Renters Insurance Explained

Renters insurance is often overlooked but provides essential protection for your belongings and liability coverage. Here's everything you need to know:

What Renters Insurance Covers

Renters insurance typically includes three main types of coverage:

Personal Property Coverage

Protects your belongings from covered perils like fire, theft, vandalism, and water damage. This includes furniture, electronics, clothing, and other personal items.

Liability Coverage

Protects you if someone is injured in your rental unit or if you accidentally damage someone else's property. This coverage can help pay for medical expenses and legal fees.

Additional Living Expenses

If your rental becomes uninhabitable due to a covered loss, this coverage helps pay for temporary housing, meals, and other expenses.

What's Not Covered

Common exclusions include:

• Floods (requires separate flood insurance)
• Earthquakes (requires separate coverage)
• Normal wear and tear
• Intentional damage
• Business property (may need separate coverage)

How Much Coverage Do You Need?

To determine the right amount of personal property coverage:

• Create an inventory of your belongings
• Estimate replacement costs, not original purchase prices
• Consider high-value items that may need special coverage
• Review and update your coverage annually

Cost Factors

Renters insurance typically costs $15-$30 per month. Factors affecting cost include:

• Location and crime rates
• Coverage amounts and deductibles
• Your credit score
• Previous claims history
• Safety features in your building

How to Save Money

• Bundle with auto insurance for discounts
• Choose a higher deductible
• Install safety devices
• Maintain good credit
• Shop around and compare quotes