’s one of the best financial decisions a renter can make.
Spend 30 minutes today to get quotes, compare coverage, and start protecting what matters most.
